TSLA Investor Discussions

[Doug_G]

This is a volatile, heavily shorted stock. Clearly the attitude has been risk-off since earnings, so the shorts are winning. Not enough buying interest at even these prices to prop it up. Perhaps it had been overbought. You're only looking at the drops and not the fundamentals.

I don't think it's been overbought. It's just volatile. The Greece thing spooked the markets, and since it's volatile TSLA went down more than most. At this point I suspect it's just going down on momentum. My bet is that it will rebound, but will probably take some time to get back to its previous level.

Of course there could be some more shocks coming from Europe... if you can't stand the heat, put your money someplace safe and wait it out.

[bonnie1194]

The smartest ones in my house:

[daniel]

I cancelled the 28 earlier this week, thinking 'you really really have enough TSLA in your portfolio' ... put in a limit order of 27, was distracted and took a couple minutes to hit the final submit button, so when I submitted, it executed at 26.85. (yay)

That gives me a nice even number of shares, not on margin, and like shoes ... I have enough.

Cool. If it goes back up a bit now and never hits 26, I'll be glad I didn't leave my order at 26. As for missing the absolute low, I don't feel too bad about that. I'm not good enough to spot the low. I, too, now have a nice even number (200) and I don't think I'll get any more. My average cost now is almost exactly 28 since I got some way back when it was much lower, and some at 35 and 33.

I'm going to tell you bluntly: DON'T BUY STOCKS. You don't have the personality for it. You might be happier buying bonds...

We keep telling him/her that, but to no avail. I like bonds, and my portfolio has more bonds than stocks. Nobody gets rich on bonds, but they pay a set coupon for a predictable income (as long as they don't default ). I hold them to maturity, so they're just like a high-interest, uninsured certificate of deposit. I don't even look at their market value since it's irrelevant. I think my bond portfolio is averaging around 5% now. It's a decent return in this environment and I'm satisfied with it.

[Doug_G]

I see you caught them passing along stock tips.

[daniel]

Spain might be affecting the markets as well, though TSLA seems disproportionate today.

Nice looking dogs! I'm more of a cat person myself, but ever since I visited my cousin in CA and was numerous times buried in dogs, I've come to like them a lot.

[AnOutsider]

I see you caught them passing along stock tips.

lol the third dog is a straight-arrow. No insider trading for me!

[neroden]

Nobody gets rich on bonds, but they pay a set coupon for a predictable income (as long as they don't default ). I hold them to maturity, so they're just like a high-interest, uninsured certificate of deposit. I don't even look at their market value since it's irrelevant. I think my bond portfolio is averaging around 5% now. It's a decent return in this environment and I'm satisfied with it.

Nice. Unfortunately I didn't get into many bonds before Zero Interest Rate Policy (ZIRP) started, and it makes no sense to go into most bonds now.

The specific high-yield-bond strategy which I was referencing with "if Tesla issued bonds" is to buy bonds from a company which *you* are pretty sure (from investigation and analysis of the company's or municipality's future) is not going to default, but which the *markets* think has a high risk of default (and therefore offers high interest rates). This can be tricky, though, because paying high interest rates can bankrupt an otherwise-profitable company.

[EVNow]

The Greece thing spooked the markets...

I find it almost comical that the market expected Greeks to agree to all the "austerity" measures without a protest vote. So, what will the market do when Greece moves out of Euro ?

[gg_got_a_tesla]

I see the markets being in a funk (hmm, FB hasn't really helped) for the next month or more till the Greece situation settles down one way or the other after the election redux in mid-June. Other news - Spanish banks, reduced tech spending (per CSCO) and the Fisker Karma fire NHTSA investigation in Sugar Land, TX - hasn't helped either.

Worst case, we may be looking at a slow train wreck for a few months; I wouldn't buy in this market at this point hoping for short-term gains for sure. Hold on to your hats!

[daniel]

Nice. Unfortunately I didn't get into many bonds before Zero Interest Rate Policy (ZIRP) started, and it makes no sense to go into most bonds now.

The specific high-yield-bond strategy which I was referencing with "if Tesla issued bonds" is to buy bonds from a company which *you* are pretty sure (from investigation and analysis of the company's or municipality's future) is not going to default, but which the *markets* think has a high risk of default (and therefore offers high interest rates). This can be tricky, though, because paying high interest rates can bankrupt an otherwise-profitable company.

I would buy Tesla bonds. But mostly I have mutual funds, and bonds recommended by my broker, who has all the analysis of a major brokerage to draw on. A number of bond funds are paying 2 to 3 % now, but Vanguard's High-Yield fund (technically junk bonds, but conservatively chosen) is paying 5.56% today, and their Long-Term Investment Grade fund is paying 4.48%. Of course, bond funds have the disadvantage of reacting to the market in a way you don't need to worry about with individual bonds, so I have both. Again, you won't get rich or finance your Model S purchase by investing in bonds, but they're more stable and reliable than stocks. In stocks you can get rich, or get wiped out.