Cathie Wood Is Buying Tesla Again. 4 Reasons You Should Too The Ark Invest chief has been generally on point with her buy-and-sell decisions with Tesla stock in the last year. Cathie Wood has been one of the biggest Tesla (TSLA 2.09%) bulls on Wall Street. The stock has been at or near the top holding in several exchange-traded funds (ETFs) run by Wood. But Wood was still a seller of Tesla shares beginning last fall when the stock was near its highs and again in the spring of this year. Wood's trading has certainly been timely, buying back shares when the stock dipped and selling some off after it rose higher. That's why investors should note that Wood has been buying again in October, including another 66,190 shares for the ARK Innovation ETF the day after Tesla reported third-quarter earnings. Here are three good reasons why Wood is in bull mode with Tesla stock again -- and why you should be too. 1)Cathie Wood likes growth Wood's latest buy came after the stock sank following Tesla's Q3 report. Some analysts were focusing on the admission by management on the earnings call that it expects to come up short of the 50% growth goal for 2022 vehicle deliveries versus last year. Importantly, however, Tesla still projects it will meet that goal for vehicle production. The difference will be due to shipping bottlenecks the company has been experiencing. In Q3, Tesla produced 22,000 more vehicles than it delivered due to those logistics issues. But those cars have buyers and aren't just going to inventory. Whether customers take ownership in one quarterly period versus another shouldn't matter to long-term investors. And it's not just production that is growing at a fast rate. Total revenue grew 56% year over year in Q3 and net income more than doubled. 2)Profitability remains strong Another concern for some investors is how Tesla's profit margins will hold up as competitors start to enter the market en masse. Automotive gross margin did, in fact, drop 258 basis points year over year. That's not overly surprising as supply chain constraints and rising material and labor costs increase expenses for companies in the automotive sector. But Tesla's automotive gross margin held steady at 27.9% versus the prior quarter. That implies that the company is making up for added expenses. Ford recently warned investors that it expects an extra $1 billion in "inflation-related supplier costs" in Q3 alone. Tesla has raised prices on its products, and investors should take it as a good sign that those price hikes are helping and are also not sapping demand. 3)Contributions from other products Some Tesla critics point to the fact that the company has a limited product lineup that hasn't been updated for years. But the electric Semi Truck will begin deliveries on Dec. 1 to its first customer, PepsiCo. The Cybertruck is also on the "final lap," according to CEO Elon Musk, and should begin deliveries next year. Down the road, Tesla is expected to introduce a lower-priced electric vehicle (EV) that will expand its product line of passenger vehicles, too. Musk also told investors the company is working as quickly as possible to increase battery-production capacity. Its energy division also includes battery storage and solar rooftops, and has more demand than it can supply. Sales from that division represented 5% of total revenue in Q3 as its energy-storage deployments jumped 62% year over year. All of that should result in many years of growth to come from different places for Tesla. Some investors may be concerned about the current state of the economy. This week, Musk commented on that, calling Tesla's business "recession resilient" due to the global momentum transitioning to electric vehicles. 4)VZ told her to Need we say more?
I'm in the WOLF at $104 Stoney! Quit scaring the readers like this Stoney! The WOLF is $111 now. I told you last week if it hits $102 to buy more. Like HD at $270ish >>>>Try to focus here. <<<< I'll tell you when its time to get out. Learn to read the tide.
This dog hasn't moved in 3 months. Still $20 You hold things like this, but sell The Wolf against VZ's sage advice? At least you held The Badger. It hit $113 today
And speaking of dogs... I happened to notice Cramer added a new button to his sound board. A barking dog. Now I don't watch the show that often aside from maybe the first 5 minutes, but I'm pretty sure he never had that "dog barking" button in the past. That means one thing Stoney.... not only does he read VZ for ideas, but now he's adopting my venacular(s). I'll give Jim a pass though.
And speaking of politics... Apparently there's a huge political factor involved in the Brazilian markets, which I was unaware of when I made those posts regarding it last weekend. Some big election between two radically different candidates. The ETF--- (EWZ) ---- has dropped from $34 to $31. GBA needs to monitor this Brazilian election too as there could be big moves on the horizon. Not sure which candidate makes for the bull case however. They're probably both crooks. Which one does Trump like? That's probably the one good for VALE. (And bad for the rain-forest)
More politics.... Stoney you're not one of those shady New Yorkers that vote in multiple states are you? You and Big Pete? GBA doesn't need any scandals. While I try to refrain from political bs in this thread, one has to wonder if the markets continuing up in the face of such headwinds has anything to do with what appears to be a forgone conclusion that the GOP will win the House... and a flip of the Senate is looking more and more likely daily. I saw almost 7M shares the other day trade in about 55 block-trades on Antero Resources. That's why I brought it up. (AR - $35.75) They are the shale kings. In PA, OH, WV at least. Now this company has a 52 week low of $15 and a high of $49. I don't even have to look, I know its pricey and I bet they have a ton of debt. And on a day the XLE is up nicely, this thing is flat. So what does it all mean Stoney? Beats me... but I think one thing GBA needs to be doing is finding the near-term trades for a changing of the guard in both Houses of Congress, because it appears the whales are betting that way now. New GBA theme->>>> Trading The Red Wave.