Oh, you don’t like how the game is played? I suggest you read Confessions of a Wall Street Analyst to understand how it’s played.
Early this morning, we were entreated to a Goldman Ball Sachs upgrade of TSLA, affixed with a price target of $250. In the afternoon, we were doubly entreated to a massive secondary offering with Goldman listed as one of the underwriters.
Tesla is offering about $1.4 billion of shares with the remaining shares to be sold by Elon Musk to cover tax obligations associated with his concurrent exercise of more than 5.5 million stock options. On a net basis, Mr. Musk will increase his overall Tesla shareholdings through these transactions. Tesla intends to use the net proceeds from this offering to accelerate the ramp of Model 3. In connection with this offering, Elon Musk, Tesla’s CEO, will also be exercising stock options to acquire 5,503,972 shares of Tesla stock.
Chinese wall prohibits the two departments (investment banking and research) from communicating with one another, yadda, yadda, yadda. No one believes you.
Coincidence or corruption?
On a side note, God bless Elon Musk.
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I’m sure it’s on the up-and-up. Brokerages have “walls” set-up to avoid conflicts of interst. The finance guys were probably just as surprised as eveyyone else.
Anyway… anyone looking at TSLA’s cashflow should have known this or a huge debt offering was coming because TSLA can’t pay their bill. I’m looking forward to tomorrow to see if the net results of Goldman’s action tank the stock further than yesterday, enhancing my short TSLA calls.
Not to mention the fact that if you thought your stock was undervalued, then you would issue debt instead of more shares to raise money.
Tesla in implicitly stating that the return on their debt will be higher than the return of their stock..
I’m sure it’s on the up-and-up. Brokerages have “walls” set-up to avoid conflicts of interst. The finance guys were probably just as surprised as eveyyone else.
I’ve looked into these walls. They are amazing. Even the Red Army hackers have trouble getting through them. You could dress the analyst side in all white, have an ink-filled water balloon fight on the banking side, and there wouldn’t be a single spot showing on the analysts when it was all over. Trump should put these things on the border.
I spent a short time many moons ago at a boutique firm. The wall was real. It was made from a 5×7 index card taped to a wall that said in block letters, “CHINESE WALL.”
@bth and the wall comment 😉
TSLA will be up 4-5% tomorrow just to mess with the bears.
I just hope Donald doesn’t put Goldman in charge of wall building, their example is kind of flimsy if you ask me.
It’s pointless trying to trade snake-oil.
Elon Musk is a future John McAfee