Friday 4 Play: The “Can You Take Me Hyzon?” Version
Hyzon, Hyzoff.
Hyzon, Hyzoff.
Hydrogen energy takes one step ahead.
Hydrogen energy takes one step again.
Hyzon, Hyzoff.
Thanks, Mr. Miyagi, however are we going to say the Rattling Yankees up there within the headline?
How about we don’t and say we did?
Now, on a regular Friday, I’d be asking: “Are ya prepared, children?” After which we’d all sing a halfhearted rendition of the SpongeBob SquarePants theme, dive into the inbox and see what emails stick, like Scrooge McDuck.
However that is no regular Friday. No, sir! And seeing as what number of of your emails have been about Hyzon (Nasdaq: HYZN) … we’d as properly get into the actual meat of the matter.
By now, all y’all Nice Stuff Picks buyers holding HYZN ought to have observed that the inventory is down about 38% right now. There’s no simple technique to say it … oof. That smarts.
So what occurred that triggered HYZN shares to fall off a cliff? And is it severe sufficient that it warrants promoting the inventory? We’ll reply each questions in a sec, however to get the hydrogen-powered elephant out of the room … nope. We ain’t promoting.
Hyzon introduced two essential items of information: First up, a three way partnership in Europe fell via, forcing Hyzon to restructure its plans to increase all through the area.
You may do not forget that Hyzon had teamed up with Holthausen to transform heavy-duty vehicles over to gasoline cells.
Based on Hyzon’s submitting, the corporate discovered “operational inefficiencies” within the three way partnership, which suggests Hyzon must dump Holthausen and make a distinct plan to get its fuel-cell enterprise correctly rising throughout Europe.
However Hyzon’s different piece of reports comes out of China — and that is possible what spooked HYZN buyers probably the most.
Mainly, income accounting wasn’t correctly dealt with in China. This implies Hyzon should delay its monetary outcomes whereas accountants/auditors undergo and see precisely what information is inaccurate.
Since everyone knows that each U.S.-listed firm is remitted to present an earnings report … everyone’s minds immediately went to delisting. Ask any Alibaba investor — delisting fears are a surefire technique to ship a inventory tumbling in a single day.
Now, this delay received’t trigger Hyzon inventory to delist attributable to non-compliance … however there’s a menace. And that menace is how lengthy it takes to seek out out what went flawed in China.
Y’all understand how a lot Wall Avenue hates uncertainty — whether or not it’s considerations over monetary reporting, concern over China or concern over monetary considerations in China.
The largest affect for us is that the corporate was on the verge of being worthwhile — thiiiiis shut — and that’s most likely out the door now.
So … why aren’t we promoting this factor?
For a couple of good causes: Not like many strapped-for-cash vitality corporations, Hyzon nonetheless has greater than sufficient money available to finance operations in the interim.
I’m not too fearful in regards to the European three way partnership. Keep in mind, hydrogen energy is taking off in Europe a lot a lot greater than it’s stateside. Somebody will choose up the place Holthausen failed.
Whereas I’m maintaining a tally of the potential fallout in China, the considerations are just for fiscal yr 2021. The errors have been acknowledged internally … not externally by some short-selling hedge fund intent on destroying HYZN inventory for its achieve.
That is the primary potential blow to the corporate’s administration, however they appear to be on high of it, which is greater than you possibly can say for a lot of EV startup corporations which have come below hearth…
That’s a very good signal to me … regardless of the quick outcomes not going properly for buyers.
Keep in mind, you’re free to promote any inventory within the Nice Stuff Picks portfolio at any time. For those who’re dropping sleep, do what you want to do. It’s your cash (or “funding capital” if you wish to be all Richie Wealthy fancy), and I received’t inform you what to do with it.
However all that stated? Nice Stuff will proceed hodling Hyzon within the portfolio.
Feedback? Questions? Issues? Want validation from some random dude on the web? We’ve obtained an inbox for the entire above. Write to us at GreatStuffToday@BanyanHill.com each time the market muse compels you.
In fact, in the event you’re not prepared to go away the EV market behind utterly, we’ve obtained you coated.
One startup’s new know-how is poised to disrupt the $2 trillion automobile trade. Its mild, cheap, highly effective and quick-charging battery could possibly be the tipping level that lastly makes EVs reasonably priced for on a regular basis People.
The truth is, a Wall Avenue legend predicts it is going to trigger a 1,500% surge in EV gross sales over the following 4 years.
Click on right here to see why!
And now for one thing utterly totally different, right here’s your Friday 4 Play:
No. 1: Roam The place You Need To
Roomba ‘around the world…
Wow, your psychological radio dial is basically caught on 1990 right now, huh.
Like a wayward, rampant Roomba gone wild — sorry for the visible — iRobot (Nasdaq: IRBT) inventory shot up 19% in a single day. That’s proper: The Roomba robo-vac maker and one-time Nice Stuff Choose simply obtained Amazoned.
So Amazon’s (Nasdaq: AMZN) shopping for up a full-fledged shopper robotic firm. What might presumably go flawed? C’mon, everyone knows Amazon would substitute extra human warehouse employees with robots if it might. They’d should be much more correct than a Roomba although…
Anyway, Amazon is shopping for iRobot at $61 a share, valuing iRobot at about $1.7 billion.
Now what was that we have been simply saying about a rise in buyout motion now that tech shares have been overwhelmed to a pulp? Yeah, right here we go. Earlier than the acquisition, IRBT inventory was 65% off of its 2021 highs, which should’ve been an important massive “cut price purchase” signal for Amazon.
This isn’t the ‘Zon’s first enterprise into the patron robotics market. We talked about (learn: poked enjoyable at) Amazon’s Astro, which was a cute lil’ Alexa-enabled house robotic that introduced with it a number of privateness considerations.
I do know, I do know, foolish me, pondering any sense of privateness nonetheless exists … however you may not less than not stick one other robotic eavesdropper in your own home, for a begin! I digress…
It’s solely a matter of time (or Prime Days) earlier than we see what Amazon does with its inherited robotic tech from iRobot, and I, for one, don’t welcome our new Amazon overlords.
No. 2: EXPEDIAAAA
For those who didn’t hear a rousing refrain of “dot cooooooom!” in your head simply then, I’m not gonna be mad … simply disenchanted.
Thanks, dad, can we get on with the present now?
Ahem, sure. As you may wager, Expedia (Nasdaq: EXPE) earnings simply echoed what Airbnb (Nasdaq: ABNB) reported earlier this week: That is the journey season of all journey seasons.
It’s no shock, both: After two years of isolation and being cooped up with the fam, it’s time for everybody to stretch their legs a bit. For Expedia, which means extra customers on its journey websites, together with the OG Expedia, Inns.com, Vrbo (which is like Airbnb however 20% cooler), Travelocity, Hotwire and Orbitz.
The truth is, Expedia stated that income is up 51% from a yr in the past, coming in at $3.2 billion and handily beating estimates for $2.99 billion. That places final quarter an entire 1% forward of 2019’s second quarter.
Expedia won’t be recovering/rising its gross sales as fast as Airbnb … however the firm posted glowing outcomes and additional proved that journey is now lastly above pre-pandemic ranges. For this valiant effort, Expedia was rewarded with … erm … a meager 4% rally that was erased right now.
Hey, it’s the thought that counts, proper? No? Alrighty then.
No. 3: You Block Head, You Blew It!
Ever since Block (NYSE: SQ) pulled a Prince and have become “the corporate previously often called Sq.” … Block’s been making an attempt to do something and all the pieces to impress buyers and bust out of that L 7 sq..
Mixing Prince and Rick James? Gutsy, however I’m about it.
Downside is, between the corporate’s foray into crypto buying and selling, its Bitcoin hodling à la MicroStrategy and its money-transferring Money App … all of the ugliness got here out in Block’s report. And there’s no renaming your manner outta this one.
Per-share earnings got here in at $0.18 and barely beat estimates for $0.16. Income, however, is a extra sophisticated story. The Money App that Block at all times puffed up? Yeah … income there fell 34%.
Then, in the event you take bitcoin out of the equation, whole income truly grew 34% on the quarter, most likely because of Block’s fee terminal enterprise. However similar to with MicroStrategy (Nasdaq: MSTR) earlier than it … we will’t merely take bitcoin out of the equation, now, can we?
Block reported a $36 million impairment cost on its bitcoin holdings. Although bear in mind: This solely represents the bottom level of Block’s holdings through the quarter — not what it ended the quarter with.
It’s not a loss ‘til you promote, haha… Please, any individual revive SQ inventory.
Sorry, however after a report like that, SQ dropped one other 5%, although the shares managed to rally again to breakeven by the top of the day.
What I need to know is why anybody — Block, MicroStrategy, even your pal Jim down the road — would purchase and maintain bitcoin at the moment. I imply … we simply talked to Mike Carr about a greater technique to play crypto’s crazes and crashes.
Click on right here to catch up!
No. 4: DKNG … DONKEY KONG IS HERE
Wait, are you able to truly purchase Donkey Kong inventory? You’re solely telling me this now?!
No, I want, however we’re speaking in regards to the different DK right now — DraftKings (Nasdaq: DKNG), the sports activities betting platform simply reported bang-up earnings.
Granted, “bang-up earnings” may be an excessively optimistic technique to say that the corporate continues to be dropping cash … however it’s not dropping as a lot cash as analysts anticipated. So DraftKings has that going for it, I assume?
Earnings got here in at a lack of $0.50 per share, topping estimates for a $0.75 loss per share. Income, however, reached $466 million and beat expectations for $439 million with room to spare.
However let’s be actual right here: This can be a sports activities betting firm, and we’re both in or about to be in a recession, drying up discretionary revenue for a lot of shoppers. Will individuals carry on playing as they pay larger and better costs for, you realize, actually all the pieces?
Properly yeah, have you ever met a playing addict earlier than? Additionally, how do you assume they’re elevating money for fuel?
Touché, voice inside my head. Touché.
CEO Jason Robins has some perception on how the enterprise is weathering the financial storm: “Buyer engagement stays sturdy, and we proceed to see no perceivable affect from broader macroeconomic pressures.”
Nice sound chew, however simply how sturdy is “sturdy?” Right here’s a clue: In its report, DraftKings additionally famous month-to-month distinctive paid customers have been up 30% yr over yr, reaching 1.5 million. Higher nonetheless, the corporate is making 30% extra off of every person in comparison with final yr.
DKNG merchants despatched the inventory hovering 16% right now, and that’s on high of its 20% pre-earnings rally over the previous week.
Are any of y’all holding DraftKings inventory? Is anyone folding? Let me know your personal greatest bets within the inbox: GreatStuffToday@BanyanHill.com is the place you possibly can attain us greatest.
Within the meantime, right here’s the place you’ll find our different junk — erm, I imply the place you possibly can take a look at some extra Greatness:
Regards,
Joseph Hargett
Editor, Nice Stuff
