![]() Such an entry point would improve the margin of safety. Potential investors may want to wait for a decline toward the $25-level or below. As importantly, shareholders would have some protection from subsequent profit-taking. Such a hedge would lower the portfolio’s overall volatility, but would still make it possible to benefit from another leg up the stock. Those who already own the stock may also consider hedging their positions with monthly at-the-money (ATM) covered calls. Therefore, investors who already hold significant gains in the shares may want to take some money off the table. That is a high number, showing market participants how risky Workhorse Group is compared to most other stocks and broader markets. Yet sooner or later, profit-taking kicks in, and the down moves typically happen quite fast.įurthermore, the stock has a beta of over 2.8. A momentum stock may stay overbought for a long time. But the company does not yet have any meaningful revenue, which means its P/S ratio is over 11,671 times.Īre you an investor who pays attention to short-term technical charts? Then you may be interested to know that various studies paint an overbought picture and urge caution. Investor euphoria has been fueling shares in many electric car manufacturers such as Workhorse Group. Since late July, Workhorse shares have doubled. Workhorse investors were delighted as the company’s shares in Lordstown could soon be worth considerably more. As a result, Lordstown will soon become a public company. On Aug.3, publicly-listed special purpose acquisition company (SPAC) DiamondPeak (NASDAQ: DPHC) and Lordstown Motors announced a reverse-merger. Workhorse Group has 10% ownership in the privately-held Lordstown Motors, another newcomer to the EV space, specializing in electric pickup trucks. This year’s WKHS stock gains could be just the start.”Īugust brought cheer to the shares for a reason other than its core operations. He concludes, “If Workhorse lands that USPS contract? Besides the huge revenue boost, couriers and other delivery businesses are going to take notice. Louis Navellier has recently covered the potential effect of such a win. Investors have been buying the possibility of the award of a contract by the Postal Service that could be worth around $6 billion. These results alone would not suffice to push the stock up to its current levels. Net loss was $131 million, mostly due to increased interest expense, which stood high at $124.3 million. For the quarter, operating expenses stood at $5.57 million. Earlier in August, it announced financial results for the quarter ended June 30. Loveland, Ohio-based Workhorse Group manufactures electrically powered delivery and utility vehicles, serving specifically the “last-mile” delivery sector. The questions are not if, but how far, electrification will go.” Thus, the new decade will likely see a more significant shift to EVs. Crabtree further states, “Electric vehicles are poised to transform nearly every aspect of transportation, including fuel, carbon emissions, costs, repairs, and driving habits. readers would be well aware of developments in the sector and the current hype around EV names. Long-Term Tailwinds Will Likely Power Many EV Stocks If you do not currently hold the stock, you may want to wait for a potential pullback toward the $20-level or below to build a position. Therefore today, we’ll discuss catalysts as well as short-term headwinds that are likely to affect the price of Workhorse shares. In his Congressional Testimony on June 2019, George Crabtree, Director, Joint Center for Energy Storage Research, Argonne National Laboratory and University of Illinois at Chicago, said, “Electric vehicles are a step in the emerging transformation of transportation from exclusive reliance on personal car ownership to alternative modes of transportation, such as shared rides and mobility as a service.”ĬNBC Host Jim Cramer notes that small retail investors are looking for firms, especially in the EV space, that may become the next Tesla (NASDAQ: TSLA). ![]()
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