|Bid||2.3900 x 36200|
|Ask||2.3800 x 46000|
|Day's Range||2.2885 - 2.4300|
|52 Week Range||1.1900 - 10.6400|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||Sep 24, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||3.05|
Although the masses and most of the financial media blame hedge funds for their exorbitant fee structure and disappointing performance, these investors have proved to have great stock picking abilities over the years (that's why their assets under management continue to swell). We believe hedge fund sentiment should serve as a crucial tool of an […]
Lately, auto stocks have presented some interesting opportunities. Specifically, let's take a look at what's happening off and on the price charts of Tesla (NASDAQ:TSLA), General Motors (NYSE:GM) and Nio (NYSE:NIO) and detail positions where bulls and bears can profit with increased odds of success.It has been anything but a quiet market of late. On Thursday, it was a tweet that sent the S&P 500 rallying 0.85% and finishing at a new all-time high. And auto stocks came along for the ride with the First Trust Global Auto Index (NASDAQ:CARZ) climbing 1.32%.From his favorite medium, POTUS teased investors by announcing that a Phase 1 trade deal with China was "very close." And in a rare twist, it turns out the tweet wasn't fake news. A limited trade deal between the world's two largest economies was reached after the close of the U.S. market.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 10 Worst Dividend Stocks of the Decade Now that levies are slated to have begun this weekend and existing tariffs are being rolled back on Chinese goods as part of a larger bilateral deal, surely it's time to park some money in auto stocks, right? It is. But, based on what the price charts of TSLA, GM and NIO stock are hinting at, there's profits to be made by both bulls and bears in auto stocks. Auto Stocks to Trade: Tesla (TSLA) Source: Charts by TradingViewThe first of our auto stocks is Tesla and it's a buy. The EV upstart went through a very difficult stretch earlier this year. But following the hard-hitting, corrective decline which landed TSLA stock into a band of longer-term Fibonacci support, shares have rebounded nicely since June. Over the last several weeks, shares have digested those gains in a constructive-looking consolidation high in the right side of its larger base near its all-time highs. Now shares are in position to be purchased after breaking out Thursday.Trading TSLA Stock: Buy this auto stock today. Expect new and meaningful highs to follow in 2020 given the healthy size base that's developed the last couple years. I'd set an initial price target at $450 for taking profits. To guard against downside exposure, a 10% stop is an effective way to eject safely in one piece from any potential bearish changes in TSLA stock's chart dynamics. General Motors (GM) Source: Charts by TradingViewThe second in our list of auto stocks is General Motors. This is a name I'd park in neutral with the expectation of buying in the near future. GM stock's monthly view shows that shares have been successfully holding lateral support within a larger uptrend for the last couple years. At the same time, since mid-2018, stochastics have been hinting of an upside resolution for bullish GM investors.Trading GM Stock: GM stock has already confirmed October's doji low last month before trading back inside the candlestick. It's a bullish signal, but obviously has turned more neutral given the price action. My suggestion is to wait for a second-attempt, trade-through entry above $38.29 before buying this auto stock. * 10 Best-Performing Growth Stocks of the 2010s Alternatively, if support continues to hold while a bullish crossover signals, a purchase of GM stock at lower levels is sufficient evidence to give a green light to buy shares on constructive-looking weakness. Nio (NIO) Source: Charts by TradingViewThe last of our auto stocks is China's Nio. Some Chinese stocks like Alibaba (NYSE:BABA) look great on the price chart. Others, such as Baidu (NASDAQ:BIDU), appear ready to turn the corner after coming under hard times of their own. But not NIO stock.Despite an alluring narrative, the price chart in NIO is still painting a bearish picture. Shares have rallied over the course of several weeks, but have now hit lateral, overhead resistance. What's more, a bearish topping candle on the weekly chart and overbought stochastics are warning new lows may be forthcoming.Trading NIO Stock: With confirmation of the bearish weekly pivot high in hand, NIO stock is technically worth shorting today. However, to gain exposure in this sub $2.50 auto stock and lower capitalization company, buying a limited and reduced risk bear put spread is the recommended and much smarter strategy.Disclosure: Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * These 7 S&P 500 Stocks Will Deliver a Repeat Performance in the Next Decade * 7 Tech Stocks to Stuff Your Stocking With * 7 Sinfully Good Casino Stocks That Could Win the Jackpot in 2020 The post 3 Auto Stocks to Trade, 2 Buys and 1 Short appeared first on InvestorPlace.
Chinese electric vehicle manufacturer Nio Inc – ADR (NYSE: NIO) is leaving no stone unturned as it wrestles with a weak domestic EV market and softer macroeconomic fundamentals. In what might be called a win-win proposition, Nio and domestic EV rival Xpeng Motors have agreed to share charging stations as well as related services and data, Bloomberg reported Wednesday. This arrangement will allow customers of both companies to use each other's charging stations at no extra cost.
When including the new round of cuts, Nio has laid off 273 Bay Area employees this year, including the closure of its San Francisco office last spring.
Leading Chinese billionaire entrepreneurs are investing heavily in electric vehicles, but their roads to profitability may be rocky.
The year 2019 is shaping up to be yet another lost year for Tesla (NASDAQ:TSLA) stock investors. TSLA stock is up only 3% year-to-date compared to a 28% gain by the S&P 500. But Tesla's essentially flat 2019 performance is a fairly accurate assessment of how little things have changed in the past year.Source: Shutterstock Nearly one year ago, I wrote a story entitled "Tesla Stock: Too Bad to Buy, Too Good to Short." Heading into 2020, I believe that thesis still holds true for TSLA stock. Inconsistent NumbersLooking back on that article from January 2019, it's uncanny how few things have changed this year for TSLA stock investors. At the time, Tesla was coming off its first quarterly profit since the launch of the Model 3. That profit came in the third quarter of 2018. Today, Tesla investors' spirits are high after the company reported a surprise profit in Q3 of 2019.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Energy Stocks That Are Still Worth Buying In 2020 Unfortunately, Tesla's financial track record has been extremely inconsistent. The company will need to string together at least three consecutive profitable quarters for me to buy into the narrative that its money-losing days are behind it.Everyone who went ga-ga over Tesla's Q3 earnings of $1.86 per share seems to have forgotten that Tesla reported EPS of $2.90 in Q3 2018. It came back with positive EPS of $1.93 in Q1 of 2019 before once again dropping to heavy losses in the next two quarters. TSLA Stock and More StorytellingTSLA also recently unveiled the Cybertruck, its futuristic answer to the F-150 that features indestructible windows. One thing Tesla stock investors should know by now is that Tesla is always promising the next big thing. It's the Tesla story that keeps Elon Musk's disciples buying shares.The Cybertruck won't move the needle for Tesla until at least 2021. Even then, I predict most of the sales will come from existing Tesla customers rather than new customers. In other words, the Cybertruck will likely cannibalize higher-margin Model X and Model S sales.One of the bullish catalysts from the Q3 earnings call was claims by the company that the Chinese Gigafactory is nearly up and running. As usual, the stock rallied on hopes and dreams for the future rather than the actual business that Tesla is doing today. Of course, leading Chinese electric vehicle maker Nio (NYSE:NIO) has blamed a difficult macro environment in China for its 2019 implosion.NIO stock is down 65% year-to-date operating in what Tesla investors see as the "land of EV opportunity." I'm not saying Tesla can't make China work, but it may not be the walk in the park some bulls are assuming. The Bull and Bear Cases for TSLAAssume Tesla can sustain the $1.94 in third-quarter EPS over the next three quarters. That would represent $7.72 in earnings over a one-year period. At $335 per share, TSLA stock would be trading at an earnings multiple of about 43.3. Remember, Ford (NYSE:F) and General Motors (NYSE:GM) are trading at earnings multiples of 22.3 and 5.7, respectively.Tesla bulls would argue that Tesla is a growth stock, not a value stock like Ford and GM. But Tesla reported an 8% drop in revenue in the third quarter. Maybe that's a temporary bump in the road. Maybe not. Unfortunately, Tesla's numbers have been all over the place in recent quarters, a trend that hasn't changed at all in 2019.At the same time, Tesla short sellers are playing a dangerous game given TSLA stock is one of the most heavily-shorted stocks in the world. As of late October, Tesla's short interest was $8.3 billion, making it the second-most shorted U.S. equity, according to S3 Partners.Not only does that short interest provide buying support on every dip, there is a major risk of a short squeeze if Tesla reports blowout numbers at any point.In addition, while Tesla's financial position doesn't seem to be nearly as dire as it was several quarters ago, the stock likely has limited downside. Even if the company screws up its execution, the Tesla brand has value, and its luxury models are very popular. Tesla would become a buyout target for a large auto or tech company at some point if the stock dipped low enough. Stay Away From TSLA StockAs I said a year ago, Tesla stock is extremely unpredictable and volatile. If you're bullish on TSLA stock, wait another couple of quarters for the company to prove it's on the right track. If you're bearish, there are plenty of safer shorts out there.As of this writing, Wayne Duggan held no positions in the aforementioned securities. 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 Tesla Stock Is Still a Crapshoot in 2020 appeared first on InvestorPlace.
Less than a month ago, I wrote a piece on InvestorPlace detailing five "lottery stocks" -- or high-risk, high-reward stocks with huge long-term upside potential -- that were worth buying because their risk-reward profiles were starting to skew strongly towards the reward side.Normally, when you buy lottery ticket stocks, you hope all of them work out. But, realistically, you expect one or two out of a dozen to work, with the premise being that one big winner will more than offset multiple losers.The lottery stocks I proposed in mid-November have fared much better than that. Four out of those five lottery stocks are up since then. All four of those stocks have posted gains north of 6%, while the S&P 500 is up less than 1% over that same stretch. One of the lottery stocks is up nearly 30%. And, one of them has nearly tripled.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIndeed, if you bought just 1,000 shares of each one of those lottery stocks back in mid-November (and consequently put down about $30,000), you'd already be up about $5,000 … in roughly three weeks. * 7 Energy Stocks That Are Still Worth Buying In 2020 That's the good news. The better news? All five of these lottery stocks could go much, much higher in 2020. Yes, they should still be looked at as high-risk, high-reward investments that should only be considered by investors with a healthy risk appetite. But, as far as the lottery stock category goes, these are the cream of the crop heading into 2020. Plug Power (PLUG)Source: Shutterstock % Return Since mid-November: -16% Current Price: $3.15 Potential Future Price: $12 (for numbers behind this price target, please refer to my previous lottery ticket stock article)Hydrogen fuel cell, or HFC, maker Plug Power (NASDAQ:PLUG) is a strong lottery stock worth considering because the HFC market is starting to show promising signs of enterprise adoption. That is, as businesses increasingly turn towards alternative fuel solutions, they are increasingly unimpressed by the long re-charge times and short ranges of electric vehicles. And some of these businesses are turning towards hydrogen cars (which have shorter re-charge times and longer ranges). If this trend persists over the next several years, and HFC technology becomes a viable second-fiddle in the alternative fuel world to electric battery tech, then Plug Power's revenues, profits and stock price will all march materially higher. PLUG stock has struggled over the past month. Shares are down more than 15% thanks to a public share offering. But, this offering does not alter the fundamentals at all. The enterprise HFC market continues to gain momentum, and recent weakness should be seen as an opportunity.In 2020, Plug Power should continue to win over multiple enterprise contracts, the sum of which will sustain huge revenue growth. That big revenue will drive gross and operating margins materially higher, and potentially push Plug Power significantly closer to profitability. The closer this company gets to profitability, the more bulls will remain in control and the higher PLUG stock will go. NIO (NIO)Source: Sundry Photography / Shutterstock.com % Return Since mid-November: +28% Current Price: $2.30 Long-Term Price Target: $14Chinese premium electric vehicle (EV) maker NIO (NYSE:NIO) is a pure play on the Chinese EV market. In a nutshell, China's EV market is booming, and will continue to boom thanks to government support and growing consumer demand. As the Chinese EV market stays in boom mode, the premium EV market will grow, too. In that market, NIO and Tesla (NASDAQ:TSLA) are the best games in town. Because NIO has struggled over the past few months amid slowing economic activity in China, NIO stock isn't priced to be a big player in China's premium EV market at scale. Instead, it's priced to be squeezed out of the market. But, more recent trends imply that NIO will survive and thrive in the premium EV market. If that happens, then NIO stock has huge upside potential in the long run.NIO stock is up nearly 30% over the past month because company's operational trends are improving. That is, throughout the first half of 2019, NIO's delivery volumes were falling. But, that trend has reversed course. Over the past four months, NIO has reported rising delivery volumes. As delivery volumes have bounced back, so has NIO stock. * 7 Low-Risk Mutual Funds to Buy Now This rally will continue into 2020. All signs point to the reality that U.S.-China trade tensions will ease in 2020. As they do, Chinese economic activity will pick up, leading to a rebound in China's auto and EV markets. A rebound there will help support continued growth at NIO, especially since the company plans to launch yet another new car next year. Continued growth in 2020 will lend credibility to the idea that NIO is in the early stages of turning into a dominant player in China's premium EV market. As that thesis gains credibility, NIO stock will continue to rebound. Stage Stores (SSI)Source: WhisperToMe via Wikimedia Commons% Return Since mid-November: +168% Current Price: $5.81 Long-Term Price Target: $10Struggling department store retailer Stage Stores (NYSE:SSI) is worth looking at as a lottery stock candidate because it is in the early stages of a huge transformation that could change everything for its longer-term prospects. Specifically, Stage Stores is going from full-price retailer, to off-price retailer, by closing some of their full-price Stage Stores stores, and converting the rest into off-price Gordmans stores. Management is doing this because the off-price Gordmans stores are performing much better than the full-price Stages Stores stores, and because the off-price department store model has worked well in the face of increasing digital competition -- see the success of TJX (NYSE:TJX) or Ross Stores (NASDAQ:ROST).SSI stock is up a jaw-dropping 170% over the past month because early data from this pivot has been very promising. That is, Stage Stores converted 17 department stores to Gordmans off-price in the third quarter. Not coincidentally, comparable sales rose a whopping 17% in the quarter.This transition is still in its early days. By year end, Stage Stores projects to have 158 off-price locations. By the end of 2020, it will have 700. That means that the bulk Stage Stores' off-price transition will happen in 2020. That also means that the bulk of the financial benefit of this off-price transition (higher comps, higher revenues, higher margins and higher profits) won't show up until 2020 or 2021. Because of this, the red-hot rally in SSI stock will likely continue into 2020. Aurora Cannabis (ACB)% Return Since mid-November: +7% Current Price: $2.43 Long-Term Price Target: $16The long-term bull thesis on Aurora Cannabis (NYSE:ACB) revolves around two central ideas. First, the global legal cannabis market will be huge one day. Today's demand, black market competition and legislation headwinds will all die down over time. At the end of the day, consumers really like cannabis (almost as much as they like alcohol), and the market will inevitably adjust to win this huge demand. Second, Aurora has a compelling opportunity to be a sizable player in that huge market at scale, both because the company is already very big in the cannabis space, and because they have as much cannabis production capacity as anybody.The intense selling in ACB stock has temporarily paused, and shares are up 7% over the past month for a few reasons. First, the House Judiciary Committee approved the Marijuana Opportunity, Reinvestment and Expungement Act (MORE) Act, taking the U.S. one step closer towards federal legalization of cannabis. Second, Aurora opened a flagship retail store in Edmonton (at North America's largest mall), in a sign that retail expansion is gaining momentum. Third, Ireland approved Aurora's CBD oil drops for certain medical purposes. * 10 Best-Performing Growth Stocks of the 2010s These positive developments will continue to materialize in 2020. U.S. legislation should creep closer towards the federal legalization of cannabis. Demand in the legal Canadian channel should improve, thanks to legal producer's having more capacity, better distribution, an expanded retail footprint and a wider variety of products (edibles and vapes will be huge sellers in 2020). Meanwhile, progress will continue to be made on the international front. All together, the sum of these positive developments should drive a big rebound in ACB stock in 2020. Stitch Fix (SFIX)Source: Sharaf Maksumov / Shutterstock.com % Return Since mid-November: +6% Current Price: $23.38 Long-Term Price Target: $64Shares of personalized styling service Stitch Fix (NASDAQ:SFIX) have multi-bagger potential because this company is pioneering a new way of shopping that could disrupt the huge apparel retail market. The current apparel retail shopping model involves a lot of customer work -- customers have to either go to a website or a store, peruse/try-on different styles, build a shopping cart of items and then do some editing of that shopping cart at the check-out. Stitch Fix is changing the shopping model by taking the customer work out of it. That is, Stitch Fix requires customers to just answer a few questions, from which Stitch Fix personally curates apparel items for customers, and then mails those items to the customers' front doors.Seems more convenient than shopping, right? It is. Sure, it costs more. But, not that much more. If anything has rung true in the internet era, it is that consumers are willing to pay up for convenience. As such, Stitch Fix has a compelling opportunity to disrupt the way consumers shop. If this disruption is successful, Stitch Fix will be a huge grower for a lot longer -- they posted only $1.6 billion in sales over the past twelve months, and apparel retail sales measure $430 billion in the U.S. and United Kingdom alone.And calendar 2020 could be a really good year for Stitch Fix. U.S.-China trade tensions are easing. Recession talk is fading. The global economic outlook is improving. At the same time, labor markets globally remain healthy, with pretty much everyone working and getting raises. All of these dynamics will converge in 2020, and push consumer spending trends materially higher. That will provide a lift to Stitch Fix's operations, and the company's growth trends could improve meaningfully in 2020.As of this writing, Luke Lango was long PLUG, NIO, TSLA, SSI and SFIX. 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 5 Strong Lottery Ticket Stocks That Could Soar In 2020 appeared first on InvestorPlace.
Chinese electric vehicle maker Nio (NYSE:NIO), likely a favorite of the day trading crowd, has been on a roll of late. However, even with its run higher, the company reminds us of the perils of dancing with low-priced stocks. There's a reason markets focus on percentages.Source: Sundry Photography / Shutterstock.com Even with a 6.2% decline on Thursday, Dec. 5, Nio has surged almost 91% off its 52-week low. It has almost doubled in just about two months. But even with that remarkable accomplishment, we're still talking about a $2.20 stock.And shares might not stop climbing. The market is littered with examples of larger companies that have more than doubled this year -- some even have tripled or quadrupled. Of course, with each 100% move, it's plausible to expect that the next one becomes harder.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOne problem is that many novice investors, the types that favor low-price stocks like Nio because they see value, focus more on price in dollar terms than in percentage terms. This is an everyday phenomenon. An unscientific study conducted by Entrepreneur pertaining to ads for a retail sale confirms as much."The results of the test were quite clear. The $50 off coupon generated 170% more revenue than the 15% off coupon, and its conversion rate was 72% higher," according to Entrepreneur.In Nio parlance, this behavior matters because to the untrained eye, the stock looks like a good deal at just under $2.30. But with more scrutiny, it becomes clear asking a stock that's already moved almost 100% to get to $2.50, $3 or $4, is asking a lot. It's Possible, But …Yes, it's possible that Nio will continue rallying. CEO Li Bin recently gave investors reason for optimism, saying "spring is near" for electric vehicles. If nothing else, he has a penchant for adding to the showmanship among executives in the electric vehicle space. See Tesla (NASDAQ:TSLA), and Elon Musk.Of course, "near" can mean a variety of things to a variety of folks. And without Nio's CEO pinpointing exactly when "spring" will arrive for electric vehicles, investors have a right to be skeptical.In fact, some recent data points from the lithium space, the primary component in building EV batteries, suggest it'll be a few more years before EVs can reach all-important pricing parity with internal combustion engine vehicles."According to BloombergNEF, lithium-ion battery prices were priced above $1,100 per kilowatt-hour in 2010, but have now fallen to just $156/kWh," reports Frik Els for Mining.Com. "That's an 87% reduction in real terms achieved -- not just through volume growth in the EV market but also through continued penetration of high energy density cathodes. According to the new energy research firm, by 2023, average prices will be close to $100/kWh, considered by many to be the price point at which electric vehicles reach parity with gas and diesel-powered vehicles. However, prices vary depending on which markets and vehicle segment." Bottom Line on NioGive Nio some credit. It recently launched another SUV and the management team appears audacious. Those are nice traits, but Nio burns tons of cash, about $1.5 billion in 2018 to be precise. This year, the company has sold $950 million in convertible debt, but concerns linger about its cash flow.Another reason to have pause regarding Nio: We're more than two months removed from the end of the third quarter, and while the company has reported delivery figures, it has NOT reported actual financial results.That's not necessarily a cause for alarm, but it's likely to create some uncertainty. Nio isn't in a position to absorb uncertainty.As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Hot Stocks for 2020's Big Trends * 7 Lumbering Large-Cap Stocks to Avoid * 5 ETFs for Oodles of Monthly Dividends The post Nio's Recent Rally Highlights Danger of Low-Price Stocks appeared first on InvestorPlace.
Tesla Inc (NASDAQ: TSLA ) traded up 1.8% Friday on reports that Model 3s produced at its Shanghai plant would qualify for Chinese subsidies. China’s Ministry of Industry and Information Technology included ...
Shares of Nio Inc. rallied 3.7% in active premarket trading Thursday, after the China-based electric vehicle maker disclosed an uptick in November deliveries, to mark a fourth straight monthly increase. The company said it delivered 2,528 vehicles last month, up from 2,526 deliveries in October. Of the total, Nio delivered 2,067 ES6s, the company's 5-seater high-performance SUV, and 461 ES8s, the 7-seater SUV. "In November, we achieved another month of solid delivery results as we expanded our sales network by adding more NIO Spaces," said Founder and Chief Executive William Li. "By the end of November, NIO and our partners successfully opened 37 NIO Spaces in total." The stock has tumbled 18% over the past three months through Wednesday, while shares of U.S.-based rival Tesla Inc. have run up 45% and the S&P 500 has gained 4.6%.
ADR (NYSE: NIO), often called as China's Tesla Inc(NASDAQ: TSLA), churned in strong November deliveries, sending its shares higher. November marked the fourth consecutive month of expanding deliveries following a dismal performance in the summer, when deliveries took a tumble on a host of factors, including weaker domestic macroeconomic condition and a cut in EV subsidies. The turnaround was echoed in comments by William Li, Nio's founder, chairman and CEO, who suggested in late November EV sales in China are on the road to recovery.
NIO Inc. (“NIO” or the “Company”) (NIO), a pioneer in China’s premium electric vehicle market, today provided its November 2019 delivery results. As of November 30, 2019, aggregate deliveries of the Company’s ES6 and ES8 reached 28,743 vehicles, of which 17,395 vehicles were delivered in 2019.
(Bloomberg) -- Cash-strapped electric-car upstart NIO Inc. is introducing its third sport utility vehicle, a streamlined model aimed at spurring demand in China’s slowing EV market.NIO didn’t disclose the price for the electric SUV coupe, which comes with a panoramic-view window and is set to compete against vehicles such as the Mercedes-Benz GLC Coupe and Tesla Inc.’s Model Y. NIO’s existing models are the ES8 and ES6 SUVs, and the EP9 performance car.“Coupes fall in a niche market in China and it’s really hard to position this kind of product,” said Yale Zhang, managing director of Shanghai-based consultancy AutoForesight. “But if they only aim at selling hundreds of cars a month, it should be fine.”The unprofitable carmaker is battling an unprecedented slump in Chinese auto sales, including electric vehicles, as the country’s economy cools. The company also faces intensifying competition from the likes of Tesla and Daimler AG just as some investors scrutinize its funding situation.Backed by technology giant Tencent Holdings Ltd., NIO sought $200 million from founder William Li and a Tencent affiliate -- though hasn’t clarified whether the investment has been completed -- and has also reduced its workforce. U.S. shares of NIO have dropped more than 60% since the company’s initial public offering in New York last year.By the end of the third quarter, NIO had cut its staff to 7,800 from 9,900 in January. Having burned through more than $5 billion in four years, the company failed in an attempt to get local government funding, according to media reports.China’s EV sales have slumped for four consecutive months, while the overall auto market is down in 16 of the 17 past months. That’s impacting fundraising for EV startups in China, according to rival XPeng Motor. China is raising its 2025 sales target for electrified cars as the government tries to spur the industry.(Updates with government sales target in seventh paragraph)To contact Bloomberg News staff for this story: Chunying Zhang in Shanghai at email@example.comTo contact the editors responsible for this story: Young-Sam Cho at firstname.lastname@example.org, Ville Heiskanen, Angus WhitleyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Some of China’s wealthiest tycoons steered billions of dollars into electric-car companies in order to fuel the country’s dreams of becoming a leader in the field. Now a reckoning may be looming as car sales slow and the government reduces subsidies for the nascent industry.That leaves the flagship companies of Jack Ma, Pony Ma, Hui Ka Yan and Robin Li facing an increasingly steep path to profitability on their bets that electric vehicles can be smartphones-on-wheels connecting passengers to other businesses. Their capital, along with dozens of startups raising $18 billion, helped inflate an electric bubble that now looks to be in danger of popping.China’s car market is experiencing a prolonged sales slump, prompting EV makers to slash earnings outlooks. With China considering further cuts to the subsidies for consumer purchases in order to force automakers to compete on their own, a shakeout is looming that not even the tycoons’ support may be able to prevent, said Rachel Miu, an analyst with DBS Group Holdings Ltd. in Hong Kong. “For the new kids on the block in the EV space, it’s a steep uphill climb,” she said.Here’s what China’s richest people have to show for their companies’ EV investments:Alibaba: Xpeng Coupe, AccusationsJack Ma stepped down as chairman of Alibaba Group Holding Ltd. in September after amassing a $40 billion-plus fortune, but China’s richest man retains his board seat -- and influence -- at the e-commerce emporium he created. Alibaba has participated in several funding rounds for Guangzhou Xiaopeng Motors Technology Co., or Xpeng Motors, including one in 2018 that raised 2.2 billion yuan ($313 million) for the carmaker co-founded by former Alibaba executive He Xiaopeng.Xpeng launched its first vehicle, the five-seat G3 SUV, last year and has sold 11,940 vehicles so far this year, according to data compiled by Bloomberg.The company, founded in 2014, also is teaming up with more-established automakers. A factory built with Haima Automobile Co. can produce 150,000 EVs annually. Another should soon begin assembling the P7 coupe, scheduled to begin deliveries next year.The journey hasn’t been without controversy, though, as some engineers bound for Xpeng stand accused of stealing from their ex-employers in the U.S. In March, Tesla Inc. sued a former engineer, alleging he uploaded files, directories and copies of source code to his personal cloud storage account before resigning. Also, a former Apple Inc. engineer was indicted last year for allegedly pilfering self-driving car secrets on his way to an Xpeng job. His trial is upcoming.Xpeng wasn’t accused of wrongdoing.“We are very adamant that we pursue our own R&D,” President Brian Gu said. “Copyright is very important to us.”Hangzhou-based Alibaba, the second-largest shareholder in Xpeng, didn’t answer specific questions about the automaker.Xiaomi Corp., the consumer-electronics company, participated in another $400 million fundraising round, the automaker said Nov. 13.Tencent: NIO Lists, Then CutsPony Ma’s Tencent Holdings Ltd., whose WeChat messaging app helped make him China’s second-richest person, led a $1 billion investment round in NIO Inc. in 2017. With more than 26,000 vehicles sold, NIO’s one of the few Chinese startups making multiple models, and it beat rivals with an initial public offering in New York last year.But losses piled up with the overall sales slump and as the company, which has been described as “China’s Tesla,” plowed money into marketing and real estate. It sponsored a Bruno Mars concert and opened luxury clubs for NIO owners that feature showrooms, coffee bars and performance spaces. By August the company had opened 19 NIO Houses over 22 months, and combined rental expenses were equivalent to 6.3% of revenue during the 12 months ended March, according to Bloomberg Intelligence.“NIO chooses the direct sales mode and pays great attention to user experience,” the company said. It doesn’t plan to close its existing clubs -- or open new ones.NIO lost $2.8 billion in the 12 months ended June on revenue of $1.2 billion, and its shares have plunged this year. The Shanghai-based company cut about 20% of its workforce through September. Separately, NIO has said that Tencent and Chief Executive Officer William Li planned to inject $100 million each into the company, though the carmaker hasn’t clarified whether the investment has been completed.“Our sales have been under pressure since the subsidies went down,” Li said. “It has come to a new era that one can only win customers with quality products and services.”Shenzhen-based Tencent expressed support for EVs but didn’t answer specific questions about NIO.Evergrande: High HopesOne of the more startling entrants in the EV industry is property developer China Evergrande Group, which declared it wanted to be the world’s biggest manufacturer within three to five years. That means surpassing Tesla, which just opened a factory in Shanghai. Between September 2018 and June 2019, Evergrande invested more than $3.8 billion in EV-related companies, according to Bloomberg Intelligence, and will start producing its Hengchi brand next year.Evergrande, which wants to open 10 production bases, plans to spend 45 billion yuan on new-energy vehicles between 2019 and 2021. On Nov. 10, a unit announced it would spend almost $3 billion to boost its stake in National Electric Vehicle Sweden AB to 82% from 68%.Billionaire chairman and founder Hui Ka Yan, who’s diversifying into businesses such as soccer and health care, acknowledged there isn’t much overlap between Evergrande’s real-estate business and its EV ambitions.“We don’t have any talent, technology, experience, or production base in manufacturing cars,” Hui said. “How can we compete with the century-old automakers in the world?”His answer: by opening Evergrande’s wallet.“Whatever core technology and company we can buy, we will buy,” he said.Yet Hui’s whatever-it-takes strategy may take a toll on Evergrande because of the cash-burning nature of NEV investments. The company’s forecast of spending 45 billion yuan is probably an underestimate, and that may exacerbate its cash crunch, according to BI.“This could crimp its home-sales margin given an urgency to sustain price cuts to boost cash collection from sales,” analyst Kristy Hung said in a Nov. 22 report.Baidu: WM Factories, LawsuitRobin Li, the CEO of China’s dominant internet search-engine company, made WM Motor Technology Co. part of Baidu Inc.’s move into autonomous driving. Baidu led a fundraising round this year that generated 3 billion yuan for the Shanghai-based automaker. Baidu owns a 13% stake.WM rolled out an electric SUV last year and has delivered more than 19,000 vehicles, Chief Strategy Officer Rupert Mitchell said. So far this year, WM sold 14,273 of its battery-powered SUVs, according to data compiled by Bloomberg. That puts WM behind market leader BYD Co. -- backed by Warren Buffett -- and NIO, but ahead of Xpeng. WM launched a second SUV model on Nov. 22.WM has an advantage over rivals started by employees from internet companies, Mitchell said. Founder Freeman Shen used to run Volvo Car Group in China.“We are not moonlighters from the technology industry that are having a crack at mass-market automotive,” he said.Volvo parent Zhejiang Geely Holding Group has sued WM, seeking 2.1 billion yuan compensation for alleged copyright infringement, Chinese state media reported in September. WM has denied wrongdoing.WM is producing vehicles at fully owned factories, which helps maintain quality control, Mitchell said. The company, which is opening a second factory next year that can make 150,000 vehicles annually, wants to raise another $1 billion, Mitchell said.Baidu declined to comment.(Updates 16th paragraph to clarify status of NIO investment)\--With assistance from Emma Dong, Tian Ying and Gao Yuan.To contact Bloomberg News staff for this story: Bruce Einhorn in Hong Kong at email@example.com;Chunying Zhang in Shanghai at firstname.lastname@example.orgTo contact the editors responsible for this story: Young-Sam Cho at email@example.com, ;Emma O'Brien at firstname.lastname@example.org, Michael TigheFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Nio (NYSE:NIO) stock has reversed course in recent weeks. The stock had long fallen on mounting losses and slowing sales in the Chinese vehicle market. However, improving conditions and a key partner helped Nio stock to recover.Source: Sundry Photography / Shutterstock.com Unfortunately, NIO remains one of hundreds of electric vehicle (EV) makers in the market. Moreover, the company continues to lose money. Its current stock price makes stock dilution a limited solution at best for more funding. Although the Chinese EV market will likely continue its growth, investors should not assume that the benefits will accrue to Nio stock. The Chinese EV Market and Nio StockTo be sure, EVs look to have a bright future in the People's Republic. Qian Yang, a doctoral candidate in finance at Michigan State University, made two critical points.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFirst, electric vehicles remain a bright spot in the Chinese automotive market. While overall vehicle sales fell by 10.3%, sales of "non-conventional vehicles," which include EVs, increased by 20.8%. * 7 Strong Buy Stocks That Are Bargains Right Now Secondly, while EV sales growth has fallen, a 67% reduction in subsidies is the likely explanation. Yang believes removing subsidies will improve profitability by shifting production more toward premium vehicles. He also thinks more mergers and acquisitions will consolidate the industry and improve efficiency.However, despite optimism about the overall EV market, I have long encouraged investors to avoid Nio stock.NIO is only one of many EV manufacturers in the country. The market had 486 companies in this business as of March. These manufacturers produced nearly 1.3 million EVs in 2018. Of those, Nio made only 11,348 of those cars. Nio stock gets the attention precisely because a Nio stock exists. No other Chinese EV companies have made the effort to launch an initial public offering on U.S. exchanges.Moreover, NIO and its Chinese peers must compete with Tesla (NASDAQ:TSLA), who is building a Gigafactory in Shanghai. Volkswagen (OTCMKTS:VWAPY) has likewise made bets on the Chinese EV market. One cannot also rule out Ford (NYSE:F), General Motors (NYSE:GM), and other large automakers making similar moves. Move Higher Makes NIO a "Lottery Stock"My advice to avoid Nio stock has mostly proven correct. NIO fell deep into penny stock status. Investors also stopped calling it the "Tesla of China" as the equity kept dropping.However, in recent weeks, it has bounced from a low of $1.19 per share. Now trading at about $2.20 per share, investors have bid the Nio stock price higher on signs of optimism.Nio stock bull Luke Lango points to a collaboration with Intel (NASDAQ:INTC) on self-driving cars. He speculates that Chinese EV makers will sell between seven and ten million vehicles per year by 2030. He believes that could amount to annual sales of 375,000 units by that time or 5% of the market.His theory could prove correct. However, given a current market share of 1%, I feel less optimistic. In time, the market will begin to consolidate and only a handful of companies will survive. Where this leaves NIO remains unclear. Analysts predict losses beyond 2021, so I do not know where Nio will find the capital to take over other companies. In the end, investors need to prepare for the likelihood that companies who do not trade on U.S. exchanges may take the lead.Traders should also note that Mr. Lango refers to Nio stock as a "lottery stock" despite his bullish stance. If investors buy into this rally, they should treat NIO as such. Final ThoughtsAlthough it has begun to recover, investors should remain cautious on Nio stock. Industry researchers such as Qian Yang point to a bright future for the Chinese EV market. While I agree with his assessment, this does not necessarily mean that NIO will benefit in the end.At its current price, the cost of one share of Nio resembles the cost of a lottery ticket. If one chooses to spend this money on Nio stock instead, fine. However, much like with lottery ticket money, one should hope for the best but prepare themselves to lose it all. As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Strong Buy Stocks That Are Bargains Right Now * 7 Excellent Bank Stocks Worth an Investment * 4 Small-Cap, Big-Dividend Stocks The post Don't Expect Rising EV Sales in China to Boost Nio Stock appeared first on InvestorPlace.
Benzinga has examined prospects for many investor favorite stocks over the past week. Bearish calls included two leaders in computing and a well-known shoe retailer. Much of the market and economic news was overshadowed this week by drama in Washington, D.C. as the impeachment hearings continued on Capitol Hill, though it was hard to see much of an effect on the markets.
It has been a rough ride for shares of Chinese premium electric vehicle maker NIO (NYSE:NIO) (no pun intended). At one point in time, NIO was being hyped as the Tesla (NASDAQ:TSLA) of China. The company was featured on a 60 Minutes special which shone a favorable light on China's electric vehicle trends, and a particularly favorable light on NIO's competitive positioning in that market. Investors got bullish and Nio stock popped from below $6 in late 2018, to above $10 by March 2019.Source: Carrie Fereday / Shutterstock.com Then reality hit. Specifically, China's economy continued to slow amid escalating U.S.-China trade tensions. As China's economy slowed, so did auto demand. The slowdown in the auto market hit the red-hot electric vehicle space, which had previously been a major growth vertical. By mid-2019, EV sales in China were dropping. * 7 Companies Using Artificial Intelligence to Outperform the Market Against this unfavorable backdrop, NIO struggled to sell its premium EVs. Delivery volumes dropped big. So did revenues. Margins didn't make any progress. Losses piled up. NIO stock tanked from above $10 in March 2019 to just over $1 in early November 2019.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut for the first time this year, there's reason to be cautiously optimistic on Nio stock. Why? A variety of reasons, the sum of which paint a favorable picture of where NIO stock could go over the next few quarters.I think it's time to buy the dip in Nio stock. Sure, this stock is still very risky, but there's a ton of reward potential, too, and with all of the important trends now moving in NIO's favor, it increasingly appears that the potential reward here outweighs the potential risk. Most Trends Are Moving in Favor of NIO StockThe big idea behind the bull thesis on Nio stock today is that all of the important trends surrounding NIO are finally moving in favor of the company.First, China's economy is rebounding. Since January 2018, China's economy has been stuck in a secular slowdown. But over the past few months, U.S.-China trade tensions have eased, and China's economy has begun to show signs of life: consumer sales are stabilizing, Purchasers Manager Index readings are rebounding, and OECD leading indicators for China are improving.The implication? The macro environment for NIO is going from working against Nio stock, to working for Nio stock.Second, Chinese stocks are coming back into favor. From January 2018 to early August 2019, the iShares MSCI China A ETF (NYSEARCA:CNYA) shed nearly 30%. Since then, CNYA has risen more than 10%. As a result, Chinese stocks are coming back into favor, so the macro sentiment headwind which hurt NIO stock over the past two years is turning into a sentiment tailwind.Third, NIO's delivery trends are reversing course. NIO has had trouble selling cars in a slowing Chinese economy. First quarter 2019 delivery volumes came in well below their fourth quarter 2018 total. Second quarter deliveries were less than first quarter deliveries. But, third quarter deliveries came in well above Q2 deliveries, and the most recent October delivery number was the best number seen this year. NIO is finally starting to ramp up delivery volumes behind healthy ES6 demand.Big picture: Nio stock was hit by a plethora of headwinds over the past few quarters. For the most part, those headwinds are now tailwinds. Naturally, this means that the worst may be over for NIO stock. Shares Could Explode HigherIf things do work out for NIO -- that is, if this company can successfully craft an enduring niche for itself as the de facto premium EV maker in China -- then NIO stock could explode higher from current levels should the tide turn.The logic is simple. China is the world's largest auto market. Electric vehicle penetration in China is relatively high, and going higher thanks to legislation promoting wider adoption of EVs and technological advances pushing down the prices. Thus, China's EV market one day will be the largest EV market in the world. If NIO controls just a small slice of that market (the premium end) at favorable price points and margins, then NIO could one day report sizable profits.Here are the numbers: China's passenger car market measures just under 25 million vehicles sold per year. It's growing at a steady 2%-plus annual clip. This growth should persist thanks to urbanization trends across China. China's auto market should measure 30 million vehicles by 2030. Of those approximately 25 million vehicles sold in 2018, a little over a million were EVs, implying an EV penetration of 4-5%. Both of those figures have grown at an exponential rate, and will continue to grow as EV adoption trends gain momentum.By 2030, China could easily be looking at a 25% EV penetration rate in a 30 million car market, implying 7.5 million annual EV unit sales. In 2019, NIO projects to control about 1.5% of the EV market. That rate should grow over time as NIO launches new cars and gains more brand relevance. Assuming even just a 2% share by 2030, that implies 150,000 annual deliveries.Further assuming an average sales price point of $50,000, auto gross margins of 20%, and an industry average 10% opex rate, NIO could very realistically hit 60 cents in earnings per share by 2030. Based on market-average 16-times forward earnings multiple and 10% discount rate, that equates to a potential 2019 price target for NIO stock of nearly $4. Bottom Line on Nio StockNIO stock has been a big loser for a long time. But the fundamentals are improving, as are the optics. As such, it feels like the tide is turning. If the tide does turn, the NIO stock price has a somewhat realistic opportunity to double from current levels.As of this writing, Luke Lango was long NIO and TSLA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Companies Using Artificial Intelligence to Outperform the Market * 7 Earnings Reports to Watch Next Week * 6 Retail Stocks Dropping Hard Ahead of Black Friday The post Cautious Optimism Is Finally Warranted for NIO Stock appeared first on InvestorPlace.
ADR (NYSE: NIO) has been one of the most volatile stocks in 2019 despite the fairly robust performance of the broader market. Nio, invariably referred to as China's Tesla Inc (NASDAQ: TSLA), posted sales in September and October that give Li confidence, especially after weak performance in July and August. "Spring for electric vehicles is near" as more manufacturers are "educating the market" and delivering vehicles in China, the CEO reportedly said.
One of the most basic but useful metrics a stock trader can watch is daily trading volume. Volume is simply the total number of shares that change hands in a given time period. Essentially, volume is an ...
In late September, I wrote a gallery on InvestorPlace.com about "lottery stocks", or high-risk, high-reward stocks with huge long-term upside potential.The theme of the gallery was very simple. It was reiterated by our very own CEO, Brian Hunt, in his October piece on lottery stocks. Investors of all shapes and sizes would be wise to invest some money into a basket of these high-risk, high-reward lottery stocks because doing so is all about risking a tiny bit of money for the shot of making a fortune.Sure, the actual lottery is all about the same thing. Buy a scratch ticket for a few bucks. Have a 0.0001% chance of winning the jackpot. Still, no one would consider this a financially wise decision because the odds of winning are so small.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut, investing in lottery stocks has much more favorable odds … if you do the leg work of figuring out which lottery stocks have the best chance of turning into multi-baggers in the long run.I've done that work for you. I've identified a handful of lottery stocks that have visible and realistic pathways to 200%-plus upside over the next few years. Are they still risky? Of course. But, the risks here are fully compensated by the possibility of huge long term returns. * 7 Strong Retail Stocks to Buy for the 2019 Holiday Season This column examines five stocks deemed worth of the term "lottery stocks," each with a very realistic chance to triple over the next few years. Lottery Stocks That Could Triple: Plug Power (PLUG)Source: Shutterstock Current Price: $3.50 Potential Future Price: $12One lottery stock that I'm particularly bullish on is hydrogen fuel cell, or HFC, maker Plug Power (NASDAQ:PLUG), because this company has a visible opportunity to grow by leaps and bounds over the next few years if hydrogen become a viable second fiddle to electricity in the alternative fuels market -- and that very well could happen.In the alternative fuels market, there are basically two core and competing technologies: hydrogen and electricity. You've heard all about electricity because, at present, it's much better than hydrogen. That is, it's safer, it's cheaper, and it's supported by better infrastructure.But, hydrogen tech has it's advantages. The two big ones? Shorter recharge times and longer range, meaning that hydrogen cars actually save consumers a ton of time. Some consumers really value time. For those that do, hydrogen could become a more attractive alternative fuel option than electricity, especially as hydrogen safety continues to go up and HFC costs continue to come down (both of which are already happening).Given that, here's the bull thesis on PLUG stock. Plug Power is at the epicenter of the HFC market. It's only an $800 million company. Tesla (NASADQ:TSLA), the world's leading electric car company, has a $65 billion market cap. Thus, even if HFC tech only gets to a tenth the popularity of electric cars at scale, one could still very reasonably argue that Plug Power would warrant a market cap the tenth the size of Tesla, or about $6.5 billion, in the future.Indeed, the numbers do work out like that. Plug Power management expects expansion of HFC adoption in core commercial markets to drive big growth over the next few years. Specifically, management is pointing towards $1 billion in revenue by 2024, with $200 million in EBITDA. Is that possible? Yes. If Plug Power does hit those aggressive targets, the numbers shake out for the company to net about $0.50 in EPS by 2024, and likely somewhere around $0.60 in EPS by 2025.Apply a growth stock average 20-times forward multiple to that $0.60 EPS base in 2025. That implies a 2024 price target of $12, which means that in an "everything goes right" scenario, PLUG stock could rally more than 200% from here over the next few years. Nio (NIO)Source: Sundry Photography / Shutterstock.com Current Price: $1.80 Potential Future Price: $14Often dubbed the "Tesla of China", Chinese luxury electric vehicle maker NIO (NASDAQ:NIO) has a realistic opportunity to turn secular EV and self-driving trends into big growth for the company over the next few years.The story on NIO is pretty straightforward. This company was supposed to be just like Tesla. Start with one premium EV. Sell a bunch of those models. Establish strong brand equity. Leverage that strong brand equity to keep launching new, high-demand EV models. Gradually gain share in the huge Chinese EV market, and leverage scale to produce huge profits.Things haven't played out like they were supposed to. NIO started off with a bang, but over the past few quarters, delivery volumes have come tumbling lower, even amid a new car launch, mostly because: 1) there are simply too many EV companies in China, and 2) the EV market in China slowed considerably in 2019.But, given that this company has crafted a niche for itself in the luxury EV market and that the company just announced a strategic collaboration with Intel's (NASDAQ:INTC) Mobileye unit for the development of self-driving cars, there is a possibility that NIO regains its groove over the next few years. * 7 Subscription Stocks to Buy for Long-Term Gains Let's say they do. The numbers here work out so that China's EV market will likely measure around 7 million to 10 million cars by 2030. NIO could control about 5% of the market, implying around 375,000 EV deliveries in 2030. Assuming a $50,000 ASP and auto average 10% operating margins, we could easily be looking at $1.40 in earnings per share. Based on a market-average 16-times forward multiple and 10% annual discount rate, that implies a 2024 price target for NIO stock of $14. Stage Stores (SSI)Source: WhisperToMe via Wikimedia CommonsCurrent Price: $2.20 Potential Future Price: $9.50Struggling department store operator Stage Stores (NYSE:SSI) ostensibly looks like just another retailer that is being made irrelevant by Amazon (NASDAQ:AMZN). But, underneath the hood, Stages Stores is making some aggressive changes, and if they work, SSI stock could be a multi-bagger in the long run.Long story short, Stage Stores has been killed by online retail competition over the past few years. Comparable sales, revenues, and margins have all dropped. Profits have been wiped out. SSI stock has plummeted, weighed by not just an operational crash but also by a heavily levered balance sheet.But, management is finally doing something to right the ship. Specifically, Stages Stores owns both full-price and off-price stores. The off-price stores are doing much better than the full-price ones. Management is now in the process of converting all of its full-price stores, to off-price stores. The result? Stage Stores could look like a mini TJX (NYSE:TJX) or Ross Stores (NASDAQ:ROST) within a few years.Those off-price retail giants have stable sales bases and margins. If SSI's off-price transition works out, that's exactly what should happen. Sales will stabilize, and margins will peek back into positive territory. Making conservative assumptions on both fronts (sales stabilize around their current $1.5 billion base and operating margins move towards 2.5%), then Stage Stores could realistically net about $0.50 in earnings per share by 2025.Based on an apparel retail sector-average 19-times forward earnings multiple, that implies a 2024 price target for SSI stock of $9.50. Aurora (ACB)Source: Shutterstock Current Price: $2.30 Potential Future Price: $16The cannabis market has been under siege recently, amid crumbling demand trends and widening losses. Canadian cannabis producer Aurora (NYSE:ACB) hasn't been an exception to the trend. But, in the long run, Aurora still looks positioned to be an important player in a huge market, and ACB stock is way undervalued today if that reality comes to fruition.There's a lot going wrong in the cannabis market today. Demand is staying in the black market, because the legal market is having trouble keeping up with black market prices (taxes and fees make the legal market cost base way higher than the black market cost base). Legal producers are having to discount their cannabis to compete. The result? Slowing demand and falling margins, a troublesome combination for what was supposed to be a growth industry.But, the core fundamentals here remain favorable. That is, data shows that not only is cannabis consumption on the up and up, but also that young consumers like to smoke cannabis almost as much as they like to drink alcohol. The implication? Once the legal market figures out logistics and pricing, and out-muscles the black market, the legal cannabis market will be very, very big in a decade -- like $200 billion big.Aurora is currently one of the biggest players in the cannabis world. More competition over the next several years will bring Aurora's market share lower. Ultimately, though, this company should be able to nab 5% share in the $200 billion cannabis market, implying about $10 billion in revenues by 2030. * These 10 Stocks to Buy Make the Perfect 'Retirement' Portfolio ACB's gross margins are already at 60%. Opex rates should fall toward more normal 30% levels with scale, eventually resulting in 30% operating margins. That's about $3 billion in operating profits. Take out 20% for taxes. Assume 1.5 billion shares out. Use a price-earnings multiple of 16, which is average for the market. All that math gets you to a 2029 price target for ACB stock of over $25. Discounted back by 10% per year, that equates to a 2024 price target of nearly $16. Stitch Fix (SFIX)Source: Sharaf Maksumov / Shutterstock.com Current Price: $20 Potential Future Price: $64Last, but not least, on this list of potential lottery stocks that could triple is personalized styling service Stitch Fix (NASDAQ:SFIX), a company which could change the entire apparel retail model, and in so doing, become a multi-bagger stock over the next few years.Apparel retail today works like this. You go in a store or to a website. You peruse apparel in different categories, adding some to your checkout cart as you go. At the end of the shopping trip, you pay for the stuff you liked and wanted.Seems simple, right? Sure. But, Stitch Fix is in the game of making it even more simple. Imagine if you could just sign up for a service that had a bunch of personalized stylists, and those personalized stylists did all the shopping for you. All you have to do is answer a few questions, and sit back and wait for the clothes to arrive. Better than that, if you don't like what the stylists picked out, you can send it right back.That's the Stitch Fix model. They are taking the thinking out of shopping so it becomes as easy as just answering a few questions. Sure, it's not for everyone. Some people really enjoy going into stores and doing their own shopping. But, this model unequivocally saves time, and it's also professionally curated, so for us design-challenged folks, it yields better results, too.The implication? It seems inevitable that Stitch Fix's reach across the apparel retail landscape will only grow over time. This is a huge, huge market -- $430 billion in the U.S. and United Kingdom alone. Stitch Fix is a small company -- only $1.6 billion in revenue over the last twelve months. Thus, the opportunity for further growth here is tremendous.All things considered, Stitch Fix should grow sales at a 20% pace over the next several years. During that stretch, operating margins should improve thanks to increased scale. Assuming so, then this company could be looking at $3.20 in earnings per share by 2025.Based on a consumer discretionary sector-average 20-times forward earnings multiple, that equates to a 2024 price target for SFIX stock of $64 -- up more than three-fold from today's $20 price tag.As of this writing, Luke Lango was long PLUG, TSLA, INTC, RJX and SFIX. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best High-Growth Stocks to Buy for Young Investors * 7 Stocks to Buy With Great Charts * 7 Troubled Dividend Stocks With Yields Too Good to Be True The post 5 Lottery Stocks With Triple-Digit Upside appeared first on InvestorPlace.
ADR (NYSE: NIO) confirmed reports Sunday that it has Wei Feng is the company's new CFO. Shanghai-based Nio, which makes the ES8 and ES6 electric vehicles, said Wei's appointment is effective Monday. Wei has about 15 years of experience in the automotive industry, with his most recent position being the managing director and head of auto and auto parts research team at the investment banking firm China International Capital Corp, or CICC.
NIO Inc. (“NIO” or the “Company”) (NIO), a pioneer in China’s premium electric vehicle market, today announced that Mr. Wei Feng is joining the Company as its new chief financial officer (CFO), effective November 18, 2019.
Benzinga has examined the prospects for many investor favorite stocks over the past week. Bullish calls included a couple of software stocks and a mining giant. As usual, Benzinga continues to examine the prospects for many of the stocks most popular with investors.