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Overhyped.com: Five stocks about to plummet (the first one’s a gimmee)

Tesla (TSLA)

Tesla is a perfect stock if you like lots and lots of great possibilities, and you don’t care much about cold hard realities, but who among us aspires to that? Price targets for the $313 stock range from $500 to $170, which is to say some analysts believe the company is on track to be the largest car company in the USA for many years to come, and some believe it is already hydroplaning out of control towards the edge of a cliff. While I hate to say it, I think the later is closer to accurate than the former. On Thursday, something happened that was simultaneously terrifying and unsurprising. The company, which has slipped from its production schedule for its Model IIIs, slipped again, and badly. There’s no point in trying to trust what Elon Musk has said about what’s going on behind closed doors, because the facts in our possession tell another tale. The evidence is there, but for some reason, the Street just will not see it, and so, on Thursday, shares of TSLA fell only 1.3%. This isn’t just a stock to sell—it is one to profit from the collapse of. I’ve tried buying puts, but so far, I’ve had to yank them when I realized there was no selling. If things keep going like this, however, the spell will break eventually. I am hoping to own some puts on that day.


Chart courtesy of www.stockcharts.com

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Julian Close

Julian Close became a stockbroker in 1995. In his 20 years of market experience, he has seen all market conditions and written about every aspect of investing. Julian has also written extensively on corporate best practices and even written reports for the United Nations. He graduated from Davidson College in 1993 and received a Master of Arts in Teaching from Mary Baldwin College in 2011. You can see closing trades for all Julian's long and short positions and track his long term performance via twitter: @JulianClose_MIC.