Tag: TSLA

The Valuation Circus Is In Town

The Valuation Circus Is In Town

We recently wrote about the "Speculation Era" in Tech stocks. It doesn't have to be this way. Institutional investors don't have a gun to their heads forcing them to chase performance in companies such as TSLA and SNOW. Yet many are doing just that, throwing time-tested investment principles out the window. Many justify their outrageously … Continue reading The Valuation Circus Is In Town

Questionable M&A Strategy (Oracle) and Due Diligence (GM)

Questionable M&A Strategy (Oracle) and Due Diligence (GM)

Two head-scratching Technology deals. Oracle's TikTok deal appears to be smoke and mirrors while GM's due diligence on its Nikola deal appears to be surface-level at best. Both wreak of desperation. Oracle's TikTok deal is high on sizzle, low on substance. Assuming the Oracle/TikTok deal receives U.S. government approval and ultimately closes (we are not … Continue reading Questionable M&A Strategy (Oracle) and Due Diligence (GM)

The Tech Stock Speculation Era

The Tech Stock Speculation Era

When it comes to Technology stocks we are firmly in the Speculation Era. It is likely to stay that way for the near-term. October earnings calls may provide a bump in the road. Looming corporate tax increases will likely put an end to the bubble. The combination of Trump tax cuts and the recent fiscal … Continue reading The Tech Stock Speculation Era

Tesla Should Acquire Volkswagen

Tesla Should Acquire Volkswagen

Volkswagen AG would provide Tesla with a large scale unit base (approximately 11 million vehicles sold in 2019 compared to 370,000 Tesla vehicles sold) that Tesla could leverage in part to accelerate technology development by 1.) deploying Tesla's technology across VW's much larger fleet and 2.) utilizing VW's cash flow to fund technology development. Tesla … Continue reading Tesla Should Acquire Volkswagen

What Happened to Fiduciary Responsibility?

What Happened to Fiduciary Responsibility?

How do investment managers justify owning Tesla (TSLA) at the current valuation? Or perhaps worse, owning highly-levered companies in beat-up industries that won't recover for years (see airlines). Talk about "risk" assets! Where is the fiduciary responsibility? From the outside looking in it would seem investment managers - at least some of them - are … Continue reading What Happened to Fiduciary Responsibility?

Once Upon A Time In The Southwest

Once Upon A Time In The Southwest

If a 2020 version of Sergio Leone were to make a movie using our title it would tell the tale of how Texas is becoming the Technology capital of the United States. California's punitively high state income tax rates and regulations (CA isn't the only offender), have paved the way for Technology companies - and … Continue reading Once Upon A Time In The Southwest

TINA, ZIRP, The Future & The Retail Investor

TINA, ZIRP, The Future & The Retail Investor

Investors have lost their minds when it comes to high-flying stocks such as Tesla (TSLA, up 830% over 13 months), Shopify (SHOP, up 210% over 4 months), DataDog (DDOG, up 220% since the March lows), and many other names where valuations are based on anything but the fundamentals. Why? There Is No Alternative (TINA): The … Continue reading TINA, ZIRP, The Future & The Retail Investor

Leaders Create Opportunities

Leaders Create Opportunities

Effective leaders whether they be hired CEOs, entrepreneurs, school teachers or physicians create opportunities through action. Elon Musk did just that this week. We don't often side with Mr. Musk but have been in lockstep with him during this COVID period. Mr. Musk, Tesla (tkr: TSLA), co-founder and CEO recently reopened Tesla's Fremont, CA manufacturing … Continue reading Leaders Create Opportunities

Earnings Calls – A Keyword Analysis

Earnings Calls – A Keyword Analysis

We ran a Natural Language Processing ("NLP")-based analysis of earnings calls from this week. We captured keywords and phrases from 23 earnings calls. Our report is sorted alphabetically by ticker symbol. Access the free report HERE. This analysis may be customized to capture certain keywords and phrases for any text-based document. https://soundcloud.com/ceorater

Time Waits For No One

Time Waits For No One

Time waits for no one. Fortunes change quickly. Look no further than the case of General Motors (tkr: GM) and Tesla (tkr: TSLA). This time last year GM sported a $55 billion market cap and some months later closed calendar 2019 with $137 billion of revenue. Plenty of time it would seem for GM to … Continue reading Time Waits For No One