Zeev's Turnips Patch-No Politics (ZEEV)

[mlsoft]

Zeev...

I have played ELON from time to time and have long considered it a good "story stock." I have noticed that it tends to follow the oil and gas exploration sector in price, probably because its target market is to save energy costs, and thus it trades on perceived gluts and shortages of oil, just like the exploration stocks. My concern now is that their "window of opportunity" may be closing as no lasting periods of shortage have occurred and as their technology ages, the odds of someone else leapfrogging them increases.

Along the same lines, one of the dangers facing many chip and some equipment stocks is that should we enter a prolonged period of slow economic growth (or worse), many of them would face the same situation where today's leading edge technology could be outdated by the time a strong cyclical recovery begins. That would lead to large inventory and R&D writeoffs for the old technology and emerging new leadership, changing the landscape for investors - and is one of the reasons I believe now is not the time to be entering into longer term positions in these sectors.

mlsoft