Nio today announced cutting prices on all of its models. It will also end free battery swapping services to new buyers. More details can be obtained from link: https://cnevpost.com/2023/06/12/nio-william-li-responds-to-price-cuts/

I see this as positive news. I was expecting them to cut prices few months ago in view of overall sluggish EV sales and competitors had been cutting prices as well. This is inevitable. 

Even with the price cut. NIO is still priced as premium vehicles as compare to other Chinese EV company like Xpeng, BYD etc. I hope the amount of price cut will be able to generate more sales to more than offset the lower vehicles margins as the result of the price cut.

So far, market had reacted positively in HK stock exchange. US stock to be opened in about 1 hour time and premarket now is up 4.5%.

Is NIO going to register Q2 YOY drop in vehicles delivery?

Nio delivered 25,059 vehicles in Q2 2022. In 2023, Nio delivered 6658 and 6155 vehicles in April and May respectively. To match 2022 Q2 delivery of 25,059 vehicles, Nio would need to deliver 12,246 vehicles for the month of June 2023. If Nio misses this mark, it will be quite negative blow for the Nio. It would also put the CEO's remark of Nio potential turning profitable by end of 2023 into question.

SunHydrogen Inc. (HYSR) huge movement

SunHydrogen Inc. (HYSR) has gone up over 35% for the pass 5 days, with above average volume. They is no accompanying news I could find. Short term indicators match with movement of the stock. Will see how it pans out going forward. Hopefully, there will be encouraging news on the commercialisation of their technology.

It has been a frustrating couple of years. Had my eyes on NIO. Did great initially. From $18 to $60+. Since then it has been dropping and currently traded at $7.56. I have had my positive and negative views on NIO. 

The positive:

1. It has good products and their battery swapping technology. 

2. It is expanding into Europe and hopefully to USA soon. 

3. Potentially good business model in battery as a service or BAAS. 

On the negative side:

1. Given the history as a relatively new auto company, I am not sure if there are enough consumers willing to pay for such premium price for a new company with premium products.

2. Their NIO houses are expensive to operate and maintain. Most NIO houses are located at prime locations in China and Europe. Not sure the concept generate enough interest to attract more buyers from this aspect. In another word, not sure of the ROI from NIO houses.

3. Battery swap stations also come with additional cost to build and operate. They need to supply and maintain additional batteries at all the battery swap stations, thus an added cost.

4. Legacy auto makers, especially German's (Mercedes, BMW, VW group), are catching up FAST in their BEVs offering. They have their decades of premium branding to go with. Further, they have had their worldwide presence which are ready to export and sell their BEVs. They are able to expand their BEVs worldwide much more rapidly as what they are presently doing.

5. Battery technology are improving at a much rapid pace in terms of higher capacity with longer range and faster charging time. From consumer perspective, having battery swapping technology and BAAS may still be relevant in terms of the flexibility of changing to newer battery, and be able to swap/rent a higher capacity battery when needed. But the gap is closing in term of the time taken to charge as compare to swap a battery.

6. Management tend to paint a much rosy and overly optimistic expectation on NIO's future direction. When expectations are not met, there would be reasons given. (Not going into detail on this)

So, I hope things could turn around and soon. NIO has been in red. NIO CEO had mentioned that NIO may turn profitable by end of 2023. We will see about that. I truly hope so. But, realistically, I have my doubts and I hope I am wrong.

 I have my eye on Cepton (CPTN). Promising chart.

Week of Sept 30 2013

As I mentioned, one of the things I got into recently was technical analysis. It was a slow learning process but I think I get the hang of it. Other than doing the charting myself, I also rely on stock screen to quickly identify certain stocks that would fit my preset criteria either fundamentally or technically. One very good site that I use for stock-screen is finviz.com. Check it out.

On one of my fundamental screening, a few attractive tickers appeared. One being NetSol Technology (NTWK). At the point, it was traded at $10.58. There were long list of parameters I put in thus not going to list out here, however it consists of PEs, Ratios, Margins.

When I came across the stock, it just released a positive earning and the stock pop up and dropped back since then. It was last traded at $10.14. 

I entered a leap call on this and hope it pays off.

Cheers.

Returned.

Hi! After disappearing for so long, I decided to restart my blog. What had I been up to? Previously, I was a skeptic on technical analysis. After opened to learn more about technical analysis, I am beginning to see the benefits. It is a good tool to have with you to complement your fundamental understanding. Aside from that, I tried out different approaches in option trades. Some worked out quite well but others didn't. I am beginning a more systematic approach on my investment research combining both fundamental and technical analysis. Hopefully, it will help me to pick companies with good fundamentals and valuations. I use technical analysis to time my entry. So stay tuned. I will share my pick in coming posts.