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Bryce_in_TX

Bryce_in_TX
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  • Tesla's deliveries, spending to ramp in Q2 [View news story]
    I have already stated that the beneficial ownership of Tesla stock includes vested options, as well as actual stock.

    Here is the reference:

    "(i) A person shall be deemed to be the beneficial owner of a security, subject to the provisions of paragraph (b) of this rule, if that person has the right to acquire beneficial ownership of such security, as defined in Rule 13d-3(a) (§ 240.13d-3(a)) within sixty days, including but not limited to any right to acquire: (A) Through the exercise of any option, warrant or right;"

    http://bit.ly/1ix4MLa

    That is why vested options, as well as actual ownership of common stock, are included in "shares beneficially owned" on page 56 of the proxy in link below:

    http://bit.ly/1iwzRPh

    Note it doesn't say "options beneficially owned", but "shares beneficially owned".

    Equity holdings include not only shares of stock but vested options as well. And I have already pointed out that the article you provide a link to is seriously WRONG, as my post on that article clearly shows. (However, he does "attempt" to add both options and shares of stock to calculate ownership after the option exercises and related stock sales.)

    In regards to the option exercises and subsequent stock sales, the point is that the only sales that have occurred have been planned 10b5-1 sales. No significance whatsoever.

    I'm through arguing. You have nothing of significance, as far as I am concerned.
    May 8, 2014. 11:27 PM | 3 Likes Like |Link to Comment
  • Tesla's deliveries, spending to ramp in Q2 [View news story]
    Dan,

    The stock sales were preplanned exercises of options from 10b5-1 plans, all of them. And the article bailout references is seriously flawed.

    http://bit.ly/1iwM5al

    Bailout is intentionally trying to mislead, IMO. A Chartered Accountant should understand that total equity holdings of an individual include not only stock actually held, but also vested options. They should also understand that the exercises of options and related sales of stock under a 10b5-1 plan would have no significance.
    May 8, 2014. 09:58 PM | 1 Like Like |Link to Comment
  • Tesla's deliveries, spending to ramp in Q2 [View news story]
    "Lots of news on the insider selling ... maybe you missed the news?"

    http://bit.ly/1iwM2LT

    FYI, that article is seriously flawed. I have made a post to Markus so he can correct it, Mr. Chartered Accountant.

    http://bit.ly/1iwM5al

    Check back in a day or two after he corrects it. One of the three did not sell 10% or more of their holdings, and one only sold 20% of his.
    May 8, 2014. 09:20 PM | 1 Like Like |Link to Comment
  • Tesla's deliveries, spending to ramp in Q2 [View news story]
    bailout,

    No I don't have the two confused. An individual's total equity holdings in a company is comprised of both shares of stock owned and vested options, not just the shares. You are seeking to mislead people. As a Chartered Accountant, you know better.

    On a personal balance sheet, an individual lists not only shares of stock he owns, but also vested options he owns as well. You know that.

    "HINT : when insiders are selling that tells you something."

    Yes it tells me something. These are 10b5-1 planned sales. None of the individuals called their stock broker and said, "sell". What it tells me is that the sales are not due to any material publicly undisclosed insider information, but simply due to preplanned, arranged stock sales. Translation: they have no meaning whatsoever.

    I have provided links to support what I am saying. They back me up. You have provided nothing of significance.

    I am disappointed. This reminds me of Enron shinanigans. As a CA you are required to abide by certain ethical guidelines. I would have hoped such ethical behavior would have been reflected here as well.
    May 8, 2014. 08:34 PM | 1 Like Like |Link to Comment
  • Tesla's deliveries, spending to ramp in Q2 [View news story]
    Total shares owned by Jerome Guillen on 4-24-2014 was 38,482. Guillen exercised 8,000 options. Not over half the shares he owned, not even close.

    Kimball owned 236,642 shares and only sold 4,811.

    See page 56 in link.

    http://bit.ly/1iwzRPh

    Yeah, that's some "nightmare" of stock selling, Mr. Chartered Accountant.

    Btw, all the sales by Guillen, Musk, and Reichow pertain to a 10b5-1 trading plan. It's in the footnotes of each Form 4.
    May 8, 2014. 08:07 PM | 1 Like Like |Link to Comment
  • Tesla's deliveries, spending to ramp in Q2 [View news story]
    "The VP of Sales and Service sold over half his shares."

    No he didn't. Lies. If you are truly a chartered Accountant, you know better.

    He had in excess of 43,000 vested options but only exercised 8,000 of those options.

    We see from the link below that he had tens of thousands of options prior to 2014:

    http://bit.ly/1gbVoN5

    Over 43,000 of these had vested by the end of April, 2014.

    All we see on the Form 4s, all of them, is 55,000 options granted in Jan 2014, exerciseable at $139.34 per share. (see link below) These are clearly not the options shown in the first link because the exercise prices are very different and the Form 3 is dated in Aug 2013.

    http://bit.ly/1jF2KNA

    Conclusion: the Form 4 does not show all options and stock owned at any given time.

    Guillen didn't sell anywhere near half his equity holdings in Tesla. But that is what you want people to believe. It's a bald face lie, Mr. Chartered Accountant.
    May 8, 2014. 07:08 PM | 1 Like Like |Link to Comment
  • Tesla's deliveries, spending to ramp in Q2 [View news story]
    Bias is glaring. No mention of ICE vehicles and their huge contribution to our pollution in comparison to the small number of Model S's on the road. The future of electricity is not oil and gas, it is wind, hydro, solar, and perhaps nuclear. With those sources for electricity, the EVs will be a much better choice for our environment. EVs, themselves, are not the polluters like ICE vehicles. The whole argument about EVs being larger polluters I simply don't find credible.

    Build a $30,000 EV and you got a buyer.
    May 8, 2014. 04:53 PM | Likes Like |Link to Comment
  • Tesla's deliveries, spending to ramp in Q2 [View news story]
    "Why should there be a happy conference call ? ... the more cars being made, the higher the losses and debt."

    Most of the GAAP loss is comprised of non-cash stock based compensation. While I think it is a valid measure to include in GAAP, cash will never be required for that compensation, meaning the GAAP loss for the compensation will never be a cash loss ($37 million). Add back probable lease/sale transactions that will result in actual sales and it looks like they are barely in the black, cash wise. So cash wise, they are not in bad shape, but generating positive operating cash flow. It takes some companies years before they show positive GAAP earnings.

    I'd prefer to see stronger revenue growth.

    The Giga factories throws a wrench in the works. But, I admire Musk and his risk taking.
    May 8, 2014. 04:27 PM | Likes Like |Link to Comment
  • Tesla's deliveries, spending to ramp in Q2 [View news story]
    John,

    I love my 2009 6 cyl Accord. Vrrm Vrrm
    May 8, 2014. 04:17 PM | Likes Like |Link to Comment
  • Tesla's deliveries, spending to ramp in Q2 [View news story]
    Ok, John, I wasn't aware of the difference. Thanks. So, tires for my Honda Accord may run me $1000 to $1200 for 120,000 miles whereas tires for the Model S would run $8,000. But gas for a 6 cyl Accord runs $1666 a year or $1500 for a 4 cyl. Then you have to replace ICE engine components after 6 or more years. My argument was about the battery replacement, not about the total costs of both cars. I have argued that the Accord is cheaper in the long run to own. Ask Ford Prefect.
    May 8, 2014. 03:21 PM | Likes Like |Link to Comment
  • Tesla Motors' (TSLA) CEO Elon Musk on Q1 2014 Results - Earnings Call Transcript [View article]
    "The 10B5-1 trading plan for Guillen Jerome was submitted on Mar 15, 2014. NOT at some distant point in the past like some people would like to think on here and that this selling is like some kind of long term pre-arranged plan."

    Well, I don't view the exercise and sale as something Guillen had volitional control over. Doesn't matter if the plan was set up in March 2014 or March 2010. If the plan is to exercise options and sell stock at pre-determined dates or prices, the key here is "pre-determined". I don't see that Guillen had an active choice in the option exercise and sale, but rather the exercise and sales was determined by the 10B5-1 plan.

    Do you disagree, and if so, on what basis?
    May 8, 2014. 02:20 PM | 2 Likes Like |Link to Comment
  • Tesla's deliveries, spending to ramp in Q2 [View news story]
    "So you are not an accountant, as per your previous posts."

    I will match my knowledge of GAAP, Cash, and Tax accounting against yours any day of the week. You seem oblivious as to why GAAP distorts Tesla's financial performance.
    May 8, 2014. 02:06 PM | 1 Like Like |Link to Comment
  • Tesla's deliveries, spending to ramp in Q2 [View news story]
    "Wind power accounts for a very small part of electricity generation."

    The Times are a changin'.

    http://bit.ly/1gPPmBO

    I think global warming is real. Our lakes, Kickapoo and Arrowhead, for Wichita Falls are at 25% now, 75% from being full. There is no relief in sight. We could be totally out of water in 2 years. The particle count for our water is up to in excess of 4000 per liter (10 particles per liter is considered "hard" water.) That means water heaters build up sludge, as do washing machines, dish washers, and water pipes. Surrounding counties are in a similar situation and the state of Texas, as well as California, is in serious trouble due to drought. Past time to rethink what damage we are doing to the environment with fossil fuels. It's past time for much more wind and solar energy.
    May 8, 2014. 01:56 PM | 1 Like Like |Link to Comment
  • Tesla's deliveries, spending to ramp in Q2 [View news story]
    "You seem to be unaware where the bulk of your electricity comes from in the USA. "

    I'm not talking about where electricity comes from in the USA. I am arguing that there is nothing to stop Musk from bulding several wind turbines for each Tesla charging station or erecting solar panels.

    I also was not arguing the total cost of a Prius versus a Tesla Model S. I was arguing that costs of operating an ICE vehicle are just as large as the replacement battery for a Model S. I have argued on this forum that it is cheaper to buy a Honda Accord and operate it over a 10 year period, versus buying a Model S. I would agree with you on total costs. But, that wasn't your argument here. Your argument was the cost of a replacement battery for a Model S is very expensive. So are the costs to operate an ICE vehicle over a 10 year time frame.

    Wait until the Model E comes out. Then we can compare costs of an ICE with it.

    " Then you add up replacement costs on those Tesla tires every 15,000 miles or less. That will buy your Prius gas for a couple of years! "

    A Prius tires don't wear out, also? Yes, they do. Your argument fails here. Both vehicles have to replace tires. One cancels out the other as far as costs.
    May 8, 2014. 01:47 PM | 1 Like Like |Link to Comment
  • Tesla Motors' (TSLA) CEO Elon Musk on Q1 2014 Results - Earnings Call Transcript [View article]
    "@Bryce

    Your link is for derivative securities NOT common stock holdings. The link you need is as follows for common shares.

    http://bit.ly/1jESULU

    This latest filing on April 30, 2014 shows 2537 common shares held AFTER the selling transaction."

    I think you are totally wrong. Note the code "M" for the shares sold in your link. Code "M" stands for "M — Exercise or conversion of derivative security exempted pursuant to Rule 16b-3".

    http://bit.ly/1jF2JcA

    Yes, my link is for derivative securities. Those derivative securities (options) were exercised in your link and converted to common stock at $30.55 per share, then sold at $200 per share. What your link shows is options were exercised and sold. He didn't own these shares prior to the option exercise date. Stock was purchased from the exercise of those options, then sold, all on the same date. Your statement negates nothing I have stated.

    You have to account for the options vested which I provided a link to. Guillen has never exercised any options nor sold any shares until April of 2014, according to all Form 4 filings, not just the one in your link. (see link below)

    http://bit.ly/1jF2KNA

    He had in excess of 43,000 vested options on April 28, 2014. He only exercised 8,000 of those options. He still has in excess of 35,000 vested options which he can exercise at any time. The highest exercise price would be $31.49 or less. He could have exercised these options as well on April 28, 2014, making a much, much larger profit than the 8,000 he exercised and sold. He has over 35,000 more options he can exercise now and make a huge profit.

    So, if you want to speak of common stock owned, it doesn't appear he owned 8,000 shares of common stock prior to the transaction date. It would appear he owns the same amount of common stock before and after the transaction. But in reality, the total worth of his ownership equity in Tesla is comprised of both common stock owned and vested options owned. You can't separate the two.
    May 8, 2014. 01:35 PM | 2 Likes Like |Link to Comment
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