51–60 of 67 posts
Earlier quoted context omitted.
What was the unit of analysis? Stock, sector, index, market, world?
Bonds.
Even Jim Cramer (famous Tesla bear that he is) took issue with this “analysis”. > Setting a price target of $10 on a $200 stock "really is insane," the "Mad Money" host said. "How about $8? How about $12? Ten basically says, 'I want to get talked about. Let's talk about me.'" > "If he had done $47 would we have talked about him? No, but 10. Ten is right in your face," Cramer said on "Squawk on the Street." "I questio…
[1]https://www.nytimes.com/1995/02/20/business/smart-money-reth...
Even Jim Cramer (famous Tesla bear that he is) took issue with this “analysis”. > Setting a price target of $10 on a $200 stock "really is insane," the "Mad Money" host said. "How about $8? How about $12? Ten basically says, 'I want to get talked about. Let's talk about me.'" > "If he had done $47 would we have talked about him? No, but 10. Ten is right in your face," Cramer said on "Squawk on the Street." "I questio…
I don't think I understand Cramer's argument. Is he asserting the new worst-case valuation is disingenuous because it's a "nice" number like 10? Does that mean he wouldn't be saying anything about it if it were 11 instead? That seems like just as subjective an assessment as the one he's currently making. A seemingly "random" looking number can be just as arbitrarily chosen as a neat looking one. It wouldn't surprise…
Tesla would never go to $10 as one of the big four would immediately buy them out if they got them wholesale. Their self driving would make it worth it alone(looks at uber ipo).
Even Jim Cramer (famous Tesla bear that he is) took issue with this “analysis”. > Setting a price target of $10 on a $200 stock "really is insane," the "Mad Money" host said. "How about $8? How about $12? Ten basically says, 'I want to get talked about. Let's talk about me.'" > "If he had done $47 would we have talked about him? No, but 10. Ten is right in your face," Cramer said on "Squawk on the Street." "I questio…
Tesla would never go to $10 as one of the big four would immediately buy them out if they got them wholesale. Their self driving would make it worth it alone(looks at uber ipo).
/S
Earlier quoted context omitted.
It's all bullshit. I once did some consulting for a very well known person in the financial services industry, a recognized leader in the field. As part of that work I got to see his financial "models". They took the form of the most incredibly complicated Excel spreadsheets I have ever encountered. They were real monsters with hundreds of thousands of rows, dozens of workbooks. Being a software engineer, I wrote som…
Survivor-ship bias. Helluva way to make money.
If you think that’s true, the natural correlary is that all companies are just flipping coins.
Earlier quoted context omitted.
It's all bullshit. I once did some consulting for a very well known person in the financial services industry, a recognized leader in the field. As part of that work I got to see his financial "models". They took the form of the most incredibly complicated Excel spreadsheets I have ever encountered. They were real monsters with hundreds of thousands of rows, dozens of workbooks. Being a software engineer, I wrote som…
100% I've seen the same thing. But they think they're all brilliant masters of the universe. Frightening when you think on how common place that is in the industry. That said, I do believe that the larger firms have begun to evolve away from that.
Earlier quoted context omitted.
It was a "worst case" target; the malfeasance is that it was placed too high. The equity will be wiped out if there's a restructuring. It's hard to imagine a future where TSLA is worth a low, but nonzero amount - there is a ton of debt first in line. Tesla still has a non-zero risk of failing; what kind of "repercussion" do you believe there should be for pointing this out? In my opinion, the right way to value Tesla…
If Tesla had any spare cash, surely the logical thing for them to do is buy up those 9 percent yield bonds. If they are still solvent on bond payout day, they have made a tidy profit. If they are not, it doesn't matter!
It’s more complicated than this because it’s expected rate of return with some variance, and deploying additional side-lined cash doesn’t always achieve the same return as the previous dollars, etc. etc.
But it comes down to this; if the best thing a company has to do with its dollars is pay down debt, they are telling you that they couldn’t think of anything more reliably profitable or useful to do with the dollars than that.