And if you are doing the dope, best not to tweet. If you do, this is what might happen to your stock. Your company:
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Tesla (TLS:NASD) - Daily Line Chart
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But we know from corporate history that you may be founder/majority shareholder, but if you go off the rails, shareholders and boards will find a way to remove you.
They do not deeply care about your lifestyle that much, but they will not tolerate your loose lips impacting on their hip pocket.
But we also know that if you are running short of cash it is also not good timing to #pot_tweet...
Who will want to lend you money?
We also know that someone has been throwing around money and buying the stock thinking it's cheap.
Two things: Firstly, it will get much cheaper.
And secondly buying stock will not support the price.
Not even by any single major shareholder.
Because the stock is on a big slide.
The big players are bailing.
The vultures fly above.
They smell death.
The question is when and what price will be wounding enough for the vultures to swoop.
My reckoning is that about $200 could be the first level they could look at:
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Tesla (TSL:NASD) - Weekly Line Chart
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That is the first level.
If time passed on and no cash was raised, then we could well see a much lower price.
Of course, if you were a possible investor you have a fine balancing act to perform.
You want to buy in cheaply, but not too cheap that the company has become almost strangulated.
That is, its cash reserves don't run so low that proper forward planning is seriously impacted and the genius idea people are picked up by other companies.
When shortage of cash is an issue; staff generally – genius or not – start looking elsewhere.
Keep your pot out of this game, even as a small punter.
Enjoy the ride
Tom Scollon
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