#hollywood

Ding dong the switch is dead

Morgan Stanley has finally lowered its bearish scenario on Tesla from $97 to $10. CM wrote in October 2017 that the shares based on production of 500,000 vehicles was worth no more than $28 (refer to report page 5). That was based on rosy scenarios. Sadly CM thinks Tesla will be bought for a song by the Chinese. Maybe $4.20 a share instead of $420 “funding secured” levels.

The stock breached $200 yesterday for the first time since late 2016.

Morgan Stanley analyst, Adam Jonas, has still kept its base case scenario at $230 per share. His bull case is $391.

Where is the conviction? To drop a bear case target by 90% must surely mean the base case is far lower than presently assumed.

Jonas must assume the bear case is actually the base case. Sell side brokers love to hide behind scenario analysis to cop out having to get off the fence. His compliance department probably prevents him from realizing $10 is his true heart.

Tesla was always playing in a market that it had no prior experience. It is not to say the products didn’t have promise. The problem was the execution. Too much senior management turnover, missed targets, poor quality and too many Tweets from Musk.

The amount of bad press arising from a lack of service centers has driven customers to moan on social media at its amateur approach. The fragile dreams of being an early adopter are being shattered. Cash burn remains high and deliveries remain low. Some pundits think Tesla orders are under real pressure in 2Q 2019.

The recent all share deal with Maxwell Technologies has seen those holders -20% since the transaction a few weeks ago. CM argued how a company with such revolutionary technology could sell itself for all shares in a debt-ridden loss making like Tesla? If the technology was of real value PE funds would have snapped it up or at the very least made a bid in cash. That none was made speaks volumes about what was bought.

All of the arguments hold true in the above link, “Tesla – 30 reasons why Tesla will be a bug on a windshield

Tesla below $200 after a successful cap raise is not a good sign. It’s the faithful slowly tipping out. Await another imaginary Musk-inspired growth engine to be announced shortly to try prop up the stock price. Yet the momentum will continue to sink. The market is losing confidence in Musk. The 1Q results were diabolically bad.

Major holder T Rowe Price has stampeded out the door. The stock is too risky. Musk is a brilliant salesman but he has bitten off more than he can chew.

CM always thought that Toyota selling its Tesla stake was a major sign. Acknowledging that under the hood the company possessed no technology that Toyota didn’t already own.

Watch the free fall. The Tesla stock will be below $100 by the year end.

(CM does not hold Tesla stock)

Kim Foxx subpoenaed over Smollett case

A retired appellate judge has pushed for a special prosecutor to subpoena Cook County State Attorney Kim Foxx over the Jussie Smollett hate crime hoax.

Foxx has defended the decision and says she welcomes an independent investigation. They are also requesting her deputy and Smollett attend the hearing.

Will be interesting how a State Attorney’s office can explain handing down a ruling emphatically stating Smollett is guilty but dropping all 16 charges.

Dame Emma jets in to join Extinction Rebellion climate protests

Dame Emma Thompson has joined the Extinction Rebellion (XR) protests in London. Sadly she just needed to jet in from Los Angeles to do so. Hollywood hypocrisy comes in all shapes and sizes. Surely she could have YouTubed her support from her gated mansion to do her bit!

For a group that demands we must be carbon neutral by 2025, there are always exceptions when it comes to themselves. Take the stacked coffee cups in the picture above.

Do these Einsteins realize that the majority of take away wax-lined coffee cups aren’t recycled even though they can feel good about themselves when disposing of it in the right bin? How many people elect to have their brew poured into a ceramic cup? Certainly not this lot.

The cost to recycle the 500 billion (and rising) coffee cups consumed annually is so astronomical (it is hard to separate the wax that stops the cup disintegrating because of the energy intensity involved to do so) that over 90% end up in landfill. No one talks about that 300 million tons of virgin paper used to make these cups! How many of us give it one thought when we need a shot of caffeine? Right?! Although Starbucks is trialing a 5p latte levy for those that elect to use a paper cup.

We pointed out the glaring mistakes made on the XR website earlier in the week. If only they did their homework. No doubt their proposal for citizen assemblies will be stacked with people with little knowledge of the subject matter. Perhaps they can sip on Starbucks lattes as they seek ecological justice.

While XR might claim they didn’t ask for a police presence, sadly public safety requires the Met commit already thin resources. 570 arrests have been made. Lying on the ground, according to XR, stretches the police even thinner as it requires 4 officers to carry them away.

Let’s say they win government support and hit 2025 carbon neutrality. Many industries would need to shut up shop to meet the demands of the protestors. Has XR built that into the manifesto? Of course not. Any price is worth paying when no one has bothered to work out the cost.

Fauxahontas is polling 3rd in Massachusetts

Democratic 2020 presidential nomination hopeful Elizabeth Warren is polling 3rd in her home state of Massachusetts. So much for her attempts to run.

Perhaps being 1/1024th Native American and writing same on a Texas bar registration card might have something to do with it.

Trump looks more certain by the day to win 2020 if the Dems continue to show no strategy or policy other than to hate POTUS. Biden is toast, Warren doubtful and Harris looks flakey post Smollett.

Surely Hollywood celebrity Alec Baldwin’s pledge to win in 2020 only shows how hopeless their cause is. If Hollywood doubts the current crop, what hope have the Dems got in 2020? Wheel Hillary our again? Things are so bad even Obama is calling on party faithful to stop the circular firing squad. And they call Trump stupid!?

Desperate Housewife exposes the utter hypocrisy of the liberal elite

The admissions scandal rolls on. Nothing shouts “elitism” more than these champagne socialists cheating to get their kids into top colleges. How ironic that the very people that push liberal values of equality and fairness to the point of nose bleed. get outed like this. The same people that bang the drum of progressivism in acceptance speeches and pontificate their sanctimony at any public appearance. Hypocrisy in the extreme.

Desperate Housewives (now there is a pun) star Felicity Huffman, along with 13 others are likely to plead guilty in cheating their way into top schools for their kids. These 14 are among 50 who paid bribes of $25m to cheat college exams and ensure they got into elite schools. While the media is busy taking their pound of flesh, perhaps we might want to consider the actions of the vendors of such nefarious schemes. Little mentioned about that. Do admissions departments of the elite colleges need an independent audit?

Whatever the outcome, how little faith could Hollywood have in the progeny to have to do this? We all want the best for our kids. Surely those millions earned from Hollywood could hire the best tutors to help little Jimmy or Jenny get there on their own steam. How could they not instil the very values they spend so much time lecturing Main Street on to their own kids? What a slap in the face of the children to have their parents do this behind their back. How many kids of famous stars have we seen struggle to live under the limelight of their parents? CM wouldn’t be surprised if many of these kids end up with issues having to wear this stigma, not of their own making.

Will Democrat presidential candidate Kamala Harris return the generous donations she received from Huffman? Harris has been exceptionally quiet post Jussie Smollett too. Double standards go hand in hand with liberal values.

If only they could be tried by Chicago’s Cook County SA’s office like Jussie Smollett. Call in a few favors and have all charges dropped! Jussie is guilty as charged according to the SA even though his verdict is one of innocence.

Superintendent smashes secrecy surrounding Smollett settlement

What the Chicago Police Superintendent Eddie Johnson said in this video is 100% correct. He said, “They wanted their day in court with TV cameras so America could know the truth. But no, they chose to hide behind secrecy and broker a deal to circumvent the judicial system.” Mayor Emanuel was also front and centre on Smollett’s unfair dragging of Chicago’s reputation through the mud and the damage his hoax will have against those who have real hate crime claims in future. Smollett has his slate wiped clean.

This is the perfect example of why identity politics is so poisonous. Here was a man potentially willing to make a claim against two innocent white people and jail them for up to 20 years for hate crimes not committed just to bump his salary and smear 63mn Trump supporters at the same time.  He still claims innocence! No morals, no ethics and in Emanuel’s words “is there no decency in this man?

Claims are being made by the media that George Soros donated $408,000 to a super PAC that supported Cook County State Attorney (SA) Kim Foxx’s campaign. While Foxx recused herself on conflict of interest grounds, the First Assistant SA Joseph Magats, who has served in the SA office for three decades, saidThe bottom line is, we stand behind the investigation, we stand behind the decision to charge him…The fact that Smollett feels that we have exonerated him, we have not. I can’t make it any clearer than that. So how does that weigh up to the dismissal of 16 felony charges? Smollett served two days of community service which can be seen here.

To think of the disrespect shown to the excellent investigative work and evidence filed by the police. Do we believe Jussie’s comments on the verdict, “I have been truthful and consistent on every level since day one. I would not be my mother’s son if I was capable of one drop of what I’ve been accused of”? What a fine bit of acting.

So much for dignity and respect of the rule of law to Americans. What a farce.

The Mueller Madness form guide

The NY Post put forward this interesting schematic to let people vote for who they think was the most worthy contender for frothing at the mouth over the Mueller investigation. Such a strong field. From MSNBC’s Rachel Maddow welling up on hearing the news of the president’s exoneration to Kathy Griffin tweeting furiously about his collusion. The main networks dedicated 2,300 minutes of coverage on this investigation over 2 years with 90% negative coverage. So much for objective journalism.

In having to accept the bitter taste of defeat, the apologies from the mainstream media have not been forthcoming. According to CNN’s Brain Stelter, “you’re going to hear from the right that the press just made all this up to take down President Trump…the press was just following a trail Trump created“. Perhaps they might ponder who was behind these accusations. Maybe liberals will call for an investigation into Bob Mueller because they didn’t like the result of his investigation?

When will the Democrats finally focus on policy to win an argument instead of allowing the media to handhold them through a two year mental disorder? Trump Derangement Syndrome should be added to the next DSM volume. It is really that insane.