22 June Watchlist 👀

 

Today we are watching…

1. American Airlines (#amerair)

If you’re an airline executive at the moment, you have a straightforward job. You have to find the cash to plug $50 million in cash burn per day or more. You can sell debt, planes, layoff people, ask for government bailouts, or raise capital from the markets. American Airlines is selling $3.5 billion in debt to investors, senior secured notes that mature in 2025. You’re banking on the airline surviving until then if you buy that debt for $100,000 per unit. The implications for the shares is damning. It means American Airline stock gets ruined this week, as $750 million more shares announced will dilute it, and because those new debtors represent more mouths to feed in restructuring before shareholders earn anything. Best case scenario, the stock for American Airlines will flat line at near-zero for the next 5-10 years.

2. Tesla (#tesla)

Elon Musk isn’t bluffing when he says he’s moving Tesla from California to Texas because he’s mad about state officials not letting him open his factory during coronavirus, but it’s going to cost close to a billion dollars to move production. It could be that Musk will just open a new Gigafactory near Austin’s airport for the Cybertruck. It’s a weird one because while Tesla does have showrooms in Texas, it can’t sell any cars face-to-face because it’s not officially using the auto dealership model. The dealerships are for showrooming only, looking around and making the order online. If Tesla brings jobs to Tulsa, it will have more leverage to resolve this!

Share:
More Posts
Load More
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Facebook Twitter Youtube Instagram Snapchat Tiktok
learn
products
plan
Who we are
blog

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.