"Corporate disaster" doesn't even begin to describe it... This company's stock is down roughly 97% from its June 2020 peak. That peak happened just days after it went public.
The Power Gauge NEVER Rated This Loser 'Bullish'
By Vic Lederman, editorial director, Chaikin Analytics
"Corporate disaster" doesn't even begin to describe it...
This company's stock is down roughly 97% from its June 2020 peak. That peak happened just days after it went public.
Now, the company's CEO is stepping down...
He said it's for a "family health matter." And sure, that could be the reason. I don't want to speculate on his personal life.
But notably, he has only held the CEO position for about seven months. And the company is now on its fourth CEO in three years.
In a desperate attempt to raise cash, the company plans to issue new shares. Worse still, the company is suspending production on the technology that blasted it to fame...
It will now focus on another, dramatically different technology as its core product. It hopes to start delivering that product later this year.
Not surprisingly, the company is laying off workers and cutting costs. It eliminated 270 jobs in June. And it also liquidated a recent acquisition for the now-abandoned technology.
Folks, this situation is about as bad as it gets. But as crazy as it might seem, along every step of the way... investors kept clinging to the dream this company sold.
You see, the company we're looking at today operates in one of the market's most passionately debated segments – electric vehicles ("EVs").
Some people couldn't see beyond the hype of EVs. The promise of the technology blinded them from this corporate disaster.
But the Power Gauge wasn't fooled. Through all the twists and turns over the past few years, our one-of-a-kind system never assigned this company a "bullish" rating.
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It's not Nvidia (NVDA), Meta Platforms (META), Alphabet (GOOGL), or Amazon (AMZN). But thanks to a recent major deal, an under-the-radar stock could become the No. 1 winner of the 2023 artificial-intillegence ("AI") boom. "This company just teamed up with one of the biggest power players in the AI industry... yet you can still buy it for just one-twelfth the price of Nvidia – the time to buy is NOW," says Marc Chaikin. Click here for the name and ticker.
If you haven't guessed yet, we're talking about electric-truck maker Nikola (NKLA).
Nikola came to market with grand plans to bring heavy-duty electric trucks to the market. And investors loved the idea...
The company soared after it went public – for a few days, at least.
Of course, if the Power Gauge was a momentum-only system, Nikola likely would've earned a "bullish" rating at that point. But remember, our system gives us the full picture...
The Power Gauge looks at 20 distinct factors in four different categories – Financials, Earnings, Technicals, and Experts. Because of that, it's not persuaded by emotional appeal.
More specifically, the Power Gauge knew something was wrong right away. Take a look...
As you can see, Nikola only mustered a "neutral" rating when the Power Gauge first graded it in July 2020. And before long, the Power Gauge turned "bearish" on the company.
That doesn't surprise me. After all, the U.S. Securities and Exchange Commission and Department of Justice came knocking at Nikola's door a few months later...
Their investigations into the company started in September 2020. And by July 2021, they had indicted the first CEO, Trevor Milton, for lying about "nearly all aspects of Nikola's business."
Today, Milton is a convicted felon. He's scheduled to be sentenced next month.
With all that said, it might seem beyond obvious that Nikola doesn't deserve a "bullish" grade from the Power Gauge. And I didn't even mention that the company recently reported a potentially intentional fire at its headquarters in Phoenix.
But look back at the above chart...
Each day that Nikola's share price stays above zero is another day that an unsuspecting investor believes an opportunity still exists. You don't want to fall into that trap.
The Power Gauge knows better. In fact, it knew from the outset.
Good investing,
Vic Lederman
Market View
Major Indexes and Notable Sectors
# Hld: Bullish Neutral Bearish
Dow 30
+1.13%
14
13
3
S&P 500
+0.87%
182
245
72
Nasdaq
+0.85%
56
37
6
Small Caps
+0.07%
603
969
369
Bonds
-0.98%
Communication Services
+1.55%
10
7
3
— According to the Chaikin Power Bar, Large Cap stocks and Small Cap stocks are Bullish.. Major indexes are mixed.
* * * *
Sector Tracker
Sector movement over the last 5 days
Financial
+0.17%
Health Care
-0.16%
Discretionary
-0.25%
Energy
-0.53%
Staples
-0.65%
Industrials
-0.77%
Communication
-0.96%
Real Estate
-1.70%
Materials
-1.87%
Information Technology
-3.76%
Utilities
-4.61%
* * * *
Industry Focus
Oil & Gas Exploration & Production Services
16
34
7
Over the past 6 months, the Oil & Gas Exploration & Production subsector (XOP) has outperformed the S&P 500 by +0.03%. Its Power Bar ratio, which measures future potential, is Strong, with more Bullish than Bearish stocks. It is currently ranked #11 of 21 subsectors and has moved up 2 slots over the past week.
Top Stocks
SWN
Southwestern Energy
CHRD
Chord Energy Corpora
CIVI
Civitas Resources, I
* * * *
Top Movers
Gainers
MNST
+6.13%
BKNG
+5.87%
CCL
+5.13%
GEN
+5.08%
URI
+4.46%
Losers
MRNA
-6.46%
TSN
-3.83%
ENPH
-3.25%
GNRC
-2.93%
HSIC
-2.84%
* * * *
Earnings Report
Reporting Today
Rating
Before Open
After Close
FOXA, J, NRG, OGN, UPS
AKAM, EXPD, TTWO, ZTS
BR, FLT, LLY, WYNN
DUK, SEE
AXON, DIS, PODD
No earnings reporting today.
Earnings Surprises
TSN Tyson Foods, Inc.
Q3
$0.15
Missed by $-0.11
IFF International Flavors & Fragrances Inc.
Q2
$0.86
Missed by $-0.25
CTRA Coterra Energy Inc.
Q2
$0.39
Beat by $0.06
BRK.B Berkshire Hathaway Inc.
Q2
$4.62
Beat by $0.63
SWKS Skyworks Solutions, Inc.
Q3
$1.73
Beat by $0.06
* * * *
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