(Editor’s Note: On Tuesday, shortly after noon Eastern, we got an email from Michael: “As I researched Tesla Inc. following its Aug. 2 earnings call, my gut told me something was wrong, and not to believe the hype that a turnaround was suddenly imminent. So I spent the weekend doing a deep dive on Tesla, sorting through the financials, looking at the bigger industry, and going over the stock’s charts. The results led me to type up this sell report I’ve attached. Run it next chance you get.” So far, so normal. Then, literally as we began reading that attachment, Elon Musk’s now-infamous tweet hit, at 12:48 p.m.: “Am considering taking Tesla private at $420. Funding secured.” Not long after that, the Nasdaq halted trading on Tesla – and Musk, his company, and his tweets have been at the top of the news ever since. Instead of getting Michael to rewrite his report, we’ve decided to run it as-is. It’s not like we’re going to pass up the chance to prove that Michael is the most prescient technology specialist in the business. Now, if you want to get all of Michael’s best plays and predictions, you’ll want to join him at his premium Nova-X Report trading service. To do so, your first step is clicking here.)
On Aug. 2, the bulls got their sweet revenge.
Shares of Tesla Inc. (Nasdaq: TSLA) leapt 16% to their highest close in nearly five years following its latest earnings report.
Turns out, short sellers worried about production snafus for the new Model 3 and other concerns got hammered, despite paper losses of nearly $1.7 billion.
You’d think a longtime Tesla enthusiast like me would be happy.
Just the opposite is true.
In fact, I believe now is the time to sell Tesla and use the most recent rally to take whatever profits you can.
Let me be clear: I didn’t come to this conclusion lightly. You see, I have the highest regard for CEO and founder Elon Musk. I believe he’s one of the great technology geniuses of our time.
But the company is facing a host of challenges at a moment when the stock has been on a roller-coaster ride.
With that in mind, let’s walk through the reasons why I now have Tesla listed as a “Sell.”
Here’s a personal statement that might shock you: I steadfastly refuse to get a prostate specific antigen (PSA) blood test to screen for prostate cancer.
It’s not because, as a baby boomer “of a certain age,” I don’t take the threat of prostate cancer seriously.
Far from it.
I know that prostate cancer kills an American male every 18 minutes on average each day, all year long. Prostate cancer is the No. 1 cancer risk – more than brain, skin, or lung cancer – for American men over 50.
And I pay a lot of attention to my health.
When people ask what I do for a living, in order to cut to the chase, I often say I’m an “investment researcher.”
My job here – bringing you the best world’s best opportunities in technology, cryptocurrencies, and legal marijuana – means I spend most of my time doing research.
For tech and cannabis, that’s a lot of work – but it’s fairly straightforward.
Let’s get started…
Late last month, we saw how Russia released videos of six new “superweapons” almost immediately following the historic Trump-Putin summit in Helsinki.
We have no defense against these weapons – and our adversaries know this.
“No one has managed to restrain Russia,” Russian President Vladimir Putin boasted following the videos’ release.
Now China is getting into this arms race – and it may have taken the lead.
To hear Wall Street tell it, the fact that Apple Inc. (Nasdaq: AAPL) just became the first U.S. firm to reach a $1 trillion market cap is “big news.”
I’m not so sure…
Please don’t think I’m being cynical. After all, I’m one of the biggest Apple bulls around.
Here’s the thing. While the $1 trillion valuation coming on the heels of a great earnings report is a key milestone for all tech investors, Apple’s historic status isn’t a surprise.
At least not to those who have been following along here…
See, back in April 2015, I predicted Apple would make this notable achievement.
And since then, it’s up 61%. That’s nearly double the S&P 500’s 33.4% return over the same period.
So, if you’ve been following along with my advice over the years, you’ve made a bundle here.
But that’s the past. Unless you were one of the savvy ones who bet on Apple, it doesn’t matter.
The question now is: Where’s Apple going from here?
Here’s my latest prediction…
Apple Inc. (Nasdaq: AAPL) made history today following the release of its latest earnings report, subsequent bump in stock price, and becoming the first American public company ever to reach a $1 trillion market cap. A little more than three years ago, Michael was one of the first to predict Apple would reach such status. So he headed to Fox Business’ Cavuto: Coast to Coast to take a victory lap. The discussion turned quickly to technology’s role in the economy – and whether tech stocks have room to run after these latest heights. Michael also pushed back against some of the other guests in the evolving discussion on how tech impacts worker productivity and, ultimately, stock profitability. Click here to watch.