Electrical Motorbike Mama
Nice Ones, it’s time to get your motor runnin’ and head out on the freeway. Harley-Davidson (NYSE: HOG) is on the lookout for journey, and electrical motorbikes are coming our manner!
Yeah, darlin’, Harley’s gonna make it occur. Take the world in a SPAC embrace. Promote LiveWire shares without delay and explode into area…
Like a real nature’s little one, Harley introduced this morning that LiveWire — the corporate’s electrical motorbike division — will go public through a SPAC merger with AEA-Bridges Affect (NYSE: IMPX).
The deal values LiveWire, which is able to commerce beneath the ticker image LVW, at $1.77 billion.
In response to the phrases of the merger, Harley-Davidson will retain about 74% of LiveWire’s inventory, whereas AEA-Bridges Affect shareholders will personal about 17%.
So, except Harley lets free with some shares, solely about 17% of LVW inventory is gonna hit the market. That’s loads of management over a spun-off firm. A lot management that Harley-Davidson will proceed to account for LiveWire’s ends in its personal quarterly filings for GAAP reporting causes.
However then, this isn’t actually a derivative, Nice Ones. Let’s name it what it’s: an electrical automobile (EV) money seize.
I imply, EV firms have been ridiculously scorching on Wall Avenue for the previous two years. We noticed Tesla (Nasdaq: TSLA) rise to a valuation increased than actually all different conventional automobile makers on the planet — mixed. We additionally noticed Rivian (Nasdaq: RIVN) go public final month with the next valuation than GM and Ford mixed.
Don’t get me incorrect: I’m not bashing Harley-Davidson for profiting from Wall Avenue’s EV hype to seize some money and make a stash. I’m simply stunned it took Harley this lengthy. The corporate needed to know that LiveWire was gonna set this city on hearth.
In spite of everything, EVs are hotter than a rollin’ cube, and investing in them can ship you to heaven or take you to hell. I ain’t foolin’, can’t you inform?
Simply what number of songs are you gonna reference immediately, Mr. Nice Stuff?
Hey! Simply be pleased I didn’t escape Arlo Guthrie’s “Motorbike Music” once more.
The underside line right here is that Harley-Davidson — probably the most storied motorbike model on the earth — is lastly taking EVs significantly.
This can be a important transfer by Harley to draw consideration from a youthful technology of bikers … doubly so, as Harley’s key demographic joins Peter Fonda the place the highway goes on endlessly, and the celebration by no means ends.
If I’m being sincere right here, Nice Ones, I’ve by no means thought of investing in HOG inventory.
It’s not that I don’t like Harleys, it’s simply that I didn’t see the place a combustion-engine automobile, common with the tradition of a special time, was gonna match within the new electrical regular.
With LiveWire, that future is significantly extra attention-grabbing. I’ll be ready for LVW inventory to hit the Avenue, after which we’ll see if LiveWire is really born to be wild.
Cooler Than A Harley On Ice
One former Tesla worker simply launched a brand-new innovation promising to make each EV on the market immediately out of date.
And it goes past simply EVs: His new know-how is rolling out to energy 50 million properties and companies, organising a brand new market 10X greater than EVs — and you should buy in immediately.
Click on right here for the complete story.
Going: “I’ll Shake The Greenback Tree”
When activist investor Mantle Ridge stepped up and acquired greater than 5% of Greenback Tree’s (Nasdaq: DLTR) underperforming shares, it was supposed to assist the low cost retailer reframe its pricing technique and ignite a feeding frenzy for DLTR inventory.
Partly, that’s precisely what Mantle Ridge has executed. Bear in mind when Greenback Tree introduced it could hike the costs of sure objects to $1.25 as a substitute of only a buck? Yeah … seems, that oh-so-revolutionary thought didn’t come from Greenback Tree’s OG board members.
However now Mantle Ridge has provide you with an much more radical plan to shake cash from the Greenback Tree: substitute the corporate’s whole board of administrators and rent nemesis Richard Dreiling to assist fill within the gaps.
Dreiling — the man who occurs to be the previous CEO of rival retailer Greenback Basic? That man. Ask any energetic Greenback Tree board member how they really feel about this plan, they usually’ll provide you with a pleasant lengthy rant about how Mantle Ridge is being “unwarrantedly aggressive and hostile” in its requests:
Mantle Ridge’s overreach in searching for to switch our full board with its personal hand-picked slate — regardless of having no concepts or plans to enhance on our enterprise operations — shouldn’t be justified, nor would it not be in the very best curiosity of Greenback Tree shareholders.
Reality be instructed, I’m siding with Greenback Tree on this one. I imply, it’s all effectively and good to convey new blood into the corporate — particularly somebody with a confirmed monitor document of success, like Dreiling.
However to switch all of the individuals who know Greenback Tree’s enterprise in and out, with none actual enterprise technique past “hearth everybody on the high?” That’s a bit excessive for my liking … and it appears like Wall Avenue agrees. DLTR inventory is already down nearly 2% on the day.
Going: Peloton Parodies Itself
I by no means thought I’d see the day when Peloton (Nasdaq: PTON) poked enjoyable at the truth that a number of folks have been injured utilizing its overpriced train tools. And but, right here we’re…
It began with HBO’s newest Intercourse and the Metropolis revival episode, titled “And Simply Like That.” Within the episode, a key character named Mr. Massive has a coronary heart assault after a 45-minute exercise on considered one of Peloton’s train bikes.
Contemplating Peloton has a historical past of individuals getting injured — and even dying — utilizing its equipment, that parallel didn’t sit effectively with PTON buyers, who despatched the bike peddler’s inventory to a 19-month low final week after the episode aired.
Peloton — which accredited the present’s use of its bike however didn’t understand how it could be used — clapped again and mentioned that Mr. Massive’s unhealthy way of life decisions brought on his demise and never the corporate’s bike.
Then, this previous Sunday, Peloton launched an advert that includes Chris Noth (the actor who performs Mr. Massive), together with the message: “And identical to that … he’s alive.”
As foolish as all this sounds, Peloton’s inventory benefitted from the corporate’s fast pondering — and its even sooner industrial turnaround time — and has since made again practically all its prior losses.
Whereas I nonetheless discover it ridiculous that Peloton wanted to make clear the context of a fictional character’s demise … and I’m cautious concerning the firm’s ongoing security issues … there’s little doubt this viral video places Peloton again on the psychological map (and perhaps even a couple of folks’s Christmas lists).
Contemplating Peloton had nothing going for it till just some days in the past, this pleased accident may bode effectively for PTON shareholders … at the least till the following Peloton treadmill tragedy makes headlines.
Gone: Pfizer Steps Into The Area
Put together for good news, Pfizer (NYSE: PFE) buyers — and make it double!
An Israeli examine simply discovered that Pfizer-BioNTech’s three-course shot is efficient in defending towards Omicron. And if Pfizer didn’t have already got sufficient going for it this morning, the Massive Pharma large needed to go and announce the acquisition of onetime Nice Stuff Choose Area Prescribed drugs (Nasdaq: ARNA) too.
Pfizer plans to amass Area within the first half of 2022 at $100 per share in an all-cash deal. For all you math-averse Nice Ones on the market, that’s about $6.7 billion that Pfizer must pony up.
Area, which has a number of therapies for gastroenterology, dermatology and cardiology in its pipeline — ooh, I see you’re utilizing your massive boy phrases immediately — will assist Pfizer goal extra sufferers with abdomen points like Crohn’s illness and ulcerative colitis.
Actually, Area’s late-stage ulcerative colitis remedy, etrasimod, is likely one of the predominant causes Pfizer got here calling: “The proposed acquisition of Area enhances our capabilities and experience in irritation and immunology,” mentioned Pfizer Govt Mike Gladstone.
Each PFE and BioNTech (Nasdaq: BNTX) are up modestly following immediately’s constructive vaccine information, however Pfizer is feeling some stress pending its Area acquisition. ($6.7 billion isn’t precisely chump change, in any case, even within the land of Massive Pharma.)
In the meantime, Area buyers are having fun with a large 82% rally immediately. Now, if solely I had a crystal ball after I offered this inventory again in Might for an 11% acquire … however alas, that’s simply the way in which the pharma recreation goes, generally.
A Monday afternoon pick-me-up? From the lithium market, of all locations? Effectively, don’t thoughts if I do.
Oh boy, now Mr. Nice Stuff is gonna escape the Nirvana lyrics with “Lithium,” identical to each different time lithium costs come up. The place are my antidepressants…
Hey now, how are you aware I wasn’t going for Evanescence’s “Lithium?” I simply wish to know: Who’s Evan, and who the heck needs his essence? Ew…
OK, I concede: The world wants some new lithium track lyrics to riff off of — not as a lot as we’d like battery-grade lithium itself, however nonetheless.
As the push to churn out EVs intensifies, so too does the push to supply lithium, which works within the batteries powering these EVs.
Lithium costs have climbed increased — and sooner — than they’ve in years. From November 2020 to November of this 12 months, lithium costs have shot up 252%. Have a look:
Should you couldn’t inform by the nice glimmering lithium rally, demand for the stuff is thru the EV roof, nearly as if we will’t get sufficient lithium to satisfy present EV manufacturing calls for.
Why? As a result of from Cybertrucks to electrical Harleys, lithium is your lifeline. Your reside wire, if you’ll. Lithium’s obtained what EVs crave — electrolytes!
Wait, I assumed you have been the pinnacle hype man for hydrogen energy — what offers?
Time to make amends for your Nice Stuff! Sheesh.
Nice Stuff Picks is firmly planted within the hydrogen revolution, particularly with Hyzon (Nasdaq: HYZN) and Plug Energy (Nasdaq: PLUG).
However identical to I mentioned final week, transitioning automobiles away from carbon-based fuels is strictly that — a transition. Whereas sure outspoken EV market voices denounce hydrogen energy altogether … different non-Tesla EV makers are utilizing each conventional batteries and hydrogen gasoline cells of their designs.
So, we’re conserving our investing fingers in each cookie jars in the intervening time. We dove deeper into the lithium-mining rabbit gap — not a euphemism, I swear — roughly two months in the past. Nice Stuff Picks beneficial Albemarle (NYSE: ALB), which simply so occurs to be the world’s greatest, baddest lithium producer.
Coincidence? Not one iota.
Albemarle’s lithium goes straight to the world’s greatest battery makers: Panasonic, Samsung SDI and Corning, BYD, CATL and LG Vitality Options. 87% of EV batteries come from these six firms, which means Albemarle controls the circulate of the spice — erm, the lithium, for a lot of the EV market.
Rising lithium costs are a boon to Albemarle’s backside line — and your pockets too should you purchased ALB shares again when Nice Stuff beneficial them in October. As you’ll’ve learn in our directions earlier than shopping for ALB shares — ahem — ALB has been unstable in current occasions as a result of, effectively, what hasn’t?
As we converse (or sort), ALB dipped all the way down to its 50-day shifting common amid immediately’s sell-off. Although, in the intervening time, ALB’s uptrend continues to be clear — and its future within the EV-powering lithium market is even clearer.
Since Albemarle barnstormed into the Nice Stuff Picks portfolio, the corporate reported bang-up earnings, with gross sales rising 11% final quarter. Plus, Albemarle’s increasing its processing vegetation and constructing new services to satisfy manufacturing calls for.
The highway to power storage domination received’t be straightforward ridin’ … however ALB is ridin’ proper alongside all the identical. I imply, Nice Stuff Picks readers are already up greater than 15% on ALB inventory. How’s that for lighting your candles in a daze?
However, if investing in lithium producers themselves isn’t your cup of recent EV tea … constructing a greater battery needs to be: One new know-how may reduce the price of a battery in half … making it rather more inexpensive than present EVs.
Click on right here for all the main points.
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Till subsequent time, keep Nice!
Editor, Nice Stuff