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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (21258)	8/24/2018 10:04:15 AM
From: robert b furman	1 Recommendation Recommended By John Pitera Read Replies (2) \| Respond to of 33421

Just bought a new 2019 Denali Yukon for my better half (40th anniversary). It was a 78,000 MSRP. I can not tell you have fine the fit and finish is. Simply a gorgeous truck with electronics that amaze. Back up video vibrates the seat when getting close to an impact. The truck has so many electronic gizmos, one has to go to school to sinc everything. If Tesla doesn't have top notch quality - the competition will eat their lunch. I'm beginning to think the dealerless factory direct model will draw billions from a franchise OEM. The bidding for the factory direct business model and all of the legal challenges that drew working capital from Tesla, would be a "free" asset that will allow greater margins far out into the future. A business model that is superior to a quality built vehicle. This will be an interesting corporate history to observe. TESLA with poor quality = TOAST!! Bob

To: John Pitera who wrote (21258)	9/10/2018 2:41:11 PM
From: John Pitera	2 Recommendations Recommended By roguedolphin sixty2nds Read Replies (1) \| Respond to of 33421

Ten Bonds With Prices Higher Than Tesla’s By Alexandra Scaggs Sept. 10, 2018 11:16 a.m. ET (Yup 62nds... TSLA = Dead man walking) Prices of Tesla’s high-yield bonds plunged last week. PHOTO: COURTESY OF TESLA Tesla’shigh-yield bonds took a nosedive after the departure of the company’s chief accounting officer. The bonds traded as low as 82.77 cents on the dollar during Friday’s session, according to Bloomberg, though they moved back up to 83.83 on Monday morning. Those levels are very low for a company with an enterprise value of $57 billion that has repeatedly promised it will be profitable in the third quarter. In case you were wondering how low, here’s a selection of other companies with unsecured bonds trading higher than Tesla’s. All of them have the same rating, or lower. It’s important to point out that this is not a straightforward comparison, since most of the bonds below were trading at yields significantly higher than Tesla’s 8.3%. But simply in terms of cents on the dollar, it seems worth pointing out the price of Tesla’s unsecured bonds is now in league with names like: • JC Penney; •Indebted rural phone company Frontier Communications; • Bausch Health Cos., the reincarnation of Valeant Pharmaceuticals; •The LBO vehicle for a plastics-molding equipment company called Husky Injection Moldings Ltd., which is run by a man named John Galt; •The Ukrainian government; • Ocwen Financial, which you may remember from its multiple mortgage-related settlements with regulators; • Iridium Communications, the weirdest satellite play of the 1990s; •Two payday lenders called DFC Finance Corp and CNG Holdings; and • SRS Distribution, a roofing company that tried to issue a loan that included what Covenant Review called “ some of the worst covenants that we’ve ever seen” in its contracts. (The covenants were later tightened.) With bonds like these, who needs equity? barrons.com