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A Jumpy Week For Caterpillar - A Week With Earning Reports

Here is Thursday's trading on the day on Caterpillar. Here is how the $417.50 calls that expire tomorrow closed the day. Something happened this week. Caterpillar had a quarterly earning report come out on Tuesday. It's stock trading action survived this news unscathed. Here is it's five day chart as of the end of Thursday. Maybe the 420.00 or the 422.50 series Calls are better to look at? Here they are. But wait. Deere got clobbered today on the release of a quarterly earning's report. Why didn't Caterpillar sell off in price in sympathy? It shoud have. Deere sold off $34.70. For this reason alone I would be more inclined to purshase the Puts. Here is the series I would consider. To be continued.
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The Quebec Government Likes To Get Their Fingers In A Lot Of Pies.

Quebec is going full force on trying to go electric. Read these two clips.
Now this.
If you don't know about the company they make electric snowmobiles and electric jet skis. Yes or no. Would you invest in them and is this a good time to be making such a decision? Well the 15 million they recently raised isn't that much money to run a factory for any lenght of time. Then again, the Government isn't going to cry if they don't get their money back. It looks good on paper to be adding skilled jobs to their labor force. In the spring Taiga issued 43 million dollars in 10% interest convertable bonds. Ouch. They now have to crank up their production number just to pay the interest on these bonds. So many issues are now apparent. The good news is they now finally have two product lines to sell in the recreational vehicle segment of the marketplace. However their research and development costs continue .
Do people have money to buy these types of toys?
What happens to the jet ski part of the equasion in the winter? Do they continue building them or is that part of their operations placed on hold?
How much money is the company spending on research and development and is it enough? As a investor how much tolerance do you have for these kind of start up stories? Is this blog is just another distraction? You decide. It's chart will make many investors want run away. In some ways it should. This has being a tough year in the markets for most investors. Very few investors have appetites for these kinds of situations and some traders have had bad luck trying to trade Quebec based companies in general. Case in point is The Lion Electric Company (LEV). Tiaga's stock price has being in a downward spiral for three years. Here is a three year chart and a three month chart.
What a rough ride it has had.
There are no options on it to play. Imagine buying in a few years ago at over $10.00 a share to lose 90% of your investment? Crazy. Sad. Did the company offer it's shareholders proper guidance? The stock has dropped significantly in the last week on low volumes after making big strides in production numbers earlier this year. My advise is to keep this one your radar screen but don't buy in. A company that never earns a profit will never survive.

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