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☕ Two things in Tesla’s numbers the media is missing

Apr 02, 2024

Good morning! 👋

Rates continue to rise and, not surprisingly, all three major indices continue to fall.

Good!

I can buy more shares in world-class companies being put “on sale” and have another shot at stocks I missed on the last run higher. Particularly if I use tactics like DCA/VCA to keep emotions out of the equation. 😊

It’s important to remember that big market moves often have little or nothing to do with the longer-term investment case for owning great stocks.

So...own great stocks!

Here’s my playbook.

1 – Tesla biffs deliveries but did you see this??!!

The numbers are out.

Tesla did, in fact, miss Q1 delivery expectations. (Read)

So what.

We knew that was coming.

The company has been kicked in the chops globally... the Red Sea situation has created shipping diversions, there was an arson attack at the Gigafactory in Berlin, and the early Model 3 ramp up at Freemont.

But did you see this?

First, Tesla deployed 4,053 MWh in energy storage products, the highest quarterly rollout yet.

The media, of course, can’t be bothered.

Too bad.

Tesla’s energy storage and generation revenues have more than tripled over the past few years.

They will again.

And second, Tesla holds gobs of cash which means it’s got plenty of strength to navigate any short-term concerns or financial pressure.

I know what I’ll be doing today.

You?

2 – I'm not buying the House of Mouse any time soon

The ongoing battle for Disney continues.

What a nightmare.

Disney had seven-billion-dollar+ films just 4 years ago.

Now it’s got 6 consecutive quarterly losses in a row and the company hasn’t had a single billion-dollar movie since 2019. Moreover, its reputation is trashed.

I can’t recall the last time I heard someone say “I’ve got to go” to Disney.

Although and to be fair, my bride and I think Shogun is some of the best TV we’ve seen in years. Jaw-droppingly detail oriented, visually spectacular, and intense... we recommend you tune in.

3 – You make your money in bear markets, but don’t know it until they’re bull markets

It's a very simple proposition.

4 - Oil to $100

I didn’t exactly make any friends late last year when I said oil could hit $100 a barrel this year.

Now I’ve got company,

JPM and Goldman Sachs are both out with similar thinking in recent weeks.

Invest accordingly.

Oil is +14% YTD.

My favourite oil stock has turned in about half that.

However, it’s also the best positioned of all the oil majors, has a great dividend and a true shareholder yield that is positively awesome, not to mention nearly 3X the listed figure. (Upgrade to Paid)

My expectation is that it catches up.

5 – Rite Aid: hope or hopeless?

Recently I heard from an investor asking for my take after he’d purchased Rite Aid shares for less than $1. Is there any hope other than a total loss on the shares?

Honesty, you’d have better odds in Vegas.

There’s no doubt that bottom fishing is tempting, especially when it comes to a once proud name like Rite Aid. But you must tread lightly.

My experience is that you’ve got to start with a company that can define its own future rather than merely trying to hang on in a dying industry as is the case here.