Square (SQ: $25.44) was up 6% yesterday and set a new all-time high of $25.56 and it was up another 10 cents in after-hours trading. We love it when Wall Street comes to us! The market cap is now half a billion dollars away from $10 billion. This was an $18 stock six months ago. We believe online payment processing companies is the place to be. We like PayPal and Visa of course, and all three firms are in a different niche of this great business. And they are all growing like wildfire. After all, do you write as many checks as you used to? We haven’t written one in over a month.
As we said in a tweet yesterday, the buyout boys better come a-calling soon, because the price just keeps going higher.
Tesla (TSLA: $327) was up 3.5% yesterday, making a nice little comeback from the big selloff the past few weeks. As you remember, the stock hit $387 on June 26th, and then plummeted to $308 on July 3rd, due to talk of poor sales in the last quarter. Tesla is not concerned about last quarter. They are concerned about 4Q17 and 1Q18 as they ramp up production of the new Model 3, starting at $35,000.
And we are concerned too. But we are believers and think Musk can pull it off. If things get delayed a little, that’s OK by us. Because this is the great automobile story in recent history. If you can’t stand the heat, then sell your stock and buy GM. It’s paying over 4% - good. And trading at the same price as it was in 2010, seven years ago – not good. We’re sticking with Tesla.