What's Missing in the Market; 3 Short Ideas That Don't Work: Cramer's Best Blogs
May 11, 2013 | 04:01 PM EDT
I am bombarded with notes from people urging me to knock Tesla. I have no idea how to value this stock. It is a cult stock involving a cult car, and Elon Musk says that 25% of the people who take a test drive buy it. If that is true, then the company can sell every car it makes from now until kingdom come as long as the quality is high. So the stock can keep percolating higher. Speaking of percolation, if you look at Green Mountain today, you can see what happens when the intelligentsia gets it right, but it doesn't matter one bit. The rap on Green Mountain was that sales are slowing for the Keurig coffee-making unit, and that, plus the competition from the likes of Nespresso, means that Green Mountain could be a terminal short. Of course, there were also whispers that Starbucks (SBUX) was going to take aim at Green Mountain, and nobody can withstand an enemy like Starbucks. Instead, the two companies announced a five-year partnership that put an end to the notion that these two will be warring anytime soon. The deal also includes the possibility that Starbucks will sell Keurig machines, so there goes a principal leg of the negative thesis.
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