Buying Panasonic...Is it a safer way to play Tesla??

Discussion in 'Stocks' started by Cabin111, Jan 25, 2019.

  1. Cabin111

    Cabin111

    I bought a couple hundred shares of PCRFY the other day. Not all their money is on Tesla...They make their batteries for their cars. They are into a ton of other things as you know. They are planning to build a battery plant in China. Yeah, I know Tesla may be in talks with another China company for their batteries in the cars they build in China.

    Just thinking how the quality of their batteries are. People are taking them out of totaled cars and using them for electric storage in their houses.

    No options available...But a good, steady company I believe.

    If you look at my posts, I am short (no holdings) in Tesla. But you never know...Another car company (since they are all going electric) may use their batteries.

    It reminds me of That movie about a young Bill Gates...Buying and controlling DOS. IBM said take it...The value is in the hardware, not the software. It seems the value is in the battery...Not the software. Yeah, the software/car is cool. But a 5 mile an hour fender bender can total their cars...
     
  2. TommyR

    TommyR

    Will tesla will be boring when it's in the sp500 index because of the etf holdings? @letskeepteslavolatile
     
  3. Specterx

    Specterx

    Assuming that "electrification" does go on to be a big trend, it depends on where in the value chain you expect most profits to be extracted. To take the smartphone example, AAPL stock performed far better than those of most chipmakers because design and especially branding turned out to be where you could earn large profits for relatively low capital investment.

    Correct me if I'm wrong but I don't think anyone claims that Panasonic has a technology moat via critical patents etc. - rather, TSLA's basic strategy is to achieve cost savings through economies of scale and gradual process improvements in battery production (though not in car production, lol) while relying on buzz, brand power, and green virtue-signaling by wealthy early adopters to drive end-product demand at premium prices. It worked incredibly well until they tried to go low-price, mass-market where manufacturing efficiency is everything, then screwed up the manufacturing part.

    Also, the general theme of the battery storage and battery EV revolution has been a "thing" for so long now that I'd be surprised if there's any value left in it - and in fact, since the revolution still hasn't arrived, I'd reckon it's more likely that the sector is overpriced. But that's just my hunch.
     
  4. Cabin111

    Cabin111

    Also like the PE and dividend...Just me.

    Previous Close 9.76
    Open 9.81
    Bid 0.00 x 0
    Ask 0.00 x 0
    Day's Range 9.80 - 9.86
    52 Week Range 8.34 - 16.20
    Volume 177,864
    Avg. Volume 274,233
    Market Cap 22.782B
    Beta (3Y Monthly) 0.98
    PE Ratio (TTM) 10.94
    EPS (TTM) 0.90
    Earnings Date N/A
    Forward Dividend & Yield 0.26 (2.74%)
    Ex-Dividend Date 2018-09-26
    1y Target Est 15.41