Electric Last Mile Solutions Inc (ELMSQ)

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News: $ELMS Buy Rating with 18.00 price target in new coverage by Jefferies



Jefferies was part of the ELMS merger deal and will get incentive shares after the stock has been at 12.00 or higher for 20 out of 30 consecutive post-merger trading days, which is why I've been waiting for the Jefferies coverage as an indicator that it's time for this ticker to start its overall upward trajectory. Warrant shares as well as Jefferies' and other earn-out/incentive shares were registered last Friday, and now that Jefferies has initiated coverage, imo the table is officially set here. The other benchmarks for earnout shares are 14.00 and 16.00 respectively, also with that 20 out of 30 consecutive days provision, and warrants can be exercised at 11.50. Most de-SPACs require an 18.00 pps for 20 or 30 days tor the company to redeem warrants (I believe it's the same with ELMS but don't have the prospectus in front of me - correct me if I'm wrong). At any rate, the big boys don't like to wait terribly long to cash in, so assuming a willing sector/market overall, I think it's likely we'll see an upward trajectory kick in sooner than later to hit that first 12.00 benchmark or higher for a sustained time. No guarantees, but this is how I've played all the good de-spacs - anticipating the channels outlined by these assorted incentives, assuming downward pressure once new shares hit followed by news that kickstarts a recovery, etc. - and it's been lucrative for me thus far.

Just my opinion of course, and there are never guarantees that any stock will perform as expected, as we all know.

H