Archive for June, 2021

Elon Musk Making Grievous Operational Errors

June 2nd, 2021

Tesla remains our favorite short position, only enhanced by Musk actions the past few weeks. Comments this morning to be followed by updated review out this weekend.




Non-GAAP Presentations Most Often Misleading

June 2nd, 2021

With non-GAAP presentations rampant, the importance of our making financial statement adjustments is a critical component of our analysis. The energy sector is far from alone in this regard. Classification error in the statement of cash flows, where firm leeway is often permissible under GAAP, requires such adjustments and results in large ranges in free cash flow estimates for analysts not making proper adjustments, such as leaving activities as financing or investment cash flows instead of movement to operating. The unadjusted analysis would result in incorrect conclusions of target price and risk.