The Cash Accumulation Phase Begins
by JDH on July 14, 2018
We are in the dog days of summer. The weather is hot. Everyone is on vacation. Nothing much is happening.
As I have previously predicted, TSLA – Tesla Inc. will eventually go bankrupt, but it hasn’t happened yet. The next quarterly earnings announcement will be around August 1, so presumably we will get more insight into whether or not they continue to burn cash at an alarming rate. They have not raised cash, and so even though sales may have slightly increased, they are nowhere near profitable, so unless they can raise cash, the end will eventually arrive. (If you are playing with the numbers, it is difficult to raise cash, because you are required to disclose all material events, so that’s putting a damper on it now).
Gold is meandering around, going nowhere.
The pot stocks are meandering around, stuck in a rut.
Amazon keeps making new highs, but do you really want to buy a stock with a PE ratio of 228? If that isn’t the sign of a top, I don’t know what is.
It would therefore appear that the prudent course of action at the moment is to accumulate cash. If we have a dip, or a crash, cash will be king.
In the medium term the pot stocks will do well. They had the initial bump when legalization was announced, and will likely have another bump around October 17 when legalization actually happens, so between now and then, place your stink bids and slowly accumulate. We are entering the buy zone for many stocks, but we aren’t quite there yet, so again, cash is king.
That’s how I see it.
More next week.
Keep your powder dry.
The Cash Accumulation Phase Begins
by JDH on July 14, 2018
We are in the dog days of summer. The weather is hot. Everyone is on vacation. Nothing much is happening.
As I have previously predicted, TSLA – Tesla Inc. will eventually go bankrupt, but it hasn’t happened yet. The next quarterly earnings announcement will be around August 1, so presumably we will get more insight into whether or not they continue to burn cash at an alarming rate. They have not raised cash, and so even though sales may have slightly increased, they are nowhere near profitable, so unless they can raise cash, the end will eventually arrive. (If you are playing with the numbers, it is difficult to raise cash, because you are required to disclose all material events, so that’s putting a damper on it now).
Gold is meandering around, going nowhere.
The pot stocks are meandering around, stuck in a rut.
Amazon keeps making new highs, but do you really want to buy a stock with a PE ratio of 228? If that isn’t the sign of a top, I don’t know what is.
It would therefore appear that the prudent course of action at the moment is to accumulate cash. If we have a dip, or a crash, cash will be king.
In the medium term the pot stocks will do well. They had the initial bump when legalization was announced, and will likely have another bump around October 17 when legalization actually happens, so between now and then, place your stink bids and slowly accumulate. We are entering the buy zone for many stocks, but we aren’t quite there yet, so again, cash is king.
That’s how I see it.
More next week.
Keep your powder dry.