Tesla Inc (TSLA)

[dhwstocks]

THE PROPER ANALYSIS
Our analysis model is based on market cap or rather potential comparative market cap, which is a somewhat sophisticated calculation system on the evaluation of a company in the future. There can be evaluations for e.g. the coming year or perhaps for 2-3 years ahead, or perhaps even for 5-10 years ahead. Many components need to be considered to reach the proper evaluation and therefore determine a potential reward.

But the evaluation process for short term, mid term and long term is not the only consideration. We also need to consider and determine a precise entry point within the upward trend during e.g. a correction. So to determine an entry point we need to consider the potential correction within an upward trend. One example was e.g. Tesla Motors (TSLA) in 2013. In early May 2013 we found the stock to be a definite buy at $55/share. By the fall of 2013 the stock price had climbed to almost $200. A correction was overdue which took place in October and into November 2013 when the stock fell to just below $120, ... this was an over 40% correction which is huge by any means.

Anyway, in mid/late November 2013 the perfect entry point was at $120 and within a few months the stock soared to $265. Now, our price target on the mid term based on comparative calculated market cap for a car company with increased production and introduction of new models over the years was approx. $427/share or $50 Billion. The long term target though was more like $2,100/share based on a high tech company comparative calculated market cap of approx. $250 Billion. To reach this market cap it would most certainly take several years or until 2020 by our calculations. But still this is the potential reward for a stock that traded at just $55 in early May 2013. So the risk was maybe $15/share on the downside while the reward on the upside had a potential of over $2,000/share in capital gains over the next several years.

http://www.boerse-express.com/mobile#/mobile/belogs/get_belog/695260