5 Comments
Feb 11, 2023Liked by Antonio Linares

Hi Antonio

Upfront - not a TLSA short, and wish Musk all success in his mission. Your statements re cash and LT debt, however, are highly misleading. The cash + ST Investments are more than offset by short term liabilities. You could argue that ST Assets > ST liabilities, which is fair if you assume the business keeps churning through its WC cycle, but from a pure BS analysis perspective, one should haircut the inventory component quite heavily.

Anyway - not implying you're trying to mislead, but I think in particular in the case of an ethically impaired leader as is the case here (most recent example: sign contract, then thinks he can just say 'nah, changed my mind'), it behoves any honest analyst to be conservative and ultra-specific with statements, lest you just become part of the touts for whom everything Elon does is great and every criticism is sacrilege.

C.

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Feb 11, 2023·edited Feb 11, 2023Author

Hey, Sunrider. Thanks for your input!

I’m not an analyst, but an investor. Throughout the company’s history, if I had spent too much energy on the negative details I wouldn’t have made a cent on the investment. The game consists in choosing what to ignore, as well as what to focus on.

The company produces plenty of cash and about the ethics, I’m incredibly grateful that Elon took over Twitter.

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Sure - you're of course free to focus on what you want.

Re him taking over Twitter - let's not forget that he was forced to in the end by the contract he had signed months earlier ... after trying hard to back out because of buyers' remorse :)

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About Twitter, let's not forget that all the information at our disposal is the one from the media. There could be plenty back door deals and negations we are not aware of...

I am a Musk supporter but indeed, him buying twitter is NOT good news and a massive distraction for somebody already pulled in so many directions (Tesla, SpaceX, Neuralink)

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Hi Antonio, thanks for sharing!

Do you think consensus analysts are wrong projecting next 5yrs growth CAGR at 25%?

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