Category: Investing
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WSJ hosted debate about Tesla with Ross Gerber and Jim Chanos January 20 2023
On January 20 2023, The Wall St Journal’s Hannah Miao hosted a friendly spirited debate about Tesla with short seller Jim Chanos and Tesla bull Ross Gerber. At the time of the debate, Jim has a short position on Tesla in a portfolio of about 40 companies. Chaos is founder of Kynikos Associates in New…
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Labor department released December Consumer price index (CPI) down -0.1% from last month and is at 6.5% from last year.
The labor department today released December 2022 Consumer Price Index and it showed a decline of -0.1% from last month and is at 6.5% from last year. A decrease in inflation is welcomed news for everyone. It lowers prices for consumers and signals peak inflation has been reached. The Federal Reserve uses inflation data to…
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US December unemployment down to 3.5% and jobs increased 223,000 for December.
December jobs report showed continued strength in labor market. Unemployment is lowered at 3.5% compared to a revised 3.6% in November. For the month 223,000 jobs were added. A strong labor report shows economy remain strong in the face of increased interest rates. One negative for a strong labor is wages remain tight and businesses…
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Current yield curve rates indicate recession coming
Yield Curve is a table of interest rates on U.S. bonds at different maturities or loan durations. This data is available from the U.S. Department of the Treasury. The 2023 data is available at https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve&field_tdr_date_value=2023 The 1/3/23 the tables looks like this: 1 Mo 2 Mo 3 Mo 4 Mo 6 Mo 1 Yr 2…
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How to not to lose a million dollars
During one’s investment journey, there will come a time when you’ve obtained good wealth. For example, during the pandemic, several companies were solving critical problems the world needed and their valuation went through the roof. Examples of these companies include Amazon, Zoom and Moderna. Zoom helped students continue their lessons with their teachers remotely. They…
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Markets tanked after November Retail Sales report of -0.6% on fear of recession, Nasdaq dropped -3.2% and -.97% 12/15 and 12/16/22.
The Commerce Department reported November 2022 Retails Sales of -0.6% from prior month. The expectation was for -0.3%. The consumers are adjusting for bad times ahead and cutting back expenses. On Wednesday 12/14, the Federal Reserve increased interest rates by .5% as expected but their messages was they need to keep interest high for a…
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November CPI at 7.1%, Nasdaq up 1.01% but Tesla down -4.09%.
The US Bureau of Labor Statistics reported November Consumer Price Index (CPI) increased 7.1% over the last 12 months. This shows inflation is slowing and may have peaked and is improving compared to October. The previous month the inflation rate was 7.7%. Compared to last month, some items actually saw a decline in price. Energy…
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China sold 1.65 million vehicles in November, down 10% from October with Tesla selling 100,291.
Xinhua reported Tesla delivered 100,291 vehicles. That’s up 40% from October and 89.7% from last year. This figure had the benefit of some prior inventory vehicles not delivered last month and also benefited from price cuts. China Passenger Car Association data showed BYD sold twice as many as Tesla at 229,942 total and 114,000 EV.…
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Tesla November 2022 Germany Sales grew 92.7% from last November and 58.7% from January – November.
Germany’s November 2022 KBA automobile sales report showed good results for Tesla. Tesla has sales of 10,819 and account for 4.2% of market. January to November, they sold 52,462 for 2.2% of market. The January to November growth from last year is 58.7%. Tesla’s small percentage in marketshare shows German market is big and there…
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November 2022 jobs report showed 263,000 new jobs and 3.7% unemployment
The Bureau of Labor Statistics reported the US economy increased jobs by 263,000 and unemployment is stable at 3.7% December 2 2022. Most of the increases come from leisure and hospitality, health care, and government. Retail, transportation, warehousing employment were down. Unemployment remained low at 3.7% or 6.0 million people. Stocks are down on the…
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Link between Inflation Reduction Act EV credit and Tesla offering discount for Model 3 and Model Y for December 2022 delivery in US.
In the US, with the Inflation Reduction Act, Tesla cars will once again qualify for incentives for some consumers that meet income limits. Previously there was limit of 200,000 vehicles per manufacturer which Tesla exceeded. The law goes in effect January 1st 2023, Tesla buyer can claim a credit between $3,750 to $7,500. New Inflation…
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Key takeaways from Fed Chairman Jerome Powell’s speech “Inflation and the Labor Market” on 11/30/2022
Fed Chairman Jerome Powell delivered a speech on 11/30/2022. Markets reacted favorably to this comments. Nasdaq index was up 4.4% and closed at 11468. Tesla finished strong, up 7.67% to close at 194.7 on elevated volume of 109,186,400 shares. Here are the key takeaways from that speech. Key take away is he sees inflation correcting…
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Tesla finished $183.20 up $13.29 7.82% on positive risk/reward comments from analysts on 11/23/2022
Having hit 52 week low, Tesla share prices swing to the positive to finish strong $183.20 up $13.29 for 7.82% gain. Volume was 109,536,709, above the average 80,621,546. Citigroup analyst Itay Michaeli upgraded Tesla from sell to neutral. After the steep decline, his opinion is Tesla is priced reasonably now. He believes Tesla’s financial strength…
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Ferrari (RACE) vs Tesla (TSLA), Tesla PE ratio almost same as Ferrari on 11/22/2022
For reasons that may not be related to financial performance, Tesla stock price has been dropping the past few days. With the most recent drop on 11/22/2022, Tesla’s PE ratio is now approaching that of an established auto manufacturer Ferrari. This company needs no introduction and is famous for their F1 race victories and sporty…
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Top reasons why Tesla finished down 6.84% down 12.32 11/21/22
Nasdaq is down -121.55, -1.09% to finish at 11,024.51 volume at 3,893,774,855. Tesla has a Beta value of 1.96. The expected movement for Tesla would be 1.96 * -1.09% = -2.14%. Since Tesla went down 6.84% much higher than what the beta would suggest, there may be additional reasons other than macro economic or general…
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Get rich slow using dividend reinvesting strategy
The dividend reinvesting strategy is one way to build wealth over time with reduced risk. The strategy buys high quality companies in diverse industries that pay a dividend. Companies with excessive cash returns cash to shareholders in the form of dividends. These companies may not grow as quickly but their business is mature and stable.…
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Stocks reacted positively to new October 2022 consumer price index (CPI) up 7.7%
The Labor Department on Thursday 11/10/2022 released the consumer-price index (CPI) for October and it’s up 7.7% from a year ago. This compares to 8.2% for September and signals inflation may have peaked and is now trending down. CPI includes goods and services consumer consume. The core CPI excludes energy and food which are volatile…
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Elon Musk sells Tesla shares on 11/08/2022, 11/07/2022 and 11/04/2022 and impact from Twitter purchase
US SEC filing shows Elon Musk has sold Tesla shares on three days. These sales had a negative impact on Tesla share prices. This is one reason not to trade options as these events are unpredictable. He has sold 4.4 Million shares and received $843,163,160 on 11/08/2022. His average selling is $191.628. The price range…
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Tesla’s intrinsic value using discount cash flow analysis Q3 2022
This is not financial advice. Speak with your financial advisor before making any investments. Assumptions will be made about Tesla’s cash flow for the next ten years. There is no assurance it will materialize. Discount cash flow analysis is one way to predict the value of an asset. Inputs to the model TTM (trailing twelve…
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How to calculate intrinsic value of a company with discount free cash flow analysis
One way to value a company is add up all the cash it will produce in the future. This is similar to how someone value a house by adding up the rents the house can collect. After collecting the future cash flow, a small adjustment is needed. The cash generated in the future needs to…