Sunday, February 23, 2014

How to Buy a Tesla

TSLA is no doubt a risky momentum stock. It is overpriced by many metrics and comparison with other car companies show that this is impossible to continue. However Tesla is not like any existing car company…not by any means.

The cars are very attractive, very powerful and being all electric they are very unique. It’s interesting to go to YouTube and see them racing Vipers, Corvettes and beating them in a quarter mile. How can an electric car do this?

They are quickly developing a following. Many love the idea of being able to recharge in their garage and avoid the time consuming experience of refueling.  The available recharging stations are growing rapidly. A supercharging station can provide a half charge in 20 minutes and they are available coast-to-coast…and they are free…and free for life.

So why not buy one of these, well they are very expensive at $70- $100K, so what do I propose as a means of buying one? Just buy the stock; it has been up 400% in the last year. I sure don’t know if that is possible again this year, but I don’t know that it is not.

It has been called a cult stock, but the company is doing extremely well and could be truly profitable soon, perhaps wildly profitable in the future. It has outwitted those that try to short it.

No doubt Ford and GM will follow suit, but both have a history of stumbling when the do. Do you remember their multiple attempts at minivans that led nowhere?
I see it as another Apple type of stock with game changing leadership. As soon as your neighbor is able to fill up in his garage and drive coast-to-coast for free you will have to have one too.

The stock is a risk, as is any stock, but often with risk come reward.

The Cramer stocks that I have picked up are gaining steam.
For reference Cramer’s list of stock to own: GOOG,  GE, JCI, BAC, CIEN,  XLNX, AAPL, CAT, BA, JNJ and  TJX.  Cramer’s list of companies that he considered to be well managed: MMM, WFM and  HON.

What did I see in my weekend review?

The 10-yr Treasury yield
is 2.73 %
IBD (Investor Business Daily) is now Confirmed Up Trend

Copernicus Systems: Long IMHO

Moneys Flows:  all positive

HAIN +.10 %, good to see green here again

Momentum Stocks:
AMZN -1.25% …and bad to see red here

TSLA +7.27%, thanks to a blowout earning report
PCLN +3.03%, good to have this one aboard once more

QQQ +4.10%

QLD -.33%, a new addition this week
IWM +.19%

IBB +8.16%
SPY -.36%

Cramer Picks:
BAC -2.27%...not sure what is wrong here

CAT +6.61%

CIEN +8.67%

GOOG +3.78%, who would have thought GOOG would be lagging CAT? That is why I like baskets!
XLNX +6.63%

HON +4.27%
BA +1.16%

What will I do?
I have been adding to existing holdings when it seems appropriate, hope to continue.

I know I have far too many holdings, this is evident as I see mistakes made in last week’s blog, sorry about that…too many stocks, too little time.

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