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Why hasn't Tesla rebounded? Or NIO? Seems like the whole EV sector is extremely cheap right now.
Look around, it can't be the war and inflation causing it, can it?
It definitely is. They won an award at the L.A. auto show. Definitely points to a scam.
It's a good thing the loan isn't approved yet. I already knew that When it's announced, the shorts will get fried.
And I know they can get their 100 back. But not many are going to put down a deposit unless they are serious about a car. Plain and simple.
And the way gas is going, even more likely.
Some dilution is fine. But it's not dilute, dilute, dilute as shorts are claiming. If they diluted that whole 228 million shares starting from the top, they would easily have 1 Billion in cash now. I doubt they have 1 Billion, and I also doubt they are diluting under 1.00.
I don't need to see bolded unlinked information. LOL. I believe they have pre orders for 25,000 vehicles. 5x the example
we can look at the valuations of other EV companies and (taking out Nikola), they trade at an average of 7.1 times 2021 sales. If Mullen can produce and sell 5,000 MX-05 SUVs at $55,000 per car that is revenue of $275 million and 200 Dragonflys at $150,000 add another $30 million. This adds to a conservative $305 million. 7.1 times that is an enterprise value of $2.2 billion by 2023. Keep in mind the company should need at least another $400 million to get there and we expect much of that could be loans.
https://finance.yahoo.com/news/nete-net-element-mullen-4-094100433.html?fr=sycsrp_catchall
Many sites are confusing Mullen with the other company. Even OTC markets still lists the other companies name
Private companies don't do reverse splits. LOL. The whole purpose to do a reverse split is to either get listed on an exchange or to stay on an exchange.
This is the Esousa deal. It says nothing about their friend businesses allowed to also own 9.9% of the stock as the bogus video said.
It also doesn't say they are allowed to short. It doesn't say they can't short. But the bogus video was claiming it said they are allowed to short the stock.
On September 1, 2021, Mullen Technologies and Esousa Holdings LLC (“Esousa”) entered into a Securities Purchase Agreement (the “Equity Line of Credit”) whereby the Esousa Holdings, LLC committed to purchase up to an aggregate of up to $30,000,000, or $2.5 million per month, in Common Stock over a twelve-month period. At the effective time of the Merger, the obligations under the Equity Line of Credit were assumed by the Company.
The number of shares of Common Stock issued by the Company at each draw down date is calculated by multiplying 125% by the amount of each draw down (up to $2,500,000) and then dividing by the closing sale price of the Common Stock on the principal securities exchange or trading market on which the Common Stock is listed or trading on the trading day immediately prior to the draw down. The number of Common Shares issued is then subject to adjustment and will be issued at a purchase price per share equal to 95% of the dollar volume-weighted average price per share of Common Stock during the ten trading days following the draw down date.
As a condition to the obligation of the investor to fund the Equity Line of Credit, the Company must file an SEC registration statement covering the sale of the Common Stock issued under the Equity Line of Credit and such registration statement must be declared effective. The Company shall not issue any Common Stock under the Equity Line of Credit if that would result in Esousa’s beneficial ownership equaling more than 9.9% of the Company’s outstanding Common Stock.
Complete bogus. Many companies do reverse mergers to get listed. That's not the same thing as having to do a Reverse split due to operations .
Even Mindmed did a reverse merge to get listed on the Nasdaq.
6 years? My ass.
This company was private and went public on the Nasdaq Nov 5th 2021. LOL
Yeah you know what you are talking about. LMAO
100% you are wrong.
I am certain someone shorted in the .50 range and is now down hoping he gets his money back. LMAO
Don't worry, when I am done buying I will be glad to disclose my position with a screen shot .
That video is blatantly bogus. The shorters will try anything
Even though this stock has been blatantly illegally
shorted, some of this downfall is just because of market conditions. You have to add that in. The Nasdaq is down 20% from it's highs. All EV stocks are down. Even Tesla.
Shorts want you to sell your shares so they can cover. Otherwise there are no shares to cover. That's why they are so desperate.
Why are longs desperate? They can hold 2 or 3 years or more. It's the shorts that are desperate. They will be forced to cover.
I personally just started buying on Friday. I am certainly not desperate. LOL. That doesn't even make any sense.
I am desperate but I am buying? LOL
Definitely holding a minimum of 1 year for long term capital gains. Will never sell all my shares because this company will be growing for years. I will keep adding shares until the stock is back over 1.00
To be real, the last two months, almost every stock looks like that.
https://ih.advfn.com/stock-market/NYSE/nio-NIO/chart/trading-view
I am buying more, thank you very much.
Fake news. Please read the real news and not the nonsense.
https://news.mullenusa.com/mullen-automotive-strengthens-balance-sheet
How much is the Dragon Fly? I didn't see the price on the website.
That's probably where the dilute, dilute, dilute comes from. LMAO. Some probably think the whole chart belongs to Mullen. LOL. They took over this ticker in Mid 2021.
You do know that anything prior to 2021 is meaningless, right?
It would be hilarious if this was being shorted so much because shorts were looking at a chart for the most part that had nothing to do with this company.
Makes it a once in a decade buy for longs.
The stock gets diluted and R/S time and time again? LOL. Complete Lie.
Generally when you invest in a company you want it to go up.
.
I laid out the explanation with fundamentals that even in the worst possible scenario that they diluted all 228 million shares, the stock should still be over 1.00.
Robin Hood does 1.2 Billion in Revenue and still loses money and still has a market cap of 9 Billion.
So If Mullen has 1.2 billion in pre order sales, what will the market cap be? If it's anywhere close to Robin Hood, that would be a 270.00 Stock. Even if they diluted 500 Million shares, that would be an 18.00 stock.
So even your dilution claims is meaningless.
Every sector is down except for Energy, cyber attack stocks, and maybe healthcare.
The company can still make it. As long as they are still growing at the pace they are. The problem is with the convertible debt expiring in Sept, there is a high probability there will be a 1 for 10 reverse split. They have 180 days from the time they get a 30 day delisting notice to get the stock price up.
There is also the possibility they could file an extension which would go longer than 180. But that's a case by case situation granted by the Nasdaq.
I am definitely going to look at that one. Book value is 3.15. You rarely see a stock that's lower than book value as well.
Wow. Thanks for that link. Back the truck up. It doesn't get any clearer than that.
Not likely they are diluting much with a 450 million dollar loan.
Since they have already raised 40 Million since February 7th. Not likely a lot of the 228 Million shares have been tapped into. At the very least we can say they have 40 million in cash and not 0. LOL
https://news.mullenusa.com/mullen-automotive-strengthens-balance-sheet
I will tell you how many shares I own when I am done buying.
We know they sold 10 Million shares. Should be a minimum of 50 Million in the bank at the time they sold .
Ouch convertible debt at .80. Now going into toxic financing. I am glad I bailed at 1.01. Unless they do something fantastic, practically guaranteed a reverse split will happen here.
Yeah I read the 8-k, did you? LOL
OTC markets updates regularly. I watched OS go up in Lightwave daily when they were diluting.
They are updated to 34 Million. If there was more dilution, it would have updated by now.
Yeah I will bet you they won't dilute 465 million shares. LOL.
Well maybe Elon Must isn't that low to short this. But the CEO of Mullen should raise hell like Elon musk did.
https://www.cnbc.com/2022/02/23/elon-musk-cheers-on-justice-department-probe-of-short-sellers.html
I don't think so. I am not saying there was some dilution. But is mostly naked shorts. otherwise, like I said, they would have 1 billion in cash by now. Even if they diluted to 200 Million shares, that would be a 5.00 stock price at the minimum.
And it would be tough for me to believe they are diluting under 1.00. Also the OTC markets website is really good at keeping up with Outstanding share counts. Even with higher exchange companies. The outstanding share count is still 34 Million.
Another thing is the company put out a PR and said they have no idea why the stock is dropping. If they were diluting, they would have kept quiet. Most companies don't say anything.
There will definitely be a squeeze. But the company has to release some news to trigger it.
I can prove to you this is not dilution. 146 Million shares short? 104 Million shares short?
https://www.nakedshortreport.com/company/MULN
think about it. There are only 35 million outstanding shares. Let's assume they diluted 100 milllion shares just for shits and giggles starting at the point of 13.00. At 1.00 alone that would be 100 Million dollars. So everything above that would increase their cash big time.
So there is no question these are fantom shares. You can't trade 131 million with only 35 million outstanding. And even if you added 100 million shares, they still traded the outstanding shares.
Crazy. I have never seen anything like this.
With this kind of volume. It will only take one day to get back over 1.00.