by Ian Harvey
February 27, 2019
Nio Inc – ADR (NYSE: NIO)
Electric vehicle company Nio Inc – ADR (NYSE: NIO), valued at over $8 billion despite the fact that it doesn’t yet manufacture its own vehicles, has seen its share price, for a second straight day make double-digit percentage gains. And, “Mentorship Program Members” were able to make potential profits of 347% from this news.
China's Nio rallied Monday on favorable media attention for its luxury electric vehicle technology and as thawing U.S.-China relations stoked a broad stock market rally, especially in China names. Nio stock jumped to its best level since soon after its September IPO.
NIO was spotlighted on the program 60 Minutes, with CEO William Li getting a chance to tout the company's electric vehicles as not only luxury cars but "tickets to a new lifestyle." The news report looked at the social networking impact of NIO in China, which includes clubhouses for owners that open doors to opportunities unrelated to the vehicles. With advantages in its home market over foreign competition, NIO has a lot of potential upside, and investors took notice.
The timing was close to perfect. At a moment when Tesla appears to be struggling, NIO is suddenly on investors' radar screens as a newer, rapidly growing alternative that is already establishing itself in the world's largest electric-vehicle market.
GREED CAN BE THE UNDOING OF A GOOD PROFIT!
PATIENCE PAYS OFF!
YOU NEED TO BE IN TO PROFIT!
The Details Presented Previously……..
Nio Inc – ADR (NYSE: NIO) "not just a car company," but a lifestyle and brand that is "ready to disrupt."
Electric vehicle company NIO closed the year up under 2% from the price at which it went public in September. In the context of the overall market — and the Chinese stock market — over that stretch, the performance certainly isn’t that bad.
This is a company still valued at over $8 billion despite the fact that it doesn’t yet manufacture its own vehicles. (NIO contracts with a state-owned manufacturer, and aims to get a license at some point.) The only other company with a similar valuation is Tesla (NASDAQ: TSLA), to which NIO is often compared.
China is pushing consumers to electric vehicles, which makes NIO, often referred to as China's Tesla, an intriguing growth stock.
Consider that only 50,000 EVs were sold in China as recently as 2014, but the goal is to sell 2 million electric and hybrid vehicles annually in China by 2020, and as many as 7 million by 2025. As China's middle-class blossoms and car ownership becomes more feasible, the government has started cracking down on pollution by emphasizing EVs. In some major cities, it's already nearly impossible -- and very expensive -- to get a license for a traditional combustion vehicle, whereas an EV license is free and available to anyone.
As China's EV market becomes the most desired, and likely the most lucrative, in the decades ahead, NIO is well positioned to thrive if it can continue to build its brand image and high-quality vehicles. Even notorious short-seller Citron Research has put in a good word, and notes the stock has little resistance to its short-term target of $12.
NIO said that it delivered 3,318 vehicles to customers in December. That was an increase of 7.4% from its November delivery total, and more than enough to beat its own guidance for the month and the full year.
NIO’s CFO Louis T. Hsieh said, “We are pleased with the solid ramp-up in production and delivery in 2018, which demonstrated our execution capabilities.”
** OPTION TRADE: Buy NIO MAY 17 2019 7.000 CALL at approximately $0.80The Result So Far………
Nio stock jumped 10% to 9 on the stock market Monday to its highest level since its September 2018 debut. The Nio IPO priced at 6.25, with shares spiking to 13.80 intraday on Sept. 14, their second day of trading.
Then yesterday, NIO continued its electrifying spurt upwards; reaching as high as $10.64, approximately an 18% jump; finally settling at the close at $9.79, up $8.78.
So, for “Mentorship Program Members”, who managed to execute this trade recommended by Stock Options Made Easy, and then exited yesterday; a profit of 347% was to be made. The cost of the call option was $0.80; and climbing to $3.58 during Tuesday trading.
Therefore, one options contract would provide a profit of $278.00.
ANOTHER WIN FOR THE WEEK!
AS ALWAYS THE DECISION IS YOURS!
Now, NIO -- and Li -- will have to deliver. That could be a challenge in the near term, with China's new-car market slumping. Now, after such a massive surge within two consecutive days, it is quite likely to be some pullback for NIO shares; therefore the option trade to consider.
Despite its "Tesla of China" moniker, Nio itself called the challenge from Tesla formidable in its IPO filing.
In particular, Nio noted foreign electric carmakers could start building wholly owned factories in China, which could erode a crucial cost advantage. Those fears came to pass in January, with Tesla starting construction of a new Chinese factory that is key to its goal to scale up production.
While China is intent on dominating electric vehicle sales and production across the world, U.S. subsidies for Tesla electric vehicles are already falling.
"There's plenty of market here to allow Tesla to play and Nio to play," auto analyst Michael Dunne said. But Nio must overcome China's reputation for building cheap and low-quality cars, he suggested.
The Nio earnings report for the fourth quarter is due March 5.
Therefore, you may wish to consider a NEW Trade……..
** OPTION TRADE: Buy NIO MAY 17 2019 9.000 PUT at approximately $1.85. Sell price is left to your own judgment.
As you would have by now realized, some of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, but it is obvious that it did not apply in this case; although the result of the earnings report before the trade certainly helped boost the profits when presented. During earnings season this strategy of predicting earnings has been very profitable.
Sometimes it is our approach to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use – such as found with the “Earnings Predictions Program”. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been exceptional.
An Important Note: That any suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.
It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented. GREED can be the undoing of a nice profit!
Strategies to Consider……
When To Exit A Trade Based On Earnings?.....Read Article
"Trading Capital Management" is a key component of your trading strategy. The strategy, on which we base our trades to achieve maximum profit, and to minimize loss, is contingent on using an equal amount of money for each trade.……continue reading this article……
Our proven track record says it all!!
Members of Stock Options Made Easy are provided with an extensive reason as to which direction a stock will move after earnings, followed up by a recommended options trade.
If you not a member and interested in being part of this profitable action just CLICK HERE.
Other Membership Options…….
If you interested in "Earnings Predictions" just click here……