|Bid||4.6600 x 38500|
|Ask||4.6700 x 41800|
|Day's Range||4.4600 - 4.7050|
|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||3.72|
Bridgewater Associates predicts gold could spike by 30% to a record high of over $2,000 dollars. World Gold Council Director of Research Juan Carlos Artigas joins On The Move to discuss the outlook for gold in 2020.
December's quarterly earnings report reignited the spark in NIO (NYSE:NIO) shares when it created an electrifying 54%, single-session gain. Since then, we've seen nothing but bullish behavior, with a second jolt arriving yesterday after rumors swirled that the Shanghai-based EV maker would receive a $1 billion cash infusion from GAC Group. NIO stock rallied 14%, with over 236 million shares traded.Source: Carrie Fereday / Shutterstock.com Overnight selling created a down open that has since reversed, driving the NIO American Depository Receipts (ADRs) up 1.86% on the New York Stock Exchange.While there's always the chance rumors prove false and deals fall through, NIO is looking up from a charting perspective. It now looks way healthier than last year and is providing technical reasons for optimism. Nonetheless, caution is warranted because volatility is bound to remain elevated.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLet's take a closer look at the charts. What Does NIO Stock's Chart Say?Normally I'd begin on the weekly time frame before moving into the daily, but since NIO only went public in September 2018, there isn't much of a trend to analyze for a bigger picture. * 10 Cheap Stocks to Buy Under $10 NIO's deathly descent began in earnest last March after its first of many disappointing earnings reports. Since then, it really hasn't given buyers a reason to get involved. Both the magnitude and consistency of the drop warned bulls off and carried shares down around 90% to $1. Click to Enlarge Source: The thinkorswim® platform from TD AmeritradeThe Q4 rebound might have provided some evidence of a turnaround, but only gamblers should have held into the late-December earnings report, given the company's dismal history. Fast forward to today, and we finally have a good looking uptrend on our hands. The dip after earnings was bought at the 200-day moving average, and yesterday's news-driven launch marked the sixth-straight up day.The 20-day and 50-day moving averages are both cruising higher and look better than at any point since last February's failed breakout attempt. Tack on the fact that we're north of the 200-day, and I like the stock's posture moving forward. Key support looms at $3.11, so watch out below if we break it.Volume patterns buttress the bull case with multiple accumulation days cropping up in recent weeks. This groundswell in buying should embolden those banking on higher prices. Two Thoughts for TradesIf you're looking to build a bullish position in NIO stock, I have two suggestions.First, size small enough to ensure you can withstand the outsized volatility. If NIO fails to get the cash influx that it needs, we could see the recent gains rapidly unwind.Second, because I'm not a fan of chasing a stock gunning for its seventh-consecutive up day, consider scaling-in instead. Buy some shares now but leave the door open to buying more at lower prices in case NIO stock pulls back over the coming days.As of this writing, Tyler Craig didn't hold positions in any of the aforementioned securities. For a free trial to the best trading community on the planet and Tyler's current home, click here! More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Up-and-Coming Small-Cap Stocks to Watch * 7 Energy Stocks to Buy on the Resurgence of the Oil Boom * 3 Standout Oil Services Stocks to Buy The post NIO Stock Soars on Rumors of Potential Billion-Dollar Cash Infusion appeared first on InvestorPlace.
Shares of Nio Inc. rallied 1.9% toward an 8-month high in active afternoon trading Thursday, putting them on track for the longest stretch of gains in nearly a year. Trading volume was 79.9 million shares, which makes the stock the most actively traded on major U.S. exchanges. The China-based electric vehicle maker's stock appeared set to snap its win streak at 6 days, as it tumbled as much as 8.8% to an intraday low of $3.91 minutes after the open, before bouncing. The stock has now run up 34.9% during its win streak. Helping propel Nio's stock higher this year was been upbeat December deliveries data, a surge in fellow EV maker Tesla Inc. shares and reports that Nio had secured funding needed for 2020. The stock's win streak would be the longest since the seven-day streak ended Feb. 1, 2019. It has just about tripled (up 199.3%) over the past three months, while Tesla shares have nearly doubled (up 96.2%) and he S&P 500 has gained 10.7%.
Underlining its inherent volatility, Chinese electric vehicle manufacturer Nio Inc – ADR (NYSE: NIO) stock is retreating after Wednesday's 14%-plus rally that took the stock to its highest level since mid-2019. The rally was sparked off by a report in Sina Finance that said Guangzhou-based automaker Guangzhou Automobile Group Co Ltd (OTC: GNZUF) is preparing to invest $1 billion in cash-strapped Nio. GAC confirmed in a communication to the Shanghai stock exchange Thursday that its units and external parties could invest as much as $150 million in Nio.
(Bloomberg) -- Guangzhou Automobile Group Co. confirmed it is in talks with NIO Inc. about an investment in the cash-strapped Chinese electric-vehicle maker.GAC, its units and external parties could invest as much as $150 million in NIO, the automaker said in a statement to the Shanghai stock exchange Thursday. Plans are preliminary and no agreement has been reached, it said, echoing a NIO statement that said the two have explored financial and strategic opportunities.NIO’s shares surged as much as 19% Wednesday following a Sina Finance report that said GAC was preparing to invest up to $1 billion in the maker of ES6 and ES8 plug-in sport utility vehicles. GAC denied the report, saying there was “great uncertainty on whether any agreement will be reached.”NIO has been hit by weakness in China’s overall auto market, cost overruns and recalls. The Shanghai-based company said late last year it was making significant progress toward raising more funds, but it also warned it didn’t have enough money to carry on operating for another 12 months.The automaker’s Chief Financial Officer Feng Wei said on Dec. 30 that a $200 million convertible-bond sale NIO announced in September was almost complete. It received $100 million from backer Tencent Holdings Ltd. and was processing a purchase by Chief Executive Officer William Li.GAC and NIO have an EV joint venture that was established in 2018.NIO’s shares pared their gain to 14% at the close in New York. GAC’s Hong Kong-listed shares fell 3.6% Thursday morning, while its Shanghai-listed stock slipped 1.1%.(Updates with Guangzhou Auto statement in first and second paragraphs, share-price moves in final paragraph.)\--With assistance from Esha Dey, Molly Schuetz and Kevin Miller.To contact Bloomberg News staff for this story: Craig Trudell in New York at email@example.com;Chunying Zhang in Shanghai at firstname.lastname@example.orgTo contact the editors responsible for this story: Craig Trudell at email@example.com, ;Young-Sam Cho at firstname.lastname@example.org, Will Davies, Ville HeiskanenFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
NIO Inc. (“NIO” or the “Company”) (NIO) is a pioneer in China’s premium electric vehicle market. In view of the unusual market activity in the Company's American Depositary Shares (ADS) today and in accordance with its usual practice, the New York Stock Exchange has contacted the Company. The Company responded that it has explored financing and strategic opportunities with Guangzhou Automobile Group, and all commercial discussion remains preliminary and no definitive agreement has been entered into between the parties.
Shares of Nio Inc. soared 13.3% on heavy volume in premarket trading Wednesday, after reports that the China-based electric vehicle maker secured funding needed for 2020. Trading volume ballooned to over 9.6 million shares, making the stock the most actively traded ahead of the open. A report in Sina Finance said the financing is about $1 billion. The stock, which has run up 16% amid a 5-session win streak through Tuesday, is on track to open above the highest closing price seen since May 20. It has more than doubled (up 142.6%) over the past three months through Tuesday, while U.S.-based fellow EV maker Tesla Inc. shares have also more than doubled (up 108.6%) and the S&P 500 has gained 9.6%.
I like to trade assets that move -- and out of all the automakers, Nio (NYSE:NIO) stock is among the most volatile. Last year gave Nio traders heart palpitations. As the share price touched $10, nearly went all the way down to $1 and ended the year around $4.Source: Sundry Photography / Shutterstock.com While General Motors (NYSE:GM) has attempted to make headway into the Chinese automotive market, the biggest threat by far has been Tesla (NASDAQ:TSLA), which I like to call the 800-pound gorilla in the electric vehicle (EV) niche. With such strong and relentless competition, is this really a good time to consider Nio stock?Let's dive deeper.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Challenges for NIO Stock in a Weak Chinese Auto MarketI won't deny that Nio shareholders enjoyed a strong December, and I'll address that momentarily. First, though, I'd like to size up the competition, starting with General Motors. While not concentrating on electric vehicles in particular, General Motors is taking steps to win over Chinese consumers. * 7 Inflation-Beating REITs to Ground Your Income Portfolio The results, it seems, have been unimpressive so far. 2019 marked General Motors' steepest decline in Chinese vehicle sales, and the company expects this year to be challenging as well. Last year was General Motors' second-consecutive year of declines, with just 3.09 million vehicles sold in China in 2019. This represents a 15% drop compared to 2018's sales.Admittedly, General Motors doesn't deserve all of the blame for this. As reported by the China Association of Automobile Manufacturers, the Chinese automotive market is expected to record its third year of contraction in 2020. This includes a 2% year-over-year decline in auto sales this year following a painful 8% decline last year.Lingering trade-war tensions and a struggling Chinese economy are the most obvious culprit here. And these factors will impact Nio along with its chief rival, Tesla. Compared to the EV-focused Tesla, though, General Motors isn't as direct a threat to Nio at the moment. However, GM should remain on every NIO shareholder's radar as a factor in 2020. Tesla Makes a Big Splash in ChinaSpeaking of Tesla, many of you have probably heard about CEO and consummate showman Elon Musk dancing on a stage to celebrate the rollout of Tesla's Model 3 electric vehicles in China. Pomp and fanfare aside, it has in fact been reported that the company's so-called Shanghai Gigafactory is being inundated with orders at a daily rate of over 1,000 Model 3 vehicles.That's all fine and good for TSLA shareholders, but where does it leave Nio? Actually, a recent report from the company suggests that all is well as Nio's December vehicle deliveries increased 25.4% month-over-month.With 3,170 vehicles delivered in December 2019, NIO stockholders celebrated a 22.7% increase in ES6 deliveries and 37.3% increase in ES8s deliveries.While he didn't dance, Nio Chief Executive William Bin Li took the opportunity to vaunt his company's impressive recent performance:"December marked the fifth consecutive month of increasing deliveries for NIO despite the continuous softness of the overall auto industry and in particular, the significant decline of the electric vehicle sales in the second half of 2019."Thus, even with flagging Chinese auto sales and the Tesla threat in effect, Nio's vision remains ambitious and the numbers seem to justify NIO stock's recent recovery. Nio doesn't have the size or the deep pockets of General Motors or Tesla. However, smallness can actually be an advantage because it allows for exponential growth. This factor alone could benefit the NIO stock price if the company's current trajectory of expansion persists. The Takeaway on Nio StockAlthough I won't assign NIO stock a "must-own" rating at the moment, I'm also not prepared to recommend profit taking quite yet as there's likely more upside ahead. Strong competition is a factor, sure. But, given Nio's eye-opening vehicle-delivery numbers and share-price recovery, Erratic Elon might not be the only one dancing pretty soon.As of this writing, David Moadel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Inflation-Beating REITs to Ground Your Income Portfolio * 7 Healthcare Stocks to Buy or Sell As Pricing Pressures Mount * 7 Earnings Reports to Watch This Week The post Can Nio Stock Maintain Its Momentum Amid Fierce EV Competition? appeared first on InvestorPlace.
Shares of China-based Nio Inc. rose 3.9% in active midday trading Monday, putting them on track for a fourth straight gain, as fellow electric car maker Tesla Inc.'s stock broke out to a fresh record high to extend its own win streak. Trading volume in Nio was 38.6 million shares, enough to make the stock the most actively traded on the NYSE. The stock has now rallied 12% during its win streak. The rally comes as Tesla shares shot up 8.3%, to trade above the $500 mark after two failed attempts last week, with Oppenheimer analyst Colin Rusch's boosting of his price target by about 60% to $612 helping ignite Mondays' rally. Nio's stock has more than doubled (up 133.3%) over the past three months, as has Tesla shares (up 109.0%), while the S&P 500 has gained 10.5%.
ADR (NYSE: NIO) shares, which had a turbulent 2019, continue to be volatile in the new year despite reporting strong December quarter deliveries. The shares were experiencing some upward momentum Monday following some positive news on EV subsidies in China. China will maintain its new energy vehicle subsidy this year and will not significantly roll back the benefit in order to stabilize market expectations, Miao Wei, the Chinese minister for industry and information technology, was quoted as saying at an electric vehicle forum over the weekend.
(Bloomberg) -- Shares of electric-vehicle makers including Tesla Inc. and Warren Buffett-backed BYD Co. jumped after the government signaled it won’t continue reducing subsidies for the industry at the same pace this year.Miao Wei, the minister for industry and information technology, told an audience in Beijing on Saturday EV-purchase subsidies won’t be cut July 1, like they were on that date last year. Tesla, which is just starting to deliver locally built cars to customers, saw its stock climb above $500 for the first time as optimism about China combined with a bullish analyst report.“Please rest assured: There won’t be a further cut on July 1 this year,” Miao said in a speech at an industry forum. The audience, which included representatives from major automakers, applauded his statement.Though the minister later clarified his comments, investors and the industry interpreted his remarks as good news for EV manufacturers that were hit by subsidy reductions last year. Sales of new-energy vehicles have dropped for six straight months in China since the government scaled back handouts in July.A few hours after his speech, the minister’s amended statement was aired on China National Radio and the forum’s organizers asked reporters to refer to those comments.“In order to stabilize market expectations, and ensure the industry’s sustained development, subsidies on new-energy vehicles will stay relatively stable this year, and they won’t be scaled back significantly,” the radio station quoted the minister as saying.Shares of BYD and competitor BAIC BluePark New Energy Technology Co. surged by their daily trading limit of 10% Shenzhen and Shanghai, respectively.Tesla rose as much as 5.3% to $503.49 shortly after the start of regular trading in New York. An analyst at Oppenheimer & Co. raised his price target to a street high $612.Chinese electric-SUV maker NIO Inc., which also trades in the U.S., surged as much as 6% to $3.72.The minister didn’t say whether the subsidies will be fully gone by 2021, which is what the government has stated before. Wan Gang, a vice chairman of China’s national advisory body for policy making and an EV pioneer, told the forum that regulators should refrain from making subsidy changes this year so that carmakers can prepare for next year when they will be completely phased out.China, which began subsidizing EV purchases in 2009 to promote the industry, has been gradually reducing handouts in the past few years to encourage automakers focus on innovating and competing on their own.(Updates with Tesla stock milestone in second paragraph)To contact Bloomberg News staff for this story: Tian Ying in Beijing at email@example.comTo contact the editors responsible for this story: Young-Sam Cho at firstname.lastname@example.org, Craig Trudell, Kevin MillerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Tesla (NASDAQ:TSLA) announced fourth-quarter deliveries on Jan.3, and Tesla stock once again defied the critics.Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsAnalysts were expecting 106,000 between the Model 3, Model X, and Model S. Tesla delivered 112,000, a company record. As a result, in the week since, Tesla stock has gained 16% and is closing in on $500.For all of 2019, Tesla delivered 367,500 vehicles, 50% higher than a year earlier. Those are some impressive numbers for a manufacturer that's been written off many times since Elon Musk first invested in the maker of electric vehicles in 2004. Forget All the Arguments Against Buying Tesla StockFirst, the bears argued that Tesla would never make money. Then they made the case that Musk would fail to turn the Model 3 into an everyman's car. Finally, the best argument they can muster is that incentives remain the difference between success and failure. * The Top 15 Stocks to Buy in 2020 My InvestorPlace colleague, Josh Enomoto, recently wrote that even if incentives remain a part of Tesla's selling proposition, consumers are going to continue to get buyer's remorse. That's because the company's vehicles take way too long to repair compared to the typical combustion-engine vehicle.Here's the thing: Tesla, in my opinion, is not going to lose sales because it can't compare to a combustion-engine powered vehicle. It's going to lose sales because other electric-vehicle manufacturers come up with better vehicles. My colleague, Wayne Duggan, points to Tesla's laughable valuation as a reason you shouldn't buy TSLA stock. Up 105% in the past three months through Jan. 8, Tesla is trading at 39 times cash flow. That compares to a price-to-cash flow of less than 3x for Ford (NYSE:F).From a strict numbers point of view, Duggan is right. It's Not About NumbersWatching the devastation that's currently hitting a wide swath of Australia, it's impossible not to think of the environment and what humankind is doing to the planet. And while it's been proven that humans set a significant number of the wildfires, it's also true that 2019 was the second-hottest year on record across the Globe; Australia included. Climate change is real. It might not be the dagger that kills the planet (a war with Iran might do the trick) but it is one of the most critical causes upon which world leaders should focus their attention. So, to say incentives are the only thing that's keeping the Tesla dream alive is mere Poppycock. What's keeping Tesla alive is the fact combustion engines are on the way out. Electric may be surpassed by hydrogen or solar, but it's not going to be surpassed by a demand resurgence for combustion-engine powered vehicles. It's just not going to happen. It's too late. The horses have left the barn. If you're a Nio (NASDAQ:NIO) shareholder, this reality ought to give you comfort. Tesla's faced several cash crunches in the past few years. Thankfully, there were enough investors with a vision beyond the latest quarter to provide Elon Musk with the capital necessary to continue building the world's most innovative automotive technology company. When Ark Investment Management CEO Catherine Wood said Tesla stock would go to $4,000 in February 2018, investors scoffed at the notion. Almost two years later, TSLA is halfway to $1,000, and one-eighth of the way to $4,000.Wood sees beyond the numbers, incentives, and all the other negative commentary that's been said about Tesla. In October, when Tesla's stock was trading around $300, Wood appeared on CNBC's Squawk on the Street, arguing that the shorts are "going to be forced to cover as time goes on."Two-hundred dollars later, it appears she was right on the money. The Bottom Line on Tesla StockIn late November, I said I liked Tesla's chances of hitting $400 early in 2020. It reached this target in mid-December. I should have said it would hit $500 in early 2020. Eight dollars away from $500 as I write this, $600 could come by next summer, but let's not get ahead of ourselves. If you're worried about buying Tesla stock at a top, consider why you're buying in the first place. The only reason to own Tesla at this point is you believe in the electrification of transportation. Everything else is mere noise.Long-term, I continue to like TSLA. 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 * The Top 15 Stocks to Buy in 2020 * The 7 Most Important Companies That Didn't Survive the 2010s * 4 Mega-Tech Stocks Reaching for the Sky The post Here Is the Straightforward Thesis for Buying Tesla Stock at $500 appeared first on InvestorPlace.
When I last weighed in on Nio (NYSE:NIO) it looked as if the company was entering the beginning of the end. Nio stock seemed like the worst buy possible.Source: Carrie Fereday / Shutterstock.com "I'm not a fan of the stock with the EV market pulling back," I wrote. "You can find better opportunities elsewhere at the moment. This slow-motion train wreck will continue for the foreseeable future."Admittedly, I was wrong.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSince my bearish case, NIO shocked the market and exploded from a low of $1.77 to a high of $4.87. All thanks to deliveries that grew 35% year over year, strong earnings, and a forecast no one saw coming. In fact, its net loss for the quarter narrowed to RMB2.52 billion ($352.8 million), or RMB2.48 a share, from RMB2.81 billion, or RMB42.59 a share, year over year. * The Top 15 Stocks to Buy in 2020 Going forward, the company expects to deliver 8,000 vehicles in the fourth quarter. It also expects to post revenue of RMS2.81 billion -- above estimates calling for RMB2.07 billion.However, before you jump on the NIO bandwagon, don't. Even with great earnings, a powerful forecast, and a cooling trade war, NIO is a slow-motion train wreck to avoid. Financial Struggles and Nio StockWhile recent earnings and forecasts are certainty inspiring, it is clear the company is struggling.For one, it may sound exciting to hear that vehicle deliveries are up and increasing, unfortunately, vehicle margins are still sinking. In fact, in its most recent quarter, it was negative 6.8%, as compared to negative 24.1% in the previous quarter.Worse, Nio doesn't appear to be concerned about continuing losses, as noted in a recent statement: "The Company operates with continuous loss and negative equity. The Company's cash balance is not adequate to provide the required working capital and liquidity for continuous operation in the next 12 months."NIO is also burning through cash. In the third quarter, it lost another $352.8 million, dropping its cash balance to $274.3 million. Nio's continuous operation depends on finding ways to finance debt. Nio clearly is spending too much energy just trying to stay afloat, let alone find a route to profitability."The company still has a very real chance of running out of cash. Expectations aside, the Q3 numbers are enormously concerning. The gains of Nio stock price this week look like a near-term short squeeze, rather than a reaction to a change in the long-term outlook of NIO and its shares," says InvestorPlace contributor Vince Martin. China, EVs and Nio StockChina wants EVs to make up a fifth of its auto sales by 2025.To make that happen, China introduced subsidies and tax incentives for the production and purchase of electric cars, as I noted in November 2019. China then started cutting those very incentives because there were far too many automakers.As a result, between July and October 2019, electric vehicles fell 28% year over year."The big drop suggests demand for the new technology isn't strong unless the government is picking up a big part of the tab. Without subsidies, EVs are still priced above conventional cars with similar specifications," says The Wall Street Journal's Jacky Wong.Despite this, automakers are still pumping out more EVs in China, even if it's not a profitable move. That then creates a giant glut, and companies like NIO could suffer.While I was admittedly wrong about NIO immediate-term, the cash crunch, coupled with poor margins could weigh on NIO stock. I'm not so sure NIO will still be around a year from now.You can find better opportunities elsewhere. Avoid NIO's latest rally.As of this writing, Ian Cooper did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The Top 15 Stocks to Buy in 2020 * The 7 Most Important Companies That Didn't Survive the 2010s * 4 Mega-Tech Stocks Reaching for the Sky The post This Revival in NIO Stock Isn't a Signal That It's a Good Buy appeared first on InvestorPlace.
Nio (NYSE:NIO) ended 2019 with a bang, much to delight of reveling bulls as Wall Street said goodbye to an otherwise lousy year. However, a little more than a week into the 2020, is Nio stock going to usher in another headache for investors or are shares in gear for more vroom, vroom price action?Source: Sundry Photography / Shutterstock.com To be sure, 2019 was an ugly year as the Nio stock price cratered nearly 40%. A trade war, mounting losses and problematic debt were standard and problematic features for most of the calendar year much to the chagrin of NIO investors. But just in front of the new decade the Chinese EV maker finally showed signs it could be turning the corner.On Dec. 30, the upstart announced all-around stronger-than-forecast results for its fiscal third quarter. By the numbers, NIO stock easily topped Street earnings estimates by 8 cents on a loss of 33 cents. The beat also reflected a solid improvement year-over-year. Sales grew by 20% and also came in ahead of consensus views.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAdding a bit of high-octane fuel in its own right, immediately in front of the report Nio announced a new battery pack to "significantly improve" the driving range of its vehicles and unveiled its EV coupe SUV, the EC6. The vehicle is Nio third production model and widely viewed as strong competition for Tesla's (NASDAQ:TSLA) Model Y crossover due out in 2020. * 9 Boring Stocks to Buy You Should Never Let Go Of It wasn't all good news for Nio stock however. Executives did acknowledge the company's cash balance of around $275 million isn't sufficient to provide working capital and liquidity for continuous operation over the next year. To say the the least, it's a risk in need of a big-time fix in 2020. Still, after a hard road traveled in 2019 and helped along by some 20% short interest in NIO stock, shares did rocket higher by more than 50% to marginally improve 2019's near-fatal decline. The question now is whether shares of Nio deserve to be parked in your portfolio? Nio Stock Weekly ChartProfitability for a growing company like Nio stock can be overrated. Market leaders Netflix (NASDAQ:NFLX) or Amazon (NASDAQ:AMZN), which faced massive losses during their rise to prominence, are a testament to that notion. But running out of cash and having access to additional capital is obviously a more troubling situation. As much, NIO stock remains a more speculative trading vehicle. Source: Charts by TradingViewBeing a more-fragile risk asset than other companies isn't to say Nio shares are off limits. But buyers of NIO stock should definitely approach and exit positions with extra care. * 7 Stocks That Are Screaming Buys Right Now Following earnings Nio stock has affirmed a minor uptrend off its September all-time low. That's the good news. But a larger downtrend from 2018's all-time high is still intact after being challenged by NIO's recent reaction high. Shares are also overbought and in a risky position. This observation is backed by price action which has pierced Nio's upper Bollinger Band and an aggressive stochastics position that's signaled a bearish crossover.Weighing all of the evidence, I'm willing to give NIO the benefit of the doubt. However, Nio stock isn't ready to be bought just yet. And if more attractive positioning does come about, strict discipline to containing risk needs to be upheld.My advice today is to wait for a more meaningful pullback in the Nio stock price over the next one or two weeks. I'd like to see NIO shares closer to its newly developed "minor uptrend" before a buy decision is considered.Of course, the reality is NIO stock may not offer an entry aligned with this approach. But if shares do continue to pull back constructively within the smaller uptrend, the odds for a much stronger entry are increased in our estimation. And bottom line: buying Nio's emerging trend with this strategy means that a forced ejection below $2.25, if required, won't feel or look like a car wreck in the trading account. Disclosure: Investment accounts under Christopher Tyler's management currently 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, related musings or to ask a question, you can find and follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 of the Strangest Stocks Worth Your Time * 7 Stocks to Buy That Trump's Tax Cut Truly Rewarded * 5 Stocks That Could Double in 2020 The post 2020 is Taking Shape for Nio Stock Bulls Looking for More 'Vroom' appeared first on InvestorPlace.
Penny stocks are almost always high-risk, high-reward investments. Some of them are worth buying because they have visible and realistic pathways to at least tripling.Source: Tinseltown / Shutterstock.com That's why I've recommended some penny stocks before, like struggling department store operator Stage Stores (NYSE:SSI), Chinese premium electric vehicle maker NIO (NYSE:NIO), and hydrogen fuel cell maker Plug Power (NASDAQ:PLUG); all three of those penny stocks are up several times from their 2019 lows.But most penny stocks aren't worth investors' time or money because they don't have visible or realistic pathways to escaping penny-stock status. One such penny stock is Naked Brands (NASDAQ:NAKD), a largely irrelevant, unprofitable, and indebted intimate apparel company. NAKD stock price has dropped from a split-adjusted price tag of over $80 a year ago to under $2 today.InvestorPlace - Stock Market News, Stock Advice & Trading TipsNAKD stock will continue to persistently fall for the foreseeable future because it lacks a clear and convincing pathway to profitability, making the debt load on its balance sheet seem like a ticking time bomb that will ultimately sink NAKD's ship.In other words, there's no reason to buy NAKD stock at this point. Zero is ultimately where this stock will go. Don't try to catch this falling knife on its way to worthlessness. * 8 of the Strangest Stocks Worth Your Time Naked Brands Has ProblemsThere are three big problems with Naked Brands. The first can be summed up succinctly: no one wants to buy what Naked Brands is selling.Naked Brands owns a portfolio of men's and women's intimate apparel brands, including various brands from Heidi Klum, Hickory, Bendon, and others. These brands are largely irrelevant in a a very crowded intimates marketplace that is dominated by L Brands (NYSE:LB), American Eagle (NYSE:AEO), Hanesbrands (NYSE:HBI), and many, many more.During Naked's fiscal 2019, its sales dropped 15% year-over-year, as U.S. retail sales were growing at a steady 3%-4% clip. Through the first half of Naked's FY20, the U.S. retail sales market has continued to grow at a steady 3%-4% clip. At the same time, Naked's sales have continued to plunge, dropping more than 25% year-over-year.In other words, the writing is on the wall for NAKD. No one wants to wear Hickory underwear or Bendon underwear. Considering how small these brands are -- Naked's sales were just $77 million last year -- and also considering how competitive the intimates marketplace is, it is very unlikely that trends will change in favor of NAKD anytime soon.So for the foreseeable future, demand headwinds will continue to weigh on Naked's sales growth. Profits Aren't ComingThe second and third problems with NAKD stock can also be summed up succinctly: Naked Brands won't strike a profit anytime soon, and because of that, the company's high debt will sink NAKD stock.Naked Brands won't be profitable anytime soon. Just look at the numbers. Its revenue is between $60 million and $80 million, with 30% to 35% gross margins, and an annual operating expense rate of about $50 million to $60 million. That combination won't produce profits.In order to become profitable, Naked Brands has to either: 1) essentially double its revenues to $150 million to offset its $50 million in annual operating spending and do so without upping its other expenses, or 2) cut its annual operating spending rate by more than half without losing any revenue.Neither of those things is going to happen. NAKD's sales won't turn the corner because of demand and competition issues. Its expenses won't drop because its management has been unable to cut expenses for several years, and any meaningful cost-cutting today would be accompanied by further sales erosion.As a result, Naked Brands will forever remain unprofitable.That puts tremendous pressure on the company's balance sheet, which features a lot of debt and little cash. Ultimately, if Naked Brands cannot become profitable, debt will sink NAJD, and NAKD stock will drop to zero. The Bottom Line on NAKD StockSome high-risk, high-reward penny stocks are worth buying. NAKD stock is not one of them. The shares of this largely irrelevant, unprofitable, and heavily indebted intimate apparel company aren't worth buying until its management can show that there is a clear and convincing pathway towards profitability and sales stabilization.As of this writing, Luke Lango was long NIO and PLUG. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 of the Strangest Stocks Worth Your Time * 7 Stocks to Buy That Trump's Tax Cut Truly Rewarded * 5 Stocks That Could Double in 2020 The post Continue to Stay Away From Naked Brands Stock appeared first on InvestorPlace.
Chinese electric vehicle startup Nio Inc – ADR (NYSE: NIO ), which is battling both macroeconomic and company-specific issues, is facing competition from U.S. peer Tesla Inc (NASDAQ: TSLA ) as it plunges ...
The US stock market had a strong end of 2019 and was on track for a great start of the year until an escalation of tension between the US and Iran send most stocks lower. Nevertheless, main stock market indexes gained ground last week, with the S&P 500 advancing by 0.42%, the Dow Jones Industrial […]
With Tesla (TSLA) riding on impressive vehicle models and aggressive expansion efforts, it appears that other auto firms are going to have to keep chasing this EV pioneer in the foreseeable future.
(Bloomberg) -- Elon Musk was apparently excited enough about Tesla Inc.’s prospects in China that he was moved to dance, sending the electric-car maker’s shares to new highs.The chief executive officer awkwardly waltzed across a stage at Tesla’s new factory outside of Shanghai on Tuesday during an event to hand over the first Model 3 sedans to public buyers. Musk, 48, also elaborated on previously announced plans to produce the upcoming Model Y crossover at the plant.“Ultimately, Model Y will have more demand than probably all of the other cars of Tesla combined,” Musk said, reiterating a prediction made during the company’s last earnings call. He said Tesla will reveal more in the future about advanced manufacturing technologies the company is applying to Model Y.Tesla shares rose 3.9% to close at a record $469.06 on Tuesday. The stock has surged 84% since Oct. 23, when the company reported a surprise profit and said the Model Y will launch this summer, months ahead of schedule. Its market capitalization is approaching General Motors Co. and Ford Motor Co.’s combined.The kickoff of Model 3 deliveries to local customers marks a major step in Musk’s global push for electric-vehicle domination and heralds what could be the dawn of real competition in the world’s largest EV market. Local production is allowing Tesla to drop prices of the car, narrowing the price premium relative to models from Chinese manufacturers NIO Inc. and Xpeng Motors, and undercutting global giants such as BMW AG and Daimler AG.Musk also said Tesla plans to open a design-and-engineering center in China so that it can eventually develop a new car there.The company named after famed inventor Nikola Tesla, who died 77 years ago today, will now need to avoid a repeat of the glitches it experienced in its original car factory in California. Tesla went through months of what Musk called “production hell” as it ramped up Model 3 production starting in 2017. After consistently falling well short of the CEO’s ambitious targets, the electric-car maker burned through billions of dollars and came within weeks of running out of money.The China plant is already assembling 1,000 cars a week and aims to double that rate over the next year, Song Gang, the manufacturing director at the facility, said on Dec. 30. The company has said it plans to ramp up production to 150,000 Model 3 vehicles a year, or about 3,000 a week, when the first phase of the factory is completed.Tesla plans to boost production capacity to 500,000 a year after the following phase, though it isn’t clear when exactly Tesla expects to achieve those goals.Charm OffensiveMusk’s charm offensive in China has paid off. Originally just a muddy plot about a 90-minute drive away from Shanghai’s city center, the China plant has quickly come online since it broke ground at the start of 2019. It took twice as long for Tesla’s Gigafactory near Reno, Nevada, to begin churning out batteries.Tesla has been winning various concessions from local authorities ranging from approvals to preferential loans — all the more notable given the trade war with the U.S.Various government officials including Mayor Ying Yong and Zhu Zhisong, deputy secretary general of the Shanghai municipal government, were among the dignitaries attending Tuesday’s event. Vice Mayor Wu Qing said at the event that no foreign company has invested in a bigger manufacturing facility in the country.The locally built Model 3 was included last month on a list of vehicles qualifying for an exemption from a 10% purchase tax in China. It also qualified for a government subsidy of 24,750 yuan ($3,560) per vehicle.Price CutsThe subsidies have helped Tesla cut prices, with the company announcing last week it would reduce the starting cost of the Model 3 by 9% to 323,800 yuan, or 299,050 yuan after incentives. Prices could go down further, as people familiar with the matter have said Tesla is considering further lowering the price of the sedans by using more local components and reduces costs.About 30% of the parts now used at the Shanghai facility are sourced locally, and Song, the manufacturing director, said on Dec. 30 that the company plans to increase that to 100% by the end of the year.Those prices put Tesla closer to some models from domestic EV makers, such as Xpeng Motor’s latest P7 sedan, which starts at 240,000 yuan. NIO’s SUVs start from 358,000 yuan, though that price doesn’t take into account subsidies.Volkswagen AG’s Audi plans to start selling nine new-energy vehicles in China during the next two years, with more than half of them being pure battery-electric models. The first electric model, the e-tron, debuted in November at a starting price of about 693,000 yuan.Daimler’s Mercedes-Benz made its EQC available in October starting at 580,000 yuan. BMW plans to start building the iX3 crossover in China next year and is working with a Chinese partner to electrify its Mini model.\--With assistance from Dana Hull.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, Craig Trudell, David WelchFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Nio Inc – ADR (NYSE: NIO ) reported strong deliveries for December on Monday, capping a strong second half of 2019. The Nio Analyst Bank of America Securities analyst Ming-Hsun Lee reiterated a Neutral ...
Shares of Nio Inc. shot up 11% on heavy volume in premarket trading Monday, after the China-based electric vehicle maker reported a 25.4% month-over-month jump in December vehicles deliveries. Trading volume reached 3.7 million shares ahead, enough to make the stock the most actively traded ahead of the open. The 3,170 vehicles delivered last month included 22.7% growth in ES6 vehicles to 2,537 and a 37.3% increase in ES8s to 633. "December marked the fifth consecutive month of increasing deliveries for NIO despite the continuous softness of the overall auto industry and in particular, the significant decline of the electric vehicle sales in the second half of 2019," said Chief Executive William Bin Li. Nio's upbeat results come after U.S. EV maker Tesla Inc reported last week fourth-quarter deliveries that beat expectations. The stock has more than doubled (up 136%) over the past three months through Friday, while Tesla shares have nearly doubled (up 91%) and the S&P 500 has gained 9.6%.
After turning in a strong third-quarter performance that sent its stock soaring by about 54%, Chinese electric vehicle maker Nio Inc – ADR (NYSE: NIO ) reported December delivery numbers on Monday that ...