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Replies to #52 on Short Ideas
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drfreely

02/13/15 1:48 PM

#53 RE: gfp927z #52

If you get a chance listen to this week's conference call. Goal posts keep getting moved.TSLA loses about 10K on every car they sell. They have a distribution problem (no dealership sales model illegal in many states), resale value problems due to high cost of replacement batteries, 150 cars sold in all of China last year, and BMW, Toyota, Mercedes all getting electric car religion.
On the positive side Musk is a messianic figure for many investors. Their product is truly awesome to drive (muscle car e.t.s without the guilt.)
But then so was the DeLorean.

Re: Apple. All the negatives about Apple you pointed out are true, BUT I think activists like Carl Ichan will eventually win out and force APPL to do bigger stock repurchases and maybe even dividends, so the S.P. will be bolstered by those moves in the short term. As a rule I never bet against Ichan, he makes more trading in a few seconds than I'll ever make in a lifetime.