No stock picks today – in fact, I am going the other way and highlighting one of the most overvalued stocks I could find – Tesla Inc. (TSLA), since they are announcing their 2016 fourth-quarter earnings after the bell:
- Bloomberg – Tesla’s Stock Now Rivals Ford and GM
- Forbes – Tesla Priced For Perfection Into Earnings Tonight
Let’s take a look at some of Tesla Inc’s valuation metrics just for fun:
-
Price/Sales6.47
-
Price/Earnings—
-
Consensus Forward P/E500.00
-
Price/Book16.67
You will note that Tesla has no Price to Earnings Ratio – since it consistently loses huge amounts of money every year:
Tesla is certainly a cool company, but a lot of the hype is really about Elon Musk – to get a feel for Elon, I highly recommend you read this series by one of my favorite bloggers:
- Wait But Why? – The Elon Musk Series
He is a busy guy – but I am not sure giving your hard-earned investment dollars to him at this point in the cycle would prove to be a good long term play.
Would I short the stock? No! In this market, I would not be surprised if the stock jumps after earnings (or lack of earnings) are announced later today.
Extra – Tesla’s Solar Roof is pretty cool:
- Business Insider – There’s one Tesla product that I’ll definitely buy as soon as possible — and it’s not the Model 3
Update – as predicted, Telsa is rallying after hours:
Leave a Reply