Category: Technology

TSLA needs to issue more debt, AKA stock going higher.

According to CNBC, Tesla has a billion dollar debt coming due, and it could wipe out nearly a third of the company’s cash if the stock price doesn’t improve.

About $920 million in convertible senior notes expires on March 1 at a conversion price of $359.87 per share. But Tesla’s stock hasn’t traded above $359 for weeks. If the shares are about $359.87, then Tesla’s debt converts into Tesla shares. If not, Tesla will have to pay the debt in cash. Maybe its time for Elon to do another cash offering and get another podcast going?

Tesla reported cash and cash equivalents of $3.37 billion at the end of its September quarter. The company continues to reveal pressure to maintain profitability, and announced Friday it would cut 7 percent of its full-time workforce.

Shares fell more than 11 percent Friday following the announcement to trade around $305 per share.

Musk said during the company’s third quarter earnings call that Tesla plans to honor the original maturation date.

“The current operating plan is to pay off our debts and not to refinance them but to pay them off and reduce the debt load and overall leverage of the company,” Musk said at the time.

I wonder if these guys are ready to buy some shares?

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Netflix cancels recession

Netflix Inc.’s earnings report couldn’t fully satisfy investors, but it was good enough to prompt a bevy of bullish analyst calls, with even the most bearish on Wall Street boosting his price target.

The streaming video giant reported late Thursday earnings and all-important net subscriber additions that handily beat expectations, while revenue came up a bit shy. With the stock NFLX, -3.99% soaring 51% in the weeks leading up to the results, investors’ expectations were running high — AKA always be buying the dip nerds!

As usual, after the fact an overwhelming majority of Wall Street analysts got a little more bullish. Of the analysts surveyed by FactSet, no less than 17 raised their price target, while only two lowered them. That raised the average target to $403.56, which is about 19% above current levels, from an average of $391.31 just before the release of results. The average rating remained at the equivalent of buy. Raymond James’s Justin Patterson reiterated the “strong buy” rating he’s had on the shares for at least the past three years, and lifted his target to $470 from $450, saying Netflix’s global distribution advantage is becoming increasingly clear.

Piper Jaffray’s Michael Olson affirmed his overweight rating and boosted his price target to $440 from $430, but acknowledged that Netflix’s fourth quarter results and first-quarter outlook were “mixed,” as domestic subscriber adds fell short of his expectations.

“The single most important metric to investors, however, is international subscriber additions and that was ahead of expectations for the quarter and the guide,” Olson wrote. And with just 15% share of internet households outside of the U.S., excluding China, “there’s clearly room to grow international.”

Non-Hacker Tunnel in NY


New Yorkers traveling in the Holland Tunnel, a vehicular tunnel underneath the Hudson River connecting Lower Manhattan and New Jersey, are now discovering that the next generation of communication technology is being tested right outside their car windows, said Bloomberg.  Continue reading “Non-Hacker Tunnel in NY”