TSLA is now being pitched as a software company...... I believe I specifically used TSLA as an example
of a business with a negative cash flow... which is Know as CASH BURN... and when you burn up all
the cash and burn up all your credit lines.... the creditors and banks get the assets. That's pretty simple
to understand... in my humble opinion. TSLA creates a veritable blizzard of written reports on sites
such as Seeking Alpha.... it's the company that everyone wants to analysis... dissect... etc.
Why don't people spend more time talking about GOOGL and Alphabet... You Tube itself... the Globe's biggest repository of information...if one takes account that a picture is worth a thousand words and you
can cram an amazing quantity of content and information into a 5 minute video.
I agree with you as to what happens to the common stockholders of TSLA... nothing... Just like Commerce One was in creating the B2B platform for the global auto industry back in 1997-2001.... The technology gets implemented but the bigs dogs get the Meat...nothing for the low man on the total pole.....
which is the holder of the common stock.... it's a great scheme.... the British actually use the term scheme, I believe for all the less secured investors in a companies assets.
Telsa chart Review
The 1 year looks nasty... bad, bad Leroy Brown bad....lol
Now Bob, for the chart that always makes the game exciting ( and to steal the lines from.. the Dean Wormer's courtroom seen from Animal House..... Dean Wormer ..... isn't it an indictment of the entire
American educational process.)
In this case I would say that to call have TSLA stock collapse you are going to have to wait for the Next
bear market.... for bubble valuation totally collapse... I don't know if that is going to occur in an overall
bull market, we shall see.
As Don points out with the Cult stock article.... and this 5 year weekly chart.... the Technical call
would be to buy right here and the old saying is .... in a bull market first you must kill all the bears and
then slaughter "harverst, like ripe apples"..... all the bulls......
and then as Nathan Rothschild, the Frankfort born.... sent to London by his father Mayer Amschel Rothschild to expand the family banking empire.... Famously was reported to have said...... You buy when the Blood is running in the streets.
One old story goes that back in 1815 in London.... in those days as today the quicker you get new and
material information, it provides you with a asymmetrical advantage to those who do not have the
same new and material ( Meaning Important) information or knowledge of changing business conditions.
The Mayer Amschel Rothschild had 5 sons all born in present day Frankfort... in the "Jewish Ghetto"..
which is wear the Jews were required to live.. and as the family banking business expanded. The 5
sons went to the Major European trade centers.
Nathan Mayer, Freiherr von Rothschild (16 September 1777 – 28 July 1836) was a Jewish German banker, businessman and financier. He was one of five sons of the second generation of the Rothschild banking dynasty. He was born in Frankfurt am Main, the third child of Mayer Amschel Rothschild (1744–1812) and Gutle Schnapper (1753–1849). Once the wealthiest man on earth, he was the richest among the Rothschilds.
The Rothschild's very effectively had access to their advanced for the day communication system and had
homing pigeons that brother the News to London of The Iron Duke Wellington's defeat of Napoleon
at the famous battle of Waterloo in 1815. Rothschild was said to have initially gone to the British war
minister and told him that Wellington had beaten Napoleon..... and the British war minister was disinclined
to believe him....."Trust a Jewish moneylender/banker" .. and thus
Rothschild realizing that their was fear in the air went to the stock and bond exchange and had his floor
brokers start to ostensibly and in a highly visible manner sell massive quantities of British Consul bond's
and other securities.... this created a very severe Panic. People knew the Rothschild's got information
quicker the logical conclusion that Napoleon had won and would be coming to London very soon to
seize all of the assets from everyone .... basically "Nationalize " any exchange traded securities or debt
for France and Napoleon... was running France.
When prices had completely collapsed and people were at the point of fearing about physical security.. he
had other agents...... floor operators... who bought everything up for Pence's on the pound or pennies on
the dollar...
So Now back to the 5 year weekly chart of TSLA
what's interesting is that ..... if you just have a chart to look and did not know the fundamentals ... one
could present the bull case is that it broke out of a 3 year consolidation where it could never get above
$290 since it's first try way back in Q3 of 2014. TSLA broke out this year and has come back to the
breakout... and also the bulls will tell you that it's just finished an A B C.......
The Monthly chart does not add much value as it's not even been public for 9 years....
---------------------------------
and just a bit more from Wikipedia.... which correctly points out that the really big score is doing major business with the Government and Military... In this case the Rothschild had the plum contract of sending
the payroll payments to the Wellington's really huge army via the Rothschild's banking systems.
Another example of the is when President Lyndon Baines Johnson and congress created.. his
great society programs in 1966, fellow Texan and ex IBM salesman extordinaire H. Ross Perot had created
EDS Electronic Data Systems that got the insanely lucrative government contract to administer
accounting etc for Medicaid/Medicare etc. The book written back in the 1960's.. on the "Go- go days"
market of 1967-68 starts off talking in the first chapter about EDS as it was the wunderkind of the days.
It should also be noted that H. Ross Perot enabled Bill Clinton to become president in the 1992 election,
with only 43% of the popular vote as Perot's 3rd party candidacy picking up a significant % of the vote plus
the recession of the early 1990's take GHWB from a record positive approval rating of 91% right after the
First Gulf War ended in the first half of 1991.
en.wikipedia.org
Life[ edit]In 1798, at the age of 21, he settled in Manchester, England and established a business in textile trading and finance, later moving to London, England and making a fortune in trading bills of exchange through a banking enterprise begun in 1805.
Rothschild became a freemason of the Emulation Lodge, No. 12, of the Premier Grand Lodge of England on 24 October 1802, in London. Up until this point, the few Ashkenazi Jews that lived in England tended to belong to the " Antients" on account of their generally lower social class, while the more established Sephardim joined the Moderns. [1] [2]
In 1816, his two elder brothers were granted noble status ( Freiherr or Baron) by the Emperor of Austria. They were now permitted to prefix the Rothschild name with von or de. Their device of four arrows became five when Nathan too was elevated in 1818, although he chose not to use his aristocratic title of Freiherr von Rothschild. In 1838, Queen Victoria authorized the use of this Austrian title in the United Kingdom by his male-line descendants. [3]
Business career[ edit]He operated first as a textile merchant in Manchester, England, then from 1804 he began to deal on the London stock exchange in financial instruments such as foreign bills and government securities.
From 1809 Rothschild began to deal in gold bullion, and developed this as a cornerstone of his business. From 1811 on, in negotiation with Commissary-General John Charles Herries, he undertook to transfer money to pay Wellington's troops, on campaign in Portugal and Spain against Napoleon, and later to make subsidy payments to British allies when these organized new troops after Napoleon's disastrous Russian campaign.
In 1818 he arranged a £5 million loan to the Prussian government and the issuing of bonds for government loans formed a mainstay of his bank's business. He gained a position of such power in the City of London that by 1825–1826 he was able to supply enough coin to the Bank of England to enable it to avert a liquidity crisis.
In 1824 he founded the Alliance Assurance Company (now Royal & SunAlliance) with Moses Montefiore.
In 1830 he funded, along with other notable bankers, the country of Belgium, which had just gained independence and was looking for investors. He loaned them upwards of 3 million Belgian Franks.
(Small editorial Note: the city of Brussels is very expensive and very affluent as it conveniently is where the headquarters of
the European Common Market Consortium. One might make an analogy of the United Nations headquarters being
on real estate donated by the Rockefeller family... but I shall do no more than DJT did this weekend in his "not commenting" on the physical characteristics of the Leader of North Korea.)
In 1835 he secured a contract with the Spanish Government giving him the rights to the Almadén mines in southern Spain, effectively gaining a European mercury monopoly. [4]
Nathan Meyer Rothschild was known for his role in the abolition of the slave trade through his part-financing of the £20 million British government buyout of the plantation industry's slaves. [5] However, in 2009 it was claimed that as part of banking dealings with a slave owner, Rothschild used slaves as collateral. The Rothschild bank denied the claims and said that Nathan Mayer Rothschild had been a prominent civil liberties campaigner with many like-minded associates and "against this background, these allegations appear inconsistent and misrepresent the ethos of the man and his business". [6]
He set up his London business, N. M. Rothschild and Sons at New Court in St Swithin's Lane, City of London, where it trades today. He also purchased a country house at Gunnersbury Park near Acton in western London.
Description[ edit]An anonymous contemporary described Nathan Rothschild at the London Stock Exchange as "he leaned against the 'Rothschild Pillar' ... hung his heavy hands into his pockets, and began to release silent, motionless, implacable cunning": [7]
Eyes are usually called the windows of the soul. But in Rothschild's case you would conclude that the windows are false ones, or that there was no soul to look out of them. There comes not one pencil of light from the interior, neither is there one gleam of that which comes from without reflected in any direction. The whole puts you in mind of an empty skin, and you wonder why it stands upright without at least something in it. By and by another figure comes up to it. It then steps two paces aside, and the most inquisitive glance that you ever saw, and more inquisitive than you would ever have thought of, is drawn out of those fixed and leaden eyes, as if one were drawing a sword from a scabbard. The visiting figure, which has the appearance of coming by accident and not by design, stops just a second or two, in the course of which looks are exchanged which, though you cannot translate, you feel must be of most important meaning. After this, the eyes are sheathed up again, and the figure resumes its stony posture.
During the morning, numbers of visitors come, all of whom meet with a similar reception and vanish in a similar manner. Last of all the figure itself vanishes, leaving you utterly at a loss. [8]
Death[ edit]By the time an infected abscess caused his death in 1836, his personal net worth amounted to 0.62% of British national income. [9] He had also secured the position of the Rothschilds as the preeminent investment bankers in Britain and Europe. His son, Lionel Nathan Rothschild (1808–1879), continued the family business in England.
Nathan Mayer Rothschild and his wife Hannah are buried in the Brady Street Ashkenazi Cemetery in Whitechapel. [10]
Waterloo legend[ edit]In the 19th century a story arose that accuses him of having used his early knowledge of victory at the Battle of Waterloo to speculate on the stock exchange and make a vast fortune. [11]
Frederic Morton relates the story thus: [12]
To the Rothschilds, [England's] chief financial agents, Waterloo brought a many million pound scoop. ... a Rothschild agent ... jumped into a boat at Ostend ... Nathan Rothschild ... let his eye fly over the lead paragraphs. A moment later he was on his way to London (beating Wellington's envoy by many hours) to tell the government that Napoleon had been crushed: but his news was not believed, because the government had just heard of the English defeat at Quatre Bras. Then he proceeded to the Stock Exchange. Another man in his position would have sunk his work into consols [bank annuities], already weak because of Quatre Bras. But this was Nathan Rothschild. He leaned against "his" pillar. He did not invest. He sold. He dumped consols. ... Consols dropped still more. "Rothschild knows," the whisper rippled through the 'Change. "Waterloo is lost." Nathan kept on selling, ... consols plummeted – until, a split second before it was too late, Nathan suddenly bought a giant parcel for a song. Moments afterwards the great news broke, to send consols soaring. We cannot guess the number of hopes and savings wiped out by this engineered panic.
Research by the Rothschild family [13] and others [14] has shown that this story originated in an anti-Semitic French pamphlet in 1846, was embellished by John Reeves in 1887 in The Rothschilds: the Financial Rulers of Nations, and then repeated in other popular accounts like that of Morton and the 1934 American film directed by Alfred L. Werker, The House of Rothschild. Many of the alleged facts are clearly untrue. For example, the size of the market in government bonds at the time could not have supported a gain of anything near one million pounds.
Historian Niall Ferguson agrees that the Rothschilds' couriers did get to London first and alerted the family to Napoleon's defeat, but argues that since the family had been banking on a protracted military campaign, the losses arising from the disruption to their business more than offset any short-term gains in bonds after Waterloo. Rothschild capital did soar, but over a much longer period: Nathan's breakthrough had been prior to Waterloo when he negotiated a deal to supply cash to Wellington's army. The family made huge profits over a number of years from this governmental financing by adopting a high-risk strategy involving exchange-rate transactions, bond-price speculations, and commissions. [15]
The Rothschild family archives confirm that, although "it is virtually part of English history that Nathan Mayer Rothschild made 'a million' or 'millions' out of his early information about the Battle of Waterloo, the evidence is slender". It notes the presence in the archives of a contemporary letter from a Rothschild courier, John Roworth, who wrote to Nathan: "I am informed by Commissary White that you have done well by the early information which you had of the Victory gained at Waterloo." The archivists suggest that this comment – the only hard evidence of Rothschild making a fortune going long on UK gilts – may, in fact, have been a reference to business dealings between Rothschild and the British Government, as suggested by Ferguson. (The contract for supplying cash to Wellington's army had been offered precisely because of Rothschild's international network. "The Government had already failed to establish a similar network of its own and had been let down by other more established London firms, and the Rothschild courier and communications network had gained a justifiable reputation for speed and reliability.") It confirms that the Rothschild couriers brought news of victory at Waterloo "a full 48 hours before the government’s own riders brought the news to Downing Street", but the archive has no records to estimate the size of any gain Rothschild made. "But knowing the structure of the market we can conclude that however much Nathan made out of Waterloo, it must have been very considerably less than a million pounds, let alone 'millions'." [16]
It is also very commonly reported that the Rothschilds' advanced information was due to the speed of a prize coop of racing pigeons held by the family. [17] [18] [19] However, this is widely disputed and the Rothschild archive states that, although pigeon post "was one of the tools of success in the Rothschild business strategy during the period c.1820-1850, ... it is likely that a series of couriers on horseback brought the news" of Waterloo to Rothschild. [20]
More recently Brian Cathcart has refuted the claim that Rothschild was the first man in London to know of the victory at Waterloo. [21] He traces the earliest news to a dispatch Wellington sent via his messenger to Lord Bathurst, the Secretary of War, which was received on the evening of 21 June. [21]
See also[ edit]
en.wikipedia.org
so the take away..... Keys to a superior business model..... needs to include
a justifiable reputation for speed and reliability
JJP |
