Tesla, the investment

[Tim]

Not sure if that's true or not, but at least now Tesla has a foolproof method of raising capital whenever they like, which should help their growth prospects.

The company expects earn less earnings from the stock to be less than interest expense of bonds in a low interest rate environment.
That is the present value calculation. Foolproof is a relative term, based on the company’s choice which is reflected by the company’s actions. Unable to generate internal cash flow and low rate debt environment is too expensive. I am sure you realize ownership is a share of profits. No pass on the math. Tesla ran the math. The company isn’t fools.

[Tim]

Tesla has reached the 10% correction mark.
Will it hit 20%, bear market territory?

https://www.cnbc.com/2020/09/03/tesla-is-dropping-again-bringing-three-day-loss-to-percent.html

It seems weird that story stocks price actions seem to be defined by different math and definitions.
Battery Day seems to be a catalyst.

[Sarahh]

AAPL and TSLA are dropping hard... Would you expect to see them go up high soon?

[Tim]

AAPL and TSLA are dropping hard... Would you expect to see them go up high soon?

Or is this a bear market? Or is Fauci now correct that a 75% reduction in C-19 infections is required ? The curve was lowered. New goal needed. The implications are ominous.

https://www.google.com/amp/s/www.cnbc.com/amp/2020/09/02/dr-fauci-says-us-coronavirus-cases-are-unacceptably-high-going-into-labor-day.html

[xraygoggles]

AAPL and TSLA are dropping hard... Would you expect to see them go up high soon?

Nope. This is a correction, and its healthy. It will shake out all the n00bs who got in after the split, since the shares were "cheaper."

For anyone that has been holding the stock for a few months (or years), this correction is merely a blip on your returns. Should still be up huge.

[CordMcNally]

Or is this a bear market? Or is Fauci now correct that a 75% reduction in C-19 infections is required ? The curve was lowered. New goal needed. The implications are ominous.

https://www.google.com/amp/s/www.cnb...labor-day.html

What else do you expect Fauci to say? Even if we currently had 10,000 cases a day he would still come out and say that it's too high.

[Sarahh]

Nope. This is a correction, and its healthy. It will shake out all the n00bs who got in after the split, since the shares were "cheaper."

For anyone that has been holding the stock for a few months (or years), this correction is merely a blip on your returns. Should still be up huge.

Would you sell if you bought it super high after post split? Or hold?

[fatlittlepig]

Would you sell if you bought it super high after post split? Or hold?

Buy more

[Sarahh]

Buy more

At what price would you buy more? lol

[CordMcNally]

At what price would you buy more? lol

That was a tongue in cheek comment.

[fatlittlepig]

At what price would you buy more? lol

Hopefully you didn’t buy all at once. I usually buy a quarter then wait then buy more when it goes down.

[fatlittlepig]

At what price would you buy more? lol

Oh yeah and I never buy at 52 week highs (or all time highs Lol )

[xraygoggles]

Would you sell if you bought it super high after post split? Or hold?

Hmmm, well if you bought after the split, then this is a lesson for what not to do in the future. Hopefully you didn't buy that much.

You can either just hold for a while and see where the stock goes over the next year. Or you could add to your position as it goes down; tomorrow might be another down day based on AH trading. Or you could sell, take your losses, and buy VTI.

Up to you.

[Dont_know_mind]

Hasta la vista baby ?
(until the next sighting; goodbye, see you later)

My favourite article from the 90’s

https://money.cnn.com/magazines/fortune/fortune_archive/1999/06/21/261690/index.htm

Hopefully this isn’t the end of the tech run, but who knows.
Maybe it keeps going, maybe it ended yesterday.

It’s not something I would put any money on.

Buying tech on the way down, now that reminds me of 2000. “It’s like déjà vu all over again”.

[Random1]

At what price would you buy more?

When their P/E ratio normalizes. For example when they are selling enough cars at a profit than ford sells F-150s for the company to actually make money consistently. Otherwise it is a great way to speculate.