4 ms·
A superb short, but a very expensive one (more than a third of float is short). Too much risk of a squeeze right now. I have fair value at $65 with 8-10% WACC
by tslathrow 13y ago
A superb short, but a very expensive one (more than a third of float is short). Too much risk of a squeeze right now. I have fair value at $65 with 8-10% WACC even with optimistic top-line growth for the next 6-10 years and 4% terminal growth. That said, it's not wise to short on valuation (especially with today's levels of retail money flow).
Throwaway because I'm in the industry (and currently hold TSLA puts)
- bluedevil2k 13y agoI've always liked the quote (I think by Keynes) who said that the market can stay illogical longer than you can stay liquid. In other words, you'd be wiped out before the stock crashed.
- SuperChihuahua 13y agoMost traders will try several times until they find the turning point. They will get several small losses and a large profit.
- tslathrow 13y agoRight now it's a very expensive short. I would personally wait for retail inflow to peak and short float to dip to 25% or lower.