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. LISTEN TO THE FULL SHOW:
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