Bloomberg Report Pushes NIO Stocks
On Monday, NIO stocks rose sharply and finished with a whopping 22.35% gain at $ 7.39. Initially, the rally was triggered by a Bloomberg report. Here, the US news site reported that a new major investor should now hold 11.44% of all NIO shares.
On Tuesday morning, they confirmed a mandatory notification to the US Securities and Exchange Commission the process. Newsflash: the new NIO shareholder, Baillie Gifford, is also the largest outside Tesla investor. Only Elon Musk holds more shares of his company.
More Confidence in the Chinese Market?
According to CNBC, the investment firm from Edinburgh currently holds around 9% of Tesla. So why invest in another e-carmaker? The reasons can only be speculated on. NIO wants to focus primarily on the Chinese market, which in the near future is also considered the largest market for electric cars. Although there are expansion ambitions, China is clearly in the spotlight.
Unlike Tesla, which builds its vehicles in the United States and could find it difficult to compete in the Chinese market because of the trade war between the United States and China (despite news of opening a Chinese production plant), NIO has the home advantage here.
Tesla Produces News Headlines in Particular
In addition, Tesla stocks make one thing special: volatility. The stocks of the e-car manufacturer from Palo Alto vary significantly with each new headline. However, the price turbulence is rarely due to fundamentals. Mostly it’s about the latest tweets of Tesla’s boss Elon Musk on Twitter.
Future profitability is often doubted by experts, even if the billionaire never tires of emphasizing the opposite. In addition, the scrutiny of the CEO with the US Securities and Exchange Commission brings further uncertainty for investors.
Whether Baillie Gifford joins NIO because he believes in the success of NIO, or rather because he sees a failure of Tesla, remains open to debate. In any case, the new investor gave NIO stocks a boost.
NIO didn’t dare to jump onto New York’s trading floor until September 12. With a value of currently 7.39 US dollars, the securities are trading well below their previous high of 13.80 US dollars, which they hit the day of NIO’s IPO.
Tesla’s Fans with an Unequivocal Request to Elon Musk
Elon Musk and Social Media
Tesla’s CEO Elon Musk does not seem to have learned anything from the Securities and Exchange Commission (SEC) ruling. Despite charges of securities fraud on the part of the US Securities Exchange and a lenient outcome for Musk, he cheerfully keeps on tweeting.
The e-carmaker Tesla and the 47-year-old were, after the out-of-court settlement with the SEC, each fined $20 million in penalties. In addition, Musk must give up his post as Chairman of the Supervisory Board and renounce this authority for the next three years.
The Tesla stocks responded with a price increase. A justification, as required by the Federal Judge Alison Nathan by October 11 by both parties, has not yet been received. But one thing is for sure: the Tesla CEO harms the company more and more with his social media appearances.
It seems like every time the electric car maker announces positive news that they are on the rise, Musk places a tweet that damages the stock. In addition to marijuana consumption in an interview with Joe Rogan, which he claims to have done only to impress his ex-girlfriend, Musk draws attention in recent months with more and more negative headlines.
Just want to that the Shortseller Enrichment Commission is doing incredible work. And the name change is so on point!
— Elon Musk (@elonmusk) October 4, 2018
Fans Speak Up
After Elon Musk entitled the SEC on Twitter as “Shortseller Enrichment Commission,” Tesla fans addressed the CEO directly. Some fans asked Musk to stop tweeting.
For many, the negative impact of Musk’s machinations on the Tesla stocks seems to be a thorn in the side. Some report losses in recent months from Musk’s media appearances.
One of Tesla’s shareholders noted his displeasure live:
“Dude, your Twitter account is doing far more damage to my TSLA stock holdings than the SEC or shorts ever have, and it’s been that way for a long time. The stock price is basically a roller coaster between positive Tesla news and you tweeting dumb stuff.” – Justin Meade (@jameade87) October 5, 2018.
You are a genius of this era. But fighting with SEC will lead Tesla to nowhere. SEC is NOT your enemy. And short-sellers are not always your enemies, just like longs are not necessarily your friends. Please focus on your mission! -A Tesla owner and shareholder.
— Alex Chen (@AlexChen_SVCA) October 4, 2018
In the following words, Ross Gerber, co-founder of the Gerber Kawasaki Asset Management, asks Musk to stop: “WTF please stop tweeting. Feel free to call me to vent. We want to see Tesla succeed. You’re just helping the enemy. I don’t get it.”
Charts from https://www.tradingview.com/chart/
Featured Image from Tesla
Is Starbucks a Buy? Depends on How Much You like Coffee
Starbucks shares are approaching a 52-week high after activist investor Bill Ackman announced a $900 million investment for accumulating 15.2 million of the company’s shares.
Starbucks has a market value of $29.2 billion and is the third-largest restaurant chain in the world. The company has 28,218 locations in over 75 markets, and more than 238,000 employees worldwide.
Ackman Says Starbucks Is a Good Bet
Ackman believes Starbucks shares could double in value in the next three years. According to the investor, the company has many business opportunities ahead, both in the US and in the Chinese market.
Moreover, Ackman didn’t forget to mention Starbucks’ plans for some serious share buybacks of $14 billion in the next few years. Doing the simple math, earnings per share have a growth potential of between $3.70 and $4.35 by 2021, from $2.40 in 2018.
Such a performance would push the Starbucks stock to a value of $93 to $117, by 2021. The company has already started with a $5 billion accelerated share repurchase agreement.
Besides, coffee is still a strong business worldwide. Despite its domestic performances, Starbucks has seen significant revenue growth, and has a financial position widely-recognized as reliable; its earnings per share have a notable record.
Starbucks has 3,300 stores in China and continues to open about 50 new ones each month. The company’s market share in China reached 80% last year, in a coffee shop market estimated at $3.4 billion.
Things aren’t all smooth for the company, though. As the Chinese market is expected to grow, more competitors are looking to overtake Starbucks, the most important being the Chinese chain Luckin Coffee and Coca-Cola’s Costa Coffee.
Starbucks Is Making Significant Changes in Europe
With so many events ahead, Starbucks is planning a revolution across its business operations. CEO Kevin Johnson announced changes starting next week, as the company enters a new era of challenges due to the inactive domestic market, a mammoth expansion into the Chinese market, and harsher competition. CEO Kevin Johnson said:
“Starting next week and into mid-November, there will be leadership shifts and non-retail partner impacts as we evolve the direction of teams across the organization in size, scope, and goals.”
The first strategic move will happen in Europe as Starbucks sells 83 stores to Alsea, its South American partner. The Mexico City-based company that already owns 900 stores across Central and South America will add coffee shops in Belgium, Luxembourg, France, and the Netherlands to its portfolio. However, the roasting plant in the Netherlands will continue to be owned by Starbucks.
The company is planning to close outlets in Amsterdam and focus on its presence in London instead. The management encourages its 186 employees who will suffer from this move to apply for jobs available in London. If Brexit doesn’t stop them in their tracks.
Is Starbucks a Buy?
Starbucks has enough room for growth, despite competitors, the restructuring in Europe, and a possible slow down in the Chinese market. So, even if Ackman’s predictions don’t come true, the company is probably still a good bet for long-term investors who don’t get scared off by temporary downward trends.
Featured image from Shutterstock.
From CCN.com & Hacked.com
Market Update: U.S. Stocks Settle Mixed in Choppy Trade; Cryptocurrencies Endure Modest Pullback
by Sam Bourgi on October 19, 2018 at 8:20 pm
Fake News: Elon Musk’s Flamethrower Company isn’t Accepting Bitcoin
by Habiba Tahir on October 19, 2018 at 8:13 pm
Such Borrow, Many Loan: Crypto Lender SALT Now Takes Dogecoin as Collateral
by Gerelyn Terzo on October 19, 2018 at 7:15 pm
Bitcoin Price Intraday Analysis: BTC/USD in Pullback Action
by Yashu Gola on October 19, 2018 at 6:20 pm
One [Stable]coin to Rule Them All? Huobi’s New Program Lets Users Swap Between Tokens
by Yashu Gola on October 19, 2018 at 5:25 pm
Formosa Financial Integrates with BitGO
by Press Release on October 19, 2018 at 5:18 pm
MoneyMakers is a part of:
Money Makes The World Go Round2 days ago
Journalists Uncover the Biggest Tax Fraud in Europe’s History
Money Makes The World Go Round2 days ago
Will Donald Trump Default on His $22-Trillion-Dollar Debt in 2019?
How They Lost Their Fortune2 days ago
Rogue Traders – Ex Deutsche Bank Traders Face up to 30 Years in Jail
Billion Dollar Companies1 day ago
Billionaire Eddie Lampert’s Bizarre Ideas Behind Sears’ Grand Closing
Billion Dollar Companies2 days ago
Golden Nugget Casinos Owner Seeks Merger with Caesars Entertainment
Billion Dollar Companies1 day ago
Rupert Murdoch to Make Each of His Six Children Wealthier by $2 Billion
Money Makes The World Go Round15 hours ago
Britney Spears Becomes Highest Paid Entertainer in Las Vegas
Money Makes The World Go Round1 day ago
Powerball Jackpot Now Worth $430 Million After No Winner Announced