 | HUGE Tesla Price Cut = Trouble? by: Charles Sizemore | Chief Editor, The Banyan Edge
January 14, 2023 Banyan Nation,
Poor Tesla just can’t get a break.
The company — still the leader in electric vehicles by all accounts — announced on Friday that that it would be cutting its prices on its Model 3 and Model Y.
The cuts weren’t small. The Performance edition of the Model 3 saw its price slashed by a full $9,000 to $53,990. This is after raising the prices just last year!
We’ve had a lot to say about Tesla of late. In the last Banyan Edge Podcast, Ian, Adam, Mike and I all riffed on Tesla and gave our outlooks.
(Spoiler alert… Adam, Mike and I gave the stock a thumbs-down. Ian gave the stock a thumbs-up based on its long-term outlook, but even Ian was lukewarm on Tesla’s near-term prospects. See why here.)
Adam is actually short Tesla at the moment, and already closed out a third of his position at a 69% profit. In case you missed his write-up on it, you can give it a look here.
I don’t want to bully poor Tesla. I’m actually rooting for it, because I’d love to live in a greener future.
But Tesla’s woes are part of a larger shakeout in technology stocks that we’ve seen unfold over the past year.
More on that in a minute. First, let’s take a look at what the team has had to say this week… |  | | Mike Carr dug up an infamous price pattern from 1948 that would have predicted BANKRUPCTY in several companies during the dot-com crash.
Now, this same pattern has given Mike a price target on Tesla.
You may not think it can go much lower after losing as much as 75% of its value.
But it can. Click here to see Mike’s price target and much more. | Last Week in The Banyan Edge - “Inflation Investing: How to Find Winners in the Bear Market,” by Ian King.
Bear markets are scary, and most investors lose money in them. But Ian doesn’t like to focus on the negative … and instead looks to buy when there is the proverbial blood in the streets. This week, Ian sits down with Amber Lancaster to break down the outlook for inflation … and what that might mean for stock prices.
They both agree it will likely get worse before it gets better. Many companies, particularly in the tech sector, have yet to revise their earnings estimates lower. That’s an inevitability, as the data rolling in suggests that tech companies are indeed seeing inflation cut into their earnings. But that’s OK. As Mike Carr showed us last week, there’s money to be made on the downside as well.
- “1-Sentence Secret to Making Money in 2023,” by Charles Mizrahi.
Charles is famous for keeping it simple. He avoids overly complex models and prefers to look at stocks as pieces of businesses rather than impersonal ticker symbols. But this week, Charles condenses the entire investing process down into a single sentence.
I won’t tell you the sentence. You’ll have to get that little nugget from Charles Mizrahi himself. But as Charles points out, we know with 100% certainty that this bear market will eventually peter out and when it does, it will be replaced with a more powerful bull market. And Charles will share with you which corner of the market that expects to lead the way.
- “Starbucks Was the Perfect ‘Silicon Shakeout’ Trade in 2022,” by Michael Carr.
In Monday’s podcast, we gave Mike a hard time for suggesting that consumers would cut back on their spending at Starbucks. You’ll take my pumpkin spice latte from my cold dead hands.
But as Mike points out, Starbucks is more than a coffee shop. It’s also a billion-dollar bank as well as a fintech company. Starbucks’ mobile app helped it to navigate the pandemic, and investors rewarded the stock by giving it a tech-like valuation. But, as tech stocks have suffered of late, so has Starbucks.
This is just another example of the Silicon Shakeout at work. And Mike shows how well he was able to trade the shakeout in Starbucks shares.
- “Tech Stocks: Ranking the Most Expensive Sector of 2023,” by Adam O'Dell.
Capitalism is survival of the fittest. Companies … just like species … adapt and evolve. Or at the least the successful ones do. Those that don’t ultimately fail. It’s creative destruction at work, and it’s what pushes us forward.
Adam believes that as many as half of the stocks trading today could end up being wiped out. But he also shows that, by focusing on quality, you can avoid the stocks that ultimately fail. Adam breaks down his Stock Power Rating system and how it helps you avoid at-risk stocks and stay invested in high-quality stocks that will survive and thrive once the dust settles.
Mike Carr will be joining me Monday in The Banyan Edge Podcast. Our theme is “nerds with numbers,” and you’ll want to make sure you tune in to this one.
We’re going to pick apart the data that our “Chief Nerd” Amber Lancaster put together, showing what stock returns look like after a bull market.
I have my thoughts on that … and I know Mike does too.
This isn’t nerdiness for the sake of nerdiness… We’ll be showing you how to position your portfolio to make a killing on “dead cat bounces” … and for the next bull market.
Speaking of that … if you missed Mike’s Silicon Shakeout presentation, you’re not too late. You can view it here. And you really should give it a look before it comes down later this week. I have a feeling Mike’s newest strategy will be the best approach to making money as this bear market carries on.
That’ll wrap us up for this week in The Banyan Edge! Thank you, as always, for reading and giving us your feedback. Remember that you can do that anytime, including any questions you’d like us to answer on the podcast, by emailing us at BanyanEdge@BanyanHill.com.
Enjoy the three-day weekend and a long breather from the market!
Until next week,
Charles Sizemore
Chief Editor, The Banyan Edge |  | | In 1948, two markets’ technicians revealed a little-known price pattern that would have predicted some of the most infamous crashes in history…
Including the decimation of eToys.com, WorldCom and even Enron during the dot-com wipeout.
Now, it is predicting a historic sell-off in some of the market’s most popular tech companies.
Is Meta heading for the junkyard? Click here to see how you can trade it. |
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