Nikola has a long list of promises to meet in order to reach substantial out year revenue targets.
The stock currently has a $15 billion market cap due to 425 million fully diluted shares outstanding.
The company remains a 2024 revenue story.
Investors need to realize Nikola has 200% upside, but the stock has 90% downside risk over the next few years.
As with most IPOs and newly public companies, the initial earnings report is very volatile. The Q2 earnings report for Nikola (NKLA) was no different from the general market despite the unique method of going public via a SPAC. Whether or not to invest in the stock is more related to whether the zero emissions commercial transportation system company can meet staled promises. My investment thesis remains negative on the stock, considering the huge jump in the public float and the massive valuation for a company that hasn't delivered on revenues yet.
SummaryQihoo 360 easily surpassed analyst estimates for Q414.
The Chinese Internet stock continues to trade at a
compelling valuation forecast by one analyst at roughly 9x 2016 EPS
The quarterly report did nothing to alleviate concerns that leave the stock in the value trap position.
After the close on Monday, Chinese technology company Qihoo 360 Technology (NYSE:QIHU)
reported Q4 results that generally smashed analyst estimates. While the
top line growth rate was phenomenal, the lingering issues that sent the
stock plunging from over $120 to below $50 in the last year probably
Camping World announced a major reorg including the hiring of a new CFO. The sudden resignation of the President of RV Operations looks more and more like a personal decision due to a disagreement with the organizational shifts and his new place in the business.
The stock is up about 5% to $12. Considering these reorgs usually occur when business is struggling, the recommendation isn't to jump into the stock on the rip. Continue to use dips to buy Camping World for the long term as 2019 could be another rough year.
The last thing a weak stock needs is an executive departure. Camping World (CWH) is crashing to new lows based on the surprise resignation of the President of RV Operations.
One of the reasons to invest in Camping World was the solid management team lead by CEO Marcus Lemonis and other executives like Roger Nuttall with decades of experience in the industry. Naturally, the market is worried by a surprise move on a Friday evening during t…