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Gaurav S. Sharma's  Instablog

Gaurav S. Sharma
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My areas of interest and expertise include technology, biotechnology, and financial services, among others. I have a long-term strategy and am primarily a value investor who values both growth and dividends. My picks have consistently outperformed the market and I expect them to continue to do... More
  • SoL #1: My Experiences With Tesla 1 comment
    Mar 1, 2014 5:28 PM | about stocks: TSLA

    Tesla (NASDAQ:TSLA) has been among the most impressive of the incredible growth stock rallies of 2013, and that has continued into 2014. I personally bought the stock at $120 and sold at its (first) peak at $190, making a great ~58% profit in a few months. After the peak at around $195, not far from when I sold, it crashed back down to Earth (~$125) after the Model S fires were heavily reported on the news. It has since rallied back up and is now trading at just south of $250, a little shy of its recent all-time high.

    TSLA Chart

    Why did I sell? Simple: It was overvalued, and I didn't want to be greedy. While it may be a long-term play with explosive earnings growth and a CEO (Elon Musk) that could go down in history as the next Bill Gates or Steve Jobs, it isn't worth it at this price for me. It could be worth $250 in the future, after crossing many hurdles. However, the fact that it may not overcome certain obstacles to achieving growth makes the stock expensive. I wouldn't bet against this stock, but I wouldn't buy it at the moment either. So, I do not regret not buying the stock recently and won't in the foreseeable future. I would rather be in other growth names like Google (NASDAQ:GOOG) or Celgene (NASDAQ:CELG). What do you think of Tesla?

    Disclosure: I am long GOOG, CELG.

    Themes: slice2014 Stocks: TSLA
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  • Samuel D. Kao
    , contributor
    Comment (1) | Send Message
     
    TSLA is indeed overvalued, and I feel it's losing momentum after its high for now. I might buy later when the price is more reasonable.
    8 Mar 2014, 08:36 AM Reply Like
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