For those still keeping score, Tesla (TSLA) added another 14.38% to last week's post-earnings bonanza , bringing the three-day total percentage change to +57%. Amusingly, the rally didn't let up AH either, as the stock tacked on an additional 2.51%, hitting $90 just before 8 p.m. [View news story]
Action reminds me of TASR ramp way back in the day.
These parabolic ramps all end the same, but it can be a real killer getting timing right for those looking to short.
You don't publish a CEO's emails when he asks you not to - that was an emotional decision that only hurts your credibility.
If you have confidence in the CEO then allow him to have control over what PR or defense his company issues. He knows his business best, right? Respect that.
The Television Consumer Freedom Act backlash: 1) The bill introduced by Sen. John McCain is getting lots of attention from the cable industry, uniting big cable giants such as Comcast (CMCSA) and Time Warner Cable (TWC) with smaller regional cable companies. 2) Beyond just attempting to force a la carte cable pricing, the legislation also seeks to bar broadcasters from converting to cable networks to avoid tech upstarts like Aereo. 3) The icing on the cake might be what McCain wants to do with sports. The bill calls for banning sports blackouts (bad for DirecTV's (DTV) Sunday Ticket?) and would create havoc with new "super" conferences that are banking on big cable revenue for bundled access (bad for Time Warner (TWX) and New Corp (NWS)?) [View news story]
If TWC is whining, then it's probably good for the consumers imo
Buy a 4% bond or face jail time: That's the novel offer from Argentina's president to tax evaders hiding about $160B, which would help finance YPF. The state-run oil company needs to finance a $37B five-year program to expand production and reduce the country’s need to import oil and gas, which doubled to $9.4B in 2011, but the amnesty program is likely to fail due to investors’ deep mistrust of the government. [View news story]
The USPS lost $1.9B in Q1 of 2013 as Congress continues to fiddle with the agency burning through cash. The read-through to UPS (UPS +0.3%) and FedEx (FDX -0.4%) from the plight of the USPS is sometimes murky, but in general analysts think that if the USPS continues to raise rates while cutting services it will help maintain the pricing power of the two freight companies. [View news story]
Tesla Motors (TSLA +14.6%) tightens its grip on the shorts, now up 43% in 2 days following Wednesday's earnings. Ivan Hoff extrapolates into the future and suggests Tesla could be a $100B company in 10 years (that's all?). Musk's SolarCity (SCTY +9.4%) gains as well. [View news story]
TSLA stock action reminds me of old TASR action and many dot coms - these all end about the same, just a matter of time.
More on Tesla Motors' (TSLA) Q1: The company says it produced over 5K Model S vehicles during the period to beat its early production estimate. As production rose, efficiencies kicked in and helped gross margin double Q/Q to 17%. In Q2, Tesla sees delivering just over 4.5K vehicles in North America and thinks it will beat its full year 20K vehicle delivery estimate. The next quarter will also see a moderate pickup in operational expenses and R&D expenses. TSLA +15.2% AH. (shareholder letter .pdf) [View news story]
Calling the U.S. renewable fuels mandate "unworkable," Phillips 66 (PSX) CEO Greg Garland says lawmakers should stop raising the amount of ethanol required to be mixed into gasoline, an issue he says affects the entire refining industry. The EPA's proposal plus flat/declining U.S. demand for gasoline means refiners may hit the blend wall by 2014, after which more ethanol can't be added to the fuel supply. [View news story]
The New York City Employees' Retirement System becomes the third pension fund to sell its stake in gun makers Sturm Ruger (RGR -0.8%) and Smith & Wessen (SWHC -0.3%) following the nightmarish school shooting in Connecticut. CalSTRS and New York's Teacher's Retirement System sold their shares in January and February respectively. Comptroller John Liu says the company's products "tear apart families and shatter communities." ( Reuters ) [View news story]
New York City Employees'/Teachers Retirement System and CalSTRS: Dumb & Dumber
Just a month after rolling out its lease-to-own financing program, and generating more than its share of bad reviews in the process, Tesla (TSLA) says it's amending the program. It will now guarantee those who lease a Model S will be able to return the car after three years with a residual value of at least 50% of its sticker price, versus the 43% the company announced last month, and is extending the length of the lease-to-own contracts to 72 months from 63. (Conference Call Webcast). [View news story]
50% is quite optimistic given that batteries deteriorate over time. Whoever guarantees this value is going to take a bath imo.
Google Glass (GOOG +1.6%) is picking up both staunch admirers and critics. "I will never live a day of my life from now on without it," gushes Robert Scoble, though he thinks Glass needs a sub-$300 price. "They are much more social than looking at a cell phone. Why? I don't need to look away from you..." But Wired argues Glass, like the Segway, is "too dorky to live," and offers Scoble up as proof. BI's Kevin Smith says he was "blown away" by Glass after trying it out, but co-worker Jay Yarow provides a long list of complaints, including battery life (only 3-5 hours in tests), an inability to fold the device, and Glass' "disorienting" nature. Meanwhile, app development continues apace (I, II). (previous) [View news story]
Good to get the complaints/ flaws addressed now so it's a better product once it finally arrives.
Mortgage rates keep pushing lower, with the average rate on the 15-year fixed-rate mortgage hitting a record low of 2.56%, down from 2.61% a week ago, according to Freddie Mac's latest report. The popular 30-year fixed mortgage declined to 3.35% from 3.40%. A year ago, the respective rates were 3.07% and 3.84%. [View news story]
"Enough already!" There's a lot more to this bull market than the Fed's liquidity hose, says Citi's Tobias Levkovich, reminding earnings have risen right alongside stock prices, but what hasn't gone up are valuations. Capital spending, housing, consumer spending, and employment may not all be where we'd like them to be, but all have improved materially. "Ignoring economic facts to make a liquidity point just does not seem to make a whole lot of sense," he writes, advising to buy any equity wobbles should the Fed signal an easing back on the accelerator. [View news story]
If that which is being measured is done so using a depreciating currency, then yes, prices increase.
Demystifying The Microsoft/Apple Comparison Argument [View article]
Sorry, but to state that, "The simple fact that Apple has corrected from the $700 mark to where it is today is totally by chance," is absolutely absurd!
Smart money knew that AAPL's growth was unsustainable - those who sold/shorted were ahead of the crowd when they sold with both fists in the 600s-700s.
Some Apple (AAPL) commentary: 1) Horace Dediu estimates the iPhone and iPad's component costs respectively rose 29% and 65% Y/Y in FQ2, well above rev. growth of 3% and 40%. This, along with a mix shift towards iPads, is mostly responsible for Apple's gross margin drop (rather than price pressure). 2) Tero Kuittinen sees similarities between 2013 Apple and 2007 Nokia. "The strongest parallel is in the weird way both companies started fighting the consumer preference for larger displays … and then dug in as margins began eroding rapidly." Tim Cook may have just hinted a bigger iPhone will eventually arrive. But how long will it take? (yesterday) [View news story]
If we're going to look at the iPhone competent costs vs growth and then say that the mix shift is toward the iPad, shouldn't we look at the competent costs vs rev growth of the iPad? That sounds somewhat important, yet details were not mentioned.
For those still keeping score, Tesla (TSLA) added another 14.38% to last week's post-earnings bonanza , bringing the three-day total percentage change to +57%. Amusingly, the rally didn't let up AH either, as the stock tacked on an additional 2.51%, hitting $90 just before 8 p.m. [View news story]
These parabolic ramps all end the same, but it can be a real killer getting timing right for those looking to short.
Barron's UNXL Diatribe Exposed: CEO Letters Prove Hatchet Job [View instapost]
If you have confidence in the CEO then allow him to have control over what PR or defense his company issues. He knows his business best, right? Respect that.
The Television Consumer Freedom Act backlash: 1) The bill introduced by Sen. John McCain is getting lots of attention from the cable industry, uniting big cable giants such as Comcast (CMCSA) and Time Warner Cable (TWC) with smaller regional cable companies. 2) Beyond just attempting to force a la carte cable pricing, the legislation also seeks to bar broadcasters from converting to cable networks to avoid tech upstarts like Aereo. 3) The icing on the cake might be what McCain wants to do with sports. The bill calls for banning sports blackouts (bad for DirecTV's (DTV) Sunday Ticket?) and would create havoc with new "super" conferences that are banking on big cable revenue for bundled access (bad for Time Warner (TWX) and New Corp (NWS)?) [View news story]
Buy a 4% bond or face jail time: That's the novel offer from Argentina's president to tax evaders hiding about $160B, which would help finance YPF. The state-run oil company needs to finance a $37B five-year program to expand production and reduce the country’s need to import oil and gas, which doubled to $9.4B in 2011, but the amnesty program is likely to fail due to investors’ deep mistrust of the government. [View news story]
The USPS lost $1.9B in Q1 of 2013 as Congress continues to fiddle with the agency burning through cash. The read-through to UPS (UPS +0.3%) and FedEx (FDX -0.4%) from the plight of the USPS is sometimes murky, but in general analysts think that if the USPS continues to raise rates while cutting services it will help maintain the pricing power of the two freight companies. [View news story]
Tesla Motors (TSLA +14.6%) tightens its grip on the shorts, now up 43% in 2 days following Wednesday's earnings. Ivan Hoff extrapolates into the future and suggests Tesla could be a $100B company in 10 years (that's all?). Musk's SolarCity (SCTY +9.4%) gains as well. [View news story]
More on Tesla Motors' (TSLA) Q1: The company says it produced over 5K Model S vehicles during the period to beat its early production estimate. As production rose, efficiencies kicked in and helped gross margin double Q/Q to 17%. In Q2, Tesla sees delivering just over 4.5K vehicles in North America and thinks it will beat its full year 20K vehicle delivery estimate. The next quarter will also see a moderate pickup in operational expenses and R&D expenses. TSLA +15.2% AH. (shareholder letter .pdf) [View news story]
Great time for company to do a big offering
Calling the U.S. renewable fuels mandate "unworkable," Phillips 66 (PSX) CEO Greg Garland says lawmakers should stop raising the amount of ethanol required to be mixed into gasoline, an issue he says affects the entire refining industry. The EPA's proposal plus flat/declining U.S. demand for gasoline means refiners may hit the blend wall by 2014, after which more ethanol can't be added to the fuel supply. [View news story]
The New York City Employees' Retirement System becomes the third pension fund to sell its stake in gun makers Sturm Ruger (RGR -0.8%) and Smith & Wessen (SWHC -0.3%) following the nightmarish school shooting in Connecticut. CalSTRS and New York's Teacher's Retirement System sold their shares in January and February respectively. Comptroller John Liu says the company's products "tear apart families and shatter communities." ( Reuters ) [View news story]
Just a month after rolling out its lease-to-own financing program, and generating more than its share of bad reviews in the process, Tesla (TSLA) says it's amending the program. It will now guarantee those who lease a Model S will be able to return the car after three years with a residual value of at least 50% of its sticker price, versus the 43% the company announced last month, and is extending the length of the lease-to-own contracts to 72 months from 63. (Conference Call Webcast). [View news story]
Google Glass (GOOG +1.6%) is picking up both staunch admirers and critics. "I will never live a day of my life from now on without it," gushes Robert Scoble, though he thinks Glass needs a sub-$300 price. "They are much more social than looking at a cell phone. Why? I don't need to look away from you..." But Wired argues Glass, like the Segway, is "too dorky to live," and offers Scoble up as proof. BI's Kevin Smith says he was "blown away" by Glass after trying it out, but co-worker Jay Yarow provides a long list of complaints, including battery life (only 3-5 hours in tests), an inability to fold the device, and Glass' "disorienting" nature. Meanwhile, app development continues apace (I, II). (previous) [View news story]
Mortgage rates keep pushing lower, with the average rate on the 15-year fixed-rate mortgage hitting a record low of 2.56%, down from 2.61% a week ago, according to Freddie Mac's latest report. The popular 30-year fixed mortgage declined to 3.35% from 3.40%. A year ago, the respective rates were 3.07% and 3.84%. [View news story]
"Enough already!" There's a lot more to this bull market than the Fed's liquidity hose, says Citi's Tobias Levkovich, reminding earnings have risen right alongside stock prices, but what hasn't gone up are valuations. Capital spending, housing, consumer spending, and employment may not all be where we'd like them to be, but all have improved materially. "Ignoring economic facts to make a liquidity point just does not seem to make a whole lot of sense," he writes, advising to buy any equity wobbles should the Fed signal an easing back on the accelerator. [View news story]
Demystifying The Microsoft/Apple Comparison Argument [View article]
Smart money knew that AAPL's growth was unsustainable - those who sold/shorted were ahead of the crowd when they sold with both fists in the 600s-700s.
Some Apple (AAPL) commentary: 1) Horace Dediu estimates the iPhone and iPad's component costs respectively rose 29% and 65% Y/Y in FQ2, well above rev. growth of 3% and 40%. This, along with a mix shift towards iPads, is mostly responsible for Apple's gross margin drop (rather than price pressure). 2) Tero Kuittinen sees similarities between 2013 Apple and 2007 Nokia. "The strongest parallel is in the weird way both companies started fighting the consumer preference for larger displays … and then dug in as margins began eroding rapidly." Tim Cook may have just hinted a bigger iPhone will eventually arrive. But how long will it take? (yesterday) [View news story]