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What do you guys think about the stock? I have to admit that I am a fan of the company, and Elon Musk his work. However, I don't like the stock. I have been short the stock with an options structure since a little before the 'fire incident' and things are going fairly well.
Imho the valuation is at nosebleed levels, institutional ownership is dropping, however momentum behind the name maintains.
In summary potential catalysts are/ were:
$660 million convertible bonds issued in May become freely convertible (at $124) into common shares on October 1st could provide some additional selling pressure.
Corporate earnings on Nov 4th.
Institutional Ownership declining for 84% to 66% and dropping.
BofAML notes:
Institutional ownership of Tesla stock has faded throughout 2013, from approximately 84% of shares held in January to about 66% today As a result, it now appears that retail investors are playing an increasing role in driving the stock price higher and could be at risk when a correction, which we believe is long overdue, ultimately occurs.
I believe we'll continue to see correction. I don't think the question is whether or not there is a continued correction, but instead when/where is a good area to step in back to long side. I haven't studied the stock recently so am not going to comment on that.