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Originally Posted by wheatrich
Got to love the market just shrugging off that conference call.
As I've said (and the clucks haven't understood) is that Tesla is very high beta. The market is king, which is why it ran up to $380 in the first place - the Trump rip. It doesn't show up in stats because Tesla has under performed in various ways since hitting $240 four years ago, but if Tesla has been sold down and the market rips off lows (especially tech) in a very positive day, Tesla will rip at a beta of 3-5, regardless of news. My theory is that it's a combination of a low active float (insiders and no-sell institutions own over 70%), shorts covering from the huge short float, and algos who trade this name. For example, Tesla can be sold down on horrible news, but if the market buys up at open, it'll rip back to even in minutes, even if the news is bad enough that it eventually ends down 7% for the day. That's pure algo action and not driven by humans.
The more worthless and crappy the stock, the more it acts like this in a bull market. The worst of the .coms, with certain bankruptcy and zero path to profitability, ripped the most in 1999/2000. Enron did too.
Quote:
Originally Posted by grizy
It's not news Musk has no respect for the bankers and analysts that fund his passion projects.
His passion projects? Musk continues with Tesla as a vehicle to get rich and live a billionaire lifestyle. The green con is just that - a con. He's pledged $3.5 billion in Tesla stock to get his $650 million in loans. Keeping Tesla's stock price up is his sole means of survival. It all goes belly up if Tesla does. Had he not knowingly deliberately lied about 2017 M3 production he knew to be impossible, the stock would have gone down to $200 or so, and he would have faced a margin call on close to half his holdings.
Quote:
Originally Posted by adios
@syndr0me & teflondawg - you guys do realize that the financial statements are audited by an independent accounting firm (no serious investor would touch a stock where they knew the accounting was questionable) and that Musk is criminally liable for signing off on a fraudulent financial statement right? Civil lawsuits filed by shareholders aren’t about fraud in the criminal sense. And has there ever been a frivolous shareholder lawsuit filed? Teflondawg, you need to show your work about TSLA and the SEC.
Look, I have no position in TSLA. I find it hard to justify its market cap but I defer to the market when push comes to shove.
Dude, just recently "serious investors" - some of the most serious in the business - were piling into Valeant above $100 after it was obvious to anyone with any experience that this was pure accounting fraud and going a lot lower. How many times did Enron buy up off lows?
As for the market, if the tech bubble of 2000 and Valeant don't convince you, look at subprime CDOs. They were selling like hotcakes to investors all levels when they were predictably purely worthless if you only read the prospectuses. The market is seriously stupid. Closer to home, the divergence between Tesla bonds and equity shows that the market can't even price consistently internally.
Last edited by ToothSayer; 05-04-2018 at 09:35 PM.