New institutional investors on board, now financed thru this year, nothing left to hold back stock
The only reason this stock hasn't run up to $3 yet was the low cash supply and the need for financing.
Now that they have procured financing from institutional investors these shares will not hit the market and will have no effect on the float.
This stock will run very hard on the next press release or any media hype on the EV industry.
The $199 monthly lease on the Nissan Leaf was the turning point for the EV industry.
This stock will hit $4 within the next 6 weeks.
This company has no future and it has a really bad management.
The company is willing to offer as many shares as they could at any price.
Just to get $8M, they have just increased their outstanding share for 20%.
They spent $100M in the past few years, imaging how much more money they would need in the future to compete with $10B companies like TSLA.
Correction. They had bad management. Ravi has done amazing things with what little he had when he was promoted to CEO.
And the game is not over. The game has only just begun. Adding 5 million shares to take them to 30.75 million shares total will not kill the company. They are selling these shares to institutional investors who obviously believe in this company. Yes, this could drive the stock down to $1.60 or lower in the short term but Ecotality will recoup these losses if the EV market continues to develop as it is.
Ecotality has proven to be a very robust company through the ups and downs. Remember a company called eTec? They became Ecotality at the end of 2009. To survive in a bad economy, in November 2009 they underwent a 1:60 reverse stock split taking their 1.5B shares down to the 25.63M shares they have today. This increased the price for a few days, but quickly led to sharp losses. Today Ecotality has consolidated and mostly recovered from this and are now doing amazing things in the EV market. But they are at a fragile state where they need capital to progress so that they can become profitable. They are so close. Ecotality has its risks at the moment, but I for one believe in the company and what it can accomplish.
The cliché saying of "Rome wasn't built in a day" definitely applies to Ecotality. It takes time to build something of this magnitude. It takes time to change the mindsets of people. It takes time to change the way people have lived their entire lives. At our age (unless you're ancient), we've never known a life without ICE vehicles. It's a common part of life, but that is changing. If Ecotality can survive long enough to be this catalyst of change, it will lead to great profits and a long lasting company. If Ecotality doesn't do it, someone else will.
It is only 10% right now.
So you are telling me that institutions who know a lot more about the company than you decided to buy 5 million shares at last week's prices and now the stock is going to go down?
This stock was $1.60 last week.
And the way it is trading since the financing this morning is indicative that the bottom is in.
There is no risk in this stock in the short term, which I define as the next 6 months.