Stocks On My Screen For Week Starting October 5th, 2020

Every week, our model comes up with 40 stocks, 20 positive and 20 negatives, to watch for next week’s trading. The model is based on a mix of fundamental and quantitative factors, built on our proprietary database of detailed earnings model on more than 1250 U.S. listed companies. The historical data for these earnings models is sourced from SEC filings. Performance of last week’s model portfolio for the week was, Net: 0.4% Longs: 4.7% Shorts:  -4.3% Assuming 5% is dedicated to each position, resulting in 0% net exposure and no…

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Li Auto IPO: NIO, Tesla And Nikola Need Not Worry, For Now.

There is a new player in the electric vehicle space – Li Auto Inc.; new only in respect to the publicly listed U.S. stocks. Li Auto Inc. is planning to come out with an IPO soon. Since we have followed the space for a while and love reading SEC filings, here are some of our preliminary thoughts about the company and the upcoming IPO. It’s a hybrid is one of the first things you will hear from Bears on the space while talking about Li Auto and its first model…

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Workhorse Group Looks Highly Undervalued And Under-Appreciated

We have owned Workhorse Group (Nasdaq: WKHS) stock for a while now and believe that market, chasing for fancier electric vehicle names, has still not fully acknowledged the value of the company, which may change as more investors look at the fundamentals. In this note, we have tried to value different parts of Workhorse Group assuming a fairly achievable set of assumptions and the result suggest that the risk-reward tradeoff is quite favorable for investors. We have written a detailed note about Workhorse in the past, which will provide a…

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How High Can Hyliion Stock Go?

We own stock of Tortoise Acquisition Corp. (NYSE: SHLL), which is set to merge with Hyliion soon, and have been bullish on the company for a while now. Yes, happily bullish, if you look at the chart. Maybe too much free time over the long weekend or just looking at the charts, but instead of just gloating over, we started thinking about how high can the stock go? Which may not be an ideal exercise to do in 2020, when ‘markets only go up’ but we tried nonetheless. For the…

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Hyliion Doesn’t Have To Be Tesla Or Nikola To Succeed

If you believe the product is as important as personality, Hyliion Holdings Corp. (NYSE: SHLL) is one name that should be high on your list of frontier technology stocks, including Tesla (Nasdaq: TSLA) and Nikola (Nasdaq: NKLA). Hyliion is working to provide what may be a perfect transition for Class 8 trucks to move from fossil fuels to zero-emission technologies, be it electric or hydrogen fuel cells, making good current of current infrastructure, including driver readiness, service capabilities of truck companies, electrical grids, etc. For investors, options to invest in…

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Chinese Stocks May Continue To Run, Here’s Why

Chinese stocks, especially those listed on the U.S. and Hong Kong stock exchanges are performing well over last two-three weeks, even though some of the hot trendy names of April, including those benefiting from ‘stay at home’ trend like Slack Technologies (Nasdaq: WORK) and V-shape comeback plays like airlines, are starting to show signs of tiredness. Most ETFs with Chinese stocks, including Invesco China Technology (NYSE: CQQQ) have come back nicely since the March lows. Indeed, China Technology ETF is up more than 35% over last one year, even though…

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Crude Oil Has Stabilized, Start Looking At Solar Names Now

Traditionally, solar stocks have shown a high correlation with the price of crude oil, i.e. solar stocks move higher when oil prices are stable to moving higher and vice-versa. Even if the underlying business for solar companies may have different catalysts, it is better to look at these stocks when crude oil is holding up well. Now that crude oil price is back to $40 per barrel range, this is a good time to focus on long-term secular demand story playing in the renewable energy sector in general and solar…

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Tesla and NIO Will Benefit From China’s Carbon Credit System

Rarely can investors go wrong when they side with a Chinese stock that is enjoying favorable push from the country’s policymakers and the electric vehicle industry seems like one such bet right now. Tesla (Nasdaq: TSLA), NIO Limited (Nasdaq: NIO) and Niu Technologies (Nasdaq: TSLA) look well placed to monetize and benefit from the push. Last week, Beijing Environmental Exchange launched a credit system that will allow car users to collect credits for rewards. Although financial benefits for electric vehicle drivers may not be more than a few hundred dollars…

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If You Like Tesla And Nikola, You Will Love Workhorse Group

I just bought shares of Workhorse Group (Nasdaq: WKHS) and here’s why. The company has one of the best technologies to make it in the fast growing electric vehicle space. It has overcome the research & development challenges that have bogged down numerous players in the last-mile package delivery space. The company, expected to ramp production, has already achieved critical mass There’s a nice collection of positive catalysts over next few weeks that will help the company monetize all the work done over last many years. At first look, most…

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Want Nikola Shares For Free, Take a Look At CNH Industrial N.V.

Nikola Corporation (Nasdaq: NKLA) stock is flying high, up more than 150%, after the company went public via SPAC last week and market excitement for all things electric and next generation vehicles is visible from other EV stocks, be it Tesla Corp (Nasdaq: TSLA), NIO Limited (NYSE: NIO) or Niu Technologies (Nasdaq: NIU). As expected, the first wave always belong to the pure-plays, but now is the good time to take a look at other companies that are well-aligned to monetize from this trend, maybe with limited downside. Excitement for…

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