moc Caution on NIO now
At 3pm the Co. announced a 1.3Billion Convertible offering due in 5 years. From what I see this is about a 209Million Share effect from todays prices. It Immediately Dropped 6 Points on the News, and the Morons on the NIO Ant Board think its Not Dilutive. The NIO Bd is full of Ants, worst Board I've ever seen for Stupidity, mostly 2 liner Pumpers. This will now put a Lid on NIO as far as I can tell, as Convert Buyers almost always short the stock immediately.
This puts NIO in the same Mess that MU was in for many years till they got Out of their Converts, Remember, it took years! Just last week NIO said they wouldn't Dilute before NIO Day, then Hyped the Co with a Solid State Battery that doesn't even Exist yet, its on the drawing Board.
I will be selling CALLs every week until I can Exit at the Equiv of 65. All the Analysts were Increasing their PPS Calls to 70,70 85, and most are underwriters apparantly. I would Surmise that NIO won't be able to advance anymore until they actually become Profitable. Glad I sold all in Dec, but but bought back 5000 last Monday in my IRA. I do Not Like Any Company that uses Convertibles, the Ants will think the Dips coming are opportunity, I don't think many RobinHooders are astute enough to undertsnad what just occurred at 3pm.
I liked MU in Dec. even more than AMD. Both are doing well, but MU has more chance to appreciate with the DRAM Shortage.