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I appreciate the enthusiasm of the bulls, but there is too much publicity in Nikola (NASDAQ: NKLA). To a large extent, there is still too much publicity. Nikola’s inventory jumped above $90 in line with a steady percentage in June, as investors continued to offer the up-buying option.
With an inventory of more than $90, the company’s market capitalization exceeds $25 billion. I’m sorry, but it’s natural madness. I am totally in favor of opening markets and allowing valuable discovery to take place naturally, but $25 billion for a company without the basics is ridiculous.
With Nikola’s stock, we don’t even have sales!
Nikola’s inventory was not made public as top investors know. Typically, a company makes an initial public offering public, where it increases the budget directly and records its inventories on the stock market.
Instead, Nikola opted for a special target acquisition company (SPAC). It’s a bit like an IPO but without the fanfare that drove it. Essentially, acceptance is formed as true and shares are presented to the public, and profits are used to complete a merger or acquisition.
We’ve noticed an agreement with DraftKings (NASDAQ: DKNG) and the concept continues to grow.
“It will be operational in 14 months and will produce zero-emission semi-trailers outside the meeting line,” he said.
If so, congratulations to Nikola. In the meantime, it is hard to believe that this name has been given too high a price. See how long it took Tesla (NASDAQ: TSLA) to gain ground.
Of course, a market capitalization continued to increase by $300 billion after a serious wave of momentum. But how many Teslas can the market have? Perhaps Milton and company have the “musk factor,” which is helping boost the percentage price. But without genuine sales, no profits, and with the sum of expenses, there is a negative money stream.
Years of operation, Tesla has built the most impressive electric vehicle platform available. But this still doesn’t produce normal automotive gains. All businesses must start somewhere and I salute Nikola’s efforts. I hope it’s over. But that doesn’t mean it’s an investment for everyone.
I’m not saying this to recommend that Nikola Stock be some kind of fake biotechnology. He has serious prospects if he overcomes a number of obstacles and achieves his goals in the future. Your trucks look great, however, you have to build your factory on time and pull the trucks off the lines while managing your money flow well.
Participation in specifications is one that, in my opinion, has the moderate prospect of being a big winner in the future. But also one that has binary elements, in the sense that it will be a wonderful good fortune or a great failure. Clearly, those who allocate the budget to the specification assets expect it to be the first, not the second.
As far as Nikola’s percentage value is concerned, the percentages have cooled considerably. After recovering $15 in May, the percentages temporarily reached $93.99 in early June. However, July another story.
A $30 breakout puts $20 and the 200-day moving average at stake. At least I’d expect a rebound from this logo if it materialized.
Bret Kenwell is the manager and future Blue Chips manager and is on Twitter @BretKenwell. At the time of writing, Bret Kenwell did not have a position in any of the above values.
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