2/21/2015
Tesla Motors Inc (NASDAQ:TSLA)
If you've read my write up about electric vs gas cars this is not a reversion of that however I do see the place for the A to B commuter choosing an electric car, but more importantly the batteries Tesla will be making will be important for all electronics. While this competition will be direct with Japan the almost mindless enthusiasm for this company from investment capital mean it may well succeed, but we're only interested in it at a good price.
Price at write-up $217.11
Target 125 to 175.
Valuation Ratios
Price/Earnings (TTM) . . . . .NA (negative EPS)
Price/Sales (TTM) . . . . . . . 8.3x
Earnings per share . . . . . . .-2.35
Price/Book (MRQ) . . . . . . . 2x
Price/Cash Flow (TTM) . . . .Negative
Held by institutions . . . . . . . 58.56%
Short interest . . . . . . . . . . . . 25.51%
Market Cap 27.2B
Listen, I think most people on earth would be best served by having electric, non-hybrid, cars. Do I think that will happen? No. Not for awhile anyway. However, with the gigafactory and technology I think they have some valuable IP, sales potential, and (not to mention) cultural cache. I do like the cars but since I journeys to the backcountry for Snow Boarding and would like the option to provide rideshare services at my leisure, like most American's they're not for me. Strictly as a commuter-car however, top notch! You'll notice my price point is almost $100 less than it's current price, almost 50% the current price - and that's because we all missed the boat. Tesla is one of the stories I tell when people ask me if I ever lose money, and truth be told I lost $5k on this stock in the IPO timeframe - I made the classic mistake of listening to a trader and not an investor in a time of panic. If I would've held my stake I could've bought the new p85D with change to spare after I picked it up at ~30. Not that I would've.
This is all a really long-winded way of saying I believe in this companies future, but as I both expect a significant pull back and a possible recession in the next 2 to 5 years I believe this is one of the companies that will probably see a really big sell off. Likely not in the next 6mo, but hey that's as long as GTC lasts. Huge upside, but there's so much out opportunity out there (or will be) I'm not willing to cost average in.
Due diligence would include other car makers like Toyota Motor Corp (ADR) and GM, but also Panasonic (OTCMKTS:PCRFY), LG Chem, and A123Systems.
Tesla Motors Inc (NASDAQ:TSLA)
If you've read my write up about electric vs gas cars this is not a reversion of that however I do see the place for the A to B commuter choosing an electric car, but more importantly the batteries Tesla will be making will be important for all electronics. While this competition will be direct with Japan the almost mindless enthusiasm for this company from investment capital mean it may well succeed, but we're only interested in it at a good price.
Price at write-up $217.11
Target 125 to 175.
Valuation Ratios
Price/Earnings (TTM) . . . . .NA (negative EPS)
Price/Sales (TTM) . . . . . . . 8.3x
Earnings per share . . . . . . .-2.35
Price/Book (MRQ) . . . . . . . 2x
Price/Cash Flow (TTM) . . . .Negative
Held by institutions . . . . . . . 58.56%
Short interest . . . . . . . . . . . . 25.51%
Market Cap 27.2B
Listen, I think most people on earth would be best served by having electric, non-hybrid, cars. Do I think that will happen? No. Not for awhile anyway. However, with the gigafactory and technology I think they have some valuable IP, sales potential, and (not to mention) cultural cache. I do like the cars but since I journeys to the backcountry for Snow Boarding and would like the option to provide rideshare services at my leisure, like most American's they're not for me. Strictly as a commuter-car however, top notch! You'll notice my price point is almost $100 less than it's current price, almost 50% the current price - and that's because we all missed the boat. Tesla is one of the stories I tell when people ask me if I ever lose money, and truth be told I lost $5k on this stock in the IPO timeframe - I made the classic mistake of listening to a trader and not an investor in a time of panic. If I would've held my stake I could've bought the new p85D with change to spare after I picked it up at ~30. Not that I would've.
This is all a really long-winded way of saying I believe in this companies future, but as I both expect a significant pull back and a possible recession in the next 2 to 5 years I believe this is one of the companies that will probably see a really big sell off. Likely not in the next 6mo, but hey that's as long as GTC lasts. Huge upside, but there's so much out opportunity out there (or will be) I'm not willing to cost average in.
Due diligence would include other car makers like Toyota Motor Corp (ADR) and GM, but also Panasonic (OTCMKTS:PCRFY), LG Chem, and A123Systems.