Please consider a Conversation With Renowned Short Seller Jim Chanos on Hedgeye TV.
The videocast is a bit over an hour long, but well well worth the time.
- An Explanation of His Investing Process
- China: Cyclical Recovery Pending or Secular Slowing?
- Chanos' Top Short Ideas Right Now
- Tesla and Netflix
- Chanos most often focuses on serious fundamental business model flaws. True fraud is rare.
- Lots of things fail for reasons that should be obvious, but somehow aren’t.
- Wall street has a long history of believing 2+2=5.
- China is still the biggest real estate bubble in history.
- No bubble or fraud is the same, but the fundamentals and parallels repeat.
- Similarities between Japan in 1980's and China Today.
- At the 32 minute mark, Chanos discusses Tesla.
- Tesla remains one of Chanos' biggest short positions
- Run the numbers on Tesla you get a stock market value of zero.
- The rest of the car industry, notably Porsche, is catching up on technology
- Tesla Model 3 demand Is plateauing
- Tesla gross margins not improving.
- Solar panel assets are really liabilities.
- Pro-forma accounting share-based comp hiding in plain sight - In general, not just Tesla
- Netflix has become what it once disrupted. It is now creating shows and that changes its business model dramatically. Netflix is a fraction of the digital disruption it once was.
Inquiring minds may also wish to consider Mish in the Arena with Hedgeye: Hiding Out in Gold and Treasuries
Mike "Mish" Shedlock