BEWARE: THE ‘STRANGE CASE’ OF CHINA’S TESLA NIO SHOWS RISK IN THE U. S. STOCK MARKET $NIO $TLRY $TNDM $CGC $TSLA $AMD $STAA $CRON $SFIX $MJ

Twitter
LinkedIn
Facebook

BEWARE: THE ‘STRANGE CASE’ OF CHINA’S TESLA NIO SHOWS RISK IN THE U. S. STOCK MARKET $NIO $TLRY $TNDM $CGC $TSLA $AMD $STAA $CRON $SFIX $MJ

Nio Inc. is an electric-car company that’s been called the Tesla of China.

But things are not that simple.

Let’s explore the strange case of Nio’s NIO  stock-price movements on the New York Stock Exchange and why it shows that risk in the U.S. equity market is underappreciated. The Shanghai-based company debuted Wednesday with American depositary receipts.

Chart

Please click here for an annotated chart of Nio’s stock. Please note the following from the chart:

• The indicated price range of the U.S. initial public offering (IPO) was $6.25 to $8.25, as shown on the chart.

• Before an IPO, it is common for companies to conduct a roadshow arranged by their bankers on Wall Street. The company and its bankers travel around and give presentations to potential investors and analysts. The purpose of the roadshow is to generate buying interest and excitement among potential investors so that the company can sell its stock at a high price.

• These days, the indicated price range is often raised due to heavy demand. In this case, the price range was not raised, showing that demand was not there.

• Nio’s IPO was priced at $6.26, a penny off the low point of the range. This indicates that Nio was not successful at persuading investors to pay a higher price.

• There is often a bid by the syndicate right below the IPO price. The purpose of the bid is to not allow the stock price to fall below the IPO price.

• As the chart shows, the stock fell below the IPO price. This did not bode well.

See also  HERE IS HOW TO PROFIT FROM VOLKSWAGEN INVESTMENT IN EV MAKER RIVIAN – CHANGING EV LANDSCAPE

• An analyst put a $4.50 target on the stock.

• As the chart shows, the stock did not move extraordinarily on the first day of trading (Wednesday)….Read more at MarketWatch.

A knowledgeable investor would have turned $100,000 into over $1,000,000 with the help from The Arora Report. NOW YOU TOO CAN ALSO SPECTACULARLY SUCCEED AT MEETING YOUR GOALS WITH THE HELP OF THE ARORA REPORT. You are receiving less than 2% of the content from our paid services. …TO RECEIVE REMAINING 98% INCLUDING MANY ATTRACTIVE INVESTMENT OPPORTUNITIES, TAKE A FREE TRIAL TO PAID SERVICES.

Please click here to take advantage of a FREE  30 day trial.

Check out our enviable performance in both bull and bear markets.

Subscribe to 'Generate Wealth'

Free Forever

More To Explore

30 Day Free Trial

Cancel within 30 days and you owe nothing

When you take a FREE 30 day trial, you get access to powerful techniques used by billionaires and hedge funds to grow richer. You can continue to use these powerful techniques to grow richer even if you cancel your subscription. You come out ahead by subscribing no matter how you look at it.

A fortune is to be made from AI stocks.
Get the list of 18 AI stocks to grab your share of the profits — no cost to you.

A fortune is to be made from AI stocks.

Get the list of 18 AI stocks to grab your share of the profits.

AI is a $1 Trillion Market

Making A Fortune
In Artificial Intelligence

Golden Age of Artificial Intelligence

Skip to content