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Bryce_in_TX

Bryce_in_TX
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  • Headwinds For New Tesla Financing: Estimates Declining And P/E Multiples At Historic Peak [View article]
    @fxfx,

    "I especially love that "remain" part. As if Tesla had ever been profitable! LOL!
    Hilarious, Cecil, you made my day! :D "

    Tesla was profitable in 2013. GAAP distorts the picture, IMO. Adjust GAAP for Development expense that should be capitalized, plus some of the guaranteed resale value sales, and Tesla shows a bottom line profit for 2013. Positive operating cash flow of $258 million and positive free cash flow of $8 million for that year supports that.

    Any reply comments had better be respectful or I'll report you quicker than you can say "Tesla".
    Apr 9, 2015. 03:00 PM | 5 Likes Like |Link to Comment
  • Tesla Has Outed The Good News Early, Now What? [View article]
    @ToolGrinder,

    "Indeed, the accounting for this company is fascinating. The 10k filing begs answers for these observations:

    - The A/R, comprised mostly of regulatory credit sales, leaping to almost 5X that of a year earlier. As I have never seen an accrual for regulatory credit sales (even in a quarter in which none were reported), what are the accounting rules for how these are booked?"

    Where is your support that most of A/R is regulatory credit sales? The 10-K says:

    "Accounts receivable primarily include amounts related to sales of powertrain systems, receivables from financial institutions and leasing companies offering various financing products to our customers, and regulatory credits to other automotive manufacturers (OEMs)"

    Where is the support, besides speculation, that most of A/R are regulatory credits?

    What you are suggesting on a portion of cost of sales of lightly used vehicles going to marketing expense is that Tesla is committing fraud in recording the transaction and that the auditors are unaware of it or in collusion with it. Where is your support for that?

    I find your entire post "out there" and illogical. The company is audited.
    Apr 9, 2015. 01:44 PM | 3 Likes Like |Link to Comment
  • Headwinds For New Tesla Financing: Estimates Declining And P/E Multiples At Historic Peak [View article]
    @henrytx,

    "Why do naysayers continually emphasize old-fashioned ideas such as "PE" and "earnings"? "

    Old-fashioned ideas? You mean earnings is no longer important? Then why did Enron go under, or MCI Worldcom or any other company that cooked its books because its earnings weren't legitimate? What is your point? What you have said makes no sense.

    AT some point Tesla has to have earnings to reward its investors. Otherwise, any stock price above $ 0.01 is not justified.
    Apr 8, 2015. 12:14 AM | 11 Likes Like |Link to Comment
  • Headwinds For New Tesla Financing: Estimates Declining And P/E Multiples At Historic Peak [View article]
    Shaun H,

    "If you capitalize R&D the company is profitable."

    You can say the same thing about operating expenses.

    Research expenses are not capitalized, ever, under US GAAP or International Accounting Standards (IAS), so you never capitalize all R&D, ever. The question is: how much of R&D should be capitalized? Companies like VW and BMW capitalized about a third of R&D expense in 2013 and 2014. Under that scenario, adding back stock based compensation, which non-GAAP unjustifiably subtracts out, Tesla is still showing a 2014 Net Loss. Using Porsche's capitalization rate of 52%, you would have current year amortization of Development expenses, under that scenario, making Tesla about close to break even, but not quite. Non-GAAP also adds back interest expense on convertible notes, which also makes no sense to me, so I have added it back in the above scenarios, also. It depends on the capitalization rate. But adding back all R&D is a non-starter, not credible.
    Apr 7, 2015. 11:59 PM | 6 Likes Like |Link to Comment
  • Two Scenarios For Tesla's 2015 Unit Sales - 55K Vs. 39K [View article]
    @Market_Lost,

    "I just hope some posters here understand this is just discussing the minutiae, as the rules are strict on what you report, but don't seem to be so strict on where you report it. "

    And I wish some posters here would stop the mud slinging with the name Enron. There is little similarity that I see.
    Apr 6, 2015. 12:25 PM | 2 Likes Like |Link to Comment
  • Two Scenarios For Tesla's 2015 Unit Sales - 55K Vs. 39K [View article]
    @portatopia,

    "I was trying to tell him a company can do made appear to do everything right by the accounting book yes till committing fraud."

    Maybe you can cite an example? I know of no company in history whose accounting was correct that later turned out to be fraudulent.

    I find the reference to Enron offensive because, as I have stated, Enron's fraud was in its GAAP financials. This took the collusion of its auditors. It was showing greater and greater earnings to meet analysts' expectations, and hiding loads of debt through various means. I just don't believe that is happening at Tesla. The GAAP financials are showing greater and greater losses, and its cash flow is getting worse. If the auditors are in collusion with Tesla, and Tesla is committing fraud with the GAAP financials, it is an almost certain death sentence for their firm. I simply don't see signs of that.

    So, I would ask you what company that has been convicted of fraud had GAAP financial statements that were not fraudulent also?
    Apr 6, 2015. 10:43 AM | 2 Likes Like |Link to Comment
  • Two Scenarios For Tesla's 2015 Unit Sales - 55K Vs. 39K [View article]
    @MarketLost,

    " I'm going to go out on a limb and say that it may be due to the extended warranty issue that is covered under 90-1. This would definitely be an SG&A expense as it something added on. "

    Just to be clear I did research this before posting. I refer you to page 739 in the newer edition of the book I have:

    "Accrual Basis
    If it is probable that customers will make warranty claims and a company can reasonably estimate the costs involved, the company must use the accrual method. Under the accrual method, companies charge warranty costs to operating expense in the year of sale"

    http://bit.ly/18F9AAD

    I looked at my cost accounting book, where you would think this type of item would be discussed and no reference at all. Go figure. :)
    Apr 6, 2015. 10:31 AM | Likes Like |Link to Comment
  • Two Scenarios For Tesla's 2015 Unit Sales - 55K Vs. 39K [View article]
    Thanks MarketLost for the correction. I looked in my Intermediate Accounting book before replying and it said it was an operating expense, so I concluded it wasn't part of COGS, but as Tesla's SEC report shows, that was wrong. Apparently there are other folks under the same misconception, per the link:

    http://bit.ly/1C9doBr
    Apr 6, 2015. 12:49 AM | Likes Like |Link to Comment
  • Two Scenarios For Tesla's 2015 Unit Sales - 55K Vs. 39K [View article]
    @portatopia,

    "@Bryce_in_TX,
    There is no need to over complicate this. Both Tesla and Enron is fraudulent therefore the similarity.

    The financials are only the symptoms and can look right for many years before the fraud is uncovered (Does Madoff ring any bell?)"

    Oh........My............. lol

    "Because you failed to read the link you have no ground to claim that I failed to show TSLA is a fraud."

    The link is too freaking long. You obviously don't understand what the heck you are saying or you would have provided evidence in your posts, rather than referring me to a link as proof.

    So, ok, let's take one item from the link:

    "Understated (and misallocated) Supercharger expenses. Tesla is only setting aside (deferring) $500 per car to pay for Supercharging. They acknowledge that SGAA also includes some Supercharging expenses - but they don't say how much! Besides, ALL Supercharging expenses should be accounted for at the moment of sale, because Tesla has committed to paying for this forever - just like warranty expense is included in costs of goods sold and not expensed as incurred."

    (1) First, Tesla is not just setting aside $500 to pay for Supercharging. They are deferring revenues received that are a fee for the use of the superchargers.
    (2) Warranty expense is not a cost of goods sold item, it is an operating expense.
    (3) He is assuming the auditors don't have a clue as to how the supercharger expenses should be accounted for. I assure you, they do.

    My conclusion from this is that your link is filled with junk, and not credible, and you have no idea what you are talking about.
    Apr 5, 2015. 11:20 PM | 3 Likes Like |Link to Comment
  • Two Scenarios For Tesla's 2015 Unit Sales - 55K Vs. 39K [View article]
    @portatopia,

    "Do you need a PhD in accountant and JD to convince people that Enron was not a fraud? "

    You have presented nothing to show that Tesla is similar to Enron, nothing. Why you would bring Enron's name into it, I have no clue, other than to sling mud. You can claim Tesla is being fraudulent without mentioning Enron. If you mention Enron, you need to show the similarities. As I have said, there is little similarity, and you have failed to present anything credible in that regard.

    I didn't go through the entire material presented in your link. But I fail to see how it has anything to do with the financials, period. You have failed, as far as I am concerned, to show Tesla is a fraud. The financials look credible to me. Where is the fraud in them?
    Apr 5, 2015. 09:12 PM | 2 Likes Like |Link to Comment
  • Two Scenarios For Tesla's 2015 Unit Sales - 55K Vs. 39K [View article]
    @portatopia,

    I am not talking about a dictionary's definition of fraud. I am talking about specifics of how you prove fraud against Tesla or Enron. All you are doing is claiming there is fraud, without presenting anything credible to back it up. It is mud slinging.
    Apr 5, 2015. 04:01 PM | 2 Likes Like |Link to Comment
  • Two Scenarios For Tesla's 2015 Unit Sales - 55K Vs. 39K [View article]
    "Are you saying Enron did not commit fraud? "

    Enron management did, with the help of the auditors. So, my first post is rather misleading. My apologies. I was thinking of a long debate I had had with Cara Ellison of the famed Enron Blog.
    Apr 5, 2015. 03:53 PM | 2 Likes Like |Link to Comment
  • Two Scenarios For Tesla's 2015 Unit Sales - 55K Vs. 39K [View article]
    @portopia,

    "I am talking about the common sense definition of Fraud not the GAAP NONGAAP accountant gobbledygook. "

    Right. You call the actual money business that went on at Enron, and the misdeeds alleged against Skilling, "accountant gobbledygook" because all you can do is throw mud. You don't have an understanding of what went on at Enron, nor the charges against Skilling. In short, all you can do is throw mud, without any credibility whatsoever. So, your comparison of Tesla to Enron is without any merit.

    You have to have an understanding of the transactions to be able to debate Enron. There was prosecutorial abuse that went on during the trial process. That is one of the reasons, IMO, that Skilling is getting out some 10 years earlier than his original sentence. Federal justice incompetence in how to conduct the investigation and trial.
    Apr 5, 2015. 03:46 PM | 1 Like Like |Link to Comment
  • Two Scenarios For Tesla's 2015 Unit Sales - 55K Vs. 39K [View article]
    portatopia,

    Can you cite anything from the SEC reports that is misleading?

    Looking at their shareholder newsletter, there is the standard cautionary statements about not using non-GAAP alone, but as a supplement to GAAP info and a disclaimer that their forward looking statements are subject to risks and uncertainties and that actual results may differ materially from those that are projected.

    "Non-GAAP information is not prepared under a comprehensive set of
    accounting rules and therefore, should only be read in conjunction with financial information reported under U.S. GAAP when understanding Tesla's operating performance. A reconciliation between GAAP and non-GAAP financial information is provided below."

    So, it appears to me Tesla has disclosed everything. I don't see how it is deceptive or misleading when it is all disclosed. Help me out.

    http://bit.ly/1FcEh9n

    All of Enron's misrepresentations had nothing to do with non-GAAP data, and everything to do with GAAP. How is Tesla similar to Enron?

    And if Tesla has disclosed everything, what is the fraud? Let's get to specifics, not general statements that "Tesla is a fraud". All that is is mudslinging.
    Apr 5, 2015. 11:48 AM | 2 Likes Like |Link to Comment
  • Two Scenarios For Tesla's 2015 Unit Sales - 55K Vs. 39K [View article]
    cparmerlee,

    It amazes me how people so freely compare Tesla to Enron without having the slightest idea about the actual transactions that transpired at Enron and without understanding how those transactions impacted Enron's financial picture. There are few similarities between Enron and Tesla.
    Apr 5, 2015. 10:49 AM | 3 Likes Like |Link to Comment
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