Suggestions for a speculative punt?

fiisch

At the risk of being a one trick pony, I am speculating in SYME (Supply@Me Capital) again.  Suggested several months back at .3 and made some money, selling near the top at .75.  Have largely held off individual shares recently as I feared the worse with the vaccine (e.g.: delays, or not as effective as first thought), so thought some of the current trends would reverse.

However, continued to follow SYME - chairman is quite charismatic and isn't shy of giving an interview or two.  There are two or three big pieces of news which will legitimise the business model due this month, and the CEO has an options call on 31/12/2020 with a price of .6945p, at a cost of £1.1m, so needs to be >0.86p for it to pay off.  SP closed today at .58p, after enjoying a 20% rise today, presumably in anticipation of these points.

At sub 1p, and very early days in business model, certainly not one to bet the house on, but I like the business model (inventory monetisation) and think it's undervalued based on news already released to market.

adindas

THCB (Tuscan Holdings Corp). This SPAC will merge with Microfast an EV battery. There is rumours they might be working together with Tesla. The runours is not necessarily true, so do not just rely on this binary outcome but better to rely on other factors. But if there is a confirmation about this  "Boom" will send the price to the moon.

Without the catalyst, the cooperation with tesla, this might still repeat the success case of Quantumscape (has turned up to become 7X) which merged with Kensington Capital Acquisition (KCAC) (see the chart above).

With SPAC with a good management team, as long as you get the price very close to US$10, the risk/reward ratio is overwhelmingly in favour of reward. Another incentive is that it might happen in just a few months away (e.g close to merger date) when they turn up to become (2-3X+).

In a few  cases the price might drop below US$10, especially short after the merger date, when there are a lot of institutional holders are dumping their shares. But the chance there are going to US$0 short after the merger is "almost nil". So the risk / reward ratio is therefore overwhelmingly in favour of reward. But as always be the case, we take our own gain but we also need to take the loss for our own decision.

I started building my position since December 1, 2020 and keep doing  DCA (Dollar Cost Averaging)  when there is price dip (not blindly apply this strategy) and will continue doing that. I am already up 33.97% now.

fancible

Another vote for Syme here. Certainly looks promising and a unique business model. Only risk I can see is that it is easily copied.

adindas

Those who want to invest in EV stock but do not have the nerve to ride hype of roller-coaster, it seems BlackRock: iShares Electric Vehicles and Driving Technology UCITS ETF might be a better option.

https://www.blackrock.com/lu/individual/products/307130/ishares-electric-vehicles-and-driving-technology-ucits-etf-usd-acc-fund

Another alternative is SMT (Scottish Mortgage Investment Trust PLC) from Baillie Gifford: Asset Management and Investment Trusts. But when I checked it a while ago it seems to me, they are not specialising in EV and EV driving technology. It is more like general Disruptive Innovation quite similar to what ARK Invest is doing. Their EV stock is limited to NIO and Tesla. No Xpeng, Li, BYD, etc. If my memory serves well, there are not any EV Charging Station stocks, there are not rare earth materials mining needed for EV, other EV driving technologies like Lidar in their holdings.

China is the biggest market for EV. I read an article from Baillie Gifford, in about more than a decade from now, it will be very difficult to register your non-electrical vehicles in China. Also, the regulation in many countries in relation to air quality in the city, environmentally friendly technology that force people and business the use of EV or other environmentally friendly technology in vehicles. So, in my personal opinion, EV stocks and the disruptive innovation within this industry will grow much faster then other stocks as the demand are driven by the regulations that force people and business to use it. Just count on how many vehicles outthere currently on the streets needed to be replaced in the next few decades. To me it is an elephant in the room.

But also keep in mind there are some analysts predicting (not necessarily true) that EV stocks will bubble, so it is also good to diversify in other sectors as well, not solely invest in EV.

kinger101

Shocking_Blue said:

Username999 said:

CashMoney said:

Hi people,
Looking to diversify my portfolio so thinking of adding an EV company. I missed out on Tesla way back when it was around 290 per share and was now looking at Nio and Nikola. Which of these are the better option to invest in?
Thanks

To even think of 'investing' in Nikola suggests to me that you have done zero research into the current EV sector.
Nio has a future, Nikola does not.
But if I were you I'd get 'EV exposure' by investing in SMT (Scottish Mortgage Investment Trust).
IMHO

Have been considering SMT for a while, but aren't they overly-reliant on TESLA?
Re Nikola, do you think this is not to be taken seriously:
https://markets.businessinsider.com/news/stocks/nikola-stock-price-good-buy-opportunity-focuses-semi-trucks-jpmorgan-2020-11-1029850331
Thanks.

Hardly.  As the price of TSLA has surged, they'd have been selling off to keep relative proportion they hold within the portfolio within levels they deem suitable.  Considering TLSA has increased almost 10-fold within a year, they only hold a fraction of what they held a year ago. 

But if you're paying a premium for active management, best just to trust what the fund managers do.

csgohan4

Anyone holding CINE may want to reconsider the long term prospects, with AMC struggling and may go bankrupt within 1 month
https://www.bbc.co.uk/news/business-55279649

The rise of streaming is not going to go away soon. 

My crystal ball says it will tank another 15-25% on Monday with the news their competitor will go bankrupt soon

it is too risky of the last of the penny stocks

ElephantBoy57

csgohan4 said:

My crystal ball says it will tank another 15-25% on Monday with the news their competitor will go bankrupt soon
it is too risky of the last of the penny stocks

Its still up at 64p, which is why we are all just gamblers, it maybe with some of the competition out of the way, they will do better.

Younger people are staying indoors, but there is always a future for leisure.

Username999

Username999 said:

EMH.L
https://www.hl.co.uk/shares/shares-search-results/e/european-metals-holdings-ltd-npv/company-information

Flying now.
Up 16.3% today.
European Metals accepted to trade on the US based NASDAQ International OTC program.
The Company is developing the Cinovec project, the largest hard rock lithium resource in Europe and is strategically located in close proximity to end user car makers and companies involved in energy storage.
ie they may supply Lithium to Tesla Giga Berlin.

Thrugelmir

Probably a takeover target in the medium term rather than a star performer. Tekmar Group PLC (TGP) @ 60p. 

Niche business that supplies services to the global offshore energy industry. 

Old_Lifer

AFC .   Todays RNS