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TSLA Market Action: 2018 Investor Roundtable

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This morning at 11:00 EST (16:00 UT) CFRA will commence a webinar on the subject of Predictions 2019 - CFRA's Best Ideas for the New Year.
  • Utilities: Ten Predictions for 2019
  • Financial Exchanges and Data Industry: Top 10 Predictions for 2019
  • Automotive: Top 10 Predictions for 2019
Moderated by:

Kenneth Leon, Director of Equity Research, CFRA

Presented by:
  • Chris Kuiper, Equity Research Analyst, CFRA
  • Christopher Muir, Equity Research Analyst, CFRA
  • Garrett Nelson, Senior Equity Research Analyst, CFRA
Garrett Nelson is their analyst who recently took over coverage of TSLA from the retiring TSLA bear Efraim Levy. On 2018 DEC 04 (my birthday!) Nelson reiterated a BUY rating on TSLA and raised its price target from $375 to $420.

In 2016 CFRA acquired S&P Global’s Equity and Fund Research. That included their Chief Investment Strategist Sam Stovall. He is a friend of mine and was a regular guest on my TV show. He keeps me on their comp and notifications lists.

Link to webinar registration: Predictions 2019 - CFRA's Best Ideas for the New Year
 
TSLA bearish compared to Nasdaq today. Lagging by about 0.8%. Just turned red too.

Not sure how to trade today. Not sure what a intraday high & low may look like.

ps : 1.8% lagging now. Near yesterday's lowest.

NASDAQ futures did big 40-50 handles swings today already, five times (up, down, up, down, up ...) within just 1.5 hours of trading. So maybe the panic isn't fully over yet, but this sure looks like an unusual pattern.
 
Garrett Nelson is their analyst who recently took over coverage of TSLA from the retiring TSLA bear Efraim Levy. On 2018 DEC 04 (my birthday!) Nelson reiterated a BUY rating on TSLA and raised its price target from $375 to $420.

Yeah, I really loved that new $420 target: it signals an analyst who does not shy away from whatever price target the models suggest, or an analyst with a good sense of humor. Or both. ;)
 
Anyone has a clue why this guy Adam Jonas is still not positive on TSLA. Piss me off.

Don't be pissed off - be thrilled. If everyone was positive on Tesla, the stock would be ridiculously expensive. The whole point is to buy cheap, sell high after Tesla proves itself to the world. You need naysayers for this to be possible.
 
Yeah, this smells of market manipulation, although Jonas and Tambourine-O are such idiots that it may just be rampant stupidity.

(Fred warning: https://electrek.co/2018/12/18/tesla-tsla-morgan-stanley-goldman-sachs/ )

Both Jonas and Tambourine-O want Tesla to raise capital by going to MS or GS (with the associated high fees) and are really annoyed that Tesla isn't going to, so they're pretending that Tesla is going to.

Anyone who can do arithmetic can tell that Tesla isn't going to. I anticipate that Tesla will end Q4 with about the same amount of cash they had at the end of Q3 (profits in Q4 should be similar to or slightly higher than in Q3, and the required bond payoffs are roughly equal to the profits from Q3), and more access to secured credit (the entire Warehouse Line was just turned into an asset-backed loan, freeing the Warehouse Line up again). With 3.5 billion in cash, Tesla will have no problem paying off the $920 million bond on March 1, and of course there will be more profits during Q1.

Anyway, I'm selling more DOTM puts, although it makes me uncomfortably leveraged (...for about a month). I can still execute all of them by selling my other, non-TSLA stocks. If I have to. I probably won't have to.

I’ve come to realize that the use of margin is a much better way to leverage than the use of call options. (I’m sure there are exceptions though). You don’t loose time value when using margin. And while you do have to pay interest, you can write about a quarter of the interest off on the tax return. Additionally, you do not have to worry about an experiation date. With Tesla, it is quite risky to make predictions about the stock price at a given date. Much better to just buy into the future and wait out any period of low prices.

I decided that selling puts was a better way to leverage than using margin to buy stock directly. I get *paid* for the time value, and the worst that happens is that I buy the stock cheap and end up on margin. The disadvantage is that if the stock runs up quick and fast and permanently, I lose out on the upside of having more stock, but I already have so much stock owned outright that I am OK with that. I do have a lot of other stocks to back my put sales with though -- I would *not* back them with TSLA stock, as that's overcorrelated and risks margin calls.
 
Don't be pissed off - be thrilled. If everyone was positive on Tesla, the stock would be ridiculously expensive. The whole point is to buy cheap, sell high after Tesla proves itself to the world. You need naysayers for this to be possible.

He is calling this quarter the peak for TSLA. Looking at the month so far, and the way the stock is heading today, it likely means the peak for the stock was around $378.

Congratulations to everyone who sold near the peak!

It’s downhill from here on, Tesla will struggle to survive. The establishment has woken up and will soon unleash all their “Tesla killers” into the market, forcing Tesla out of business.

The stock will go to zero, Adam Jonas told you so!

Lol
 
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