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.

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 bottom line is that this company has borrowed enough money to survive the short term. Maybe, just maybe this company will be able to survive and prosper in the mid and long term. Stranger things have happened. 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. Short term blips might become a new reality. This company is no longer seems to be in need of startup capital. That's a positive step forward.


Popular posts from this blog

I Wonder How The Back Office Is Going To Handle My Complaint

Disney Had A Good Week, Fisker Not So Much . Lion Electric and Taiga

Boeing Down $20.00 or 8.03% On A Monday Morning