Hey traders, Lance Ippolito here! Welcome to our Weekly Rundown, where we’ll share some of our top trading ideas — and our biggest winners!
The bears were out in full force this week, taking aim at a small-cap electric vehicle stock that at one point was in the running for a huge government contract.
It was less than a year ago when Workhorse Group Inc. (Nasdaq: WKHS) was bidding for a contract with the United States Postal Service. Its goal was to be the supplier of the new electric fleet of mail vehicles as President Joe Biden aims to go green.
Oh, how quickly they fall…
Since the announcement that the USPS would instead go with defense contractor Oshkosh, Workhorse has been in a bit of a slide.
Last month, the company announced it already needed to redesign its new C-1000 van. It then named a new CEO, Rick Dauch of auto supplier Delphi… but then its general counsel and vice president of finance left.
Now, in the middle of a legal battle with the USPS to overturn its February decision, Workhorse has come under investigation by the SEC.
The hits just keep coming.
Workhorse and Other Small-Cap EVs the Newest Target of Short Sellers
A short report was released this past week that contained allegations against the EV company, claiming its vans were already breaking down for some big-name customers like Ikea.
Making matters worse, that short report also alleged that Workhorse touted fake preorders, committed accounting fraud and hid an SEC investigation from its investors… ouch!
So it didn’t surprise me when I saw the stock sink 9% as more than 14,000 contracts traded in the Sept. 3 $9.50 strike puts on Wednesday.
Other small EV stocks took big hits as well…
But none so big as Workhorse and Rivian — which is set to go public with a $70 billion to $80 billion valuation — after Tesla Inc. (Nasdaq: TSLA) CEO Elon Musk took a shot at it on Twitter, saying “Don’t want to be unreasonable, but maybe they should be required to deliver at least one vehicle per billion dollars of valuation before the IPO?”
I mean, I certainly don’t see any Rivian trucks on the road…
So if you have to play EV stocks, stick to the girl you brought to prom. Stick to the names that work and have products to sell right now... Tesla, Nio Inc. (NYSE: NIO), Xpeng Inc. (NYSE: XPEV)... and of course, good old Ford Inc. (NYSE: F).
You know… companies that actually have cars on the road.
First on the list this week we have Albertsons Companies Inc. (NYSE: ACI), which saw big repeat call buying on Wednesday as traders stuffed their carts full of the $30 and $31 strike calls. ACI shares spent the past five weeks rallying from $20 to $30, and buyers were looking for more upside.
Grocery names are usually defensive bets, as no matter what happens in the economy people still need groceries and stuff from these stores. So when things get rough, the bulls head for the bread and milk!
On Thursday, the shares saw a massive spike in volume that shot them over 9.5% to the upside. That was more than enough to help Weekly Blitz Alerts cash in the September monthly $30 strike calls.
That’s a 73.68% win in less than one day in the market — BANG!
+73.68% on the Sep. 17 $30 CALL.
Entered on Sept. 1 at $0.95 a contract.
Exited on Sept. 2 at $1.65 a contract.
From Aug. 11-17, Elanco Animal Health Inc. (NYSE: ELAN) saw three major stock buys from company insiders. First on Aug. 11, ELAN CEO Jeffery Simmons dropped over half-a-million bucks of his own money to buy the stock at $29.70 per share. That was quickly followed up by purchases from two other board members for a grand total of nearly $900,000. You love to see the people who know the company best put this kind of skin in the game!
The stock gapped down Aug. 9 and the insider buys gave some much-needed momentum. With the gap already starting to fill, 3D Profit Surge Alerts members got the nod to jump on the October monthly $32 strike calls. That momentum carried over into Monday’s trading, with shares gaining over 6% from the buy signal and the options surging to a 50% win!
If you’re looking for more compelling trade ideas and stock market musings to read and help you prepare for what lies ahead, here’s what other experts at WealthPress are saying:
Disclaimer & Disclosures The information in this email is intended for informational purposes only and does not guarantee specific results as there is a high degree of risk involved with trading. Also, our traders are real traders and may have financial interests in the companies discussed. Please see our Terms and Conditions for more information.
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