Don't buy what Musk is selling.

The first instinct when seeing Tesla (TSLA) - Get Report CEO Elon Musk's purchase of almost $10 million in stock (as was the case Monday afternoon) is that the bottom is in. In a normal case, when a high-profile insider such as Musk gobbles up a chunk of a struggling stock it sends a signal to the market that the bad news likely is over. Or, at the very least, Wall Street has priced into the stock enough of the coming bad news.

But old rules don't apply when it comes to the bizarre Musk.

Given his net worth of roughly $20 billion and his child-like actions, he could have bought the stock simply to mess with the heads of the short-sellers attacking him on Twitter. Tesla's stock is the most heavily shorted in the entire market. Keep in mind that things likely will get worse before they get better at Tesla, and that's a reality Wall Street is still not pricing into the stock. Musk deserves a pat on the back for a willingness to ride the stock down even lower, but average investors would be wise not to take the trip with him.


Goldman Sachs is bullish on the defense sector, particularly Northrup Grumman (NOC) - Get Report  , citing better valuation.

Keep an eye on Caterpillar (CAT) - Get Report presenting at the Wells Fargo Industrials Conference on Tuesday. Normally, this presentation would be a snooze-fest, but seeing as the chief financial officer's "demand top" comments on an earnings call two weeks ago sparked an ugly market selloff the presentation is of interest.   

Names on TheStreet

The names that pass through TheStreet's headquarters on Wall Street never cease to amaze. I have sat in this office and gazed at Hall of Famer Jerry Rice walking by, listened to baseball MVP Mike Trout talk about business to me on a podcast, and watched as Coca-Cola's (KO) - Get Report still new CEO James Quincey pitched his case for a hearty turnaround. It pays to have been at this game for more than 22 years, as TheStreet has -- we have street cred so to speak. The benefit of listening to all these voices is gaining a unique snapshot into the world of business wherever it's happening. That's how we are able to stay ahead of the curve.

This week promises to bring more names to TheStreet - in fact it already has. Greece's former finance minister, Yanis Varoufakis, told TheStreet's Scott Gamm that he views the European Central Bank's stress tests, which Greek banks just passed, as "fraudulent." "Greece's banks went bankrupt three times in the last seven years," he said. "Before each one of those bankruptcies there were stress tests and those tests showed that they passed with flying colors." Watch the full video here.

Panera Bread CEO Blaine Hurst told me his company is experimenting with artificial intelligence with promising early feedback. On the heels of Starbucks (SBUX) - Get Report tie-up with Nestle on Monday, Hurst also said more deals in the coffee space shouldn't be ruled out. A Nestle spokesman said CEO Mark Schneider was on a "tight schedule" and couldn't talk to us -- perhaps when Schneider finally figures out a way to get the stock working again (stock is down about 10% since he took over as CEO in January 2017) he will have some time.  Watch the full video with Panera's CEO here.

Coming up Tuesday will be new Dine Brands (DIN) - Get Report CEO Steve Joyce, who is fresh off another comeback quarter. We last talked to Joyce in February and came away impressed with his turnaround plan -- it mirrors the one he put in place during a successful stint at Choice Hotels (CHH) - Get Report ( where we first met him). It's no surprise sales growth at Applebee's and IHOP was positive in the first quarter, despite a hyper-competitive restaurant industry.

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