"highmodulus" (highmodulus)
11/06/2013 at 15:08 • Filed to: None
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"highmodulus" (highmodulus)
11/06/2013 at 15:08 • Filed to: None | 0
| 8 |
Live by the tech stock valuation, die by the tech stock valuation expectations.
http://www.usatoday.com/story/money/ca…
The rapid fall shortly after today's start of NASDAQ trading triggered the exchange's short-sale circuit breaker, which doesn't happen often. The breaker temporarily stops the sale of borrowed shares by investors betting the price will keep falling so they can replace the borrowed shares later at a price cheaper than the sale price today.
Tesla shares opened trading on the NASDAQ exchange at $155, about where they'd been in after-hours and pre-market trading. The share price then plunged to $146.71 after the open before rebounding. It was trading at $152.25, down $24.56 or 13.89%, mid-afternoon. Before the after-market earnings report it had closed on Tuesday at $176.81.
Some think it has more downside risk to come. Tesla stock "is more properly valued at $141," industry analyst Brian Johnson at Barclays told his clients late Tuesday.
TheBaron2112
> highmodulus
11/06/2013 at 15:09 |
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Good time to buy!
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highmodulus
> TheBaron2112
11/06/2013 at 15:13 |
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Probably right if you believe in the core business. There was always going to be a price correction on Tesla, but the core business does have merit at the right price IMHO.
Bob Loblaw Made Me Make a Phoney Phone Call to Edward Rooney
> highmodulus
11/06/2013 at 15:16 |
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I'll be a buyer somewhere closer to JPMs risk-range of $97. Still overvalued at $15x
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highmodulus
> Bob Loblaw Made Me Make a Phoney Phone Call to Edward Rooney
11/06/2013 at 15:19 |
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The price correction may bring it there over time.
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Bob Loblaw Made Me Make a Phoney Phone Call to Edward Rooney
> highmodulus
11/06/2013 at 15:25 |
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I'm skeptical. Too many institutional buyers riding the ridiculous S&P momentum and technical analyses, and too many retail investors putting their money where it has no business being.
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highmodulus
> Bob Loblaw Made Me Make a Phoney Phone Call to Edward Rooney
11/06/2013 at 15:29 |
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My thought is once the tech stock valuation goes away and it starts being valued like its automotive peers, the price will come down some. But even then its likely to remain an expensive stock. But I just stick my money in low cost mutual funds (mostly indexes) so I could be wrong.
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Bob Loblaw Made Me Make a Phoney Phone Call to Edward Rooney
> highmodulus
11/06/2013 at 15:32 |
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This is why I avoid tech stocks like the plague. There's absolutely no value proposition, no fundamental backing to the pricing. It's ridiculous to make long-term holding decisions based off of technicals or momentum or speculation or whatever the fuck is driving this.
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highmodulus
> Bob Loblaw Made Me Make a Phoney Phone Call to Edward Rooney
11/06/2013 at 15:33 |
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With the exception of Google and Amazon I hear you brother!