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December 12th, 2017 at 11:27 am
SNY/Learner – P/E is not as low as it seems. They make about $5Bn on a $110Bn market cap, not sure where people get 10 but, to me, that's 20. Q3 was a miss and guidance is flat, so no growth and, if anything, they seem to be in steady decline but I don't know their pipeline going forward. Still, if you have reason to like them, it's not like they are a rip-off at $44 – just not thrilling. The dividend is $1.64 and you can sell June $42 puts for $2.10 so 125% of the dividend in 6 months without all that messy owning the stock and then your worst case is owning them at net $39.90, which is a 10% discount from here. That's how I'd start. If you feel they are stronger than that, you can always add a bull call spread or buy the stock and cover as it breaks over $45.
TSLA – Well it turns out Pepsi has 10,000 trucks so ordering 100 from TSLA (which brings the total to 287 in Worldwide orders) is a 0.1% experiment by PEP, so meaningless to them and making much ado about nothing for TSLA. TSLA claims to be taking $20,000 deposits (PEP does not confirm) so $2M deposit represents 1 min of Pepsi sales.
PEP has 140 hydrogen trucks and hundreds of electric trucks already, 176 from Smith Electric (now Chanje as Smith went bust successfully selling electric trucks) so I guess they should be worth more than TSLA? For PEP, this has been going on since 2010.
Traders are such idiots!