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.
http://www.teslamotors.com/supercharger
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
Stocks:
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
ETF’s:
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.