Stock Watch Pick
WATCH: Stock pics — Tesla and AIA Group
On Business Day TV Channel 412
Nic Norman-Smith from Lentus Asset Management is not a fan of going short on stocks, but he has decided to go short on Tesla ($313.34/+3.47%). He says Elon Musk may have essentially defied gravity by landing rockets, but he is not sure that Musk can defy the laws of finance.
Tesla has about $8bn on its balance sheet and is burning $1.5bn-$2bn every three months. It has only $2bn in cash left and is raising debt instead of equity.
Ricus Reeders from PSG Wealth chose AIA Group (HK$65.30/+6.01%) a Hong Kong-listed company.
Reeders said the company was likely to increase exposure to other regions in the wake of China opening up its financial markets after US President Donald Trump's visit.
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