Three of our elite short names in Zenith Trading Circle had very bad news over the past week. If you haven’t figured it out by this time, that usually means good news for us in the near future.
While I can’t give you my full recommendations (those are, as always, reserved for Zenith members), I can share the stock names and the news – and hopefully, convince you to get out of these companies if you haven’t already.
You might already own puts on these two toxic stocks, but this overvalued mess will likely be new to readers of Sure Money.
Here’s what’s going on behind the scenes…
Just as we expected, Tesla Inc (NASDAQ: TSLA) reported a net loss for the fourth quarter and ran through about $1 billion of cash.
Bizarrely, the financial media has chosen to focus on the fact that TSLA slightly beat analyst estimates, and on the inexplicable fact that the stock rose 3% in after-hours trading following the report. (Sample rosy headlines include “Tesla reports smaller loss than expected, beats on revenues” and “Tesla Inc. Earnings: Sales Soar, and Model 3 Is Coming.”) They’re also salivating over Musk’s promise to release the all-electric Model 3 on schedule this summer. (Fat chance.)
The media sycophants are completely ignoring the actual numbers, of course.
I’ve painstakingly gone through TSLA’s financials, and here’s what I’ve found…