Head for the hills: Get out of these stocks at a run and don’t stop running

Tesla (TSLA)

I’m not nearly the Tesla hater that recent months would have me appear, but shares of TSLA are greatly overpriced given the potential profits of the company which are now seriously threatened by competition to which, through frequent delays, Tesla has given nearly a full year more of catch-up time than it first forecast. There is also more risk than ever before, which can be summed up by what nearly all analysts agree is the certain need to raise capital before of the end of the year, a risk which is only exacerbated by Elon Musk’s increasingly strained denial of the same, a strain which he now indulges by launching Twitter attacks against his critics. No, Elon, that doesn’t work for you, either. Is it just me, or does Musk, who is said to have been the inspiration for Robert Downey Jr.’s portrayal of Tony Stark, now look like he’s doing an impersonation of Robert Downey Jr.’s Tony Stark? Alas, reality often turns absurd more quickly than fiction.

Chart courtesy of www.stockcharts.com

Julian Close

Julian Close

Julian Close became a stockbroker in 1995. In his 20 years of market experience, he has seen all market conditions and written about every aspect of investing. Julian has also written extensively on corporate best practices and even written reports for the United Nations. He graduated from Davidson College in 1993 and received a Master of Arts in Teaching from Mary Baldwin College in 2011. You can see closing trades for all Julian's long and short positions and track his long term performance via twitter: @JulianClose_MIC.

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