Tesla: $280 Big Support
Today's low hit into the $280s.
We wrote to subscribers last week, "I would be patient before adding aggressively. We need bad news to clear before we can. I'd rather buy higher on good news than buying lower without clarity because it can keep going lower without clarity."
We went on to say, "We love the earnings inflection story but have to be cognizant of the headwinds. The bears are in charge right now with the news flow. The stock's been holding up but I think it's a drift lower until clarity on a few issues."
We'd love to see the stock close above $300 for confirmation of some support.
Any news would be good news.
CEO, Elon Musk does not sound like he's giving up on going private. Funding has not been lined up though.
If they scrap the go private deal it would probably hit the stock but we'd guess the low would find itself around there. Scrapping the go-private deal would be, we believe, the best for shareholders because we have a $1000+ 12-month target price based on the earnings inflection that's apparently starting this quarter.
Musk himself said to the New York Times that $420 was code for smoking something. That price is not high, it's way too low.
That's why if the private transaction is scrapped, we think ultimately it can boost the stock by removing that unnecessary $420 cap.
And remember, the stock was racing there after earnings. Had "Funding secured" not been tweeted we may have been there already.
Looking For Earnings Home Runs
We spoke to the top tech companies over the last few months to identify what tech stocks have home run earnings potential. Earnings are what drives stocks, especially tech stocks. Finding those few tech stocks that have realistic earnings trajectories way above the Street can give you conviction to see a stock through to big upside. Dip your toe in the water with a free trial.
All investments have many risks and can lose principal in the short and long term. The information provided is for information purposes only and can be wrong. By reading this you agree, understand and accept that you take upon yourself all responsibility for all of your investment decisions and to do your own work and hold Elazar Advisors, LLC, and their related parties harmless.
We have no holdings in the stocks mentioned unless otherwise noted.
Updated Aug 20, 2018 11:00 EDT AM