Tesla – The Bloom is Off the Rose

by JDH on January 19, 2019

Alternate Title: Tesla – Has this ponzi scheme finally been exposed for what it is?

I am not a fan of Tesla.

Yes, I’ve had a drive in the car, and the car is cool.  It looks fine.  It’s quiet.

It’s quiet because it’s electric, but so is a golf cart, and that’s the problem.  People who have never driven in an electric car before got all caught up in the quiet, and thought that someone this big golf cart was revolutionary technology.

It isn’t.  It’s a fancy golf cart.

I have nothing against electronic vehicles.  No doubt, they are the wave of the future, and if you want one I suggest you investigate the great offerings from Jaguar, and Porsche, and other real car companies.

Elon Musk is a hukster and a showman, and on nothing more than flim-flam he was able to create a “car company” that up until Friday had a larger market capitalization that General Motors (a company that actually makes cars).

The company survived because governments around the world gave money to customers who bought them, but that money is running out, and without someone else paying some of the freight, Teslas are nothing more than an expensive golf cart.

(NOTE: I have nothing against golf carts.  They are great on a golf course).

So on Friday, Saint Elon had to announce the inevitable: he is cutting 7% of the workforce, because without generous government subsidies, and in the face of competition with real car companies, no-one is buying a poorly built, expensive, golf cart.

Thank you Elon, I’ve done well on the puts, and I keep selling and rolling them forward, so I will continue to cash in.

More gloating next week……..

Yes, I realize it’s early here in 2019, but my two biggest sector holdings, gold and pot, are doing great. (Yeah, I know, that’s a low bar, because gold has been in the doldrums for four years, and cannabis stocks got hammered in the fourth quarter, but still).

My favorite pot stock, The Green Organic Dutchman, TGOD.TO, touched $2.20 on December 27, and closed at $3.05 on Friday.  That’s an almost 40% bounce in two weeks, which is nice.  Of course it was $10 in September, so if you bought it at the peak, oops. I bought in the private placement before the IPO, so I’m fine with where it’s at, and I bought more in December, so I’m fine with where we are.

On the gold front, I’m a fan of Equinox Gold Corp, EQX.V, which peaked at $2 over a year ago and was under 90 cents in December.  It closed Friday at $1.05.  I will be shocked if this is not a $2 stock at some point in 2019, and ultimately it will be worth $10 within 5 years.

In fact, it will be $5 this year (but that’s only because they are likely to apply for a listing in the USA, and so they’ll probably do a 5 for 1 consolidation to make it a $5 stock, but I digress).

They have three great projects that will be producing in 2019, in diverse jurisdictions.  They are fully cashed up, are looking for acquisitions (they made a great acquisition in the fourth quarter of 2018, at the bottom of the market, to steal the Mesquite asset), so I see good times ahead.

Not tomorrow.

Maybe not even this year, but over the next 2 to 5 years both TGOD and EQX will be much higher.

So far, so good.

See you next week.

Good First Week, and Thoughts on Trump

January 5, 2019

It was a short week to start 2019, but it was a good one, primarily because gold appears to be awakening from it’s four year long slumber. My working hypothesis is that we will see $1,300 in January, and $1,350 in February.  After that, who knows.  There is uncertainty in the world now: what will […]

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Pot Stocks Bounce

December 29, 2018

Interesting week, eh? Big crash before Christmas, big bounce on Boxing Day (but the Toronto markets were closed), then a drop on Thursday, and then on Friday, thanks to a hostile takeover bid for pot stock Aphria, the pot stocks bounced big. Big, but it’s a bounce off the bottom. My favorite pot stock, The […]

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At Least the Days are Getting Longer

December 22, 2018

Always look on the bright side, my mother always said.  The markets appear to be firmly in bear market territory.  On Friday, the stocks that have held this market up for years, like Google (Alphabet) and Facebook, were making 52 week lows.  It’s not looking good. So what’s the bright side? In the Northern Hemisphere […]

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Bargains During Tax Loss Season

December 15, 2018

As you all know, if you have a losing position on a stock, if you sell it you have a capital loss, which can be applied to reduce the taxes you owe on any capital gains.  That’s why investors sell their losers before the end of the year, so that they can apply their losses […]

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That Was a Fun Week

December 8, 2018

At the start of October the DOW was just under 27,000, and on Friday it closed at 24,388.  Not quite a 10% drop, but whose counting; that’s something of a blood bath. Alternate viewpoint: DOW is now back to where it was at the start of July, so we’ve had 5 months of no gain; […]

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Resorting to Gambling

December 1, 2018

As the market bounces around, doing not much of anything, and we are left to wonder whether or not 2018 will finish in the red or the black, I’m now resorting to outright gambling. In many cases I’m a speculator, not an investor, which is practically gambling anyway.  My biggest bets of 2017 and 2018 […]

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American Thanksgiving

November 24, 2018

It’s what we in Canada call the “American” Thanksgiving, although I assume Americans just refer to it as “Thanksgiving”.  I worked all day Thursday so missed the day football games.  Next year I will have to remember to book the day off. The stock market did the same, with nothing much happening, but here’s my […]

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Nothing, or Something

November 17, 2018

Year to date, the Dow is basically flat.  Will it stay flat, or crash, or go up? Historically, the period after mid-term elections tends to be strong, so it’s possible that the market is about to take off. However, interest rates are creeping upward, and important stocks like Apple have experienced some weakness of late.  […]

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