TLSA - Pullback and Buy With Caution (Cost Basis Analysis)
TSLA is quite a different story to the US Broad market and in fact many US blue chip equities.
The average cost basis indicates how many investors have in fact have bought late in the market - with average entry price not too different than that of the current price levels.
Lots of fresh capital and expectation - but this also means a lot of potentially scared money hen minor pullbacks because turn realized losses . Contrast this to the extensive unrealized profit buffer available in many US stocks and the US SP500 (SPY, QQQs and DIS) where a 10-15% pullback only touches average breakeven levels!
The current picture illustrates how price has ground-up over cost basis, into a net profit. Open profits are not being realized - so market participants are expecting future gains can be made.
The cautionary part of this tale is that - when there is not a lot unrealized profit buffer available; stock enthusiasts can turn into panicky sellers when with the slightness stock movement, gains turn quickly into net losses!
If your a bull this phenomenon ay provide a great time to buy at lower prices!
Please note: this discussion is describing potential market participant positions and behaviors. In particular 'Prospect Theory' It does not offer company analysis - so do your fundamental homework too!
The average cost basis indicates how many investors have in fact have bought late in the market - with average entry price not too different than that of the current price levels.
Lots of fresh capital and expectation - but this also means a lot of potentially scared money hen minor pullbacks because turn realized losses . Contrast this to the extensive unrealized profit buffer available in many US stocks and the US SP500 (SPY, QQQs and DIS) where a 10-15% pullback only touches average breakeven levels!
The current picture illustrates how price has ground-up over cost basis, into a net profit. Open profits are not being realized - so market participants are expecting future gains can be made.
The cautionary part of this tale is that - when there is not a lot unrealized profit buffer available; stock enthusiasts can turn into panicky sellers when with the slightness stock movement, gains turn quickly into net losses!
If your a bull this phenomenon ay provide a great time to buy at lower prices!
Please note: this discussion is describing potential market participant positions and behaviors. In particular 'Prospect Theory' It does not offer company analysis - so do your fundamental homework too!
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