The LA Times fails again

Discussion in 'Tesla' started by bwilson4web, Feb 1, 2020.

  1. bwilson4web

    bwilson4web Well-Known Member Subscriber

    Source: https://www.latimes.com/business/story/2020-01-31/tesla-stock-mystery

    Relying on the dodge that I’m never wrong about the stock market, but my timing is sometimes off, I am willing to state that Tesla stock is today ridiculously overvalued.

    The shares closed on Thursday at $640.81 in Nasdaq trading. That’s a gain of 53.2% since Dec. 31, and 14.8% just over the previous three trading sessions. All this happened essentially on no news.
    . . .
    Could Tesla continue to rise indefinitely? Of course. As irrational as the price seems today, based on actual sales and earnings, there may be more madness ahead. A favored stock market adage is often attributed to John Maynard Keynes as a warning not to bet against the mob.

    “The market can stay irrational,” Keynes is said to have counseled, “longer than you can stay solvent.”

    What bothers me is he makes no reference to what SHORTs have been and continue to do. IMHO, the current rise in stock price has a lot to do with the bad behavior of SHORTs. I too agree the price is higher than ordinary financials suggest BUT the SHORTs have put themselves in a slow-motion "squeeze." Only now, the SHORTs have no credibility.

    Getting the SHORT position to less than 5-10% would do wonders for TSLA stability. Yes, there would a price crash which is why I'm taking profits during the price increase. Money I can use to liquidate my car loan.

    Bob Wilson
     
  2. marshall

    marshall Active Member

    Time for a letter-to-the-editor or better yet, you should write the column on Tesla.
     
  3. bwilson4web

    bwilson4web Well-Known Member Subscriber

    I would but I have no investment with them. The LA Times has been Tesla hostile in the past and this fits their past practices.

    Bob Wilson
     

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