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NIO Could This Be The Real Thing?

Do you know the company? The stock first came to the DJIA back in 2018 at $6.25 a share and no it doesn't pay dividends. It took off. Here is it's share pricings dating back to when it first got listed. A lot of people got burned. Here was an overseas company boasting of having the fastest electric car in the world. Zoom went the stock and then it crashed. Now this. Today it had news. A quarterly earnings report and for the first time it turned a profit. That was a suprise.The new question is can they continue to do this or was this event just a splash in the pan? Look what happened this morning. This is a five day chart. Look at these 9:46 a.m. Call options and the 4:00 p.m. options. ... So this is a situation where you can buy in after the release of good news and still get out in the day at a profit. Imagine if this news came out on Thursday afternoon just after the closing bell? Inexpensive little soon to expire "one-day" Call options would shoot to the moon....
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LiveWire

My last blog was about Harley Davidson and what I didn't bring into the conservation was their spin off business which is building electric motorcycles. To be honest these bikes are not getting rave reviews. Two complaints are their crippling range and the possible issue of them being more dangerous to drive because they are so quiet. There is also competion from abroad. Last quarter they built only 63 of them and that experience is part of the company expecting to incur a loss of over $115 million this year. If you do the math each bike built cost them over $200,00.00. A $115 million dollar loss vs a profit of $1.3 billion for Harley Davidison. That loss makes a small dent in the overall big picture and in the process of getting going they used other people's money. Nursing this project to life from a business point of view has merit. Covid didn't help anything. LiveWire has to go slow until the product itself evolves to a level they feel proud to put their name on. Investors know this companies pedigree. See it's chart and read this.
Now go back to the previous blog on Harley Davidson. Put this puzzle together anyway you want. Forcasting of 750 units on the low end is still a three fold increase in production levels from where they are at now. Could they turn to be profitable in the next 1,000 days? Maybe. Yes there are options on LiveWire. Here are the Oct20th/2024 Calls with a striking price of 7.5 and 10 dollars. That's as far out as you can go and no one is trying to play them. The bids and asks are to far apart.
Keep in mind the company will continue to lose money all year. What a muddle. There are easlier games to play.

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