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Market Rundown:
Today we have a brutal Tesla report, Gold mining analysis, and some other stuff for you.
Good Morning. As we write this the dollar is up 56 bps. Bonds are mixed with longer dated yields higher. Stocks are down between 30 and 85 bps. Gold is down $6 and Silver is down 28 cents. Oil is up 43 cents. Nat Gas is down 17 cents and both grains and crypto are marked lower.
SPECIAL SILVER COMMENT- THEY ARE BUYING THE DIP AGAIN
The Silver EFP is now 5 cents negative implying the physical buying is even stronger as the paper price drops. If it isn’t obvious by now that someone is pulling all the above ground silver off the market at these prices….
IT’S THIS SIMPLE
Stay the course, ignore the price right now. This is the biggest weak hands to strong hands trade we’ve ever seen in 30 years. Trust your intuition. But do not underestimate the power of financial repression. We’re not telling you to buy. but to NOT SELL. We don’t play salesman games and want to make money like you do. If you are not leveraged and do not need the money for expenses, do not sell. We will also personally tell subs when we add to our own physical if that is of any help to you. But we are not trying to pick bottoms either. Now is the time to ignore price. More to come this weekend on why Silver and Gold are buys.
Tesla Earnings are “Science Fiction”
A very short scathing report from a well respected boutique investment firm on Tesla just came out. It completely brutalizes the company’s most recent earnings report. There is no fat or fluff on this. It tears down Tesla’s earnings statement brick by brick. The focus is on how they are likely capitalizing expenses to overstate earnings
Implications here being Cost of Goods Sold did not go up much at all given the inflationary environment. Suspicion is they are capitalizing operating expenses, which is a no-no
In it they echo what many have been saying for years about the company. But, they put finer points on it in a tightly worded no holds comment that tells us they have been watching closely for quite some time. Five bullet points tell the whole story in their eyes.
The report, sent in email form is a compendium of bottom line analysis and scathing commentary for each financial data point that doesn’t pass their smell test. It is not the usual rehash of “Elon sucks” type stuff.
Their quick brief ends with this:
Oh, and keep in mind… TSLA insiders, ALONE, this year, have cashed out (i.e., sold) $8.7B worth of TSLA stock, WHILE NOT BUYING ONE SINGLE SHARE.
CONTINUES AT BOTTOM
Goldman: US Mining Stock 3rd Quarter Earnings Preview
Goldman runs through the US mining industry as Q3 earnings are released
Among the group,we continue to prefer Buy-rated NEM, WPM.TO and AEM.TO, and we are Neutral-rated on FNV.TO and ABX.TO/GOLD. We expect focus for the miners will center around:
(1) the ability to mitigate opex inflation and capital inflationary pressures,
(2) capital allocation strategies, and
(3) production expectations into 4Q22and 2023, particularly given weaker 1H22 volumes.
For the streamers, we see focus on the production ramp profiles of core assets and delivery of new projects. While the weakening gold price environment will diminish margins across the group, the streamers will continue to exhibit elevated margins given low the operating strategy’s predictable cost structure. Please see within for our expectations and updated estimates ahead of 3Q22 earnings season.
