(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.
SAN JOSE, Calif. – It’s something we say a lot here.
“Only in California.”
In this case, it was a former federal bureaucrat being given “rock star” treatment.
And I wouldn’t have believed it if I hadn’t been there to witness it.
I was at the Cannabis Business Summit & Expo in San Jose, Calif., on July 26, finishing up watching the keynote address from James M. Cole – the then-deputy U.S. attorney general who authored the 2013 “Cole Memo” shielding states with legalized marijuana from federal intervention.
I’ve spoken with Cole before – so I approached the stage hoping to shake hands, catch up, and maybe make plans for a later meetup.
However, everyone else at the McEnery Convention Center had similar plans.
Hundreds of folks rushed the stage – but summit organizers quickly pulled out their walkie-talkies, surrounded Cole, and rushed him out of the building as if he was Mick Jagger.
Sure, I was a bit disappointed – but I also had to laugh.
It was yet another example of the amount of excitement surrounding the legal cannabis industry.
And like so many of the legal weed’s time-line events, I was there to witness it.
In today’s report, I’ll tell you what else I saw at the summit.
And now that we’re apparently at the “rock star” stage of legal cannabis’ lifespan, I’ll give you my top three pot stocks to get you started.