Dynafire schreef op 16 november 2020 23:32:
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Vorige week op $5,56 ingestapt en vandaag alles de deur uit gegooid tussen $8,65-8,92. Leuke batterijentoko en vliegt mee op de EV hype maar had ook wat dingen gelezen dat het veel gebakken lucht is.
"So what
No earnings. No analyst upgrades. No price target hikes. No news at all that had a direct connection to CBAK that could be credited with lighting a fire under the stock price Monday. So ... what did?
A short squeeze is one theory. According to Nasdaq, there were just under 373,000 shares of CBAK stock sold short at last report. That's only about 0.5% or 0.6% of all shares outstanding, so short interest in the stock isn't incredibly high. Still, investors who have sold CBAK shares short could be hurting in the wake of the stock's previous gains in November -- it's up 228% since the beginning of the month. If they're frightened by the stock's failure to respond to the laws of gravity, "shorts" could have been closing their positions, driving the stock higher as they bought the stock to do so.
Another catalyst potentially working in CBAK's favor -- on Friday, JP Morgan put out a positive note on the health of China's "new energy vehicles" sector, predicting that sales of electric cars, plug-in hybrids, and fuel cell vehicles will grow 43% annually over the next five years. If you assume that all of these cars will need batteries (which most will), and that Chinese automakers might be inclined to buy their batteries from a Chinese battery company like CBAK, then this explosive growth rate in electric car sales might logically spark enthusiasm in the electric car battery stock, too.
Now what
Be all that as it may, the fact remains that CBAK stock's market capitalization just increased by more than $200 million in a single day. Considering that this is a company that brought in barely $24 million in revenue in all of the past year -- and that lost more than $9 million in making those sales, with $16 million in negative free cash flow -- Monday's sharp run-up smacks of irrational exuberance to me.
But then again, I would have said the same thing about CBAK's 55% run-up on Friday, and its 14% run-up on Thursday as well. It just goes to show why investors should be very careful about shorting even the most obviously overvalued of stocks. To quote a much-respected economist: "The stock market can remain irrational a lot longer than you can remain solvent."En weer ontopic, vorige week NIO uitgestapt op 45,65 en zag het daarna weert oplopen naar 52+ (vreemd want eerder waren er echt wel dips, deze liep vrij sterk door). Paar stocks weer opgepakt op 42,68 en vandaag alle cash van CBAT weer in NIO gegooid op $43,78....blijf vertrouwen hebben maar het gaat allemaal wel zeepbelachtig hard O.o
NIO, Li auto en Xpeng tikken nabeurs toch wel hoger.....goed ehoop voor morgen.