“I’m only rich because I know when I’m wrong…I basically have survived by recognizing my mistakes.” ~ George Soros
Welcome to today’s edition of Wall Street Connected.
Electric vehicle stocks highlighted 2020 for traders and investors alike.
Some made upside moves of 1,000% or more.
One of these stocks was Workhorse Group Inc (WKHS).
In June of 2020 the stock was trading around $2/share. Only six months later, it was $30/share. That’s an incredible increase in price-per-share.
However, just last week, WKHS stock declined by over 50% in price-per-share in one single trading session.
Upon the U.S. Postal Service announcing it was awarding Oshkosh Defense (OSK) a contract to manufacture its next generation of postal delivery vehicles, Workhorse was ruled out as a competitor for the $600M+ contract, and witnessed a sudden drop as a result.
But the bearish news for WKHS didn’t end with losing a $600M+ contract.
Oppenheimer analyst Colin Rusch proceeded to downgrade the stock to perform from outperform without a price target, which essentially provided traders and investors with an unlimited downside profit target on the stock.
This could explain why the stock is ranking on the top 20 stocks which financial professionals were searching last week…
While this was bad news for Workhorse Group, bad news can be good news for their competitors.
On the same day which WKHS declined by over 50% in price-per-share, two of their largest competitors rebounded from recent lows as bulls cut positions in Workhorse and transferred their funds.
Li Auto Inc (LI) gained $4/share intraday.
Nio Inc (NIO), debatably Workhorse’s largest competitor, rose nearly $9/share.
Here are some highlights from this past week…
|RANK||TOP SEARCHES BY FAs (Total Traffic) Previous Week [STOCKS]||TOP SEARCHES BY FAs w/ AUM>$1B (Total Traffic) Previous Week [STOCKS]||TOP INDUSTRY SEARCHES BY FAs (Total Traffic) Previous Week [EQUITIES]||TOP INDUSTRY SEARCHES BY FAs w/ AUM>$1B (Total Traffic) Previous Week [EQUITIES]|
|3||GME||ZOM||Auto Manufacturers||Electrical Equipment & Parts|
|4||CCIV||OPTI||Drug Manufacturers – Specialty & Generic||Communication Equipment|
|5||AAPL||OPTI||Specialty Retail||Apparel Manufacturing|
|6||SOS||GTLL||Software – Application||Oil & Gas Midstream|
|8||PFE||ROKU||Computer Hardware||Insurance – Property & Casualty|
|10||WKHS||CCIV||Oil & Gas E&P||Banks – Regional|
|11||SNDL||OCGN||Drug Manufacturers – General||Travel Services|
|12||OCGN||BNGO||Diagnostics & Research||Specialty Chemicals|
|13||ZOM||USEI||Software – Infrastructure||Packaging & Containers|
|14||NIO||ETFM||Telecom Services||Utilities – Regulated Electric|
|15||NAKD||INKW||Internet Content & Information||Banks – Diversified|
|17||BA||WKHS||Auto Parts||Other Industrial Metals & Mining|
|18||PTON||BA||Aerospace & Defense||Scientific & Technical Instruments|
|19||GTT||MAC||Specialty Industrial Machinery||Airlines|
|20||CTRM||SOS||Internet Retail||Capital Markets|
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