Friday, August 7, 2015 -- Part II -- This Is Not An Investment Site

Big, big day. I last had coffee "outside" the house on July 16, 2015, on my road trip back to Grapevine, TX, from San Pedro (south Los Angeles). With the recently announced increase in the price of Starbucks coffee -- about 10% -- I no longer go to Starbucks. At $1.87 for a small cup of black coffee, it was a bit on the high side, and I found I couldn't get much work down. Too many folks wanted to talk. But then when that same small cup of coffee went to over $2.00, it was time to call it quits.

No more Starbucks, except when there are few options when traveling cross country. I now have coffee and Babka at home. I've zeroed out my Starbucks card and told the family no more Starbucks gift cards.

I generally have no trouble sleeping at night. My problem is going to bed, and sleeping in. There is simply too much to do. Last night (or rather early this morning) I finally called it a day, turning in around 1:30 a.m. For whatever reason, I was up about 6:30 a.m. Generally, after such a short night, I stay in bed for another hour or so, but thought it a beautiful day to take a short bike ride to McDonald's.

They've changed things at the McDonald's closest to our house. Coffee is now self serve which means re-fills are easy-peasy-lemon-squeeze. For $1.62 I can have "unlimited" coffee and a breakfast item.

Biking here, I passed the high school. The band was out practicing. It's quite a sight. Band director/choreographer on scaffolding. Public address system that can be heard throughout the neighborhood. A hundred or more -- let's see, 20 rows, ten across -- maybe 200 band members and it looks a bit thin. A lot of students are probably still on summer vacation.

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Remember The Buffalo Commons?

Tweeting now:  88% of South Dakota’s land area is suitable for wind resource development. LOL.

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Jobs

In-line with forecasts, I believe. We will have to wait a few minutes to see the spin the Bangladeshi robots / boilerplate post. For July, 2015:

• employment increased by 215,000; in line with estimates; 
• unemployment unchanged at 5.3% -- full employment (I define full employment when unemployment is under 8%; strong US employment numbers if unemployment less than 6%)

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Reporting Today

Remember, this is not an investment site. Do not make any investment or financial decisions based on what you read here or think you may have read here.

• Dakota Plains Holdings:
• ERF: 

The list may be inaccurate. Things change.

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Tesla

From a Seeking Alpha contributor:

Adding it all up, Tesla will have:

• $1.15 billion (cash on hand) + $0.7 billion (highest possible credit) - $1 billion (cash burn next two quarters) = $0.85 billion in cash after the next 6 months (2 quarters).

So in the best case (using the highest possible credit availability), Tesla is already headed below the $1 billion cash floor set by Elon Musk. And since Tesla can't risk issuing equity when it absolutely needs to, it will issue it when it can. That amounts to issuing it in the next 6 months, before this math becomes evident.

But then this:

Were this equity raise not to take place in the next 6 months, and it would probably become obvious that Tesla would burn through all its remaining cash within the 12 months after that. So bankruptcy risk would be real at that point.

The naysayers will simply brush this off as another kook shorting Tesla.

The cash burn speaks volumes. Remember, Tesla just took out another $750 million loan not so long ago. The cash burn looks like $1 billion/two quarters.