This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.
Otherwise, enjoy the column!
Subscribe to the Monster Stock Market Commentary and join the 2,529 subscribers getting it for FREE every day!
More Tesla Drama, Micron and Amazon Breaking Out, Intel Vs. AMD
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN SHARES OF TSLA
OMG! I hope that the rest of August isn’t going to be about what Elon Musk intentions may or may not have regarding his infamous tweet; I won’t make it. I thought hearing about the model 3 production was painful, this is just 100 times worse! All day long, that is all the blogs are writing about; the news stations are talking about.
Let’s say the purpose of the tweet was to take the company private. It could be that simple. Do I know what he was thinking about or how choose $420? Does some random short-seller understand what he was thinking about? No. Elon is thinking about sending people to Mars, and beyond, I’m thinking about how to put my kids to bed.
But $420 is precisely a 40% premium to where the stock was trading at the close of trading on August 1.
Who knows exactly what his intentions are or aren’t, nobody is in his head, but to talk about it all day long trying to come up with some conspiracy theories is just a waste of everyone’s time.
But, If I were on the on board of directors, and I knew he made it up; I’m sorry, I’d resign immediately. So I give him the benefit of the doubt he intends to take the company private.
Additionally, if I were in desperate need of money and someone came and offered me $2 billion, I would not turn it away, as he did to the Saudi’s.
As for Funding Secured?
Look at the holders he already has in the stock:
Elon Musk 22%
Baille Gifford 8% – They recently bought more
Tencent – 5% – about
Saudi’s – 3-5% roughly
Right there is 60 percent of the shares outstanding.
Then you have smaller guys like :
Valor – 3%
Cap World 2.7%
And I skipped the index guys Vanguard which own 4.2 percent, and Blackrock which own 3.5 percent. So the top 12 holders own more than 75 percent of this stock.
I think he very quickly could secure the funding to have different investors take a piece of the company private.
In case all of this wasn’t entertaining enough, I talk about it more in my member video today. Tesla May Be Going Higher Regardless Of The Bid
I may or may not be turning on the TV in the morning. We will see how I feel.
Moving on to Amazon. Yes, there actually other stock trading.
Amazon broke out once again, and I think it finally makes a move over 2,000, on to about 2,020.
I wrote up a bullish piece on Micron today for Investopedia. I think the stock is setting up for a move higher by about 15 to 16 percent. We have seen this same move happen the last two quarters, and I think it about to happen again. The stock is very close to a break out, and we should see it happens in a matter of a day or two.
BTW all the links to my work outside of this blog are in my free daily newsletter, so you need to sign up to get it. It is totally free, with no strings attached.
A StockTwits users was asking me about Intel today. I happen to think Intel is relatively cheap here, and I think the stock could work its way higher to $52.50 or so.
I think the questions about the CEO are a big deal, and that is likely weighing more than anything. Frankly, the abrupt resignation came out of left field, and if one thing the market hates more than anything it is uncertainty. Investors have no idea who the new CEO will be and what direction they may decide the steer the company.
As for why the market may be favoring AMD now, a couple of reasons. First AMD is more than 10 times smaller than Intel by Market Cap. Number two, it attracts many day traders that love volatility. Number 3, and I hate this term with a passion, but will use it because I do not how else to say it, the stock has a “cult-like” following.
Additionally in the eyes of the “cult” AMD is taking and winning share from Intel. Whether or not that is actually true, I do not know. Anyone who is old enough remembers today’s story is no different what was, well, 20 years ago, and still, it has yet to happen. Maybe AMD’s new CEO changes that.
But it hard to ignore that AMD’s chart looks like it could continue to rise to nearly $24.
That is it.
Ok, so now I am starting to actively self-promote myself, but then again I gotta eat too, so please check out my member’s area. I price it to be a cheap service because I’m trying to honestly make some money but also help investors looking to learn. Members can post questions, and I usually get back to them in less than 12 hours through email and also post answers in videos showing you how I do the work.
I run the service through Seeking Alpha because they have a good operation and provide all the technology. Email notifications, chat room, comment sections, etc.
It is $200 a year or $25 a month. Right now you can get 2 weeks for free, and introductory 20 percent off. If you do not like it cancel it, no big deal, no feeling hurt. Thanks!
Here are some of the better video’s this year.
Good Luck This week.
Read Our Sponsors Material:
Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future.
#SP500 #AMAZON #TESLA #MICRON #INTEL #AMD