What To Focus On - Part Two

My blog of November 27th was entitled "What to Focus On". Please read it. This week we are feeling a bit of a hangover. Last's weeks triple witching event is over. Stocks that were forced to contract in price to sqeeze out spectatate positions on them are now free to resume there old trading patterns. This Monday morning at 10:20 a.m. the Djia is up 301 points. There are also losers. So now what? Mark on your calendar exactly three months down the road how the markets traded on the first morning after one of these triple witching events and use this same logic to catch the upside on the next "hangeover" day like this. How do you pick the winners? Find a few stocks that have enjoyed a recent upswing and play them to pop on the first trading session after one of these events. This blog is just an observation.

A Canadian Electric Bus Maker with a Story and A December 13th 2022 Update

In the past bus manufacturing companies in Canada got a bad rap. Overhead is high and after sales servicing costs can bury you. Having said this do you know about The Lion Electric Company? A Quebec based maker of electric school busses and now planning on opening up a plant in the U.S.. Earnings come out in ten days.They might be losing money but they might be onto something good. Here is some background information as to why the timing may be right this time. Read about them on the "Sedar Website". That tells you everything.
Interesting right? A backlog or 2,357 vehicles. They need to execute better to speed up production. In the past that has being a problem. Let's hope they are not locked in at fixed prices. Now for a thirty day chart.
Now for it's three year chart. This might suprise. It is a business which requires economies of scale.
So here is what I did in the recent past. I am currently down $25.00
I bought two Jan 19th 2024 Calls with a striking price of $2.50. I am banking on the stock rebounding over the next fourteen months and these Call options are already "in-the-money". Even if it ends up to be a bumpy ride it's not a position I am going to lose sleep over. Long term Call options like this can sometimes suprise. * Nov 2nd. Here is a important suprise.
On this news I got nervous. Production levels of only one.
I got my money back. Now skip ahead one month and see this chart and read this news. This is December 13th news.
Ambitious new projects cost money and fresh money coming into a company often drags down the price of a stock. At these current prices the story is now more compelling.


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