After this month closes out, we'll be talking about when Facebook bought a "What's up Doc?" - WhatsApp for $19B.
Some thought it foolish, and I felt out of the loop because I have never heard of the WhatsApp app. So a $19B handle seemed pretty large. Well since then, Facebook has surged higher. The investors love Facebooks' concept of the ability to connect across the various communication channels.
So if that wasn't enough Hollywood, then the Power Rangers showed up for work in the form of a Tesla announcement!
Well, here is TSLA. TSLA went from 196 to 260 in a week on Gigafactory discussions. That's no comedy! Everybody rushed into the stock with the greatest idea of the century.
But looking on the Stockcharts.com homepage earlier this week, I noticed Ballard Power BLDP (actually BLD.TO) and PLUG getting a jolt from the gigafactory discussions. Here are the charts going back to 1997.
So let me add a little personal history to this story. I still have a coffee cup from Global Thermoelectric that I rode from $47 back to $9 in the Y2K top. At the time I had a good broker that wouldn't let me attach more than $10,000 to the trade. It was a $8,000 training lesson.
TSLA can go to the moon and become the next Ford. Or it could become the next Ballard Power. The institutions own a vast majority of the shares. But the rythym of the markets is never kind enough to allow easy money to be made as the spikes back in 2000 appear on the charts.
It might be time to call Tesla or FB and ask for a coffee cup. If it continues to go higher, you'll sip in happiness every day. If it starts to break down, you'll be reminded of Greg's Global ThermoElectric. Note the name of my investment. It was destined to rule the world too. The point of this blog is just make sure you know how to handle high flying stocks.
Back To The Future!
Source:screenplayhowto.com
When writing blogs, authors may or may not have a position in stocks mentioned in them.
Good trading,
Greg Schnell, CMT
