Stephen Takacsy, B. Eng, MBA
The Lion Electric Co
LEV-N
WEAK BUY
Jan 30, 2023
Leaders in their field and have a huge backlog, but they're losing a lot of money, since it's a capital-intensive business. They recently raised some money, with Power Corp investing half that. If they keep growing at this rate, they will continue to need capital. If you believe in EV's, you have to be in for the long term. Not a bad time to buy it now, but risky.
Not in his tech fund; owned by individual clients. Good story, but it's gone into freefall. If you own it, hang on for dear life. Don't buy it down here. When it goes through $15, that will tell you the bottom has arrived.
Based in Quebec, this maker of electric school buses and heavy trucks trades both on the TSX and Nasdaq and is a favourite of Mad Money's Jim Cramer. Lion has been on a roll so far this year. In January, Amazon ordered 2,500 trucks from them to be delivered over the next four years. Last month, Lion entered a credit deal worth US$100,000,000 involving National Bank among others, that will enhance the company's liquidity. At the same time, PEI ordered school buses from them.
An overvalued EV stock. You don't know how high these stocks can go, especially when they're getting big orders. Innovative. Hard to value at this stage. Tremendously volatile. If things slow down, could get hit hard. Future looks bright.
The stock was one of the high flyers with other electric vehicle makers in Q1. Went public via SPAC. SPAC companies are often not great businesses in early days. There are no earnings. Stock price momentum has been weak. No earnings. Volatile.
Again, we're in a bear market. Story stocks do not do well. He'd put EVs as story stocks. These companies have caught everyone's imagination, but there's a lot of winnowing to do.
Leaders in their field and have a huge backlog, but they're losing a lot of money, since it's a capital-intensive business. They recently raised some money, with Power Corp investing half that. If they keep growing at this rate, they will continue to need capital. If you believe in EV's, you have to be in for the long term. Not a bad time to buy it now, but risky.