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I'd give odds you are correct,
about NIO being bought out.
And perhaps AAPL would be the one.
However, outstanding idea IF AAPL IS the one.
AAPL needs to diversify and that would be a good way to do that. And AAPL already has the cash. Imagine what AAPL could do if they provided all the electronics for the dashboard and rear seat entertainment, and all the other various electronic sensors.
I can see it now -- a phased array satellite antenna built into the roof in a way it can't be seen from the street and giving the car worldwide communication everywhere anytime. Well, except when there is a really thick layer of clouds during some thunderstorms (but I know how to handle that, so surely AAPL must also know). If they don't, they should give me a call because what I have in mind would be easy peasy!
Right ...
and the phrase "shorts that control the pps" is not delusional.
The market is a voting machine. Each share, long or short, gets one vote.
About NIO ... Louis Navellier
On May 6, the company reported that it delivered 3,155 vehicles in April, an increase of 105% from March and an 180% increase year-over-year.
Nio also seems to have solved its cash crunch. The company started 2020 with a cash balance of only $161.7 million, but it is getting an infusion of 7 billion yuan ($1 billion) from investors as part of a plan to establish the company’s China headquarters in Hefei.
The Bottom Line on NIO Stock
It’s impossible to size up NIO without considering the competitors. Tesla’s gigafactory in Shanghai makes 3,000 vehicles per week, just a year after the company broke ground.
Ford China launched its first China EV last year and has plans to introduce 10 new models over the next three years.
https://tinyurl.com/y88huvt5
---------------------------------------------------------------------------------------------------------------------
New Energy Vehicle production (by brand) - China April 2020 (source: MIIT)
Tesla: 11,211
BYD: 9,883
GAC: 4,441
FAW-VW: 4,257
Chan'an: 3,656
SAIC-VW: 3,089
NIO: 3,008
Lixiang: 2,893
Brilliance BMW: 2,871
SAIC: 2,547
BAIC BJEV: 2,375
SGMW: 2,030
Weima: 1,802
Great Wall: 1,453
GAC-Toyota: 1,250
Xpeng: 1,235
Geely: 1,093
https://tinyurl.com/ybf3gq3m
---------------------------------------------------------------------------------------------------------------------
Always negative earnings for NIO without own manufacturing plant.
"something will one way or another"
Nothing never happens.
Grasshopper >>>
NIO jumps around a lot, often too high, sometimes too low, but more often than not unpredictably, like a grasshopper in the tall grass seeking to avoid the fisherman's grasp.
It followed a pattern for awhile as it skipped higher along SMA(20). Nobody noticed. Nobody said a word about that -- too busy reading old news and thumping their chests. That would have been a good trade for many, but who noticed? I repeat myself.
NIO's fallen below that SMA(20) for two consecutive days. Only two supports left: SMA(50), SMA(200). I wonder if they will stop the fall.
Patience grasshopper. You jump too fast, too high. Bird going to have you for lunch.
------------
I saw news of one more new electric car manufacturer today. He used to be Musk's chief engineer. He's starting out with the right approach -- building his own manufacturing plant. I reckon he must know what he's doing.
Lucid
Featured snippets from the web:
Lucid Motors (formerly Atieva) is an electric vehicle startup located in California. The company's CTO, Peter Rawlinson, is the former Tesla Model S chief engineer and their first vehicle is an electric luxury sedan to compete with the Model S. The company is financed by several Chinese investors.
Dec 2, 2019:
Lucid Motors breaks ground on its $700 million Arizona factory. Lucid Motors today is breaking ground on its manufacturing facility. Located in Casa Grande, Ariz., the factory will be used to build the Lucid Motor Lucid Air electric sedan. According to the company, production will begin in late 2020.
https://www.caranddriver.com/news/a30534478/lucid-air-ev-deposit-debut/
I've come to think EW is quite flexible.
I actually studied E-Wave quite a bit when looking for trading methods many years ago. To do that I downloaded from a respected E-Wave site all the rules and guidelines as they were originally set.
I thought I could put all of that in Excel. Wrong ... too subjective because of guidelines.
They consisted of 26 rules and 139 guidelines (which aren't really rules). Some rules have sub-rules. Rules are conditional, meaning current (and past) counts may be modified to fit current conditions at any time during a trade.
At that point I decided that's not for me because it's too subjective during any particular trade. And when the trade is done, the published E-Wave pattern is perfect (as there is no record of revisions during the trade).
I wanted something more objective, so what I did after that was to start programming within Excel a set of buy/sell rules (which can be revised over time to make them work better as new knowledge is gained over time, but that might not happen for a year or three). When modifying those rules, I have to backtest them using many stocks and ETFs over all history that I maintain (which would typically be years); and once set, unlike E-Wave they aren't changed during any specific trade.
But I've never gotten around to strictly using that system as designed. It wasn't a waste of time as it did condition my mind to thinking differently.
What I've gravitated to is to buy a stock or ETF (rarely); then within minutes, hours or (very rarely) days, sell Calls against the stock that expire at the end of the week. It's absolutely amazing how well that has turned out -- 100+% returns per year is not difficult. So that's all I do. I'll verify the quality of the stock and make sure it's not a crazy thing, buy the stock, sell the Calls, then go do something else and try not to worry about it ...
Not a big deal, and about time!
My 2-cents worth,
Been labeling this since early March. Since SPX started working higher in March, been waiting for a correction but it seems to not want to do that.
Finally decided the market wants to trade flat near current levels, maybe for a long time. Don't know much about E-Wave but my recollection is that flats can last a very long time. Since I can't strictly draw a flat channel that price wants to stay within, I threw a nearly flat fork at it. I know ... bad table manners.
This continues till it doesn't.
That's fine with me because my favorite method of trading is to buy something then sell Covered Calls against it over and over and over.
NIO correction price destination?
Don't buy till SMA(50) is proven support? Meaning at least a tag.
That SMA has been both resistance then support during much of April and very early May (while that SMA was drifting downward). The good thing is that SMA(50) is now starting to drift upward, so maybe soon the two meet up.
So if you are not long the stock, be patient grasshopper as lower prices might be near, then pounce like a fox.
Depends on what this or that is.
Does this affect that, or does that affect this?
And if one affects the other, does the other affect the one?
My annual return is far better than Cramer's.
Cramer invests. For you, that means he is not a trader. He'll keep stocks for weeks or years.
I am not an investor. I'm a trader. I work a lot more because of that, but I make a lot more because of that.
I almost exclusively do Buy-Writes. You could call my trades CC trades, because that's exactly what they are. It lowers risk because there is a Call on my stock, but there is instant income because of those overhead Calls that I wrote against my stock.
I only enter CC trades on stocks that produce at least 3% income per week (without compounding) by selling those Calls. That's why I don't trade NIO at its current price. NIO could easily trade within a whole week at a price between option strikes, neither one of which will yield 3% while allowing me to hang onto the shares (AKA prevent assignment below cost) at the end of the week. As I've written before, I'll trade NIO when it gets closer to $10/share. Even as low as $8 would work, but I prefer a safety margin.
Well du,
I posted a link only because I was checking out the story. That is not what any person would call a contradiction.
I like to check things out to see if there is any truth in statements being posted.
You got a problem with that?
So is Cramer fickle?
Cramer says he doesn't like NIO then he buys the stock anyway?
He used to joke around about himself in his early days when he lived in a car, and in his more recent days when he often woke up on the kitchen floor next to an empty whiskey bottle.
I don't pay for trading advice.
Well, I'll take that back. I did follow a very good trader for several years as he posted his trades on his personal web site several minutes after entering each trade. The vast majority of his trades were closed at the end of every day. All of his trades were all-in, meaning he used all his cash. Got to have confidence in yourself to do that.
As I recall, his average annual return was about 56% per year, on any year irrespective of the status of the economy. That compounds very quickly to some really big numbers. His blog was free for a few years then he started charging a fee (which I gladly paid as it was only $50 per year, but could be a lot of money if he had only a few thousand followers). Then he changed the structure of the web site, and maybe the fee. I don't remember the rest, as I quit following him many years ago. It could be that he retired early (as he became very wealthy) and quit posting.
Cramer vs. S&P 500: Chasing 'Mad Money'
I don't follow Cramer for good reason.
My trading style is based 100% on a Buy-Write strategy: Buy the stock, sell Calls against it. Wash, rinse, repeat every week. Sometimes twice per week. Last year my gain for the year was a little over 110%.
Now for Cramer. Yes, you get what you pay for.
Cramer's performance: it took Cramer 17-years to double his money. Sorry about not having a more recent plot, but didn't think it would be worth the effort to look for it. Just extrapolate the trend, as Cramer must be pretty consistent.
https://tinyurl.com/yd3bx9tv
Something doesn't smell right.
Cramer is subject to an alert process because he is a public figure on TV, and they (who made that law), don't want Cramer using his notoriety to manipulate any stock that he does own or would own, and I would think that the same process would apply to both buying and selling a stock.
Furthermore, that public announcement -- to make any sense -- should go out to the general public, and not just to those very few who visit a commercial (therefore semi-private) web site with which Cramer has a commercial relationship which only benefits him and his partners.
So, what I'm saying is that I don't buy your reasoning.
Once information gets on your monitor, it's in the public domain because the senders of that information have no control over who gets to see that information once it's been broadcast. Take a screen image of it and post it.
Right ..........
And you want me to believe Cramer is recommending NIO in his private messages. And you want me to think you use the same pseudonym for Cramer's website as you do here. That's not very wise.
The fact is that I did a lot of research on the internet this morning while looking for any statements Cramer made about NIO. And I mean just statements, not recommendations.
Could be he bought NIO shares many months ago when it was trading nearer to $10/sh, and now he regrets it.
Cramer's quote of Feb 6, 2020; not mine:
https://tinyurl.com/ycrpmpgy
Nio: “I like to do more than just dice rolling.”
Where's the link to verify?
I have Cramer saying this about NIO on 02/06/2020:
NIO: "I like to do more than just dice rolling."
https://tinyurl.com/ycrpmpgy
Simple answer ...
No share buyback. NIO issues shares and rights to purchase shares in exchange for funding. Shares don't ever get bought back with that. That funding is used to design, market, build, transport, and sell cars.
NIO has never had profits so the company must continually go out for new funding, and in that process promise shares to the lenders. That is why there are so many shares outstanding, and that will probably grow even larger. NIO already has 1.05 billion shares outstanding!
Meanwhile, I'm quite confident that management is pocketing some pretty big salaries.
That doesn't mean that you can't make money trading the shares, but be very careful what you pay for them. As you are trading NIO shares, think and act like a thief.
As I've written many times, NIO cannot make money as a car company until they can make their own cars. Generating income from dealerships alone does not generate enough income to cover the costs of designing and building and advertising and selling the cars. For NIO to build and begin to operate their own manufacturing facilities, the company will have to go after additional funding and issue more shares -- and that dilutes all previous shares.
While NIO is limping along to get to that stage of owning their own manufacturing plants, other companies are designing and building electric cars in China with the intent of selling those cars in China.
So, what other asset does NIO have?
Answer: Intangible Value.
"An intangible asset is an asset that is not physical in nature. Goodwill, brand recognition and intellectual property, such as patents, trademarks, and copyrights, are all intangible assets."
Not just like TSLA.
TSLA has made huge profits lately, and it's funding was never in question. Neither was it's leadership.
Add to that, when TSLA wasn't making profits, there was no question about TSLA's funding or the reliability/capability of its Founder and CEO.
Shares in circulation, TSLA vs NIO ............
TSLA Float: 147.67M shares
NIO Float: 738.84M shares, sheesh! almost a billion shares! Probably will be a Billion shares after a few more rounds of new funding, as the company is a long way from being profitable.
NIO has a huge float. If NIO ever makes a profit, it gets equally distributed to all those shares. That means that on a per-share basis, any profit gets highly diluted.
But, given that NIO operates in China, when NIO does start to show profits, it will distribute bonuses to all their managers. That's an expense, so there will be little left for the common share holder; you know, like you and all the other common share holders.
How much will be left over for your few shares? I'd bet you never thought about that.
See below the financial performance of TSLA over the last three quarters. There's some big profits there now. Compare that to NIO's.
https://finance.yahoo.com/quote/TSLA/analysis?p=TSLA
Not sure what your point is.
As for NIO, the company has never made a profit, and I have no clue when it will be profitable, so I have to guess that the time of their profitability is somewhere in the unseeable future, and there is no certainty that the company will ever have a profit.
I don't invest in unseeable futures. I would trade NIO, but (as I've written before) I would want it to hold above $8, and I don't see that ever happening (especially now that Tesla has a car plant in China).
And other car companies, based in other countries, also have car plants in China. So there is plenty of competition in China that NIO has to worry about.
As for your comment about pharma companies, it seems I've followed them forever and one reason you don't see many products of penny stocks getting approved is because many of them received drug approvals so their penny-stock history is ancient and you likely wouldn't know that unless you were watching as it happened.
One more thing: that high cost of drug development is often covered by investments made by other pharma companies (and often there are convertible notes attached to a lot of those investments).
Read very carefully.
As I copied from NIO's latest annual report, their reported loss per share of $1.61 is 47.77% of NIO's closing price last Friday.
That closing price was $3.37 according to StockCharts.
Think about what that means the next time you buy NIO shares.
Go to the NIO web site.
Publicly traded Companies will always have a financial link on their web site. Go there. That's where I downloaded the complete report.
Let's not exaggerate.
I'm only suggesting it's important to maximize potential gain while also minimizing potential loss, and do it in such a way that minimizes volatility. That's going to be more difficult with a penny stock but it is achievable.
But there is some good news about NIO that I'm pretty sure you haven't considered: NIO has weekly options every month, and that's very rare with a penny stock. Usually, low-priced stocks only have monthly options. Having weekly options is very important as you can use them more often, and probably gives you a whole set of choices you haven't considered which, if used properly, allows you to reduce risk while increasing potential gain.
So I'll suggest you learn to trade NIO options in addition to the stock.
Let's say the stock has run higher and is likely to trade lower: do you just sell the stock, and hope to buy the stock back cheaper, or do you pout and feel sorry for yourself as you ride the stock back down. What do you wish for at this point? You could choose to sell OTM Calls (or ATM or ITM Calls if you feel more certain the stock will retrace) and get immediate income (that would help offset the drop in stock price); or you could buy Puts as insurance, but it only pays you back if the stock does reverse down and moves far enough and fast enough to cover your cost of the Puts. I’m greedy, so I would sell the Calls. Doing that, the trade now has two legs, and it’s called a CC trade. If the stock really starts to fall, leave the CC trade as is, but buy some Puts (as the Calls you sold gave you at least part of the income to buy those Puts).
Just saying … if all you do is buy/sell the stock, you only have two things to do and the annual outcome isn't certain. Bringing options into your game, you’ll have a half-dozen things you could do to smooth the investment journey out and accumulate more income more safely and with more certainty.
Penny-stock car companies are not worth the risk.
That's because their product costs tens of thousands of dollars to build and the sellers can't mark the price up by integer multiples of their cost and be able to compete with alternatives. So they are stuck with only being able to mark up the cost by fractional amounts.
But with a pharma company, the product is cheaper to produce than the bottle and packaging it's put in. And ... new pharma products can be patented, so there's no competition for 17-years.
It's a no-brainer.
That's what all penny stock traders think...
... it's cheap and I too can become a millionaire.
They see a cheap stock, and love the professionally-prepared advertising; then bingo, they're sucked into buying the stock while the company's high paid managers get rich off their enormous salaries and sub-penny shares granted to them. Eventually most penny stock companies go out of business but none of the upper managers care because they became filthy rich.
In reality, it's only the cheapness of the NIO shares that attract traders, though I should probably add that they also get sucked in by the advertising.
NIO is just another electric car manufacturer of which there are many others, many of which are also building their cars in China.
And it wasn't just NIO that got aid from the Chinese government. TSLA also got Chinese government aid to build their electric car manufacturing plant in China. And so did other car companies moving into China or already within China.
We pretty much do the same thing in this country, but done more on the local city-, county-, state-government basis.
What if ...
you bought the wrong stock by mistake, then decided to keep it anyway?
NIO versus INO ... an easy mistake to make as you enter your trade.
NIO is a car company while INO is a pharmaceutical company that not long ago was a penny stock trading lower than NIO!
Confused?
Because of the flu virus (which is serious business this time around, folks), it would make sense to drop an investment in a car company because it's hard to get people together to build the darn things because of the flu, and potential car buyers may not be able to buy a car now because they've lost their job.
And it might make sense to switch into a pharma company (which may just be working on something that could help squash the flu pandemic).
By accident buy the wrong stock, or do it on purpose, let's see what could happen:
Well,
It's not much of a CwH as it has a large dents in the bottom and the right side and the handle is really crooked, and the whole thing is sloping down from left to right, which a CwH is not supposed to do.
You know, it looks like someone used it as a hammer then drove over it with their pickup.
You might have better luck if you just follow the moving averages.
Doing that, NIO is tracking below SMA(320), and unable to cross over. Then today it dropped below SMA(100) and could easily close that way. And, as the previous two days were both red with sequentially lower Opens and Closes, NIO is officially in a downtrend.
Your first sentence:
HA Sup/Res
For a stock chart showing high counts of support and resistance levels at current prices, I had to use a monthly chart to get an image that could more easily be seen and show their ultimate origin many years ago. That is shown in the top chart. My purpose is to show the historical origin of resistance levels at current price levels. It originated in 2014 and is currently being retested during the last several weeks. It's conceivable that HA will soon trade around that $15 level over the next few weeks. That was my motive to trade HA now.
I wouldn't get all hung up because the latest monthly candle in the monthly chart is red. In my opinion, a monthly chart in a volatile market (the type we're in) is worthless. Depending on choice of self-manipulation, one could look at a weekly chart instead, and it will show that the last week was tall and green. But I don't look at those either.
The bottom line for HA is: for support and resistance levels, one needs to only look back over the last several months. That is shown in the bottom chart.
History tends to repeat itself, so we will have to wait and see if HA will continue rising from here or if it has long-term memory of stalling out at $15, the level it held in 2014.
My personal stock trading method would not suffer from a stalled market (such as shown in 2014). That is because my current trading method is to make continual use of Buy-Writes, a CC (Covered-Call) strategy. That method works very well in stalled markets -- buy the stock, sell its Calls; wash, rinse, repeat every week.
The one thing I don't like about HA? It only has monthly options.
That could very well limit my stay here. While I have years of experience doing weekly CC trades, I have no experience doing monthly CC trades. Maybe the only difference with monthly Calls is that I have more opportunities to trade in and out of those Calls.
Speaking of stalled markets: notice how HA frequently stalls out during most years. That's not good for long-term investors, but it's great for traders.
Long-term price history:
Short-term price history and SR levels (over the last several months):
Airline Comparison
Within all of the airline stocks listed below, only one is trending higher, and that trend is very clear. Which one would that be?
AAL
ALGT
ALK
DAL
HA
JBLU
LUV
SAVE
SKYW
UAL
Give up? Hey, I left a hint.
Answer: HA
Maybe HA stands out because: Hawaiian is the oldest US carrier that has never had a fatal accident or a hull loss throughout its history, and frequently tops the on-time carrier list in the United States, as well as the fewest cancellations, oversales, and baggage handling issues.
https://en.wikipedia.org/wiki/Hawaiian_Airlines
I'll also add that it is uniquely located in a strategic location in the middle of the Pacific Ocean and can most efficiently serve transportation between Asia, New Zealand, and the western United states.
Here's what I would do now:
Well ... on Monday. And it's what I did to get into HA.
It's what I do very often to enter (or continually trade) stocks at lower risk while also guaranteeing some steady income. Of course to lower risk, there is generally a price to be paid which can temporarily limit your gain.
For HA this is a good time to do what I suggest because there is one week left till this month's HA options expiration.
Trade: buy the stock then sell May Calls against all shares. In other words, you want the market to pay you to get into the stock. Doing this, you are getting in cheaper because the Calls are paying you back; but, depending on the strike of your Calls (and what the market decides to do) your stock may be called away at options expiration this coming Friday. That's not necessarily a bad thing, as you will then have the opportunity to (maybe) buy them back cheaper.
A way of eliminating the chance of shares being called away on Friday (but receiving more to enter the trade) is to sell next month's Calls after buying the shares. You'll get a lot more for those Calls because of their greater time value, but you are also increasing the risk that your shares will be called away next month. But that's not so bad after all because you will have a lot more time to trade both in and out of those Calls -- and that can substantially increase your gain over the next several weeks during that process.
I like this Buy-write strategy so much that I do it virtually all of the time. Granted, I miss a lot really great leaps higher in the particular stock I'm trading, but it's made up over time as there is always that steady weekly income from selling Calls (even if the stock does poorly).
The only thing I don't like about HA is that it only has monthly options -- I have a strong preference for stocks that have weekly options because I get to sell Calls more often. But it might turn out that this could work better because there would be more opportunities during a monthly period (compared to weekly) because there would be more time available to flip in and out of the Calls.
So, in case you haven't figured it out, I really like the CC trading process. It's like owning your own company with the advantage that you can write Calls against the shares and its income is your dividend: now you have a pay-your-own-dividend company, and there is no shame in being greedy about that so pay yourself often.
That's a few months old.
Doubt it's worth much as HA has been slowly drifting upward after it hit bottom two-thirds into March. The chart below is one of many comparisons I looked at when determining which airline stock I wanted to trade.
I was trading AAL occasionally early in the year and getting some good trades but left it behind before it made its major decline.
So recently I checked all airlines because if they've bottomed for awhile, that sector could be a good place to enter during its recovery. So I traded AAL once or twice while at its bottom, but concluded it wants to trade flat or even slightly down further, so I decided to abandon that one.
That's when I took another look at a large list of airline stocks as virtually all of them are down from their highs by a ratio of about 3:1. That's when I found HA, and it looked so good that I got on it like ducks on a June bug.
Therefore currently I only trade HA. And as for AAL, I still consider it to be in a very slow decline.
I'll leave that up to you to prove.
Because that's impossible.
There are large numbers of people trading AAL every day.
There are not very many days that more than 90M shares were traded during the whole day. I always us a 1-minute interval on my intraday charts. I see a lot of ups and downs and all sorts of different execution prices all day long.
I made an AAL trade of a large number of shares the other day and I have an application so that I can watch it being handled by the second and I can see the seconds get ticked off as my shares trade hands sometimes at once and sometimes in chunks. The last purchase I made came in 5 chunks as viewed on the confirmation reports (which I always download and save for tax purposes).
Over what time interval?
What stock?
Not AAL.
Just now?
Over how many hours?