|Bid||3.7800 x 28000|
|Ask||3.7900 x 40700|
|Day's Range||3.7500 - 4.0350|
|52 Week Range||1.1900 - 10.6400|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||Dec 29, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||2.98|
China’s electric vehicle manufacturers posted significant losses last month, as steep cuts in government subsidies continued to weigh on the sector. But a top executive at the country’s largest EV maker BYD says, Chinese carmakers need to “build more competitive cars” to reduce their reliance on government policies.
Chinese electric vehicle manufacturer Nio Inc – ADR (NYSE: NIO) announced a $100-million private placement debt offering Friday that comes close on the heels of $100 million in financing that it announced earlier this month. Nio said it has entered into definitive agreement with two unaffiliated Asia-based investment funds with respect to the sale of convertible notes for an aggregate principal amount of $100 million through a private placement. The deal takes Nio's total financing year-to-date to $200 million, according to Nio.
NIO Inc. (“NIO” or the “Company”) (NIO), a pioneer in China’s premium electric vehicle market, today announced that it has entered into definitive transaction documents with two unaffiliated Asia-based investment funds (the “Purchasers”), pursuant to which NIO will issue and sell convertible notes in an aggregate principal amount of US$100 million to the Purchasers through private placement. In light of the Company’s recent financing transactions, the combined aggregate principal amount of the convertible notes issued in all private placements announced so far in 2020 will reach US$200 million once fully completed. Prior to maturity, the holder of the notes has the right to convert either all or part of the principal amount of the notes into Class A ordinary shares (or ADSs) of the Company (a) from the date that is six (6) months after the issuance date, at a conversion price of US$3.07 per ADS, or (b) upon the completion of a bona fide issuance of equity securities of the Company for fundraising purposes, at the conversion price derived from such equity financing.
ADR (NYSE: NIO) shares were higher in four straight sessions, defying lackluster deliveries statistics for January and a warning of further weakness. The stock was pulling back Thursday amid a report that the company is delaying payment of salaries to employees. Chairman and CEO William Li told employees that salaries would be paid out Feb. 14 instead of the normal schedule of Feb. 8 as the company takes stock of the situation in the aftermath of the COVID-19 outbreak, Bloomberg reported, citing a message to employees that was subsequently confirmed to the outlet by a company representative.
[Editor's note: This article is regularly updated to include the most relevant information available.]The concept behind lottery stocks is simple. These are high-risk, high-reward stocks, which could either drop by 50% in a hurry, or rise by 100%, 200%, 300% or more.The rationale behind buying these lottery stocks is equally simple. Risk a tiny bit of money, for the shot of making a fortune, and do it enough times with enough carefully selected lottery stocks, and your overall returns should be massive.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHere's the math. Say you put $10,000 in ten different lottery stocks. Say eight are duds, and lose 20% each. Now, say one is a winner, and rises 100%, and that one is a big winner, and rises 500%. In that scenario, the portfolio -- which had eight losers -- would still be up 44%.Now, assume you do better. Say only five are duds and lose 20% each. Say three rise 50%, one rises 100%, and one rises 500%. That portfolio -- still with five losers -- would be up 65%. * 7 U.S. Stocks to Buy on Coronavirus Weakness You can keep doing this exercise over and over again. The point will never change. A carefully crafted portfolio of lottery stocks should outperform in a big way.With that in mind, let's take a look at 10 high-quality lottery stocks to consider adding to your portfolio. Lottery Stocks to Buy: Nio (NIO)Source: Sundry Photography / Shutterstock.com Chinese premium electric vehicle maker Nio (NYSE:NIO) has had a tough run on Wall Street, defined by too much hype and too little performance. But, the hype is gone now and the company's performance trends are turning around. That's a recipe which implies that a huge rebound is in store for NIO stock.Specifically, Chinese EV demand is showing signs of rebounding as: 1) China's economy improves on the back of easing trade tensions and monetary policy, and 2) China's government has stopped cutting EV subsidies. It also helps that Tesla's (NASDAQ:TSLA) big push into the Chinese auto market is driving broader EV awareness.Against that backdrop, Nio's delivery trends are starting to improve. That is, for the first half of 2019, Nio's delivery volumes were shrinking every month. Now, they're growing every month. As EV demand continues to improve and as Nio launches a new vehicle in 2020, delivery volumes should continue to move higher, too.Rebounding delivery volume trends in 2020 lay the groundwork for Nio stock to keep pushing back toward the $10 mark. Bed Bath & Beyond (BBBY)Source: Jonathan Weiss / Shutterstock.com The multi-bagger thesis on Bed Bath & Beyond (NASDAQ:BBBY) is all about new management pioneering big change at the struggling department store operator.That is, Bed Bath & Beyond's new CEO -- Mark Tritton -- previously worked as the chief merchandise officer over at Target (NYSE:TGT). There he was instrumental in turning Target from a struggling, physical-first retailer, to an omni-channel retail powerhouse. It's very likely that he could do the same at Bed Bath & Beyond, by rationalizing the retail footprint, streamlining investment into existing stores, improving the digital platform and building out more robust omni-channel capabilities.Indeed, in the third-quarter earnings call, Tritton pointed to a few promising early data points, including strong Black Friday and Cyber Monday digital sales. But preliminary fourth-quarter figures indicate a comparable-store sales decline, driving the stock down to $12 on Feb. 12. * 7 Strong Value Stocks to Buy for 2020 If Bed Bath & Beyond stabilizes sales and improves margins, then this stock could explode higher. Just look at what happened over at Target, and that stock was never as cheap as Bed Bath & Beyond is today. Plug Power (PLUG)Source: Shutterstock The big idea behind Plug Power (NASDAQ:PLUG) is that, for the first time ever, large enterprises may broadly adopt hydrogen fuel cell (HFC) technology in their materials handling operations.Demand for clean energy today is as strong as it's ever been. That's because both regulators and consumers are putting a lot of pressure on companies to cut their carbon emissions. But, doing so is a cost-intensive project, because clean energy isn't cheap energy. So, companies aren't just feeling pressure to hit sustainability targets -- they are feeling pressure to do so without hurting the bottom line.Plug Power's hydrogen fuel cells give them one way to do just that. In the materials handling world, HFC forklifts are a cost-effective way to adopt clean energy because, relative to batteries, fuel cells: 1) have shorter recharging times, 2) require less maintenance, 3) have longer shelf-lives and 4) operate at full power for longer.So, over the next few years as more and more companies seek cost-effective ways to cut emissions, more and more companies will simultaneously look toward deploying Plug Power fuel cells across their materials handling businesses. As they do, Plug Power's revenues, profits and stock price should all march higher. Express (EXPR)Source: Helen89 / Shutterstock.com The management team over at struggling apparel retailer Express (NYSE:EXPR) recently announced a bold turnaround plan, and if it works, this stock could easily turn into a multi-bagger over the next few years.The turnaround plan centers around right-sizing the retail footprint (Express is closing about 100 stores), gutting expenses (it plans to cut costs by up to $80 million) and streamlining product launches and marketing (it plans to improve product speed-to-market times by more than 20%).Those are the right moves to be making. Less stores should lead to less overhead and salary expenses, higher sales per square foot and an improved margin profile. A slimmer operating model should also boost the margin profile. Meanwhile, a faster product launch cycle should help the brand stay relevant and keep customers more engaged. * 7 'A'-Rated Stocks Under $5 to Buy Now As such, if management executes on these turnaround initiatives, then management's 2022 targets for stabilized sales in the $2 billion range and a improved operating margin of roughly 5% seem totally doable. If the company does hit those marks, then my modeling suggests that $1 in earnings per share is doable by then.If so, that would make today's $4.45 price tag on Express stock seem way too cheap for its own good. Stitch Fix (SFIX)Source: Sharaf Maksumov / Shutterstock.com Personalized styling service Stitch Fix (NASDAQ:SFIX) is pioneering a new-and-improved way to shop, and as this new shopping method gains traction over the next several years, Stitch Fix's revenues, profits and stock price will all soar higher.The whole idea of Stitch Fix is to take all the annoying stuff out of shopping. Yes, shopping can be fun. But, it can also be time-consuming (you have to go to the mall, or browse through various clothes on a website), stressful (for many us, what we wear is important, and so picking what we wear can often be stressful) and produce undesirable outcomes (not many of us are fashion stylists, so the chance we pick a clothing item that doesn't suit us best is fairly high).Stitch Fix addresses these pain points through its personalized, online styling service. There's no spending time on shopping, stressing about shopping or buying stuff that isn't that great. You simply answer a few questions, have stylists personalize a wardrobe for you and receive new clothes from Stitch Fix on a semi-regular basis (keeping only what you like, and returning the rest).It's a good value prop. Sure, not everyone will sign up for these services, because: 1) some of us think we know our style better than anyone else and 2) Stitch Fix isn't cheap. But, this is a huge market -- $430 billion in the U.S. and United Kingdom alone -- and Stitch Fix is small enough (only $1.6 billion in revenue) that even small penetration in the huge apparel market will lead to huge growth at the company.That's exactly what will happen. Over the next few years, Stitch Fix will climb to account for 2%-4% of the apparel retail market, which will be enough to propel huge revenue growth, huge profit growth and huge share price gains. OrganiGram (OGI)Source: Shutterstock Although the headlines surrounding pot stocks remain largely negative -- Aurora (NYSE:ACB) just pushed out its CEO and announced huge payroll cuts amid a broad restructuring plan -- I remain cautiously optimistic that this beaten-up group can rebound big in 2020. If and when they do, small-cap Canadian cannabis producer OrganiGram (NASDAQ:OGI) could be one of the bigger gainers.Most of the negative headlines in the cannabis industry are backward looking. If you look forward, things should get a lot better over the next few months. There will be a ton of new retail store openings throughout Canada. New edibles, drinks and vape products are coming to market. All the producers are cutting costs and pulling back on promotional activity.All in all, things should get better. When they do, revenue and margin trends will improve, and pot stock prices will move higher.In the market, OrganiGram is a standout because the company: 1) has broad exposure to the edibles market through its signature chocolate products, 2) has relatively low production costs and 3) is already profitable with one of the lowest marketing expense bases in the market. * 7 Utility Stocks to Buy That Offer Juicy Dividends Consequently, when pot stocks do bounce back in 2020, OGI stock could fly higher, especially given its relatively discounted valuation. Luckin Coffee (LK)Source: Keitma / Shutterstock.com Rapidly expanding Chinese coffee house operator Luckin Coffee (NASDAQ:LK) appears to be in the top of the first inning of a mega growth narrative.That growth narrative is all about the explosion of coffee in China. Long story short, Chinese consumers have historically opted for tea over coffee. But this is no longer the case. Younger consumers are increasingly shifting toward coffee for their daily caffeine intake. This trend should persist, and if it does, then coffee drinking in China will go from a niche habit today, to a mainstream habit by 2025.During this transition, Luckin Coffee will emerge as the go-to retail coffee brand in China. That's because Luckin: 1) is the low-cost provider in the market with deeply discounted coffee drinks, 2) is the high-convenience provider in the market with a mobile-first ordering experience built for to-go orders and 3) is the innovator in the market, pushing forward on ready-to-drink coffee vending machines across China.For all intents and purposes, then, Luckin Coffee will one day become the Starbucks (NASDAQ:SBUX) of China. Starbucks is a $100 billion-plus company. Luckin Coffee is a sub-$10 billion company. The sheer size of this discrepancy is why LK stock has such huge long-term potential. Teva (TEVA)Source: JHVEPhoto / Shutterstock.com There are four big reasons why beaten-up generics drug giant Teva (NYSE:TEVA) is an attractive lottery stock worth considering at current levels.First, big opioid litigation may be moving into the rear-view window. That is, what was supposed to be dozens of state-level lawsuits over the opioid crisis, increasingly appears to be condensing into one streamlined lawsuit which would address all payments and penalties in one fell swoop.Second, the company has significantly restructured its operating profile to be more cost-efficient. It has closed manufacturing sites, offices and labs. In total it has cut about $3 billion out of the expense model. Going forward, this company is well positioned to achieve improved profitability.Third, new drugs in the company's pipeline -- specifically Ajovy and Austedo -- are passing trials and will likely hit the market soon. This will provide a much-needed boost to the company's revenue trajectory. * 7 Large-Cap Stocks to Buy For Insulation From Volatility Fourth, the company is successfully de-leveraging its balance sheet. Net debt levels have dropped by more than 25% over the past two years. Continued de-leveraging over the next few quarters will support improving investor sentiment.In sum, thanks to the four aforementioned catalysts, it looks like Teva stock could be in the midst of a big turnaround. Stage Stores (SSI)Source: LM Photos / Shutterstock.com When it comes to lottery stocks, few are as much of a lottery as struggling department store operator Stage Stores (NYSE:SSI).The story here is pretty simple. Stage Stores is yet another slow-to-adapt physical retailer that is getting squeezed out by the e-commerce wave. The balance sheet is also loaded up with debt. So, back in early 2019, it looked like bankruptcy was inevitable.But, management came up with the brilliant idea of converting its full-price stores into off-price stores, with the rationale being that off-price retail has survived the e-commerce onslaught. Early results from these conversions in mid-2019 were very promising. Sales jumped 40% year-over-year at converted stores. SSI stock jumped on the idea that maybe this company does have a future after all.Then, the rally quickly faded amid disappointing fourth-quarter results, which reinvigorated bankruptcy concerns. Lackluster cash flows may mean that the company doesn't have enough resources to pull off the off-price conversions at scale.Going forward, one of two things will happen. Either the company will pull together enough resources to continue the off-price conversions, sales will soar and the stock will roar back to $10. Or, the company's resources will run dry, it will be forced to restructure its debt and equity shareholders will get wiped out.In that sense, this stock is either going to rise 1,000% or drop 100%. At present, I think there's a greater chance of the former happening than the latter, and that's why I think the stock is worth a look. Pinterest (PINS)Source: Nopparat Khokthong / Shutterstock.com One of the bigger companies on this list, visual search giant Pinterest (NYSE:PINS) is nonetheless a lottery stock because shares have huge upside potential from here.There are two trends supporting broader consumer adoption of Pinterest. First, everything is becoming visual, including search, and Pinterest is presently the de facto visual search platform in many geographies. Second, curation is of increasing importance in an internet world where everything is accessible, all the time. And Pinterest is very good at curating pictures and inspirational ideas for its users.As such, Pinterest usage should continue to rise over the next few years. I actually think this company can grow to somewhere around 500 million monthly active users by 2025. At the same time, Pinterest is a very natural place for ads, since consumers are already going to Pinterest with the intent of doing or finding some product or service. Consequently, Pinterest should have no trouble monetizing its users at scale.Thus, by 2025, each one of Pinterest's users will be extremely valuable. Over at Facebook (NASDAQ:FB), each one of its monthly active users is worth about $200. Let's conservatively say Pinterest's users in five years will be worth half that. At 500 million users, that implies a $50 billion market capitalization.Pinterest presently features a $15 billion market cap. Consequently, the pathway toward huge upside in Pinterest stock is quite clear and compelling.As of this writing, Luke Lango was long NIO, PLUG, LK, SSI, PINS and FB. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Energy Stocks That Are Still Worth Buying In 2020 * 7 Strong Stocks to Buy That Won Q3 Earnings * 5 Safety Stocks to Buy Without Trade War Exposure The post 10 Strong Lottery Ticket Stocks That Could Soar in 2020 appeared first on InvestorPlace.
Shares of Nio Inc. fell 1.1% on heavy volume in morning trading Monday, paring earlier losses, after the Shanghai-based electric car maker reported a year-over-year decline in January sales, citing the effects of the "unfortunate" outbreak of the coronavirus and the unfavorable timing of the Chinese New Year holiday. The company also said it expects February sales to decline, given that the Chinese government postponed the return to work from the New Year holiday for most businesses. The stock had been down as much as 5.0% earlier. Trading volume topped 19.1 million shares, making the stock the most actively traded on major U.S. exchanges. Nio said it delivered 1,598 vehicles in January, down 11.5% from a year ago. "We achieved satisfactory results in January despite the outbreak of novel coronavirus," said Founder and Chief Executive William Bin Li. The stock has run up 90.4% over the past three months, while U.S. rival Tesla Inc. shares have more than doubled (up 135.7%) and the S&P 500 has gained 7.6%.
Chinese electric vehicle maker Nio Inc - ADR (NYSE: NIO ) reported January deliveries of 1,598 units on Monday and said the outbreak of the novel coronavirus first identified in Wuhan, China has affected ...
Benzinga Pro's Stocks To Watch For Monday NIO, Inc. (NIO) - Shares were down 2% following Jan. deliveries of 1,598 units. The company warned "the extended holiday due to the unfortunate outbreak ...
NIO Inc. (“NIO” or the “Company”) (NIO), a pioneer in China’s premium electric vehicle market, today provided its January 2020 delivery results. This decrease was primarily due to the reduction in business days in January due to the comparatively earlier Chinese New Year holiday in 2020. The extended holiday due to the unfortunate outbreak of the novel coronavirus first identified in Wuhan, China also affected our sales results.
Beleaguered oil and gas firm Chesapeake Energy (NYSE:CHK) is again generating headlines for the wrong reasons. Recently, a Reuters report revealed that the daughter of a worker who was tragically killed in an oil-well explosion sued Chesapeake and three other organizations, claiming in part an unsafe work environment. Although it won't kill CHK stock on its own, the lawsuit is a lowlight among several.Source: Casimiro PT / Shutterstock.com From the fundamentals to the financials to the front page, Chesapeake Energy screams disaster. This is an organization that is not racing against time but inevitability. Based on the company's instability as well as an unfavorable backdrop, CHK stock could very well go to zero.Initially, that might sound as if I'm contradicting my bullishness on equities. In contrast to the naysayers, I don't see the current bull market as overextended. If anything, we probably have a good ten years before we need to think about responding to an imminent correction.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs my readers know, I'm a big believer in megatrends. These overwhelming catalysts will fuel what I call the Roaring 2020s. However, the opposite is also true: if a company is not aligned with these trends - or worse, positioned against them - it faces severe dangers. Such is the case with CHK stock. * 7 Utility Stocks to Buy That Offer Juicy Dividends Frankly, oil is a yesteryear energy source. During the era when vehicles ran exclusively on petroleum-based products, oil was an absolute necessity. Further, supply demand dynamics reflected this economic reality. But in the world of alternatives forwarded by Tesla (NASDAQ:TSLA), Nio (NYSE:NIO) and many others, oil is losing ground.That's not to say that oil is completely irrelevant as the transition will take time. But this leaves Chesapeake with no margin for error. CHK Stock Suffers as Oil Supply SoarsThe main problem with Chesapeake's recovery initiative is that they're dealing with "dumb" commodities. There's nothing special about them. Because of that, they're driven by supply and demand. With the introduction of viable alternatives, supply necessarily increases, depressing demand.Even if Chesapeake cleans up its own house, it can't do anything about the broader wave impacting its industry. Therefore, CHK stock is a losing bet.Tellingly, CHK has an inverse relationship with proven oil reserves in the U.S. When shares started trading in 1993, Chesapeake was in the midst of declining reserves. It was the go-go 1990s, with soaring crude oil demand pressuring inventory. This same trend developed throughout most of the 2000s decade.However, an interesting thing happened in 2008. As global investment indices crashed, so did oil reserves, hitting a multi-decade low of 19.1 billion barrels. According to data from the U.S. Energy Information Administration, such a level hasn't been seen since the beginning of World War II. Click to EnlargeSubsequently, CHK stock hit an annual average peak of just under $35 a pop. Since then, shares have never looked the same as oil reserves steadily climbed, first due to reduced demand and later through increased oil production and the introduction of hybrids, electric vehicles and other transportation alternatives.Between 1993 through 2008, annual oil reserves averaged 21.8 billion barrels. From 2009 through 2018, though, oil reserves spiked to 31.9 billion barrels, an over 46% increase in supply.Making matters worse for CHK stock, oil supplies accelerated starting from 2017. By the end of that year, reserves hit nearly 39.2 billion barrels, a then record. In 2018, reserves hit 43.8 billion barrels, shattering the previous year's tally.The trend is only getting worse, heaping exponential pressure on CHK stock. Waiting for the InevitableAbout the only thing that could have saved Chesapeake was a focus on financial stability. Commoditized names can still win. But when you're competing on price and not on product differentiation, you've got to have your fiscal house in order. Commoditization sometimes requires wars of attrition.However, Chesapeake nuked that chance when they decided to get acquisitive. To add insult to injury, management acquired WildHorse Resource Development. This is completely against my investment philosophy. Instead of banking on where the money will be, Chesapeake essentially banked on where it once was.The move didn't make any sense then and it certainly doesn't make any sense now. Sinking their financials by choice, the energy firm must depend on favorable underlying market conditions. But that's not happening as the megatrend is moving in the opposite direction.Ultimately, I see CHK stock as unreasonably risky. It neither benefits from corporate leadership nor from industry conditions. You're left depending on the emotions of the masses. That's a gamble I'm not willing to take.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Utility Stocks to Buy That Offer Juicy Dividends * 10 Gold and Silver Stocks to Profit Off 2020's Fear Trade * 3 Top Companies That Should Be More Careful With Your Data The post CHK Stock Is on the Wrong End of a Megatrend appeared first on InvestorPlace.
ADR (NYSE: NIO) announced a financing deal Thursday that could serve to alleviate its precarious liquidity position. Shanghai-based Nio said it has entered into a definitive agreement with an unaffiliated Asia-based investment fund to sell convertible notes worth $70 million through a private placement. The Bank of New York Mellon, London Branch will serve as the trustee, Nio said.
With so many headwinds facing Nio Inc. (NIO), it’s surprising that shares have managed to stay afloat.Its number of cars sold, while improving significantly in the last reporting period, are still behind expectations at this point of its growth cycle.Reports have also recently stated NIO had secured significant financing to give it breathing room. Not only were the reports wrong, but the amount of financing, if secured, was far below the $1 billion originally stated.Add in concerns over coronavirus, and it remains difficult to see why the company continues to find support for its share price.In this article, we'll look at why the company's share price hasn't collapsed. Balance Sheet IssuesAs of the quarter ending September 30, 2019, NIO only had approximately $274.3 million in cash remaining, plunging from the $1.123 billion it had at the end of March 2019.During the latter part of December 2019, the company said it won't last through 2020 unless it receives a significant cash infusion.The company has been able to reduce net income losses over the last three reporting periods, improving from the $1.42 billion loss in the third quarter of 2018 and a $478.6 million loss in the second quarter of 2019, to a loss of $352.8 million in the third quarter of 2019. The improvement came from more vehicles delivered and cutting costs. Gross margins were -12.1% in the third quarter.Additionally, vehicles delivered during the reporting period finished at 4,799, up from the 3,553 delivered in the prior quarter. Revenue improved to $257 million, up from the $219.7 million generated in the second quarter.Not to mention operating profit in the quarter was a loss of $337.1 million, an improvement over the operating loss of $469.9 million in the previous quarter.While the company is moving in the right direction, it isn't improving fast enough to continue operations with its current capital structure.Financing A Chinese financial news report recently asserted NIO has secured $1 billion in new financing from GAC Group, a firm located in Guangzhou. Not long after the news broke, NIO had to clear up the matter by saying it was only in negotiations for financing; it hadn't secured any yet.GAC Group confirmed the negotiations, but added that the $1 billion figure was far beyond what it was considering. The company said that at most, it would provide $150 million in financing to NIO. Even if it received that cash infusion, NIO wouldn't make it until summer before needing more operational capital.Another concern is a previous attempt to secure financing which resulted in the deal falling apart because of concerns over whether or not NIO could survive. Those concerns remain in place, and casts a deep shadow over the future prospects of the company.The bottom line in regard to financing is that not only does NIO need a lot more than the $150 million, it also needs to be able to get it without terms that are too steep. This is going to be difficult to accomplish.CoronavirusThe threat of the coronavirus has weighed on the Chinese market. While in the early days of the outbreak it did appear to have some impact on NIO’s share price, the stock is up 9% so far in 2020.I think it could come back as a negative catalyst if China fails to contain the situation and the deaths rise in the country. A number of nations have put travel bans in place. If it starts to have an effect on imports to China, NIO could find itself under pressure if this drags on for a long time or gets worse.Any news of the virus hitting workers of NIO could be devastating to the company. For now, it seems like investors are shrugging it off. I'm not sure that will remain the case if things get much worse than they are now.The Tesla FactorProbably more than any other factor, the comparison of NIO with Tesla by some investors has kept its share price higher than its actual performance justifies.The reason this is important is because there are hopes by investors that just like early investors in Tesla, they could obtain sizeable returns if NIO is able to survive its short-term challenges. I think they're right.When I say that, I mean that if it is able to secure enough financing, and it can continue to increase vehicle deliveries, it could in fact start to enjoy a similar growth trajectory Tesla did. I believe this, more than anything else, is what's supporting the share price of NIO.Wall Street Analysts Weigh InWhat do Wall Street analysts think about NIO? As it turns out, the consensus is a mixed bag. 1 Buy rating and 2 Holds assigned in the last three months add up to a Moderate Buy Street consensus. At $6.88, the average price target brings the upside potential to 57%. (See Nio price targets and analyst ratings on TipRanks) ConclusionThe question going forward is whether or not NIO can survive by securing the capital it needs, and if it does secure financing, can it continue to increase the number of cars delivered while lowering costs and improving margins.It's moving in the right direction, but it has yet to prove it can accomplish this lofty goal.NIO is a good play if investors use capital they can afford to lose entirely. With the potential upside if a number of factors go its way, it won't take a large investment in the company for investors to see a big return.In the end, its future viability and survival is directly related to whether or not it can secure a lot more financing. If it is unable to do so, nothing will be able to keep the company from shutting its doors. On the other hand, if it lands a big deal, it will result in its share price soaring much higher.
NIO Inc. (“NIO” or the “Company”) (NIO), a pioneer in China’s premium electric vehicle market, today announced that it has entered into definitive transaction documents with an unaffiliated Asia based investment fund (the "Purchaser"), pursuant to which NIO will issue and sell convertible notes in an aggregate principal amount of US$70 million to the Purchaser through a private placement. The convertible notes are to be issued pursuant to an indenture to be entered into on the closing date between the Company and The Bank of New York Mellon, London Branch, as trustee. In addition to the private placement to the Purchaser, the Company consummated another convertible notes private placement in January 2020 to another unaffiliated Asia based investment fund on similar terms.
Tesla, as an investment, is difficult to understand, as the company is at the center of competing stories.
Benzinga Pro's Stocks To Watch For Monday D.R. Horton (DHI) - Shares traded down less than a percent following better-than-expected Q1 results and raised FY20 guidance. Also in the Homebuilder space, ...
According to a Jan. 17 SEC filing, UK investment management firm Baillie Gifford has increased its stake in Nio (NYSE:NIO), the up-and-coming Chinese electric vehicle manufacturer. It now owns 101.4 million American Depositary Shares or 13.1% of Nio stock.Source: xiaorui / Shutterstock.com At this time last year, Baillie Gifford owned 11% of NIO. Already the company's largest shareholder, the fact that it's increased its stake by 19% in just one year suggests Baillie Gifford has a good feeling about Nio's future.However, when you consider that Nio shares were trading at $6.37 at the end of 2018 -- for a company value of $540 million based on 84.9 million shares -- and a year later are trading 25% lower, with an increased 101.4 million shares worth just $485 million, Baillie Gifford's clients better pray the company's $1 billion in funding isn't just a bad rumor.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut just because one of the UK's preeminent investors likes the company doesn't mean it's all aboard the Nio train, despite momentum gains in 2020 -- 10 days of positive gains versus just four negative days. * Invest in America's Most Trusted Brands With These 7 Stocks to Buy Trading at an eight-month high, Nio is at a crossroads. Will it move higher in the next 6-12 months, or fall back below $3 where it traded for most of last fall? Nio Stock Pushes Through to $10InvestorPlace contributor Chris Lau recently wrote an article entitled "It's a Tough But Winnable Battle for Nio Stock to Reach $10 Again."Chris points out that although analysts don't see $10 within the next 12 months -- the average price target is $6.88 -- but he does point out that Simply Wall Street believes Nio is worth more than $10 based on future cash flow.Furthermore, should Nio secure its much-needed $1 billion in funding to keep the lights on at the company, it could keep moving higher in 2020 as investors gain more confidence that it will still be producing vehicles come this time next year.Confidence, even if just an illusion, can do wonders for a company's stock price. Just look at Wayfair (NYSE:W): it loses money by the boatload, and yet stock has nicely recovered from November lows.Understandably, investors don't seem to value money losers in quite the same way as businesses that historically have been consistently profitable.Add this to the fact that the company's third-quarter results were better on both the top- and bottom-line and you have the making of a 2020 turnaround.But only if it gets the funding. It Heads Back to $3A recent report surfaced that suggested Nio will build 200 brick-and-mortar stores in 2020. Some will be Nio Houses, while others will be smaller Nio Spaces. Whatever physical outlets the company opens, I have to wonder if this is an example of a business writing checks it likely can't cash.In the first three quarters of fiscal 2019, Nio's cash has dropped from $1.1 billion in Q1 2019 to $503.4 million in Q2 2019 to $274.3 million in Q3 2019. While the company expects to generate revenue of $393 million in the fourth quarter, the red ink will drive its cash balances even lower.If it doesn't get the $1 billion in funding the company is looking for by the end of March, the lights at Nio might go out permanently, something I alluded to in November:"The fact is, Nio's Altman Z-Score, a predictor of future bankruptcy, is -4.45 at the current moment. That's nowhere near where it needs to be to give investors a warm, fuzzy feeling. I wish I had better news for shareholders of Nio stock. But you can't put lipstick on a pig. As Don Merideth used to sing on ABC's Monday Night Football, 'Turn out the lights, the party's over!'"Several other InvestorPlace contributors have also expressed their concerns about Nio's cash situation. Where there's smoke, there's fire. Earnings might have been better than expected in the third quarter, but they still weren't close to making a non-GAAP profit.Nio stock has come a long way since the beginning of October, when it traded at a 52-week low of $1.19.From where I sit, the low-hanging fruit has already been picked. To push your luck and hold indefinitely, will reap unfortunate consequences over the remainder of 2020.If you've made decent money on Nio over the past 3-4 months, I would suggest taking profits. If you don't own Nio, now is not the time to start. The risks -- its Altman Z-score is still -4.51 -- are just too darn high.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks on the Move Thanks to the Davos World Economic Forum * Invest in America's Most Trusted Brands With These 7 Stocks to Buy * 7 Earnings Reports to Watch Next Week The post It's High Time to Hop Off The Nio Train appeared first on InvestorPlace.
Planes and cars are the main topics today and EVs are a big deal no matter what Erique thinks. Airbus takes advantage of a limping Boeing and we get into the Battleground.
Nio Inc – ADR (NYSE: NIO ) shares scaled the threshold Tuesday , extending their winning streak to nine straight sessions and are poised to open higher yet again. Reflecting the electric vehicle maker's ...
In a short squeeze, traders who have sold a stock short are forced to scramble. A rising share price leads those short sellers to buy shares to cover their positions. That demand can lead to a spiral higher: more shorts look to cover or face margin calls, leading to more buys and an even higher price.The most famous short squeeze in recent years -- and maybe ever -- actually was engineered by Porsche (OTCMKTS:POAHY). In 2008, amid the financial crisis, Porsche used derivatives to corner the market in Volkswagen (OTCMKTS:VWAGY). The short squeeze was so intense that Volkswagen briefly became the world's most valuable company.Most squeezes are more rudimentary in nature, simply adding to potential gains as good news arrives. Recent rallies in Tesla (NASDAQ:TSLA), Nio (NYSE:NIO), and Luckin Coffee (NYSE:LK) likely all have been boosted by short squeezes, even if fundamental factors have contributed as well.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThere are more names out there that could benefit from such a squeeze, including the following three stocks. But it's important to remember that short squeezes aren't necessarily long-term catalysts and that high short interest alone doesn't make a stock a buy. Shorts, after all, get it right sometimes. Squeezes can't and don't come if a stock doesn't make a fundamental move higher. * 10 Cheap Stocks to Buy Under $10 Indeed, these three stocks aren't guaranteed to see a squeeze. But the potential exists. Shorts are betting heavily against these stocks and good news could be on the way. Tanger Factory Outlet (SKT)Real estate investment trust Tanger Factory Outlet (NYSE:SKT) could see a squeeze driven not by performance, but by market factors. SKT stock has declined over 60% from late 2016 highs. But its dividend has held up, in fact seeing raises in each of the last three years.Source: Ritu Manoj Jethani / Shutterstock.com That combination has increased SKT's dividend yield to over 9%. Meanwhile, the SPDR S&P Dividend ETF (NYSEARCA:SDY) is based on an index that weights its components by dividend yield. And so as SKT stock has fallen, the ETF has acquired more shares. At the moment, SDY owns 20.7 million Tanger shares -- over 22% of the company.There's another problem, as Bloomberg's Matt Levine detailed last week (others have noted key parts of the story as well). SDY has a fund rule that it can't own a stock with a market capitalization under $1.5 billion. Tanger is under that line at the moment, with a market cap of $1.43 billion. And so the ETF likely has to exit the stake in its entirety by Jan. 31. That forced selling would swamp existing demand for shares, and potentially could send SKT stock down even further.But there's a catch, as Levine noted on Thursday via Bloomberg Intelligence. Fund sponsor State Street has to call in the shares it's lent to short sellers, which actually could create a squeeze. SKT stock gained 10% on Jan. 8, perhaps in anticipation of that squeeze, though it has receded since.Trading SKT in the near term seems best for those with experience, as the stock likely will be volatile. But with a stunning 58% of the float sold short, there's real potential for a squeeze. Meanwhile, Tanger's dividend yield and low valuation relative to FFO (funds from operations) make it an intriguing value play, as Aaron Levitt argued last year. The next two weeks will be eventful and could present an opportunity. Restoration Hardware (RH)Source: Andriy Blokhin / Shutterstock.com Furniture retailer RH (NYSE:RH) seemingly has made sport of targeting short sellers in the past few years. The company has used buybacks, including accelerated repurchases, to drive its share price higher.Performance has been impressive as well: adjusted EPS increased 180% in fiscal 2018 (ending early February 2019) and is guided up 46-48% in fiscal 2019. Buybacks have driven some of that growth, but RH also has seen steady revenue increases and expanding margins. * 7 Small-Cap Stocks That Are Not Worth a Second Glance But short sellers haven't given up on the trade. Over 34% of the float remains sold short. That seems unwise. RH still trades at a reasonable 16x forward price-to-earnings multiple. Berkshire Hathaway (NYSE:BRK.A,NYSE:BRK.B) has taken a 6.5% stake in the company. And history suggests the short side is the wrong side of this trade. Fourth quarter earnings, likely arriving in late March, could be the next catalyst for yet another squeeze. Stitch Fix (SFIX)Source: Sharaf Maksumov / Shutterstock.com Stitch Fix (NASDAQ:SFIX) has a little over 42% of its float sold short at the moment. That figure is inflated somewhat by the fact that only about 53% of shares outstanding trade freely, but that thin float can help catalyze a squeeze.And SFIX stock does seem like the type of name that could catch a bid in this market. So far, it hasn't: shares actually are down over the past eighteen months. But it's a growth name with an attractive valuation on a price-to-revenue basis. A 2020 sales target of $2 billion suggests a barely 1x multiple, backing out the company's cash on hand (Stitch Fix has no debt). Stitch Fix isn't cheap on a profit basis, at 100x 2020 consensus earnings per share estimates, but it has the ability to grow into that valuation if the top line cooperates.The high short interest admittedly suggests many traders see that revenue growth decelerating. But the bull case here is simple: if Stitch Fix meets its targets, SFIX stock likely rises. It could rise even faster than it otherwise might, as shorts are forced to cover.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Monthly Dividend Stocks to Buy to Pay the Bills * 7 Earnings Reports to Watch Next Week * 7 5G Stocks to Connect Your Portfolio To The post 3 Stocks That Could See a Short Squeeze appeared first on InvestorPlace.
Shares of Nio Inc. shot up 12.5% toward an 8-month high in afternoon trading Tuesday, once again reversing course sharply after posting losses earlier in the session. That puts the China-based electric car maker's stock on track to extend its record win streak to nine sessions. The stock opened down 1.5% at $4.67, then fell as much as 3.2% to an intraday low of $4.52, before swinging higher. Nio's stock was the most actively traded on major U.S. exchanges, with trading volume of 131.7 million shares, compared with the full-day average of about 77.8 million shares. The stock has now run up 62.3% during its win streak, which is the longest since the company went public in September 2018. During the streak, the stock has traded in negative territory in six of the sessions before eventually turning higher. Helping propel Nio's stock during the streak included upbeat deliveries data, the fact that U.S.-based EV maker Tesla Inc.'s stock has also been roaring higher and the disclosure that Nio's largest shareholder, Ballie Gifford & Co., had bumped up its stake in Nio to just over 13% from about 11%. Nio's stock has now more than tripled (up 211.0%) over the past three months, while Tesla shares have more than doubled (up 113.8%) and the S&P 500 has gained 10.4%.
Led by Tesla (NASDAQ: TSLA) and with contributions from NIO Inc. (NYSE: NIO), among others, this is starting to feel like the year of electric vehicle equities. Truth is, electric vehicles and adoption ...
Shares of Nio Inc. dropped 1.7% in active premarket trading Tuesday, putting them on track to snap a record-long eight-day winning streak. Volume was 680,000 shares just less than two hours before the open, enough to make the stock the most actively traded in the premarket. The China-based electric car maker's stock had rocketed 44% in eight days through Friday, the longest streak of gains since the stock went public on Sept. 13, 2018, and beating the seven-day win streak through Feb. 1, 2019, when the stock surged 20.6%. On Friday, the stock had climbed 6.9% after the company disclosed that its largest shareholder, Scotland-based investment manager Ballie Gifford & Co., had increased its stake to 13.13% of Nio's shares outstanding, up from 11.04% as of Feb. 5, 2019. Also helping to boost the stock this year were upbeat reports that Nio had secured about $1 billion in funding, upbeat December deliveries data and a surge in U.S. rival Tesla Inc. shares to record highs. Nio's stock has nearly tripled (up 176.3%) over the past three months through Friday, while Tesla shares have doubled (up 101.4%) and the S&P 500 has edged up 10.7%.