+Follow
Five777
No personal profile
1
Follow
1
Followers
0
Topic
0
Badge
Posts
Hot
Five777
2021-06-24
Hmm … interesting
Tesla: A Lesson In Humility
Five777
2021-06-22
?
Will Disney Stock Split This Year?
Five777
2021-06-21
Needs to be observed.
Sorry, the original content has been removed
Five777
2021-06-18
Ok
7 Best Hidden Gem Stocks That Are Flying Under the Radar
Go to Tiger App to see more news
{"i18n":{"language":"en_US"},"userPageInfo":{"id":"3581925858837233","uuid":"3581925858837233","gmtCreate":1618832157636,"gmtModify":1618832157636,"name":"Five777","pinyin":"five777","introduction":"","introductionEn":null,"signature":"","avatar":"https://static.laohu8.com/default-avatar.jpg","hat":null,"hatId":null,"hatName":null,"vip":1,"status":2,"fanSize":1,"headSize":1,"tweetSize":4,"questionSize":0,"limitLevel":999,"accountStatus":4,"level":{"id":1,"name":"萌萌虎","nameTw":"萌萌虎","represent":"呱呱坠地","factor":"评论帖子3次或发布1条主帖（非转发）","iconColor":"3C9E83","bgColor":"A2F1D9"},"themeCounts":0,"badgeCounts":0,"badges":[],"moderator":false,"superModerator":false,"manageSymbols":null,"badgeLevel":null,"boolIsFan":false,"boolIsHead":false,"favoriteSize":1,"symbols":null,"coverImage":null,"realNameVerified":"success","userBadges":[{"badgeId":"1026c425416b44e0aac28c11a0848493-2","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Senior Tiger","description":"Join the tiger community for 1000 days","bigImgUrl":"https://static.tigerbbs.com/0063fb68ea29c9ae6858c58630e182d5","smallImgUrl":"https://static.tigerbbs.com/96c699a93be4214d4b49aea6a5a5d1a4","grayImgUrl":"https://static.tigerbbs.com/35b0e542a9ff77046ed69ef602bc105d","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.01.16","exceedPercentage":null,"individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1001}],"userBadgeCount":1,"currentWearingBadge":null,"individualDisplayBadges":null,"crmLevel":2,"crmLevelSwitch":0,"location":null,"starInvestorFollowerNum":0,"starInvestorFlag":false,"starInvestorOrderShareNum":0,"subscribeStarInvestorNum":0,"ror":null,"winRationPercentage":null,"showRor":false,"investmentPhilosophy":null,"starInvestorSubscribeFlag":false},"baikeInfo":{},"tab":"post","tweets":[{"id":128828187,"gmtCreate":1624510781649,"gmtModify":1703838862087,"author":{"id":"3581925858837233","authorId":"3581925858837233","name":"Five777","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3581925858837233","authorIdStr":"3581925858837233"},"themes":[],"htmlText":"Hmm … interesting","listText":"Hmm … interesting","text":"Hmm … interesting","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/128828187","repostId":"1176854050","repostType":4,"repost":{"id":"1176854050","pubTimestamp":1624506221,"share":"https://ttm.financial/m/news/1176854050?lang=&edition=fundamental","pubTime":"2021-06-24 11:43","market":"us","language":"en","title":"Tesla: A Lesson In Humility","url":"https://stock-news.laohu8.com/highlight/detail?id=1176854050","media":"seekingalpha","summary":"Tesla shares have pulled well back in a months-long period of weakness.With earnings coming up, there looks to be a showdown of bulls and bears on the near-term horizon.I see Tesla's fundamentals - and valuation - as having improved massively in recent months, and I'm therefore still quite bullish.Finally, the elephant in the room is the descending triangle I noted above, and I’ve added some extra bars at the end of the chart to show what the resolution of the triangle might look like. We can se","content":"<p><b>Summary</b></p>\n<ul>\n <li>Tesla shares have pulled well back in a months-long period of weakness.</li>\n <li>With earnings coming up, there looks to be a showdown of bulls and bears on the near-term horizon.</li>\n <li>I see Tesla's fundamentals - and valuation - as having improved massively in recent months, and I'm therefore still quite bullish.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/16088600ba424779ab370711976bff68\" tg-width=\"768\" tg-height=\"397\" referrerpolicy=\"no-referrer\"><span>AdrianHancu/iStock Editorial via Getty Images</span></p>\n<p>Sometimes in investing, our thesis, no matter how much we believe in it, doesn’t work. I’ve experienced that countless times personally, and I think pretty much everyone who tries their hand at growing capital through the financial markets does as well. The important thing is not to fall in love with a stock and let it destroy your portfolio, and in the case of EV mothership<b>Tesla</b>(TSLA), I certainly had my fair share of practice at letting go of a failed thesis recently.</p>\n<p>Back inearly April, I said it was time to buy Tesla based upon its fairly reliable history of running higher into earnings announcements. The stock was at $691 at the time and did move higher in the next couple of weeks, but as we can see from the below, the move didn’t stick. That caused me to rethink my position in the short-term with Tesla, and now that we are four weeks out from the next earnings report, we have a different situation on our hands.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/54fd49361e0720105b3d38a4c4c88fa1\" tg-width=\"640\" tg-height=\"615\" referrerpolicy=\"no-referrer\"><span>Source: StockCharts</span></p>\n<p>I’ve annotated several things on the daily chart because the situation is quite interesting for Tesla during this critical period leading up to the next earnings release. The first thing I’ll note is that the accumulation/distribution line remains very strong, having never wavered from its prior levels achieved during the massive rally that took place mostly in 2020. That’s a good sign because the bulls and bears remain roughly equally matched despite a share price that has given the bulls every reason to move on.</p>\n<p>Momentum is more of a mixed picture because the PPO and 14-day RSI are both showing some signs of positive divergence, but also signs that bullish momentum is nowhere near high enough to push the stock into another rally phase. On the divergence side, momentum is gradually moving higher while the share price bounces around, indicating that the worst of the selling is likely done, but that we’re in a digestion period. The 14-day RSI hasn’t yet crested the centerline in earnest, which again means that bullish momentum is fairly weak.</p>\n<p>Overall, I’d say momentum is showing what you might expect at this stage, which is that the selling pressure has abated, but we’re not in rally mode. Yet.</p>\n<p>Finally, the elephant in the room is the descending triangle I noted above, and I’ve added some extra bars at the end of the chart to show what the resolution of the triangle might look like. We can see at the current slope of the line that the triangle will likely resolve near the end of July, which just so happens to coincide with the earnings release. This is a bearish pattern so I don’t want to make everything seem like sunshine and lollipops, but the rest of the chart is mixed, so we’ll have to wait and see.</p>\n<p>The earnings report, in my view, is going to be the catalyst one way or the other for the breakout from the triangle. Which direction it will go is anyone’s guess, but I’d be ready for a wild reaction to the earnings release in July.</p>\n<p>If we look at a weekly chart, I see a much rosier picture.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/ef4525c330221c7768acc84c336cd8ef\" tg-width=\"640\" tg-height=\"615\" referrerpolicy=\"no-referrer\"><span>Source: StockCharts</span></p>\n<p>We can see that the stock ran up massively in 2020 and took with it the accumulation/distribution line, as well as the momentum indicators, as you’d expect. But since the selling began, we see signs that the stock has simply worked off its overbought conditions, which looks bullish to me.</p>\n<p>The 50-week moving average has served as support during this consolidation phase, and it currently stands at $575, so I’d watch that level if we see more selling. On the plus side, the accumulation/distribution line looks beautiful and again, is supportive of this selling being a digestion period rather than the end of the bull market for Tesla.</p>\n<p>Momentum would seem to support that as well, as the PPO and 14-week RSI are back at centerline support. What happens after this is critical, obviously, but the weekly chart doesn’t show Tesla as breaking down on a longer-term basis. The negative divergences we saw since 2020 began have given way to momentum resetting, which often happens before a new bull phase begins. With the earnings report looming in July, and the daily and weekly charts showing different pictures (at least to my eye), it’s going to be an interesting next four weeks for sure.</p>\n<p><b>Fundamentals still bullish</b></p>\n<p>I’d sum up the chart as having a short-term set of challenges for the bulls, but longer-term, I still see Tesla going higher. On a fundamental basis, I think the conclusion is decidedly more bullish. Let’s start with revenue revisions, which have been nothing short of terrific.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7297a6360a43284ab70d4caf12d206f3\" tg-width=\"640\" tg-height=\"282\" referrerpolicy=\"no-referrer\"><span>Source:Seeking Alpha</span></p>\n<p>All years are showing uptrends in revenue revisions, and in particular, the out years. Let us not forget that these positive revisions are occurring during a time when countless startups and internal combustion engine OGs like GM (GM), Ford (F) and Volkswagen (OTCPK:VWAGY) are investing tens of billions of dollars to take market share in EVs. None of this is new and it isn’t like the analyst community is surprised by these investments; Tesla is simply on a tremendous upward trajectory when it comes to growing revenue.</p>\n<p>Canaccordpointed out last week that the Model S Plaid Plus delay was likely due to the 4680 cell design not being ready for prime time. That very well could be the case, and it wouldn’t be the first time Tesla disappointed with a time frame it gave investors. Remember therobo-taxi claim?</p>\n<p>At any rate, the company’s lineup continues to resonate with customers and now that capacity constraints should lessen greatly over the coming years – new factories in a few parts of the world will help – the path of least resistance for Tesla is no doubt higher. This will only get better as Tesla can decrease the per-unit cost of things like the batteries so it can better compete with mainstream automakers on price, and become a mainstream automaker rather than a niche manufacturer for the well-heeled.</p>\n<p>Another thing scale is affording Tesla is monumental progress with profit margins. Below we have trailing-twelve-months gross margins, SG&A costs, and EBIT margin as a percentage of revenue.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/f9effb44d7bda8f3bdb535e80dd1ac0f\" tg-width=\"640\" tg-height=\"168\" referrerpolicy=\"no-referrer\"><span>Source: TIKR.com</span></p>\n<p>All three of these lines are moving in the right direction. Gross margins have been rising thanks to higher sales and production volumes, a trend that should continue so long as sales remain robust. In addition, Tesla is spending much less on an SG&A basis than it used to, which again, is the product of higher sales volume. SG&A used to be in the mid-20% range of revenue, which is unsustainable. Today, it’s only 10%, which means operating margins have gone quite positive, and with room to run in the future.</p>\n<p>Margins have always been an easy thing for the bears to point to, but that is simply no longer the case, and if you have a long holding period, the margin situation is going to work out in the bulls’ favor.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/6401d5cd793a93d0ed6d36f911abdb15\" tg-width=\"640\" tg-height=\"283\" referrerpolicy=\"no-referrer\"><span>Source:Seeking Alpha</span></p>\n<p>This is all pointing to ever-higher EPS estimates, as we can see above. Analysts continue to try and keep up with Tesla’s upward trajectory, and so long as sales volumes and margins continue their march higher, so will these lines. Again, this is a feather in the cap of the bulls.</p>\n<p><b>Other considerations</b></p>\n<p>Tesla is not for the faint of heart, because it is volatile and we are at a point in the history of the automobile that an EV gold rush of sorts is occurring. Everyone is investing to win once the internal combustion engine is gone, but Tesla has a massive head start on the competition.</p>\n<p>Even so, there are risks to consider. First, Tesla could lose its technology lead over time as legacy manufacturers throw tens of billions of dollars at R&D on battery technology. Tesla is far and away the superior battery maker today, but that does not guarantee it stays that way. To be clear, I don’t see that as a viable outcome in the near-term, but ten years from now? Twenty? It's a risk.</p>\n<p>Another risk is that Tesla uses its stock as a piggy bank, issuing shares to fund R&D, factory construction, and the like.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/b8f44f661051d87ad3f2906cabe5479d\" tg-width=\"640\" tg-height=\"165\" referrerpolicy=\"no-referrer\"><span>Source: TIKR.com</span></p>\n<p>The share count has nearly doubled in the past decade, which is pretty ugly from a shareholders’ perspective, as we usually only see this kind of dilution with REITs or BDCs that issue equity capital as a normal course of business. Manufacturing stocks don’t generally do anything like this, but Tesla has made it work. Still, you have to imagine it is possible that over a decade holding period, you’ll be diluted out of half of your ownership in the company. This also creates an uphill battle for EPS as earnings are spread over more and more shares, so I want to be clear this is an unequivocal negative for shareholders. However, let me now point you to what could possibly be the saving grace for this perma-dilution; free cash flow.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/0569f35589cc0f82bb006148271df19b\" tg-width=\"640\" tg-height=\"170\" referrerpolicy=\"no-referrer\"><span>Source: TIKR.com</span></p>\n<p>Tesla’s trailing-twelve-months FCF has improved immensely in recent years, as the company is producing massive amounts of operating cash flow that it never did before, which is owed once again to sales volume and margin growth. Tesla has surpassed the point where it needs to constantly issue capital just to survive because it is creating its own through its operations. This is massively important for the bull case because it means the dilution we’ve seen in recent years<i>shouldn’t</i>be necessary any longer.</p>\n<p>Indeed, if we look at net debt, we can see just how much Tesla’s balance sheet has improved, which again supports not having to dilute shareholders to stay afloat.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/49fa413fc33c85d7269e987b2c11c888\" tg-width=\"640\" tg-height=\"169\" referrerpolicy=\"no-referrer\"><span>Source: TIKR.com</span></p>\n<p>Net debt has turned into a net cash position of late, with Tesla having nearly $5 billion in cash and equivalents more than debt. Tesla’s financing situation has improved enormously, and that’s good for those of us that are bullish.</p>\n<p><b>Is it cheap?</b></p>\n<p>Not really. But then again revolutionary companies rarely are. The good news is that the price-to-sales ratio has halved since the peak earlier this year, but at 11x forward revenue, I cannot in good conscience call it cheap.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/ca2d9f38636872d9d508e096e9ac8af8\" tg-width=\"640\" tg-height=\"189\" referrerpolicy=\"no-referrer\"><span>Source: TIKR.com</span></p>\n<p>However, it is a lot cheaper than it was, and withrevenueslated to rise by more than half this year, and then<i>double</i>again by 2024, you don’t need the multiple to rise for a bullish outlook.</p>\n<p>I’ll reiterate that there are risks to Tesla. The daily chart is leaning slightly bearish with that descending triangle, but we’re heading into the pre-earnings run-up that Tesla<i>usually</i>shines during. The weekly chart is showing signs of digestion rather than rolling over. There are competitive risks that aren’t new and will never go way, but the company is still building great EVs that are resonating with customers. Margins and FCF are booming comparatively speaking, and the stock is at roughly half the valuation it was a few months ago.</p>\n<p>All in all, Tesla almost certainly has a rocky road in front of it, but I’m still bullish given the weight of the evidence.</p>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Tesla: A Lesson In Humility</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTesla: A Lesson In Humility\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-24 11:43 GMT+8 <a href=https://seekingalpha.com/article/4436295-tesla-a-lesson-in-humility><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nTesla shares have pulled well back in a months-long period of weakness.\nWith earnings coming up, there looks to be a showdown of bulls and bears on the near-term horizon.\nI see Tesla's ...</p>\n\n<a href=\"https://seekingalpha.com/article/4436295-tesla-a-lesson-in-humility\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TSLA":"特斯拉"},"source_url":"https://seekingalpha.com/article/4436295-tesla-a-lesson-in-humility","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1176854050","content_text":"Summary\n\nTesla shares have pulled well back in a months-long period of weakness.\nWith earnings coming up, there looks to be a showdown of bulls and bears on the near-term horizon.\nI see Tesla's fundamentals - and valuation - as having improved massively in recent months, and I'm therefore still quite bullish.\n\nAdrianHancu/iStock Editorial via Getty Images\nSometimes in investing, our thesis, no matter how much we believe in it, doesn’t work. I’ve experienced that countless times personally, and I think pretty much everyone who tries their hand at growing capital through the financial markets does as well. The important thing is not to fall in love with a stock and let it destroy your portfolio, and in the case of EV mothershipTesla(TSLA), I certainly had my fair share of practice at letting go of a failed thesis recently.\nBack inearly April, I said it was time to buy Tesla based upon its fairly reliable history of running higher into earnings announcements. The stock was at $691 at the time and did move higher in the next couple of weeks, but as we can see from the below, the move didn’t stick. That caused me to rethink my position in the short-term with Tesla, and now that we are four weeks out from the next earnings report, we have a different situation on our hands.\nSource: StockCharts\nI’ve annotated several things on the daily chart because the situation is quite interesting for Tesla during this critical period leading up to the next earnings release. The first thing I’ll note is that the accumulation/distribution line remains very strong, having never wavered from its prior levels achieved during the massive rally that took place mostly in 2020. That’s a good sign because the bulls and bears remain roughly equally matched despite a share price that has given the bulls every reason to move on.\nMomentum is more of a mixed picture because the PPO and 14-day RSI are both showing some signs of positive divergence, but also signs that bullish momentum is nowhere near high enough to push the stock into another rally phase. On the divergence side, momentum is gradually moving higher while the share price bounces around, indicating that the worst of the selling is likely done, but that we’re in a digestion period. The 14-day RSI hasn’t yet crested the centerline in earnest, which again means that bullish momentum is fairly weak.\nOverall, I’d say momentum is showing what you might expect at this stage, which is that the selling pressure has abated, but we’re not in rally mode. Yet.\nFinally, the elephant in the room is the descending triangle I noted above, and I’ve added some extra bars at the end of the chart to show what the resolution of the triangle might look like. We can see at the current slope of the line that the triangle will likely resolve near the end of July, which just so happens to coincide with the earnings release. This is a bearish pattern so I don’t want to make everything seem like sunshine and lollipops, but the rest of the chart is mixed, so we’ll have to wait and see.\nThe earnings report, in my view, is going to be the catalyst one way or the other for the breakout from the triangle. Which direction it will go is anyone’s guess, but I’d be ready for a wild reaction to the earnings release in July.\nIf we look at a weekly chart, I see a much rosier picture.\nSource: StockCharts\nWe can see that the stock ran up massively in 2020 and took with it the accumulation/distribution line, as well as the momentum indicators, as you’d expect. But since the selling began, we see signs that the stock has simply worked off its overbought conditions, which looks bullish to me.\nThe 50-week moving average has served as support during this consolidation phase, and it currently stands at $575, so I’d watch that level if we see more selling. On the plus side, the accumulation/distribution line looks beautiful and again, is supportive of this selling being a digestion period rather than the end of the bull market for Tesla.\nMomentum would seem to support that as well, as the PPO and 14-week RSI are back at centerline support. What happens after this is critical, obviously, but the weekly chart doesn’t show Tesla as breaking down on a longer-term basis. The negative divergences we saw since 2020 began have given way to momentum resetting, which often happens before a new bull phase begins. With the earnings report looming in July, and the daily and weekly charts showing different pictures (at least to my eye), it’s going to be an interesting next four weeks for sure.\nFundamentals still bullish\nI’d sum up the chart as having a short-term set of challenges for the bulls, but longer-term, I still see Tesla going higher. On a fundamental basis, I think the conclusion is decidedly more bullish. Let’s start with revenue revisions, which have been nothing short of terrific.\nSource:Seeking Alpha\nAll years are showing uptrends in revenue revisions, and in particular, the out years. Let us not forget that these positive revisions are occurring during a time when countless startups and internal combustion engine OGs like GM (GM), Ford (F) and Volkswagen (OTCPK:VWAGY) are investing tens of billions of dollars to take market share in EVs. None of this is new and it isn’t like the analyst community is surprised by these investments; Tesla is simply on a tremendous upward trajectory when it comes to growing revenue.\nCanaccordpointed out last week that the Model S Plaid Plus delay was likely due to the 4680 cell design not being ready for prime time. That very well could be the case, and it wouldn’t be the first time Tesla disappointed with a time frame it gave investors. Remember therobo-taxi claim?\nAt any rate, the company’s lineup continues to resonate with customers and now that capacity constraints should lessen greatly over the coming years – new factories in a few parts of the world will help – the path of least resistance for Tesla is no doubt higher. This will only get better as Tesla can decrease the per-unit cost of things like the batteries so it can better compete with mainstream automakers on price, and become a mainstream automaker rather than a niche manufacturer for the well-heeled.\nAnother thing scale is affording Tesla is monumental progress with profit margins. Below we have trailing-twelve-months gross margins, SG&A costs, and EBIT margin as a percentage of revenue.\nSource: TIKR.com\nAll three of these lines are moving in the right direction. Gross margins have been rising thanks to higher sales and production volumes, a trend that should continue so long as sales remain robust. In addition, Tesla is spending much less on an SG&A basis than it used to, which again, is the product of higher sales volume. SG&A used to be in the mid-20% range of revenue, which is unsustainable. Today, it’s only 10%, which means operating margins have gone quite positive, and with room to run in the future.\nMargins have always been an easy thing for the bears to point to, but that is simply no longer the case, and if you have a long holding period, the margin situation is going to work out in the bulls’ favor.\nSource:Seeking Alpha\nThis is all pointing to ever-higher EPS estimates, as we can see above. Analysts continue to try and keep up with Tesla’s upward trajectory, and so long as sales volumes and margins continue their march higher, so will these lines. Again, this is a feather in the cap of the bulls.\nOther considerations\nTesla is not for the faint of heart, because it is volatile and we are at a point in the history of the automobile that an EV gold rush of sorts is occurring. Everyone is investing to win once the internal combustion engine is gone, but Tesla has a massive head start on the competition.\nEven so, there are risks to consider. First, Tesla could lose its technology lead over time as legacy manufacturers throw tens of billions of dollars at R&D on battery technology. Tesla is far and away the superior battery maker today, but that does not guarantee it stays that way. To be clear, I don’t see that as a viable outcome in the near-term, but ten years from now? Twenty? It's a risk.\nAnother risk is that Tesla uses its stock as a piggy bank, issuing shares to fund R&D, factory construction, and the like.\nSource: TIKR.com\nThe share count has nearly doubled in the past decade, which is pretty ugly from a shareholders’ perspective, as we usually only see this kind of dilution with REITs or BDCs that issue equity capital as a normal course of business. Manufacturing stocks don’t generally do anything like this, but Tesla has made it work. Still, you have to imagine it is possible that over a decade holding period, you’ll be diluted out of half of your ownership in the company. This also creates an uphill battle for EPS as earnings are spread over more and more shares, so I want to be clear this is an unequivocal negative for shareholders. However, let me now point you to what could possibly be the saving grace for this perma-dilution; free cash flow.\nSource: TIKR.com\nTesla’s trailing-twelve-months FCF has improved immensely in recent years, as the company is producing massive amounts of operating cash flow that it never did before, which is owed once again to sales volume and margin growth. Tesla has surpassed the point where it needs to constantly issue capital just to survive because it is creating its own through its operations. This is massively important for the bull case because it means the dilution we’ve seen in recent yearsshouldn’tbe necessary any longer.\nIndeed, if we look at net debt, we can see just how much Tesla’s balance sheet has improved, which again supports not having to dilute shareholders to stay afloat.\nSource: TIKR.com\nNet debt has turned into a net cash position of late, with Tesla having nearly $5 billion in cash and equivalents more than debt. Tesla’s financing situation has improved enormously, and that’s good for those of us that are bullish.\nIs it cheap?\nNot really. But then again revolutionary companies rarely are. The good news is that the price-to-sales ratio has halved since the peak earlier this year, but at 11x forward revenue, I cannot in good conscience call it cheap.\nSource: TIKR.com\nHowever, it is a lot cheaper than it was, and withrevenueslated to rise by more than half this year, and thendoubleagain by 2024, you don’t need the multiple to rise for a bullish outlook.\nI’ll reiterate that there are risks to Tesla. The daily chart is leaning slightly bearish with that descending triangle, but we’re heading into the pre-earnings run-up that Teslausuallyshines during. The weekly chart is showing signs of digestion rather than rolling over. There are competitive risks that aren’t new and will never go way, but the company is still building great EVs that are resonating with customers. Margins and FCF are booming comparatively speaking, and the stock is at roughly half the valuation it was a few months ago.\nAll in all, Tesla almost certainly has a rocky road in front of it, but I’m still bullish given the weight of the evidence.","news_type":1},"isVote":1,"tweetType":1,"viewCount":421,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":129168524,"gmtCreate":1624365598768,"gmtModify":1703834462883,"author":{"id":"3581925858837233","authorId":"3581925858837233","name":"Five777","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3581925858837233","authorIdStr":"3581925858837233"},"themes":[],"htmlText":"?","listText":"?","text":"?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/129168524","repostId":"1186919064","repostType":4,"repost":{"id":"1186919064","pubTimestamp":1624352931,"share":"https://ttm.financial/m/news/1186919064?lang=&edition=fundamental","pubTime":"2021-06-22 17:08","market":"us","language":"en","title":"Will Disney Stock Split This Year?","url":"https://stock-news.laohu8.com/highlight/detail?id=1186919064","media":"seekingalpha","summary":"Disney's stock split history is reviewed for the possibility of a repeat this year.Its financials and cash flows are negatively impacted by the pandemic but analysts are projecting a strong recovery in the next few years.The Walt Disney Company could consider another stock split to \"get more people in the stock.\". Readers may come across different answers to the question in the header depending on the sources. According to YCharts, The Walt Disney Company has had nine stock splits, three betwee","content":"<p><b>Summary</b></p>\n<ul>\n <li>Disney's stock split history is reviewed for the possibility of a repeat this year.</li>\n <li>Its financials and cash flows are negatively impacted by the pandemic but analysts are projecting a strong recovery in the next few years.</li>\n <li>If the consensus estimates come true, the share price of DIS has much room to head north in line with the EPS growth.</li>\n <li>The Walt Disney Company could consider another stock split to \"get more people in the stock.\"</li>\n</ul>\n<p><b>Has Disney Stock Ever Split?</b></p>\n<p>Readers may come across different answers to the question in the header depending on the sources. According to YCharts, The Walt Disney Company (DIS) has had nine stock splits, three between 1985 and 2000, and six prior to 1980.</p>\n<p><img src=\"https://static.tigerbbs.com/fd38f0d03c0480c1f6728aa9e8dd5cfb\" tg-width=\"640\" tg-height=\"431\" referrerpolicy=\"no-referrer\"></p>\n<p>On the other hand,<i>Stock Split History</i>and<i>Yahoo Finance</i>both reflect eight stock splits in Disney's history. However, the exercises in 1962 and 2007 seem more like bonus issues than stock splits. The first \"split\" for DIS stock was dated December 18, 1962. This was a 103 for 100 split, meaning that a shareholder with 100 shares of DIS pre-split will subsequently own 103 shares.</p>\n<p><img src=\"https://static.tigerbbs.com/98283a2c39510a381b9f91cdc416f6f8\" tg-width=\"274\" tg-height=\"329\" referrerpolicy=\"no-referrer\"></p>\n<p><i>Source:StockSplitHistory.com</i></p>\n<p>As with all corporate matters, investors should refer to the official announcements to be sure. From Walt Disney's website under the Investor Relations section, the company provided a neat table under the Frequently Asked Questions [FAQs]. The table showed only seven past stock splits that happened between 1956 and 1998. This meant that DIS stock has not split for over two decades. Also, it shows that Walt Disney does not consider the 103 shares for 100 shares and 1,014 shares for 1,000 shares as stock splits.</p>\n<p><img src=\"https://static.tigerbbs.com/a398b378fd1cb185e5fe95cbaf2513d7\" tg-width=\"640\" tg-height=\"232\" referrerpolicy=\"no-referrer\"></p>\n<p><i>Source: The Walt Disney Company</i></p>\n<p><b>Is Disney Stock Going To Split Again?</b></p>\n<p>Tesla (TSLA) and Nvidia (NVDA) were among the prominent few companies that underwent stock splits recently. When Tesla announced itsfirst-ever stock spliton August 11 last year, the stock jumped from a pre-split price of $1374.4 to as high as $1585 the next day before closing at $1554.75. TSLA went on to clock further gains the rest of the month, appreciating over 80 percent by the end of August 2020.</p>\n<p>Nvidia announced in May that its decision to do afour-for-one stock splitwas approved by the board. Its shares were trading above $500 before the announcement and are priced around $750 currently. Nvidia justified the proposed stock split as enabling its shares to become \"more accessible to investors and employees.\"</p>\n<p>The share price of Disney is currently around $172. It hit a high of $203.02 on March 8, 2021. Even at the peak, the share price was a fraction of what TSLA and NVDA were trading at prior to their stock split announcements. As such, is there an impetus for Disney?</p>\n<p>Well, the last time Disney had a stock split was July 9, 1998, and the pre-split share price was only $111. Apart from one stock split in 1973, the last six stock splits were done when its share price was below $200. A quote often attributed to Mark Twain goes: \"History doesn't repeat itself, but it often rhymes.\" It is probably timely to consider Disney could conduct a fresh stock split as its stock heads back towards $200.</p>\n<p>Disney's Valuation And Prospects Support A Stock Split</p>\n<p>The Walt Disney Company appeared to be heading for disaster when the COVID-19 pandemic struck last year. Its Disneyland theme parks and hotels around the world had to be shut for extended periods. Its cruise line and retail stores had to close for business as well. Its movies couldn't be shown as theaters were shut while film and TV productions had to be halted too.</p>\n<p>The challenges that the House of the Mouse faced were unprecedented. In the second fiscal quarter of 2020, its adjusted EPS fell to $0.60 a share from $1.61 a year earlier primarily due to the suspended operations.</p>\n<p>The management took proactive steps during the second quarter of 2020 to enhance Disney's liquidity position by issuing $6 billion of term debt. A week after the quarter ended, it issued another $925 million in term debt. In terms of net financial debt, however, Disney managed to hold steady and did not exceed the peak of above $50 billion following the addition of debt load to its balance sheet from the 21st Century Fox acquisition in 2019.</p>\n<p><img src=\"https://static.tigerbbs.com/cbd5da32f627c04144c275782ef135e7\" tg-width=\"640\" tg-height=\"432\" referrerpolicy=\"no-referrer\"></p>\n<p>Although Disney's debt level remains elevated at 28 percent, its debt-to-assets remained close to its five-year average at around 25 percent. It is also comparatively lower than its industry peers. ViacomCBS (VIAC)(VIACA) has a debt-to-assets of 32.5 percent while Comcast (CMCSA) has a debt-to-assets of 37.2 percent. Netflix (NFLX) doesn't own any attraction parks but it has the highest debt-to-assets of 38.8 percent.</p>\n<p><img src=\"https://static.tigerbbs.com/7ff01b9033cebf8c5e4fb15976c0d266\" tg-width=\"640\" tg-height=\"480\" referrerpolicy=\"no-referrer\"></p>\n<p>Looking at the debt-to-equity ratio, The Walt Disney Company is also the lowest among its peers. This suggests that Disney's capital structure could be conservative in its approach to debt relative to the industry.</p>\n<p><img src=\"https://static.tigerbbs.com/c53bbfa821e92f67b05ae6c4a418bad0\" tg-width=\"640\" tg-height=\"480\" referrerpolicy=\"no-referrer\"></p>\n<p>However, dividend investors may have been disappointed with the decision of Disney's Board to forego the payment of dividends last year. Its last payment of $0.88 per share was on January 16, 2020, for those who had the shares on the record date of December 16, 2019.</p>\n<p><img src=\"https://static.tigerbbs.com/86b599e7a38c7af0abe617f3e95e54a5\" tg-width=\"640\" tg-height=\"446\" referrerpolicy=\"no-referrer\"></p>\n<p>Bob Chapek, the Chief Executive Officer of Disney, said during the Credit Suisse 23rd Annual Communications Conference held on June 14 that the Board of Directors is prioritizing thefunding of its Direct-to-Consumer[DTC] business. He added that dividends will be \"a part of our long-term capital allocation strategy, for sure.\"</p>\n<p>Chapek also revealed what the board is considering:</p>\n<blockquote>\n \"...they'll take into account what they’ve taken into account in the past, which is, what's our strategic investment outlook, where our alternative uses of capital and what are those priorities? What our financial leverage look like coming out of COVID? What the operating environment look like in terms of the release of restrictions that we've got that might constrain our business going forward, or at least give us some time to actually ramp back up to full operating mode, if you will? And what's really just the overall recovery of our businesses across the entire enterprise?\"\n</blockquote>\n<p>For now, Disney's financials are constrained. Its free cash flow is at a depressed level historically, primarily due to the weak cash from operations which in turn is due to the low revenue. The cash from operations on a trailing-twelve-month basis is at a multi-year low of $4.3 billion. Its new star division, Disney+, is unable to singlehandedly lift the company from its pandemic-impacted operations.</p>\n<p><img src=\"https://static.tigerbbs.com/501540384c7735541ed0eeb33116a073\" tg-width=\"640\" tg-height=\"447\" referrerpolicy=\"no-referrer\"></p>\n<p>Nevertheless, Wall Street analysts are not perturbed by the short-term difficulties faced by Disney. The consensus EPS estimate for the fiscal period ending September 2025 is $8.72, implying a sub-20 times forward P/E, a sharp drop from the one-year forward P/E of 72 times. It's thus likely that the share price would rise to bring the P/E ratio above the \"bargain\" sub-20 times level, increasing the justification for a stock split.</p>\n<p><img src=\"https://static.tigerbbs.com/f33bdfa14f2e1f94d872349194cef3d1\" tg-width=\"640\" tg-height=\"281\" referrerpolicy=\"no-referrer\"></p>\n<p><i>Source: Seeking Alpha Premium</i></p>\n<p><b>Additional Justifications For A DIS Stock Split</b></p>\n<p>Given that one of the reasons for doing a stock split is to bring the share price much lower than the current level, double-digit pricing certainly fits the bill. A rhetorical repeat of a 3:1 stock split would bring the share price of Disney to around $57, making it look affordable psychologically, even though it is meaningless from the valuation angle.</p>\n<p>On the other hand, it appears that Disney prefers the prestige of a larger share price, given that it has long resisted a stock split (the last one being over 20 years ago). The management of Disney might regard DIS stock's elevated share price as a reflection of its achievements, especially considering the challenges during the pandemic. A stock split bringing the share price substantially lower has the reverse effect, making the company look less accomplished compared to, say, Amazon.com, Inc. (AMZN) with its quadruple-digit share price.</p>\n<p>At the same time, while we recognize that calling a stock \"expensive\" based on the absolute price might sound silly, it is not uncommon to come across comments lamenting that tickers with share prices in the high triple-digits are \"expensive\" and those with single-digit share prices are \"bargains\".</p>\n<p>Given the option of purchasing partial shares provided by certain brokerages, the impetus to do a split is further diminished. However, judging from the cryptocurrency market, the notion that the price levels do have an effect on investors' mentality shouldn't be dismissed. For instance, the much lower-priced Dogecoin (DOGE-USD) appears to be more favored whether by short-term traders or longer-term investors compared to Bitcoin (BTC-USD).</p>\n<p><img src=\"https://static.tigerbbs.com/efb4b1d5343c9d189af17f7d9d72de30\" tg-width=\"640\" tg-height=\"446\" referrerpolicy=\"no-referrer\"></p>\n<p>Another oft-mentioned reason that companies do stock split is to improve their chances to enter the Dow Jones Industrial Average, one of the oldest and the most commonly followed equity indices. This is because the Dow is a price-weighted measurement stock market index and a high-priced component would skew the index.</p>\n<p>However, The Walt Disney Company is already a Dow component since May 6, 1991. Hence, this would not be a motivation. Nevertheless, those who trade options may welcome a stock split as it makes the option contracts more affordable.</p>\n<p>Whether a DIS stock split would happen this year is another big question. Fundamentally as I discussed earlier, it's a matter of time investors regain confidence in Disney's growth potential. Chart-wise, however, doesn't look good for Disney stock. Its gap in December last year has yet to be filled.</p>\n<p>At the same time, there appears to be a tail-end formation of a head-and-shoulder pattern, a bearish sign. Investors may wish to consider the mentioned factors instead of just looking at a potential jump should Disney announce a stock split.</p>\n<p><img src=\"https://static.tigerbbs.com/eee7ab6b1236c4ed57d19afc78319174\" tg-width=\"640\" tg-height=\"247\"><i>Source: Yahoo Finance</i></p>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Will Disney Stock Split This Year?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWill Disney Stock Split This Year?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-22 17:08 GMT+8 <a href=https://seekingalpha.com/article/4435877-will-disney-stock-split><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nDisney's stock split history is reviewed for the possibility of a repeat this year.\nIts financials and cash flows are negatively impacted by the pandemic but analysts are projecting a strong ...</p>\n\n<a href=\"https://seekingalpha.com/article/4435877-will-disney-stock-split\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"DIS":"迪士尼"},"source_url":"https://seekingalpha.com/article/4435877-will-disney-stock-split","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1186919064","content_text":"Summary\n\nDisney's stock split history is reviewed for the possibility of a repeat this year.\nIts financials and cash flows are negatively impacted by the pandemic but analysts are projecting a strong recovery in the next few years.\nIf the consensus estimates come true, the share price of DIS has much room to head north in line with the EPS growth.\nThe Walt Disney Company could consider another stock split to \"get more people in the stock.\"\n\nHas Disney Stock Ever Split?\nReaders may come across different answers to the question in the header depending on the sources. According to YCharts, The Walt Disney Company (DIS) has had nine stock splits, three between 1985 and 2000, and six prior to 1980.\n\nOn the other hand,Stock Split HistoryandYahoo Financeboth reflect eight stock splits in Disney's history. However, the exercises in 1962 and 2007 seem more like bonus issues than stock splits. The first \"split\" for DIS stock was dated December 18, 1962. This was a 103 for 100 split, meaning that a shareholder with 100 shares of DIS pre-split will subsequently own 103 shares.\n\nSource:StockSplitHistory.com\nAs with all corporate matters, investors should refer to the official announcements to be sure. From Walt Disney's website under the Investor Relations section, the company provided a neat table under the Frequently Asked Questions [FAQs]. The table showed only seven past stock splits that happened between 1956 and 1998. This meant that DIS stock has not split for over two decades. Also, it shows that Walt Disney does not consider the 103 shares for 100 shares and 1,014 shares for 1,000 shares as stock splits.\n\nSource: The Walt Disney Company\nIs Disney Stock Going To Split Again?\nTesla (TSLA) and Nvidia (NVDA) were among the prominent few companies that underwent stock splits recently. When Tesla announced itsfirst-ever stock spliton August 11 last year, the stock jumped from a pre-split price of $1374.4 to as high as $1585 the next day before closing at $1554.75. TSLA went on to clock further gains the rest of the month, appreciating over 80 percent by the end of August 2020.\nNvidia announced in May that its decision to do afour-for-one stock splitwas approved by the board. Its shares were trading above $500 before the announcement and are priced around $750 currently. Nvidia justified the proposed stock split as enabling its shares to become \"more accessible to investors and employees.\"\nThe share price of Disney is currently around $172. It hit a high of $203.02 on March 8, 2021. Even at the peak, the share price was a fraction of what TSLA and NVDA were trading at prior to their stock split announcements. As such, is there an impetus for Disney?\nWell, the last time Disney had a stock split was July 9, 1998, and the pre-split share price was only $111. Apart from one stock split in 1973, the last six stock splits were done when its share price was below $200. A quote often attributed to Mark Twain goes: \"History doesn't repeat itself, but it often rhymes.\" It is probably timely to consider Disney could conduct a fresh stock split as its stock heads back towards $200.\nDisney's Valuation And Prospects Support A Stock Split\nThe Walt Disney Company appeared to be heading for disaster when the COVID-19 pandemic struck last year. Its Disneyland theme parks and hotels around the world had to be shut for extended periods. Its cruise line and retail stores had to close for business as well. Its movies couldn't be shown as theaters were shut while film and TV productions had to be halted too.\nThe challenges that the House of the Mouse faced were unprecedented. In the second fiscal quarter of 2020, its adjusted EPS fell to $0.60 a share from $1.61 a year earlier primarily due to the suspended operations.\nThe management took proactive steps during the second quarter of 2020 to enhance Disney's liquidity position by issuing $6 billion of term debt. A week after the quarter ended, it issued another $925 million in term debt. In terms of net financial debt, however, Disney managed to hold steady and did not exceed the peak of above $50 billion following the addition of debt load to its balance sheet from the 21st Century Fox acquisition in 2019.\n\nAlthough Disney's debt level remains elevated at 28 percent, its debt-to-assets remained close to its five-year average at around 25 percent. It is also comparatively lower than its industry peers. ViacomCBS (VIAC)(VIACA) has a debt-to-assets of 32.5 percent while Comcast (CMCSA) has a debt-to-assets of 37.2 percent. Netflix (NFLX) doesn't own any attraction parks but it has the highest debt-to-assets of 38.8 percent.\n\nLooking at the debt-to-equity ratio, The Walt Disney Company is also the lowest among its peers. This suggests that Disney's capital structure could be conservative in its approach to debt relative to the industry.\n\nHowever, dividend investors may have been disappointed with the decision of Disney's Board to forego the payment of dividends last year. Its last payment of $0.88 per share was on January 16, 2020, for those who had the shares on the record date of December 16, 2019.\n\nBob Chapek, the Chief Executive Officer of Disney, said during the Credit Suisse 23rd Annual Communications Conference held on June 14 that the Board of Directors is prioritizing thefunding of its Direct-to-Consumer[DTC] business. He added that dividends will be \"a part of our long-term capital allocation strategy, for sure.\"\nChapek also revealed what the board is considering:\n\n \"...they'll take into account what they’ve taken into account in the past, which is, what's our strategic investment outlook, where our alternative uses of capital and what are those priorities? What our financial leverage look like coming out of COVID? What the operating environment look like in terms of the release of restrictions that we've got that might constrain our business going forward, or at least give us some time to actually ramp back up to full operating mode, if you will? And what's really just the overall recovery of our businesses across the entire enterprise?\"\n\nFor now, Disney's financials are constrained. Its free cash flow is at a depressed level historically, primarily due to the weak cash from operations which in turn is due to the low revenue. The cash from operations on a trailing-twelve-month basis is at a multi-year low of $4.3 billion. Its new star division, Disney+, is unable to singlehandedly lift the company from its pandemic-impacted operations.\n\nNevertheless, Wall Street analysts are not perturbed by the short-term difficulties faced by Disney. The consensus EPS estimate for the fiscal period ending September 2025 is $8.72, implying a sub-20 times forward P/E, a sharp drop from the one-year forward P/E of 72 times. It's thus likely that the share price would rise to bring the P/E ratio above the \"bargain\" sub-20 times level, increasing the justification for a stock split.\n\nSource: Seeking Alpha Premium\nAdditional Justifications For A DIS Stock Split\nGiven that one of the reasons for doing a stock split is to bring the share price much lower than the current level, double-digit pricing certainly fits the bill. A rhetorical repeat of a 3:1 stock split would bring the share price of Disney to around $57, making it look affordable psychologically, even though it is meaningless from the valuation angle.\nOn the other hand, it appears that Disney prefers the prestige of a larger share price, given that it has long resisted a stock split (the last one being over 20 years ago). The management of Disney might regard DIS stock's elevated share price as a reflection of its achievements, especially considering the challenges during the pandemic. A stock split bringing the share price substantially lower has the reverse effect, making the company look less accomplished compared to, say, Amazon.com, Inc. (AMZN) with its quadruple-digit share price.\nAt the same time, while we recognize that calling a stock \"expensive\" based on the absolute price might sound silly, it is not uncommon to come across comments lamenting that tickers with share prices in the high triple-digits are \"expensive\" and those with single-digit share prices are \"bargains\".\nGiven the option of purchasing partial shares provided by certain brokerages, the impetus to do a split is further diminished. However, judging from the cryptocurrency market, the notion that the price levels do have an effect on investors' mentality shouldn't be dismissed. For instance, the much lower-priced Dogecoin (DOGE-USD) appears to be more favored whether by short-term traders or longer-term investors compared to Bitcoin (BTC-USD).\n\nAnother oft-mentioned reason that companies do stock split is to improve their chances to enter the Dow Jones Industrial Average, one of the oldest and the most commonly followed equity indices. This is because the Dow is a price-weighted measurement stock market index and a high-priced component would skew the index.\nHowever, The Walt Disney Company is already a Dow component since May 6, 1991. Hence, this would not be a motivation. Nevertheless, those who trade options may welcome a stock split as it makes the option contracts more affordable.\nWhether a DIS stock split would happen this year is another big question. Fundamentally as I discussed earlier, it's a matter of time investors regain confidence in Disney's growth potential. Chart-wise, however, doesn't look good for Disney stock. Its gap in December last year has yet to be filled.\nAt the same time, there appears to be a tail-end formation of a head-and-shoulder pattern, a bearish sign. Investors may wish to consider the mentioned factors instead of just looking at a potential jump should Disney announce a stock split.\nSource: Yahoo Finance","news_type":1},"isVote":1,"tweetType":1,"viewCount":323,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":167377536,"gmtCreate":1624250074825,"gmtModify":1703831578842,"author":{"id":"3581925858837233","authorId":"3581925858837233","name":"Five777","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3581925858837233","authorIdStr":"3581925858837233"},"themes":[],"htmlText":"Needs to be observed. ","listText":"Needs to be observed. ","text":"Needs to be observed.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/167377536","repostId":"1153988423","repostType":4,"isVote":1,"tweetType":1,"viewCount":332,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":168490346,"gmtCreate":1623980091285,"gmtModify":1703825341940,"author":{"id":"3581925858837233","authorId":"3581925858837233","name":"Five777","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3581925858837233","authorIdStr":"3581925858837233"},"themes":[],"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/168490346","repostId":"1161664678","repostType":4,"repost":{"id":"1161664678","pubTimestamp":1623979525,"share":"https://ttm.financial/m/news/1161664678?lang=&edition=fundamental","pubTime":"2021-06-18 09:25","market":"us","language":"en","title":"7 Best Hidden Gem Stocks That Are Flying Under the Radar","url":"https://stock-news.laohu8.com/highlight/detail?id=1161664678","media":"InvestorPlace","summary":"You can still pick up lesser-known stocks despite the rabid bullishness\nSource: Shutterstock\nI’m not","content":"<p>You can still pick up lesser-known stocks despite the rabid bullishness</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/bc87f0082e92d4a6495d38b6514db83e\" tg-width=\"1024\" tg-height=\"576\"><span>Source: Shutterstock</span></p>\n<p>I’m not entirely sure how true this is today. But back in 2015,<i>CNN Business</i> released a report that indicated that the number of individual equity units peaked at 7,652 during the summer of 1998. That of course was when speculation was building toward the eventual internet and technology bubble. In 2015, the number eventually slid to 3,812. Still, that’s plenty enough to find hidden gem stocks to buy.</p>\n<p>With multiple initial public offerings (IPOs) — especially from special purpose acquisition companies (SPACs) — the number of publicly traded securities has surely grown over the nearly six years since the<i>CNN</i>report went live. Just from statistical realities, it’s just not possible for every equity unit to be bid up with the same level of enthusiasm as the most popular securities. Therefore, even in this crazy bull market, you can find hidden gem stocks.</p>\n<p>Interestingly, the meme stock phenomenon provides an excellent example of the opportunities still available with hidden gem stocks. As you know, coordinated efforts on social media have driven up securities that were left for dead. But as the hordes pile into one name, others tend to shed their newfound valuation spikes. It’s like caring for your plants — if you don’t water them all, some will wither away.</p>\n<p>Fortunately, that doesn’t happen in the equities sector. Instead, they become hidden gem stocks. While they’re not the easiest to find, the market thrives on popular sentiment and momentum. And not every company and brand can receive an equal amount of love. After all, there are only so many resources to go around.</p>\n<p>True, the extreme speculation in the market has made it extraordinarily difficult to find publicly traded securities that haven’t already shot up to the moon. But again, with thousands of opportunities out there, it’s not possible for every bandwagon to be filled to capacity. Here are my ideas for hidden gem stocks to buy.</p>\n<ul>\n <li><b>Tofutti</b>(OTCMTKS:<b><u>TOFB</u></b>)</li>\n <li><b>Fast Retailing</b>(OTCMKTS:<b><u>FRCOY</u></b>)</li>\n <li><b>IBM</b>(NYSE:<b><u>IBM</u></b>)</li>\n <li><b>Scholastic</b>(NASDAQ:<b><u>SCHL</u></b>)</li>\n <li><b>P.A.M. Transportation Service</b>s (NASDAQ:<b><u>PTSI</u></b>)</li>\n <li><b>Kawasaki Heavy Industries</b>(OTCMKTS:<b><u>KWHIY</u></b>)</li>\n <li><b>First Graphene</b>(OTCMKTS:<b><u>FGPHF</u></b>)</li>\n</ul>\n<p>For this list, I tried to keep it diverse, with ideas from big blue chips that have gone underappreciated to smaller speculative names that could be the gamechangers of tomorrow. Practice careful money management with these hidden gem stocks and who knows? You might enjoy significant profitability.</p>\n<p><b>Tofutti (TOFB)</b></p>\n<p>To kick things off, I’m going with Tofutti. You might know this brand as the manufacturer of dairy-free soy based ice cream. It’s a brilliant concept because I don’t know anybody who doesn’t like ice cream. And rest assured that you’re terrible person if you don’t (I’m just kidding). However, lactose intolerance is very common in the U.S.</p>\n<p>According to MedlinePlus, a government health resource, about “30 million American adults have some degree of lactose intolerance by age 20.” Further, it goes on to state that every demographic is affected by lactose intolerance to some degree (although the least affected are western or northern Europeans). With the population of this country becoming more diverse, you’d expect that the fundamental narrative for TOFB stock will only improve.</p>\n<p>Better yet, Tofutti isn’t just about ice cream. Instead, the company diversified into other product categories, including various cheeses and frozen foods. To be sure, TOFB stock is on the smaller side of the spectrum, with a market capitalization south of $17 million. Still, with health consciousness increasing in scope, you should look into Tofutti as one of the hidden gem stocks to consider.</p>\n<p><b>Fast Retailing (FRCOY)</b></p>\n<p>When I was watching an interview with Steven Yeun of<i>The Walking Dead</i>fame — I believe it was with Conan O’Brien but don’t quote me on that — he stated that he likes visiting Japan to buy clothing. I thought to myself that this was strange. Why fly all the way over there when you can buy clothes from this guy?</p>\n<p>The reality is that brands under Japan’s Fast Retailing — most notable for its primary subsidiary Uniqlo — fit people hailing or originating from countries in the eastern hemisphere much better than western fashion brands. And I would say that’s really true for American fashion, which is one of the most difficult jobs in the world.</p>\n<p>Think about it: you’ve got a very diverse population so it’s challenging to say what is the size of the average American person. Also,many people here are widening out, which adds to the complexity.</p>\n<p>On the other hand, in the eastern hemisphere, it’s much easier to pinpoint who your average target customer is. Following an expected disruption from the novel coronavirus, FRCOY stock looks to make a comeback with a solid first quarter of 2021 earnings report. This definitely belongs in your list of hidden gem stocks to consider.</p>\n<p><b>IBM (IBM)</b></p>\n<p>I’m probably going to face some criticism for this so let’s just address it. How can I possibly put IBM on a list of hidden gem stocks to buy? Yes, it may be an investment that’s worthy of your portfolio. But it’s hardly an unknown asset. I mean, it’s listed among the 30 companies in the <b>Dow Jones Industrial Average</b>. I get it.</p>\n<p>At the same time, IBM stock has gained 16% on a year-to-date (YTD) basis. This beat out <b>Intel</b>(NASDAQ:<b><u>INTC</u></b>), which is up 14.7% over the same frame. Even more surprising, the toast of Wall Street in the semiconductor space,<b>Advanced Micro Devices</b>(NASDAQ:<b><u>AMD</u></b>), is down nearly 8% for the year. Yet you don’t see too many folks on the mainstream pound the table on Big Blue.</p>\n<p>That’s why I put IBM on this list of hidden gem stocks. They should be pounding the table. Primarily, the company offers incredible acumen across several tech segments, including the blockchain. What I like about IBM blockchain over decentralized platforms is that if you as a client have a problem with it, you can always reach out to IBM.</p>\n<p>Who are you going to talk to in a purely decentralized blockchain? Some miner in Lithuania? Not going to happen. Second, IBM stock has a solid dividend yield, something you don’t want to ignore during these uncertain times.</p>\n<p><b>Scholastic (SCHL)</b></p>\n<p>Likely on the very edge of being considered one of the hidden gem stocks because of its incredible performance, I’m still going to stick Scholastic in here simply because education-related equity units will be super-relevant moving forward. But yes, the performance is outrageous. On a YTD basis, SCHL stock gained almost 55%. Not bad for a company specializing in schoolbooks.</p>\n<p>Of course, because of the Covid-19 crisis, the nature of education encountered an unexpected paradigm shift. Suddenly, online learning protocols became all the rage. This had negative implications for SCHL but the real question was this: is online learning truly effective?</p>\n<p>As with anything, much debate surrounds the issue. Christine Greenhow, associate professor of educational technology in the College of Education at Michigan State University stated that “Online learning can be as good or even better than in-person classroom learning…but it has to be done right.” On the other hand, a columnist for the University of Alabama opined that face-to-face learning is superior, especially once realizing the realities of online learning due to Covid-19.”</p>\n<p>Personally, I believe face-to-face learning will make a big comeback and that should put SCHL in the driver’s seat.</p>\n<p><b>P.A.M. Transportation Services (PTSI)</b></p>\n<p>One of the riskier hidden gem stocks, P.A.M. Transportation Services is likely a company in the namesake industry that you probably haven’t heard of. According to its website, P.A.M. provides “nationwide dry van truckload, expedited truckload, intermodal, and logistics services to the manufacturing, retail, and automotive industries.” As well, it runs irregular routes, with these attributes providing an intriguing case for PTSI stock.</p>\n<p>First, according to the <b>Dow Jones Transportation Average</b>, the underlying sector is red hot. The benchmark index recently hit an all-time high and still remains incredibly elevated. Sure enough, PTSI stock is up nearly 20% YTD and up almost 84% over the trailing year. As the country gradually recovers from the Covid-19 crisis, it’s possible that the transportation sector can run even higher.</p>\n<p>On a side note, P.A.M.’s automotive transportation services business should perform well considering that car sales have gone ballistic, particularly in the used-car market.</p>\n<p>Second, the irregular route specialty may come in handy as millennials who are desperate to buy a home in this crazy environment choose neighborhoods that are off the beaten path. Thanks to the shift toward remote work, these lesser-known neighborhoods are now on the radar.</p>\n<p>Of course, when a sector is red hot, it may signal a possible correction. Therefore, approach PTSI carefully.</p>\n<p><b>Kawasaki Heavy Industries (KWHIY)</b></p>\n<p>For the last two corporations on this list of hidden gem stocks, I’m going to go off on the highly speculative route. Before you place an objection about it, just note that I’m giving you fair warning ahead of time. To lead off, I’ll begin with the least risky of the speculative names, Kawasaki Heavy Industries.</p>\n<p>For you riding enthusiasts, you’ll know Kawasaki as the manufacturer of the famous Ninja brand of motorcycles. Additionally, the company makes off-road vehicles and jet skis. But you may be surprised to learn that Kawasaki is roughly the equivalent of Japan’s <b>General Electric</b>(NYSE:<b><u>GE</u></b>), with influence on several industries, including robotics, construction, material handling and oil and gas facilities.</p>\n<p>But the area I’m focusing on is defense and security. As an island nation, Japan has a rather formidable maritime security infrastructure and that’s in no small part to Kawasaki. With the Pacific theater already a hot bed of geopolitical tension and with relations unlikely to improve, the cynical business narrative for KWHIY stock could dramatically improve.</p>\n<p>But the problem is, it better. The Covid-19 crisis negatively affected Kawasaki. From recent revenue trends, it appears that the company’s revenue for the fiscal year ended March 31, 2021 will be down double digits against the year-ago comparison.</p>\n<p><b>First Graphene (FGPHF)</b></p>\n<p>Easily the riskiest hidden gem stocks on this list, First Graphene also has the biggest potential. Headquartered in Australia, its geographic location is one hidden gem that many folks don’t appreciate. There are plenty of opportunities in the <b>Australian Securities Exchange</b> that you should look into if you have access to foreign equity units.</p>\n<p>If not, you’re in luck with FGPHF stock. Underlining this security is in my opinion a company that can spark the most profound paradigm shift across all industries. Specializing in the research and development of the namesake graphene, this physics miracle is the thinnest material known to exist. Basically, graphene is a two-dimensional object, which is difficult to conceptualize. But it’s also 200-times stronger than steel.</p>\n<p>These attributes have tremendous implications as additives to enhance resilience and durability for construction materials. Graphene can also play a game-changing role in electric vehicles, catalyzing innovations in battery technology that can deliver range and performance at a reasonable price.</p>\n<p>Of course, the downside of graphene is scientists have long known about its remarkable qualities but no one has been able to convert this into commercially viable applications at scale. Maybe First Graphene will be the first or maybe not. For what it’s worth, it has my speculation funds.</p>","source":"lsy1606302653667","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>7 Best Hidden Gem Stocks That Are Flying Under the Radar</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n7 Best Hidden Gem Stocks That Are Flying Under the Radar\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-18 09:25 GMT+8 <a href=https://investorplace.com/2021/06/7-best-hidden-gem-stocks-flying-under-radar/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>You can still pick up lesser-known stocks despite the rabid bullishness\nSource: Shutterstock\nI’m not entirely sure how true this is today. But back in 2015,CNN Business released a report that ...</p>\n\n<a href=\"https://investorplace.com/2021/06/7-best-hidden-gem-stocks-flying-under-radar/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"IBM":"IBM","PTSI":"P.A.M. Transportation Services","KWHIY":"Kawasaki Heavy Industries Ltd.","FGPHF":"First Graphene Limited","FRCOY":"Fast Retailing Co. Ltd.","SCHL":"学乐集团","TOFB":"Tofutti Brands, Inc."},"source_url":"https://investorplace.com/2021/06/7-best-hidden-gem-stocks-flying-under-radar/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1161664678","content_text":"You can still pick up lesser-known stocks despite the rabid bullishness\nSource: Shutterstock\nI’m not entirely sure how true this is today. But back in 2015,CNN Business released a report that indicated that the number of individual equity units peaked at 7,652 during the summer of 1998. That of course was when speculation was building toward the eventual internet and technology bubble. In 2015, the number eventually slid to 3,812. Still, that’s plenty enough to find hidden gem stocks to buy.\nWith multiple initial public offerings (IPOs) — especially from special purpose acquisition companies (SPACs) — the number of publicly traded securities has surely grown over the nearly six years since theCNNreport went live. Just from statistical realities, it’s just not possible for every equity unit to be bid up with the same level of enthusiasm as the most popular securities. Therefore, even in this crazy bull market, you can find hidden gem stocks.\nInterestingly, the meme stock phenomenon provides an excellent example of the opportunities still available with hidden gem stocks. As you know, coordinated efforts on social media have driven up securities that were left for dead. But as the hordes pile into one name, others tend to shed their newfound valuation spikes. It’s like caring for your plants — if you don’t water them all, some will wither away.\nFortunately, that doesn’t happen in the equities sector. Instead, they become hidden gem stocks. While they’re not the easiest to find, the market thrives on popular sentiment and momentum. And not every company and brand can receive an equal amount of love. After all, there are only so many resources to go around.\nTrue, the extreme speculation in the market has made it extraordinarily difficult to find publicly traded securities that haven’t already shot up to the moon. But again, with thousands of opportunities out there, it’s not possible for every bandwagon to be filled to capacity. Here are my ideas for hidden gem stocks to buy.\n\nTofutti(OTCMTKS:TOFB)\nFast Retailing(OTCMKTS:FRCOY)\nIBM(NYSE:IBM)\nScholastic(NASDAQ:SCHL)\nP.A.M. Transportation Services (NASDAQ:PTSI)\nKawasaki Heavy Industries(OTCMKTS:KWHIY)\nFirst Graphene(OTCMKTS:FGPHF)\n\nFor this list, I tried to keep it diverse, with ideas from big blue chips that have gone underappreciated to smaller speculative names that could be the gamechangers of tomorrow. Practice careful money management with these hidden gem stocks and who knows? You might enjoy significant profitability.\nTofutti (TOFB)\nTo kick things off, I’m going with Tofutti. You might know this brand as the manufacturer of dairy-free soy based ice cream. It’s a brilliant concept because I don’t know anybody who doesn’t like ice cream. And rest assured that you’re terrible person if you don’t (I’m just kidding). However, lactose intolerance is very common in the U.S.\nAccording to MedlinePlus, a government health resource, about “30 million American adults have some degree of lactose intolerance by age 20.” Further, it goes on to state that every demographic is affected by lactose intolerance to some degree (although the least affected are western or northern Europeans). With the population of this country becoming more diverse, you’d expect that the fundamental narrative for TOFB stock will only improve.\nBetter yet, Tofutti isn’t just about ice cream. Instead, the company diversified into other product categories, including various cheeses and frozen foods. To be sure, TOFB stock is on the smaller side of the spectrum, with a market capitalization south of $17 million. Still, with health consciousness increasing in scope, you should look into Tofutti as one of the hidden gem stocks to consider.\nFast Retailing (FRCOY)\nWhen I was watching an interview with Steven Yeun ofThe Walking Deadfame — I believe it was with Conan O’Brien but don’t quote me on that — he stated that he likes visiting Japan to buy clothing. I thought to myself that this was strange. Why fly all the way over there when you can buy clothes from this guy?\nThe reality is that brands under Japan’s Fast Retailing — most notable for its primary subsidiary Uniqlo — fit people hailing or originating from countries in the eastern hemisphere much better than western fashion brands. And I would say that’s really true for American fashion, which is one of the most difficult jobs in the world.\nThink about it: you’ve got a very diverse population so it’s challenging to say what is the size of the average American person. Also,many people here are widening out, which adds to the complexity.\nOn the other hand, in the eastern hemisphere, it’s much easier to pinpoint who your average target customer is. Following an expected disruption from the novel coronavirus, FRCOY stock looks to make a comeback with a solid first quarter of 2021 earnings report. This definitely belongs in your list of hidden gem stocks to consider.\nIBM (IBM)\nI’m probably going to face some criticism for this so let’s just address it. How can I possibly put IBM on a list of hidden gem stocks to buy? Yes, it may be an investment that’s worthy of your portfolio. But it’s hardly an unknown asset. I mean, it’s listed among the 30 companies in the Dow Jones Industrial Average. I get it.\nAt the same time, IBM stock has gained 16% on a year-to-date (YTD) basis. This beat out Intel(NASDAQ:INTC), which is up 14.7% over the same frame. Even more surprising, the toast of Wall Street in the semiconductor space,Advanced Micro Devices(NASDAQ:AMD), is down nearly 8% for the year. Yet you don’t see too many folks on the mainstream pound the table on Big Blue.\nThat’s why I put IBM on this list of hidden gem stocks. They should be pounding the table. Primarily, the company offers incredible acumen across several tech segments, including the blockchain. What I like about IBM blockchain over decentralized platforms is that if you as a client have a problem with it, you can always reach out to IBM.\nWho are you going to talk to in a purely decentralized blockchain? Some miner in Lithuania? Not going to happen. Second, IBM stock has a solid dividend yield, something you don’t want to ignore during these uncertain times.\nScholastic (SCHL)\nLikely on the very edge of being considered one of the hidden gem stocks because of its incredible performance, I’m still going to stick Scholastic in here simply because education-related equity units will be super-relevant moving forward. But yes, the performance is outrageous. On a YTD basis, SCHL stock gained almost 55%. Not bad for a company specializing in schoolbooks.\nOf course, because of the Covid-19 crisis, the nature of education encountered an unexpected paradigm shift. Suddenly, online learning protocols became all the rage. This had negative implications for SCHL but the real question was this: is online learning truly effective?\nAs with anything, much debate surrounds the issue. Christine Greenhow, associate professor of educational technology in the College of Education at Michigan State University stated that “Online learning can be as good or even better than in-person classroom learning…but it has to be done right.” On the other hand, a columnist for the University of Alabama opined that face-to-face learning is superior, especially once realizing the realities of online learning due to Covid-19.”\nPersonally, I believe face-to-face learning will make a big comeback and that should put SCHL in the driver’s seat.\nP.A.M. Transportation Services (PTSI)\nOne of the riskier hidden gem stocks, P.A.M. Transportation Services is likely a company in the namesake industry that you probably haven’t heard of. According to its website, P.A.M. provides “nationwide dry van truckload, expedited truckload, intermodal, and logistics services to the manufacturing, retail, and automotive industries.” As well, it runs irregular routes, with these attributes providing an intriguing case for PTSI stock.\nFirst, according to the Dow Jones Transportation Average, the underlying sector is red hot. The benchmark index recently hit an all-time high and still remains incredibly elevated. Sure enough, PTSI stock is up nearly 20% YTD and up almost 84% over the trailing year. As the country gradually recovers from the Covid-19 crisis, it’s possible that the transportation sector can run even higher.\nOn a side note, P.A.M.’s automotive transportation services business should perform well considering that car sales have gone ballistic, particularly in the used-car market.\nSecond, the irregular route specialty may come in handy as millennials who are desperate to buy a home in this crazy environment choose neighborhoods that are off the beaten path. Thanks to the shift toward remote work, these lesser-known neighborhoods are now on the radar.\nOf course, when a sector is red hot, it may signal a possible correction. Therefore, approach PTSI carefully.\nKawasaki Heavy Industries (KWHIY)\nFor the last two corporations on this list of hidden gem stocks, I’m going to go off on the highly speculative route. Before you place an objection about it, just note that I’m giving you fair warning ahead of time. To lead off, I’ll begin with the least risky of the speculative names, Kawasaki Heavy Industries.\nFor you riding enthusiasts, you’ll know Kawasaki as the manufacturer of the famous Ninja brand of motorcycles. Additionally, the company makes off-road vehicles and jet skis. But you may be surprised to learn that Kawasaki is roughly the equivalent of Japan’s General Electric(NYSE:GE), with influence on several industries, including robotics, construction, material handling and oil and gas facilities.\nBut the area I’m focusing on is defense and security. As an island nation, Japan has a rather formidable maritime security infrastructure and that’s in no small part to Kawasaki. With the Pacific theater already a hot bed of geopolitical tension and with relations unlikely to improve, the cynical business narrative for KWHIY stock could dramatically improve.\nBut the problem is, it better. The Covid-19 crisis negatively affected Kawasaki. From recent revenue trends, it appears that the company’s revenue for the fiscal year ended March 31, 2021 will be down double digits against the year-ago comparison.\nFirst Graphene (FGPHF)\nEasily the riskiest hidden gem stocks on this list, First Graphene also has the biggest potential. Headquartered in Australia, its geographic location is one hidden gem that many folks don’t appreciate. There are plenty of opportunities in the Australian Securities Exchange that you should look into if you have access to foreign equity units.\nIf not, you’re in luck with FGPHF stock. Underlining this security is in my opinion a company that can spark the most profound paradigm shift across all industries. Specializing in the research and development of the namesake graphene, this physics miracle is the thinnest material known to exist. Basically, graphene is a two-dimensional object, which is difficult to conceptualize. But it’s also 200-times stronger than steel.\nThese attributes have tremendous implications as additives to enhance resilience and durability for construction materials. Graphene can also play a game-changing role in electric vehicles, catalyzing innovations in battery technology that can deliver range and performance at a reasonable price.\nOf course, the downside of graphene is scientists have long known about its remarkable qualities but no one has been able to convert this into commercially viable applications at scale. Maybe First Graphene will be the first or maybe not. For what it’s worth, it has my speculation funds.","news_type":1},"isVote":1,"tweetType":1,"viewCount":208,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"hots":[{"id":128828187,"gmtCreate":1624510781649,"gmtModify":1703838862087,"author":{"id":"3581925858837233","authorId":"3581925858837233","name":"Five777","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3581925858837233","authorIdStr":"3581925858837233"},"themes":[],"htmlText":"Hmm … interesting","listText":"Hmm … interesting","text":"Hmm … interesting","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/128828187","repostId":"1176854050","repostType":4,"repost":{"id":"1176854050","pubTimestamp":1624506221,"share":"https://ttm.financial/m/news/1176854050?lang=&edition=fundamental","pubTime":"2021-06-24 11:43","market":"us","language":"en","title":"Tesla: A Lesson In Humility","url":"https://stock-news.laohu8.com/highlight/detail?id=1176854050","media":"seekingalpha","summary":"Tesla shares have pulled well back in a months-long period of weakness.With earnings coming up, there looks to be a showdown of bulls and bears on the near-term horizon.I see Tesla's fundamentals - and valuation - as having improved massively in recent months, and I'm therefore still quite bullish.Finally, the elephant in the room is the descending triangle I noted above, and I’ve added some extra bars at the end of the chart to show what the resolution of the triangle might look like. We can se","content":"<p><b>Summary</b></p>\n<ul>\n <li>Tesla shares have pulled well back in a months-long period of weakness.</li>\n <li>With earnings coming up, there looks to be a showdown of bulls and bears on the near-term horizon.</li>\n <li>I see Tesla's fundamentals - and valuation - as having improved massively in recent months, and I'm therefore still quite bullish.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/16088600ba424779ab370711976bff68\" tg-width=\"768\" tg-height=\"397\" referrerpolicy=\"no-referrer\"><span>AdrianHancu/iStock Editorial via Getty Images</span></p>\n<p>Sometimes in investing, our thesis, no matter how much we believe in it, doesn’t work. I’ve experienced that countless times personally, and I think pretty much everyone who tries their hand at growing capital through the financial markets does as well. The important thing is not to fall in love with a stock and let it destroy your portfolio, and in the case of EV mothership<b>Tesla</b>(TSLA), I certainly had my fair share of practice at letting go of a failed thesis recently.</p>\n<p>Back inearly April, I said it was time to buy Tesla based upon its fairly reliable history of running higher into earnings announcements. The stock was at $691 at the time and did move higher in the next couple of weeks, but as we can see from the below, the move didn’t stick. That caused me to rethink my position in the short-term with Tesla, and now that we are four weeks out from the next earnings report, we have a different situation on our hands.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/54fd49361e0720105b3d38a4c4c88fa1\" tg-width=\"640\" tg-height=\"615\" referrerpolicy=\"no-referrer\"><span>Source: StockCharts</span></p>\n<p>I’ve annotated several things on the daily chart because the situation is quite interesting for Tesla during this critical period leading up to the next earnings release. The first thing I’ll note is that the accumulation/distribution line remains very strong, having never wavered from its prior levels achieved during the massive rally that took place mostly in 2020. That’s a good sign because the bulls and bears remain roughly equally matched despite a share price that has given the bulls every reason to move on.</p>\n<p>Momentum is more of a mixed picture because the PPO and 14-day RSI are both showing some signs of positive divergence, but also signs that bullish momentum is nowhere near high enough to push the stock into another rally phase. On the divergence side, momentum is gradually moving higher while the share price bounces around, indicating that the worst of the selling is likely done, but that we’re in a digestion period. The 14-day RSI hasn’t yet crested the centerline in earnest, which again means that bullish momentum is fairly weak.</p>\n<p>Overall, I’d say momentum is showing what you might expect at this stage, which is that the selling pressure has abated, but we’re not in rally mode. Yet.</p>\n<p>Finally, the elephant in the room is the descending triangle I noted above, and I’ve added some extra bars at the end of the chart to show what the resolution of the triangle might look like. We can see at the current slope of the line that the triangle will likely resolve near the end of July, which just so happens to coincide with the earnings release. This is a bearish pattern so I don’t want to make everything seem like sunshine and lollipops, but the rest of the chart is mixed, so we’ll have to wait and see.</p>\n<p>The earnings report, in my view, is going to be the catalyst one way or the other for the breakout from the triangle. Which direction it will go is anyone’s guess, but I’d be ready for a wild reaction to the earnings release in July.</p>\n<p>If we look at a weekly chart, I see a much rosier picture.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/ef4525c330221c7768acc84c336cd8ef\" tg-width=\"640\" tg-height=\"615\" referrerpolicy=\"no-referrer\"><span>Source: StockCharts</span></p>\n<p>We can see that the stock ran up massively in 2020 and took with it the accumulation/distribution line, as well as the momentum indicators, as you’d expect. But since the selling began, we see signs that the stock has simply worked off its overbought conditions, which looks bullish to me.</p>\n<p>The 50-week moving average has served as support during this consolidation phase, and it currently stands at $575, so I’d watch that level if we see more selling. On the plus side, the accumulation/distribution line looks beautiful and again, is supportive of this selling being a digestion period rather than the end of the bull market for Tesla.</p>\n<p>Momentum would seem to support that as well, as the PPO and 14-week RSI are back at centerline support. What happens after this is critical, obviously, but the weekly chart doesn’t show Tesla as breaking down on a longer-term basis. The negative divergences we saw since 2020 began have given way to momentum resetting, which often happens before a new bull phase begins. With the earnings report looming in July, and the daily and weekly charts showing different pictures (at least to my eye), it’s going to be an interesting next four weeks for sure.</p>\n<p><b>Fundamentals still bullish</b></p>\n<p>I’d sum up the chart as having a short-term set of challenges for the bulls, but longer-term, I still see Tesla going higher. On a fundamental basis, I think the conclusion is decidedly more bullish. Let’s start with revenue revisions, which have been nothing short of terrific.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7297a6360a43284ab70d4caf12d206f3\" tg-width=\"640\" tg-height=\"282\" referrerpolicy=\"no-referrer\"><span>Source:Seeking Alpha</span></p>\n<p>All years are showing uptrends in revenue revisions, and in particular, the out years. Let us not forget that these positive revisions are occurring during a time when countless startups and internal combustion engine OGs like GM (GM), Ford (F) and Volkswagen (OTCPK:VWAGY) are investing tens of billions of dollars to take market share in EVs. None of this is new and it isn’t like the analyst community is surprised by these investments; Tesla is simply on a tremendous upward trajectory when it comes to growing revenue.</p>\n<p>Canaccordpointed out last week that the Model S Plaid Plus delay was likely due to the 4680 cell design not being ready for prime time. That very well could be the case, and it wouldn’t be the first time Tesla disappointed with a time frame it gave investors. Remember therobo-taxi claim?</p>\n<p>At any rate, the company’s lineup continues to resonate with customers and now that capacity constraints should lessen greatly over the coming years – new factories in a few parts of the world will help – the path of least resistance for Tesla is no doubt higher. This will only get better as Tesla can decrease the per-unit cost of things like the batteries so it can better compete with mainstream automakers on price, and become a mainstream automaker rather than a niche manufacturer for the well-heeled.</p>\n<p>Another thing scale is affording Tesla is monumental progress with profit margins. Below we have trailing-twelve-months gross margins, SG&A costs, and EBIT margin as a percentage of revenue.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/f9effb44d7bda8f3bdb535e80dd1ac0f\" tg-width=\"640\" tg-height=\"168\" referrerpolicy=\"no-referrer\"><span>Source: TIKR.com</span></p>\n<p>All three of these lines are moving in the right direction. Gross margins have been rising thanks to higher sales and production volumes, a trend that should continue so long as sales remain robust. In addition, Tesla is spending much less on an SG&A basis than it used to, which again, is the product of higher sales volume. SG&A used to be in the mid-20% range of revenue, which is unsustainable. Today, it’s only 10%, which means operating margins have gone quite positive, and with room to run in the future.</p>\n<p>Margins have always been an easy thing for the bears to point to, but that is simply no longer the case, and if you have a long holding period, the margin situation is going to work out in the bulls’ favor.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/6401d5cd793a93d0ed6d36f911abdb15\" tg-width=\"640\" tg-height=\"283\" referrerpolicy=\"no-referrer\"><span>Source:Seeking Alpha</span></p>\n<p>This is all pointing to ever-higher EPS estimates, as we can see above. Analysts continue to try and keep up with Tesla’s upward trajectory, and so long as sales volumes and margins continue their march higher, so will these lines. Again, this is a feather in the cap of the bulls.</p>\n<p><b>Other considerations</b></p>\n<p>Tesla is not for the faint of heart, because it is volatile and we are at a point in the history of the automobile that an EV gold rush of sorts is occurring. Everyone is investing to win once the internal combustion engine is gone, but Tesla has a massive head start on the competition.</p>\n<p>Even so, there are risks to consider. First, Tesla could lose its technology lead over time as legacy manufacturers throw tens of billions of dollars at R&D on battery technology. Tesla is far and away the superior battery maker today, but that does not guarantee it stays that way. To be clear, I don’t see that as a viable outcome in the near-term, but ten years from now? Twenty? It's a risk.</p>\n<p>Another risk is that Tesla uses its stock as a piggy bank, issuing shares to fund R&D, factory construction, and the like.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/b8f44f661051d87ad3f2906cabe5479d\" tg-width=\"640\" tg-height=\"165\" referrerpolicy=\"no-referrer\"><span>Source: TIKR.com</span></p>\n<p>The share count has nearly doubled in the past decade, which is pretty ugly from a shareholders’ perspective, as we usually only see this kind of dilution with REITs or BDCs that issue equity capital as a normal course of business. Manufacturing stocks don’t generally do anything like this, but Tesla has made it work. Still, you have to imagine it is possible that over a decade holding period, you’ll be diluted out of half of your ownership in the company. This also creates an uphill battle for EPS as earnings are spread over more and more shares, so I want to be clear this is an unequivocal negative for shareholders. However, let me now point you to what could possibly be the saving grace for this perma-dilution; free cash flow.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/0569f35589cc0f82bb006148271df19b\" tg-width=\"640\" tg-height=\"170\" referrerpolicy=\"no-referrer\"><span>Source: TIKR.com</span></p>\n<p>Tesla’s trailing-twelve-months FCF has improved immensely in recent years, as the company is producing massive amounts of operating cash flow that it never did before, which is owed once again to sales volume and margin growth. Tesla has surpassed the point where it needs to constantly issue capital just to survive because it is creating its own through its operations. This is massively important for the bull case because it means the dilution we’ve seen in recent years<i>shouldn’t</i>be necessary any longer.</p>\n<p>Indeed, if we look at net debt, we can see just how much Tesla’s balance sheet has improved, which again supports not having to dilute shareholders to stay afloat.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/49fa413fc33c85d7269e987b2c11c888\" tg-width=\"640\" tg-height=\"169\" referrerpolicy=\"no-referrer\"><span>Source: TIKR.com</span></p>\n<p>Net debt has turned into a net cash position of late, with Tesla having nearly $5 billion in cash and equivalents more than debt. Tesla’s financing situation has improved enormously, and that’s good for those of us that are bullish.</p>\n<p><b>Is it cheap?</b></p>\n<p>Not really. But then again revolutionary companies rarely are. The good news is that the price-to-sales ratio has halved since the peak earlier this year, but at 11x forward revenue, I cannot in good conscience call it cheap.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/ca2d9f38636872d9d508e096e9ac8af8\" tg-width=\"640\" tg-height=\"189\" referrerpolicy=\"no-referrer\"><span>Source: TIKR.com</span></p>\n<p>However, it is a lot cheaper than it was, and withrevenueslated to rise by more than half this year, and then<i>double</i>again by 2024, you don’t need the multiple to rise for a bullish outlook.</p>\n<p>I’ll reiterate that there are risks to Tesla. The daily chart is leaning slightly bearish with that descending triangle, but we’re heading into the pre-earnings run-up that Tesla<i>usually</i>shines during. The weekly chart is showing signs of digestion rather than rolling over. There are competitive risks that aren’t new and will never go way, but the company is still building great EVs that are resonating with customers. Margins and FCF are booming comparatively speaking, and the stock is at roughly half the valuation it was a few months ago.</p>\n<p>All in all, Tesla almost certainly has a rocky road in front of it, but I’m still bullish given the weight of the evidence.</p>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Tesla: A Lesson In Humility</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTesla: A Lesson In Humility\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-24 11:43 GMT+8 <a href=https://seekingalpha.com/article/4436295-tesla-a-lesson-in-humility><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nTesla shares have pulled well back in a months-long period of weakness.\nWith earnings coming up, there looks to be a showdown of bulls and bears on the near-term horizon.\nI see Tesla's ...</p>\n\n<a href=\"https://seekingalpha.com/article/4436295-tesla-a-lesson-in-humility\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TSLA":"特斯拉"},"source_url":"https://seekingalpha.com/article/4436295-tesla-a-lesson-in-humility","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1176854050","content_text":"Summary\n\nTesla shares have pulled well back in a months-long period of weakness.\nWith earnings coming up, there looks to be a showdown of bulls and bears on the near-term horizon.\nI see Tesla's fundamentals - and valuation - as having improved massively in recent months, and I'm therefore still quite bullish.\n\nAdrianHancu/iStock Editorial via Getty Images\nSometimes in investing, our thesis, no matter how much we believe in it, doesn’t work. I’ve experienced that countless times personally, and I think pretty much everyone who tries their hand at growing capital through the financial markets does as well. The important thing is not to fall in love with a stock and let it destroy your portfolio, and in the case of EV mothershipTesla(TSLA), I certainly had my fair share of practice at letting go of a failed thesis recently.\nBack inearly April, I said it was time to buy Tesla based upon its fairly reliable history of running higher into earnings announcements. The stock was at $691 at the time and did move higher in the next couple of weeks, but as we can see from the below, the move didn’t stick. That caused me to rethink my position in the short-term with Tesla, and now that we are four weeks out from the next earnings report, we have a different situation on our hands.\nSource: StockCharts\nI’ve annotated several things on the daily chart because the situation is quite interesting for Tesla during this critical period leading up to the next earnings release. The first thing I’ll note is that the accumulation/distribution line remains very strong, having never wavered from its prior levels achieved during the massive rally that took place mostly in 2020. That’s a good sign because the bulls and bears remain roughly equally matched despite a share price that has given the bulls every reason to move on.\nMomentum is more of a mixed picture because the PPO and 14-day RSI are both showing some signs of positive divergence, but also signs that bullish momentum is nowhere near high enough to push the stock into another rally phase. On the divergence side, momentum is gradually moving higher while the share price bounces around, indicating that the worst of the selling is likely done, but that we’re in a digestion period. The 14-day RSI hasn’t yet crested the centerline in earnest, which again means that bullish momentum is fairly weak.\nOverall, I’d say momentum is showing what you might expect at this stage, which is that the selling pressure has abated, but we’re not in rally mode. Yet.\nFinally, the elephant in the room is the descending triangle I noted above, and I’ve added some extra bars at the end of the chart to show what the resolution of the triangle might look like. We can see at the current slope of the line that the triangle will likely resolve near the end of July, which just so happens to coincide with the earnings release. This is a bearish pattern so I don’t want to make everything seem like sunshine and lollipops, but the rest of the chart is mixed, so we’ll have to wait and see.\nThe earnings report, in my view, is going to be the catalyst one way or the other for the breakout from the triangle. Which direction it will go is anyone’s guess, but I’d be ready for a wild reaction to the earnings release in July.\nIf we look at a weekly chart, I see a much rosier picture.\nSource: StockCharts\nWe can see that the stock ran up massively in 2020 and took with it the accumulation/distribution line, as well as the momentum indicators, as you’d expect. But since the selling began, we see signs that the stock has simply worked off its overbought conditions, which looks bullish to me.\nThe 50-week moving average has served as support during this consolidation phase, and it currently stands at $575, so I’d watch that level if we see more selling. On the plus side, the accumulation/distribution line looks beautiful and again, is supportive of this selling being a digestion period rather than the end of the bull market for Tesla.\nMomentum would seem to support that as well, as the PPO and 14-week RSI are back at centerline support. What happens after this is critical, obviously, but the weekly chart doesn’t show Tesla as breaking down on a longer-term basis. The negative divergences we saw since 2020 began have given way to momentum resetting, which often happens before a new bull phase begins. With the earnings report looming in July, and the daily and weekly charts showing different pictures (at least to my eye), it’s going to be an interesting next four weeks for sure.\nFundamentals still bullish\nI’d sum up the chart as having a short-term set of challenges for the bulls, but longer-term, I still see Tesla going higher. On a fundamental basis, I think the conclusion is decidedly more bullish. Let’s start with revenue revisions, which have been nothing short of terrific.\nSource:Seeking Alpha\nAll years are showing uptrends in revenue revisions, and in particular, the out years. Let us not forget that these positive revisions are occurring during a time when countless startups and internal combustion engine OGs like GM (GM), Ford (F) and Volkswagen (OTCPK:VWAGY) are investing tens of billions of dollars to take market share in EVs. None of this is new and it isn’t like the analyst community is surprised by these investments; Tesla is simply on a tremendous upward trajectory when it comes to growing revenue.\nCanaccordpointed out last week that the Model S Plaid Plus delay was likely due to the 4680 cell design not being ready for prime time. That very well could be the case, and it wouldn’t be the first time Tesla disappointed with a time frame it gave investors. Remember therobo-taxi claim?\nAt any rate, the company’s lineup continues to resonate with customers and now that capacity constraints should lessen greatly over the coming years – new factories in a few parts of the world will help – the path of least resistance for Tesla is no doubt higher. This will only get better as Tesla can decrease the per-unit cost of things like the batteries so it can better compete with mainstream automakers on price, and become a mainstream automaker rather than a niche manufacturer for the well-heeled.\nAnother thing scale is affording Tesla is monumental progress with profit margins. Below we have trailing-twelve-months gross margins, SG&A costs, and EBIT margin as a percentage of revenue.\nSource: TIKR.com\nAll three of these lines are moving in the right direction. Gross margins have been rising thanks to higher sales and production volumes, a trend that should continue so long as sales remain robust. In addition, Tesla is spending much less on an SG&A basis than it used to, which again, is the product of higher sales volume. SG&A used to be in the mid-20% range of revenue, which is unsustainable. Today, it’s only 10%, which means operating margins have gone quite positive, and with room to run in the future.\nMargins have always been an easy thing for the bears to point to, but that is simply no longer the case, and if you have a long holding period, the margin situation is going to work out in the bulls’ favor.\nSource:Seeking Alpha\nThis is all pointing to ever-higher EPS estimates, as we can see above. Analysts continue to try and keep up with Tesla’s upward trajectory, and so long as sales volumes and margins continue their march higher, so will these lines. Again, this is a feather in the cap of the bulls.\nOther considerations\nTesla is not for the faint of heart, because it is volatile and we are at a point in the history of the automobile that an EV gold rush of sorts is occurring. Everyone is investing to win once the internal combustion engine is gone, but Tesla has a massive head start on the competition.\nEven so, there are risks to consider. First, Tesla could lose its technology lead over time as legacy manufacturers throw tens of billions of dollars at R&D on battery technology. Tesla is far and away the superior battery maker today, but that does not guarantee it stays that way. To be clear, I don’t see that as a viable outcome in the near-term, but ten years from now? Twenty? It's a risk.\nAnother risk is that Tesla uses its stock as a piggy bank, issuing shares to fund R&D, factory construction, and the like.\nSource: TIKR.com\nThe share count has nearly doubled in the past decade, which is pretty ugly from a shareholders’ perspective, as we usually only see this kind of dilution with REITs or BDCs that issue equity capital as a normal course of business. Manufacturing stocks don’t generally do anything like this, but Tesla has made it work. Still, you have to imagine it is possible that over a decade holding period, you’ll be diluted out of half of your ownership in the company. This also creates an uphill battle for EPS as earnings are spread over more and more shares, so I want to be clear this is an unequivocal negative for shareholders. However, let me now point you to what could possibly be the saving grace for this perma-dilution; free cash flow.\nSource: TIKR.com\nTesla’s trailing-twelve-months FCF has improved immensely in recent years, as the company is producing massive amounts of operating cash flow that it never did before, which is owed once again to sales volume and margin growth. Tesla has surpassed the point where it needs to constantly issue capital just to survive because it is creating its own through its operations. This is massively important for the bull case because it means the dilution we’ve seen in recent yearsshouldn’tbe necessary any longer.\nIndeed, if we look at net debt, we can see just how much Tesla’s balance sheet has improved, which again supports not having to dilute shareholders to stay afloat.\nSource: TIKR.com\nNet debt has turned into a net cash position of late, with Tesla having nearly $5 billion in cash and equivalents more than debt. Tesla’s financing situation has improved enormously, and that’s good for those of us that are bullish.\nIs it cheap?\nNot really. But then again revolutionary companies rarely are. The good news is that the price-to-sales ratio has halved since the peak earlier this year, but at 11x forward revenue, I cannot in good conscience call it cheap.\nSource: TIKR.com\nHowever, it is a lot cheaper than it was, and withrevenueslated to rise by more than half this year, and thendoubleagain by 2024, you don’t need the multiple to rise for a bullish outlook.\nI’ll reiterate that there are risks to Tesla. The daily chart is leaning slightly bearish with that descending triangle, but we’re heading into the pre-earnings run-up that Teslausuallyshines during. The weekly chart is showing signs of digestion rather than rolling over. There are competitive risks that aren’t new and will never go way, but the company is still building great EVs that are resonating with customers. Margins and FCF are booming comparatively speaking, and the stock is at roughly half the valuation it was a few months ago.\nAll in all, Tesla almost certainly has a rocky road in front of it, but I’m still bullish given the weight of the evidence.","news_type":1},"isVote":1,"tweetType":1,"viewCount":421,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":168490346,"gmtCreate":1623980091285,"gmtModify":1703825341940,"author":{"id":"3581925858837233","authorId":"3581925858837233","name":"Five777","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3581925858837233","authorIdStr":"3581925858837233"},"themes":[],"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/168490346","repostId":"1161664678","repostType":4,"isVote":1,"tweetType":1,"viewCount":208,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":167377536,"gmtCreate":1624250074825,"gmtModify":1703831578842,"author":{"id":"3581925858837233","authorId":"3581925858837233","name":"Five777","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3581925858837233","authorIdStr":"3581925858837233"},"themes":[],"htmlText":"Needs to be observed. ","listText":"Needs to be observed. ","text":"Needs to be observed.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/167377536","repostId":"1153988423","repostType":4,"repost":{"id":"1153988423","pubTimestamp":1624242877,"share":"https://ttm.financial/m/news/1153988423?lang=&edition=fundamental","pubTime":"2021-06-21 10:34","market":"hk","language":"en","title":"China's first REITs make strong debut","url":"https://stock-news.laohu8.com/highlight/detail?id=1153988423","media":"Reuters","summary":"SHANGHAI (Reuters) - China’s first batch of REITs debuted on Monday with strong initial gains, as th","content":"<p>SHANGHAI (Reuters) - China’s first batch of REITs debuted on Monday with strong initial gains, as the nine real estate investment trusts drew interest from Chinese retail investors.</p>\n<p>The Bosera CMSK Industrial Park fund led the pack with a gain of roughly 20% in early morning trade, while AVIC Shougang Biomass fund jumped over 16%.</p>\n<p>The PingAn Guangzhou-Heyuan Expressway Fund gained the least, rising roughly 1%.</p>\n<p>China is launching a public REITs market to channel private money into infrastructure projectshere, ranging from toll ways to sewage plants, to ease debt burdens on local governments. REITs trade like stocks but offer stable cash dividends like bonds.</p>\n<p>But limited supply of the instruments initially and a sense of novelty are attracting retail interest in REITs, typically favoured by long-term, institutional investors.</p>\n<p>All the nine newly-listed REITs - five in Shanghai and four in Shenzhen - opened higher on Monday.</p>","source":"lsy1601381805984","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>China's first REITs make strong debut</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nChina's first REITs make strong debut\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-21 10:34 GMT+8 <a href=https://www.reuters.com/article/china-reits-debut/chinas-first-reits-make-strong-debut-idUSL3N2O208M><strong>Reuters</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SHANGHAI (Reuters) - China’s first batch of REITs debuted on Monday with strong initial gains, as the nine real estate investment trusts drew interest from Chinese retail investors.\nThe Bosera CMSK ...</p>\n\n<a href=\"https://www.reuters.com/article/china-reits-debut/chinas-first-reits-make-strong-debut-idUSL3N2O208M\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"000001.SH":"上证指数"},"source_url":"https://www.reuters.com/article/china-reits-debut/chinas-first-reits-make-strong-debut-idUSL3N2O208M","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1153988423","content_text":"SHANGHAI (Reuters) - China’s first batch of REITs debuted on Monday with strong initial gains, as the nine real estate investment trusts drew interest from Chinese retail investors.\nThe Bosera CMSK Industrial Park fund led the pack with a gain of roughly 20% in early morning trade, while AVIC Shougang Biomass fund jumped over 16%.\nThe PingAn Guangzhou-Heyuan Expressway Fund gained the least, rising roughly 1%.\nChina is launching a public REITs market to channel private money into infrastructure projectshere, ranging from toll ways to sewage plants, to ease debt burdens on local governments. REITs trade like stocks but offer stable cash dividends like bonds.\nBut limited supply of the instruments initially and a sense of novelty are attracting retail interest in REITs, typically favoured by long-term, institutional investors.\nAll the nine newly-listed REITs - five in Shanghai and four in Shenzhen - opened higher on Monday.","news_type":1},"isVote":1,"tweetType":1,"viewCount":332,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":129168524,"gmtCreate":1624365598768,"gmtModify":1703834462883,"author":{"id":"3581925858837233","authorId":"3581925858837233","name":"Five777","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3581925858837233","authorIdStr":"3581925858837233"},"themes":[],"htmlText":"?","listText":"?","text":"?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/129168524","repostId":"1186919064","repostType":4,"isVote":1,"tweetType":1,"viewCount":323,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"lives":[]}
