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.

FFIE "Faraday Future Intelligent Electric"

 This is a strange story. The stock Faraday Future sank on Wednesday by about 17% after recently doing a  80-1 reverse stock split. Then the stock went down about half-price again the day after. This time they announced that they would be issuing additional shares, for about an amount of 90 million dollars. If you have an EV company to run, that's not very much money. To add to the confusion a share buyback program to help support the stock's price was recently announced. You can't have it both ways. You can't be issuing new stock and buying it back at the same time. Money was recently wasted on that activity. Short-selling activity has plagued this company. Short sellers so far have won. When you have already three billion into the company and have only produced three vehicles there is a problem.

But wait, if you don't know the story it's a California-based company that

has just cranked out a few ( once again only three) high-end EVs and sold them to celebrities. That's not much of a game plan. It's also a company valiantly fending off critics who have watched this company struggle for so long.

When a stock falls into this price range it is dangerous and stands a very good chance of going into receivership. Google it and watch it yourself. It will be interesting to see how it goes. 

When things are dropping this fast it's best to stay away. 

They do make a cool-looking car but maybe being cool-looking is not enough. You can't keep going back to the well asking for more money. The stock is down over 97% in the last year.  Have you ever witnessed a stock dropping that much in price and then surviving? Probably not. Here is one of their electric vehicle models. They look like they will sell. Who knows?  Another car company I have blogged about is Polestar. Their stock has struggled. Investors are currently cautious on so many of these companies.   If you read about EV companies in China you will find out that there is a large number of EV makers in that country. Like over 80 different companies churning them out.  Maybe it's best just to stick with Telsa.


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