Thursday, May 15, 2014

Tesla Motors (NASDAQ: TSLA) Buy or Sell?

Luxury electric vehicle maker Tesla Motors (NASDAQ: TSLA) failed to wow investors when it reported first-quarter results last week. A sell-off followed that took the stock down to a technically critical level.
Purely looking at the numbers, Tesla did well. The company came in with non-GAAP EPS of $713 million, which handsomely beat expectations of $699 million. Tesla also beat on the bottom line, reporting earnings per share (EPS) of $0.12 versus the $0.10 estimated by analysts. In the quarter, Tesla delivered 6,457 cars, slightly beating its guidance of 6,400, and it produced a record 7,535 vehicles.  (more)

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Why China Will Implode: Its A Monumental Building Aberration, Not An Economy

by David Stockman
David Stockman’s Contra Corner

The thing to understand about China is that it is not just another booming EM economy that is momentarily struggling to cool-down its excesses in fixed asset investment and make a transition to some kind of more “normal “consumer-based economy. That comforting notion represents an odd-confluence of propaganda from the comrades in Beijing and hopium from Wall Street stock peddlers.
In fact, China is a grotesque economic aberration that bears no relationship to prior economic history or any conventional economic models-–not even to the export-mercantilism model originally developed by Japan, and which has now proven itself wholly unsustainable. Instead, China is a nation that has gone mad building,speculating and borrowing on the back of a credit bubble so monumental (and dangerously unstable) that its implications are resolutely ignored by observers deluded by the notion that China embodies a unique economic model called “red capitalism”.
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A Sort Squeeze For Zynga (NASDAQ: ZNGA) ?

I love buying beaten-down stocks with big upside potential, particularly when short interest is high. As the number of outstanding shares held short climbs, signaling increasingly bearish sentiment, the potential for a short squeeze increases.
A short squeeze is a rapid move higher in a heavily shorted stock. As price rises, more and more short sellers are forced to cover their positions by buying shares on the market, thus pushing the stock even higher. It's a vicious cycle, and getting caught on the wrong side of a short squeeze can result in substantial losses.
However, screening for potential short squeeze candidates can also lead to high-probability, short-term bullish trades. And mobile and social game maker Zynga (NASDAQ: ZNGA) currently looks ripe for a short squeeze.  (more)

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Interest Rates Will Spike and So Will Gold

Since the top in gold in 2011 gold has been in a bear market. Depending on your outlook, this 3 year down trend could also be seen as consolidation within a major cyclical bull market. Either way, the outlook is bullish, that is if gold can bottom this year.
The average bear market in gold has corrected roughly 33% and lasts about 550 days. And the current correction in gold has thus far been 38% and about 700 days. So it’s easy to assume precious metals are nearing a significant low.

Snap shot of the gold forecast chart:
The weekly chart while still in a clear down trend, could be in the early phase of a stage 1 basing pattern. Technical are pointing to strength with the MACD moving higher, relative strength is rising, and the first down trendline on the gold price chart has been broken.
Also we had the Golden Cross happen which is not shown on the chart. This is when the 50 day moving average crosses above the 200 day moving average. This is a long term bullish signal for many investors, though I do not put much weight into moving averages crossing over one another.
If historical data/statistics, and technical analysis prove to be correct we should expect to see gold trading between $2300 - $2500 per ounce within 24 months.
gold buying
Gold Forecast Conclusion:
With the average gold bull market lasting roughly 450 days, and the average percent gain in gold being 95% I feel precious metals are will bottom this year, if they have not yet done so.
Note that until gold breaks out of its Stage 1 Basing pattern, I will remain bearish/neutral on the metal.
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The Beginning Of The End Of Precious Metals Manipulation: The London Silver Fix Is Officially Dead

from Zero Hedge

Following a crackdown on precious metal manipulation by various European regulators (mostly Germany’s BaFin, recall “Precious Metals Manipulation Worse Than Libor Scandal, German Regulator Says“), which led to the shocking outcome that Deutsche Bank would pull out of the London gold and silver fixing committees, the London Silver Market Fixing company ended up with a most curious outcome: it would have just two members: HSBC and Bank of Nova Scotia. And, as an even more shocking result, overnight the London Silver Fix announced that after August 14, 2014 it will no longer exist - the first of many victories for all those who have fought for fair and unmanipulated precious metal markets.
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