Doug Kass shares his views every day on RealMoneyPro. Click here for a real-time look at his insights and musings.
Takeaways and Observations: Second-Quarter Start
Originally published April 3 at 5:27 p.m. EST"I would say that (today) the averages are faring better than the average stock -- on average.
If you know what I mean!"
-- Kass Diary, Consider this Yogiism!
Another strong rally from the market's nadir in the morning -- which I used as an opportunity to expand my short book.
But, as it relates to my quote at the beginning of "Takeaways" -- look at the weakness in the Russell Index! A conspicuous one percent decline.
In other words there was less (in this market) than meets the eye.
Dear Mr. Fantasy, Play Us a Tesla Tune
Originally published April 3 at 10:52 a.m. EST"Dear Mr. Fantasy play us a tune
Something to make us all happy
Do anything, take us out of this gloom
Sing a song, play guitar, make it snappy."
--Traffic, " Mr. Fantasy "
- Telsa' valuation per auto is $600,000.
- Ford's valuation per auto is $7,000.
- Tesla is now worth more than Ford.
This is 1999-2000.
From my perch, Elon Musk is our present-day P.T. Barnum.
Tesla's annual earnings estimates keep going down, but its stock keeps going up, manhandled by momentum-based strategies that worship at the altar of price.
If Tesla can't make money selling $100,000 cars to subsidized rich people while it has no competition and advertising costs, how will Tesla make money selling $40,000 cars to middle-income people with massive competition coming and as subsidies disappear?
As suggested in an earlier piece this morning, our markets have lost their innocence and bear little relation to reality.
Tesla possesses a nearly $48 billion equity value with less than 4% upside to the biggest Wall Street bull's fantasized price target.
Tesla, owing to the large short interest, is un-shortable.
It is also un-longable, though I am not sure that is a word, either.