LONDON, Nov 19 (Reuters) - Marc Chatin, partner at hedge fund Parus Finance, on Wednesday tipped Tesla Motors as a top buy and oil well drilling firm Transocean as a favoured short.
Speaking at the Sohn Investment Conference in London, produced by Bloomberg, Chatin said he expected Tesla to chalk up revenue of $25 billion in the next 5 to 7 years, with growth of 25 percent a year, thanks to its strong market position.
Among those strengths are its lack of marketing costs, high quality staff and strong finances, including a low cost of capital.
On TransOcean, Chatin said the growth in the shale oil market and weakening in the oil market meant more offshore projects were becoming uneconomic, putting capital expenditure at risk and leading to flattening of the cost curve. (Reporting by Simon Jessop and Nishant Kumar; editing by Susan Thomas)
Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.
Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.