Tesla Motors, Inc. (TSLA) and Continental Resources, Inc. (CLR): Divorce & Other Common Denominators

Tesla Motors Inc (TSLA) and Continental Resources, Inc. (CLR): Profiling two companies overshadowed by high-profile divorce cases

by Alex Eppstein

Published on Jan 15, 2015 at 8:28 AM
Updated on Apr 20, 2015 at 5:32 PM

A number of high-profile divorce cases have grabbed headlines recently. Most notably, there's the split between Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk and actress Talulah Riley. This is actually the second time the serial entrepreneur has divorced Riley. But, rest assured, they remain friends.

Then, there's the bitter break-up between Continental Resources, Inc. (NYSE:CLR) CEO Harold Hamm and his wife of 26 years, Sue Ann Arnall. Originally, she said she wouldn't cash a $975 million check so that she could pursue an even more favorable settlement. However, Arnall later had a change of heart, but nonetheless vowed to press on with her appeal.

Divorces aren't the only things these two companies have in common. In fact, their respective stocks have both struggled since hitting early September highs. TSLA peaked at $291.42 on Sept. 4, but has since given up roughly 34% of its value to land at $192.69. On the same day, CLR topped out at a record $80.91, but has gone on to plummet 53% to trade at $37.98. (Though, it's worth noting that the shares popped 6.1% yesterday, following news that Hamm pledged one-fourth of his stake as collateral to secure a personal loan -- which he presumably used to fund the settlement.)

Sentiment is similarly bearish toward both equities. Tesla Motors Inc's (NASDAQ:TSLA) 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.24 sits a mere 3 percentage points shy of a 12-month high. Plus, over one-quarter of the stock's float is sold short, which would take roughly five sessions to buy back, at typical daily trading volumes.

Meanwhile, Continental Resources, Inc. (NYSE:CLR) has racked up a 10-day put/call volume ratio of 2.11 on the ISE, CBOE, and PHLX, which ranks in the 83rd percentile of its annual range. What's more, 17.5% of the stock's float is dedicated to short interest.

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