For the sake of record keeping, this post marks the 50th post of this website, which is something I consider a success in terms of hoping to create a pool of information and resources for those who are interested in my investing philosophies and results. This is a short and sweet piece about a short position I took on earlier this week in the Voyager Fund portfolio. Longs are still not at prices I would consider buying (at least positions I am looking to add to the portfolio), and I am content with the longs I have in my book currently.
On Wednesday (07/05) I shorted TSLA in my paper Voyager Fund portfolio. My short position was filled at 338.57, risking 0.50% of my trading capital, and setting my stop loss at 380. Technically, we got exactly what we’ve been looking for in a short signal. The weekly charts so an engulfing bearish candle completely encompassing the bull run up to the point. The charts are slowly starting to reflect the terrible business that is TSLA. I love the product, and I wish to own the car one day, but the way the business is ran is putrid. TSLA burns through cash like nobodies business, consistently asking for money from the government and its shareholders. I hate companies that burn through cash, without apology, while asking for more cash in return.
In the long run, I hope Musk can stabilize the company, because I truly believe in the product, and I believe in the future of the industry that Musk is trying to shape. However, I cannot overlook the massive cyst that is TSLA’s balance sheets and income statements.
Hopefully Musk keeps Space-X private so he doesn’t get into the same problems there like he’s gotten into with TSLA.
Be on the lookout next week for another article. I am trying to focus my time on one company a week, doing a thorough analysis on one company a week and providing detailed analysis and review.