When Stock Investors Get it Wrong

In today's video, you're going to learn why stock investors get it wrong and some of the specific mistakes they make that you should avoid as an investor.

When you buy shares of a company, you’re getting an ownership slice. If the company does well, your shares should rise. The company may even pay a dividend, providing you with cash you didn’t have to labor over for a living.

Sounds great! But, a company is more than just the sum of its shares. Companies have a capital structure, which includes a mix of stocks (called equity), and other types of financing, typically debt.

Nearly all companies have debt. Some debt, relative to the stock value, is fine. It’s a lot like the mortgage on your home—borrowed money that lets the company do things today it otherwise couldn’t afford to do.

But sometimes, companies get too much debt for their cash flows. Or they structure their debt differently than a mortgage. For instance, some debt may be convertible to stock at the right price. If it does convert, the company has less debt, but existing shareholders end up getting diluted.

That’s part of the problem going on right now with Tesla Motors (TSLA). Shareholders may have seen their shares beat the pants off the market the past few years, but the company also loaded up on debt to finance its famous electric cars. Some of that debt came due, and, because of where the share price was at, ended up getting converted.

The timing is pretty bad. Besides the heavy debt load and now dropping share price, the company has some big production problems and a larger-than-life CEO distracted with a myriad of other activities. When shareholders ignore a company’s debt—and when it comes due—they set themselves up for losses. It’s no wonder that Tesla shares are down by nearly half in less than a year—and why some analysts are already calling for a further 90-95 percent drop from here.

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[lucidinvesting]

Tesla is way undervalued at this price, you've not at all did your research.
I bought in at 177 profited MASSIVELY because of the bounce back.

[lucidinvesting]

Why did tesla stop growing?
Well because of these reports about tesla that claim that it's losing demand blah blah.
The automobile industry is seasonal, most automobile company's perform horrible in Q1.
and then in Q3 - Q4 gain back that momentum.
When you compare Q1 of 2019 of tesla to Q1 of 2018, you'll see that it has outperformed it when it comes to sales.

You said that there were issues concerning the cars of Tesla, while i actually agree on you with this.
I also think you have to consider how controversial tesla is as a company, the media covers it ALL the time.
when a tesla breaks down there is a significant higher chance of it being in the news than when a ford car breaks down.
I think it also has to do with tesla completely disrupting the market hence all other automobile company's wanting to get rid of tesla (sort of conspiracy).
there are way more ford's, chevy's and bmw's having issues than tesla's but why isn't that ever covered.


Elon Musk has a background of succesful company's built by him, he is an absolute god at managing his time and isn't always shit posting on twitter.
If you look closely @ his twitter account, you can see he's almost always posting about tesla or spacex, which is basically free marketting.

I think Q2 will crush all the expectations when it comes to delivery's, Q3 and Q4 will be even better due to the shanghai factory.
the stock will be priced back to where it was which is the 300$ range and probably hit a new all time high.
Don't forget, be greedy when others are fearful ;)

[AKS]

You said it could go back to its trading highs, but recommend selling it at loss and get back in at a $100.
That does not make sense. That is like the guy who said it will go to $10 but we could also see it at $427.
Tesla has tremendous growth, and despite what shorts will tell you. It will reach back to it's normal highs at around 350 to 400.

[skorpijabg]

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