Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable

[jhm]

Buy These 5 Low Leverage Stocks to Avoid Debt-Related Risk

Guess who is a low leverage stock?

 

[Tslynk67]

Buy These 5 Low Leverage Stocks to Avoid Debt-Related Risk

Guess who is a low leverage stock?

Can you explain to a moron what "low leverage stock" means/implies?

 

[Tslynk67]

Looking ahead to next week, the handbrake at $1000 looks to be easing off

 

[Tim S]

Can you explain to a moron what "low leverage stock" means/implies?

From the link @jhm posted:

Debt-to-Equity Ratio = Total Liabilities/Shareholders' Equity

This metric is a liquidity ratio that indicates the amount of financial risk a company bears. A company with a lower debt-to-equity ratio shows improved solvency for a company.

 

[dl003]

Can you explain to a moron what "low leverage stock" means/implies?

A business' total asset is financed through debts and equity. Low leverage means a low debt : equity ratio, meaning the meat of the business belongs to shareholders, not lenders. The Bible said debtors are slaves to lenders and this is not a slavery joke. During times of crisis, these companies are not at risk of premature termination due to inability to meet short term debt servicing obligation. So I think time is the operating concept. Given enough times, most companies can turn around and generate profits. A low leverage company just has more time on its hand. Much like a LEAP option is valued more than a weekly of the same strike because it has higher time value. This is an unnecessarily excessive amount of words and analogies to just to say HODL.
I said the same thing back in March

Some balance sheet recap before recession begins:
GM
D/E ratio: 1.43
Debts: $66B
Cash: $23B

Ford
D/E: 3.05
Debts: $101B
Cash: $35B

Tesla
D/E: 1.56
Debts: $12B
Cash: $8B

Guess who can weather a recession better?

Update: GM's D:E has changed to 1.83 from 1.43
General Motors Company (GM) Debt Equity Ratio (Quarterly) - Zacks.com
Ford went from 3.05 to 3.85
Ford Motor Company (F) Debt Equity Ratio (Quarterly) - Zacks.com
They all took on more debts, a lot of them
Meanwhile, Tesla went from 1.55 DOWN to 1.05, thanks to the equity raise in February
Tesla Inc (TSLA) Debt Equity Ratio (Quarterly) - Zacks.com
Would you look at that. I think I'm giving myself FOMO.

 

[TheTalkingMule]

Another delayed reaction from TSLA on a massive macro up day. Let's see if everything stays roughly on this track all day, if so I'd be willing to wager a big up day for TSLA tomorrow.

I think we can call this pattern confirmed. The great thing from an investment perspective is you now have time to "buy the news", or on major macro up days where TSLA is clearly being held down. You got a full 24hr delay on 3% pops!

It even applies for events as absurdly positive as 1Q20 earnings. We closed at $701 on Friday May 1st, two days after earnings that were universally applauded as game-changing and didn't really require digestion for the market to react positively.

I guess this is a delay related to shorts waiting a beat to cover?

 

[willow_hiller]

Looking ahead to next week, the handbrake at $1000 looks to be easing off

Massive shift in max pain for this week as well. Up $60 to $890.

EDIT:

Comparing open interest from yesterday to today, it looks like someone opened about 10,000 puts at 950. That would explain the shift.

06-16-2020:

06-17-2020:

 

[Causalien]

Marques has been building his channel since he was 11. I'm a fan, he is a VERY good tech reviewer. I'm sure the anticipated mixed response to his unprecedented accepting of "Influencer Cash" is in part calculated to drive new eyeballs to his channel. The Buick video is clearly labeled throughout as a paid advertisement.
Oh, and he doesn't have a family to support as of yet.

Pretty jealous of him. But then I remembered that I prefer my anonymity.
At the same time, respect to what he's able to do and he's probably helped TSLA more than any of us.

 

[CyberDutchie]

It's nice to see FUD having diminishing returns nowadays. The SP used to be more sensitive to bearish fan fiction but I think we have moved on. It seems prevailing winds are upwards whenever MM's aren't manipulating for options expiry.

Agreed, this just appeared on the E*Trade app news feed:

Tesla's Model 3 registrations down 37% in California in April and May, analyst says

TSLA stock doesn’t seem to react much to this news.

 

[Curt Renz]

Craig Johnson is a managing director and technical strategist at Piper Sandler (formerly Piper Jaffray). He was a regular guest of mine on my old TV show, and still sends me his newsletters. In early 2013 he recommended TSLA, which led to my first purchase at $38. His auto analyst colleague Alexander Potter has a BUY rating on TSLA.

This morning Craig included TSLA in his list of technically positive stocks, and noted that there may be an opportunity for investors to benefit from its recent pullback.

The above quote was from Monday. Here's what Craig wrote this morning, Wednesday:

• Tesla Inc (TSLA - $982.13); Shares have climbed to record-highs after surpassing resistance off the February ‘20 highs; above the rising 10-/30-week WMAs; constructive/confirming RS trend and notable TechniGrade ranking; add to positions, as we suspect shares have more room to run.

 

[Big Time]

Massive shift in max pain for this week as well. Up $60 to $890.

View attachment 552684

EDIT:

Comparing open interest from yesterday to today, it looks like someone opened about 10,000 puts at 950. That would explain the shift.

06-16-2020:
View attachment 552712

06-17-2020:
View attachment 552714

Would you be able to give a detailed explanation on how to read this type of graph. Big n00b when it comes to Maz pain/options/calls/strike

 

[StarFoxisDown!]

Agreed, this just appeared on the E*Trade app news feed:

Tesla's Model 3 registrations down 37% in California in April and May, analyst says

TSLA stock doesn’t seem to react much to this news.

I actually don't know how anyone with a logical brain could read that as negative IF I'm reading it correctly. They're lumping April and May sales together, during which times hardly any deliveries were happening and zero production for 75% of those 2 months. So to only be down 37% tells me in the 2nd half of May, deliveries made a big rebound. Otherwise the lumped together total of April and May would have been down A LOT more than 37%. Also, when Fremont did reopen, I would assume practically all production was going towards Europe and Asian markets for most of May.

This 37% drop can easily be made up by Giga 3 production and deliveries.

 

[Todd Burch]

Agreed, this just appeared on the E*Trade app news feed:

Tesla's Model 3 registrations down 37% in California in April and May, analyst says

TSLA stock doesn’t seem to react much to this news.

My guess is that there was no reaction because “duh.“

Love that this is the worst they can do now, lol.

 

[dgodfrey]

From the link @jhm posted:

Debt-to-Equity Ratio = Total Liabilities/Shareholders' Equity

This metric is a liquidity ratio that indicates the amount of financial risk a company bears. A company with a lower debt-to-equity ratio shows improved solvency for a company.

Maybe we should forward this on to Moody's. Do they have internet?
@Moody's

 

[Causalien]

My guess is that there was no reaction because “duh.“

Love that this is the worst they can do now, lol.

Heh. Only 37%? That's actually a good number. Everyone should be seeing revenue down by 60%.

 

[kengchang]

Agreed, this just appeared on the E*Trade app news feed:

Tesla's Model 3 registrations down 37% in California in April and May, analyst says

TSLA stock doesn’t seem to react much to this news.

Seen that before....lol

 

[vikings123]

https://twitter.com/yahoofinance/status/1273281570758107137?s=21

5 minute Yahoo finance interview with Oklahoma commerce secretary. It appears discussions are still ongoing and even though Oklahoma/Tulsa is an underdog they feel like they have a strong value proposition.

 

[Jack6591]

I have avoided Seeking Alpha for years. However, I like this article, clear, descriptive, and on point.

https://seekingalpha.com/article/43...EhFRGJ4dTNId2ZCRk83THJhWVhkMW5qTTdUMlVZN2FkeQ..

 

[willow_hiller]

Would you be able to give a detailed explanation on how to read this type of graph. Big n00b when it comes to Maz pain/options/calls/strike

First chart is the "Max pain" chart. It's a series of bars where the X axis is TSLA closing price at option expiry, and the Y axis tells you how much money all the TSLA options are worth cumulatively if that closing price occurred. It's split into blue for puts and red for calls. A lot of options are sold by market makers, so the theory is that market makers will seek to move the closing price at expiry to the value which minimizes the gains from all the sold options (maximizing pain for the option buyers).

The next two charts are simply charting option open interest on the Y axis (how many contracts have been written in total) against option strike price on the X axis. Again calls in red and puts in blue.

 

[goinfraftw]

1/2 a year. This is insane. It'd be great to know how much of this is Oil vs. EV.

https://twitter.com/NateSilver538/status/1273294432394190849