, 9 tweets, 4 min read
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1/ The president of the planet-hating flat-earth society makes a good point here. As usual, the trading in Tesla seems. . . counter-intuitive.
2/ I screened US public markets for market caps greater than $40bn and sorted by % of insider stake. Here's pg 1 of the leader board. For purposes of this analysis I will leave Berkshire out - it's an odd duck and there's only one Warren Buffet (two if you follow Steiman. . .)
3/ Here's pg. 2. You can see the sharp drop off in shares owned by insiders. In fact, the level of insider ownership at large caps (and mega caps) is shockingly small. These are VERY broadly distributed shareholder bases (hint, hint).
4/ Don't you love how Lawrence Joseph is also in on the concentrated shareholder game? Except Oracle has been such a chronic underperformer. Maybe betting on such capital structures isn't a great long term play.
5/ Tesla has done marginally better than a broad comparative index, but has been bailed out 100% by the post-October 2019 move. Absent that fraudy quarter, Elon and Larry would both be miles behind their broad benchmarks. Thank god for fraud. Maybe L.J. should take a lesson.
6/ TSLA's shareholder base is almost 10x as tightly controlled as even the names on this list with heavy insider ownership. What do I mean? ORCL turns over its total shares outstanding every 232 days. TSLA does it in 20. That's unheard of. No large cap is close.
7/ Also look at the share counts. TSLA's is low. Way low compared to the more mature companies on this list. It's easier to push a stock around when the number of shares is low relative to your daily turnover. You think our boy doesn't know that?
8/ Plus, the TSLA stock that trades never goes into new hands. When a stock trades freely, has low insider ownership, has a widely diverse shareholder base, and makes a strong move up, it means something totally different than a thin base being worked over.
When you have a long list of buyers, dealers have plenty of places to go with shares. And when you have a long list of buyers, you probably also have a long list of sellers too, which is more important. Ready supply of shares is why those mkt cap stats in #6 above matter.
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