Opinions
The Panic-Proof Portfolio (Stockchase Research)
Lordstown Motors Corp.
RIDE-Q
PAST TOP PICK
Mar 23, 2021
(A Top Pick Mar 02/21, Down 37.2%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with RIDE has triggered its stop at $13. To be disciplined, we recommend covering the position. We will look for better opportunities elsewhere.
$12.730
Stock price when the opinion was issued
Automotive
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TOP PICK
Stockchase Research Editor: Michael O'Reilly RIDE has the early lead in bringing the world's first all electric commercial pickup truck to market -- targeting September 2021 for the rollout. With only four moving parts and 95% more efficient than traditional engines, it can be a real disruptor in the space. The stock was recently hurt when the US Post Office decided to purchase from another EV manufacturer. However, the Biden Administration executive order to replace all federal vehicles with net zero emissions with parts made in the US will be an opportunity as over 600,000 federal vehicles will need to convert to EV, hybrid, or electrified. The company is not yet profitable, but with over 100,000 pre-orders it is well positioned. We would buy this with a stop-loss at $13, looking to achieve $32.50. Yield 0% (Analysts’ price target is $32.20)
Automotive
DON'T BUY
SPACs recently flooded the market, SPACs that merged with EV companies, but they're now imploding as the market is more skeptical of speculative stocks. A short-teller last Friday accused RIDE's order book of being "largely fictitious" and that a road test of a RIDE car burst into flames. Last Friday, the stock plunged, but bounced partially today.
Automotive
DON'T BUY
A tragic SPAC. They were supposed to make an e-pick-up truck. Great, but then last month a short-seller questioned their order book as largely fake. The CEO failed to answer this accusation and said that they are much further away from production as the public was lead to believe. Managers say they are on track for September, but he doesn't believe them.
Automotive
DON'T BUY
They report Monday. Was a market darling 4 months ago, but the stock has since plunged along with the EV group. Managers got excessively promotional about their pre-order numbers--bad call. He prefers Fisker.
Automotive
DON'T BUY
They report Monday. They're riding on Tesla's coattails, but the market is avoiding these old SPAC plays which burned investors so much in recent months. This stock is down about 70% from its highs. How can they get their mojo back? Maybe they will surprise him.
Automotive
SELL
Allan Tong’s Discover Picks Lordstown Motors serves as a sobering reminder that not every EV stock is a winner, and fads come and go on Wall Street. Sure, electric vehicles are an exciting industry to invest in now. More of these cars and trucks will replace gas-guzzlers and help the planet breathe. If you want EV’s, then look at Ford and GM, and if you can stomach volatility, give Tesla a look. Read 3 Best Tech Stocks to Buy Now for our full analysis.
Automotive