Our Next Millionaire Maker Stock Pick is Here!
Dear Subscriber,
First off--PRINT OUT THIS NEWSLETTER!
Second, in our $10k-a-Month Investment Income Club ULTRA Income Portfolio we are taking a bow on our mREITS call on the servicing rights bailout based on the insight our contacts in DC brought us. They told us two weeks that the FHA "could not let the servicers of government-guaranteed mortgage securities ($5.2 TRILLION WORTH) get hung out to dry on making principal and interest payments to bondholders on mortgages that took the forbearance gift from the $2.3 trillion Federal CARES Act."
As expected, that FHA bailout for government-guaranteed mortgage services came yesterday. Our mReits are up 15-20% on the news and firmly in the green (along with USAC up 40% in 30-days--woo hoo!).
So year...we are also taking a bow on USAC--we knew they would never cut their dividend!
How To Create a Multi-MIllionaire Investment Income Portfolio With LESS than $200,000!
We will construct a complete performance and buy under matrix for the $10k-a-Month Investment Ultra Income Portfolio over the weekend so we can see where we are with our new additions...but here is a thought. I just got that email from the Social Security Admin that tells me that when I have to take my Social Security at the lastest date (70), they will pay me and my hard-working spouse Marjorie each a maximum monthly payout amount of $3300 a month or $37,000 a year till our last breaths (hopefully sitting outside in French wine country somewhere sipping a Bourdeaux blend St. Emilion with a bucket of foie gras smoking a Montecristo 2.0 cigar.)
Anyway, my point is this: with the highest yielding risk-free US bond today at 1.27%, you would need a 30-year bond portfolio of literally $3,000,000 to get that same annual risk free yield as Social Security checks--you ever think about that?
I guarantee if you told people this fact, they would think differently about SS and Medicare since they will get back at least double in cash benefits than what they paid in (except for those of us who have had the pleasure to pay an unlimited Medicare tax on an unlimited taxable income--but I digress.)
I want you to think of this: the average annual yield on our mixed portfolio of US guaranteed mortgage bonds, preferred stocks, and natural gas centric MLPs is roughly 37% (assuming full dividends return on most of our positions at our cost basis)--and we still have room for 50-100% appreciation in many positions as the US economy gets back to a semblance of order post-vaccine in 2021.
In other words, it will only cost you about $100,000 to earn the same maximum annual SS income a person can earn if they defer their SS to age 70! Thanks to the horrific pandemic and market meltdown, with $200,000 in this Ultra Income Portfolio, you would earn TWICE the maximum SS income which would be equivalent to a $6 million US 30-Year bond fund!
Final point: from a spendable income perspective with $200k in our Ultra Income portfolio, you own the equivalent of a $6 MILLION 30-Year Treasury Bond fund.
Just saying--opportunity like this I have NEVER EVER seen in my almost 40 years on Wall Street and equity research. There is a silver lining to this horrible plague--a person just has to see through the horror.
Action to Take: USAC is still a buy under $8.50 with a $15 target (I have heard from many of you got units under our original $5--and a few around $4!. USAC trading at $8.30 this afternoon!--awesome!--and NEVER EVER SELL IT!!!)
FYI America 2.0 Is Here and Some Aspect of Our Lives Will Never Be The Same
We will have an update for everyone on what we are calling the post-pandemic "America 2.0" and "Global Commerce 2.0" opportunities and risks out shortly. But a big part of our investment thesis for both America 2.0 and Global 2.0 scenarios is that natural gas is going to take the lead in the hydrocarbon extraction and transportation world for at least the next 18 months.
Why? One reason is ALL the data we have gathered North America and the world's leading economies say the "V" shaped recover scenario is out the window. With the historic $9 trillion and counting Federal Reserve monetary and Federal fiscal policy, we should all expect consolidation and back-and-filling of this 25% move.
Key Point: But a break much below the 2350 bottom that we feared during the ugliest earnings season in 90 years is now off the table. What is ON the table is $9 trillion and counting of monetary and fiscal disaster relief which, in essence, creates a giant bridge loan to America's $22 trillion economy that will hold out until we are "on the other side" of this pandemic because if $9 trillion is not enough, May 3rd they start the next round.
Key Point: Yet one also has to assume there will only find a sustainable stock market base when there are signs that all this cheap money is actually feeding through into the real economy, rather than just temporarily supporting financial asset prices and bailing out mortgages and laid off non-essential services workers.
We do model the "U" shaped recovery for North America and recovery does come with a long-lasting negative 5-10%+ of structural GDP damage and consumer demand destruction (via the negative multiplier effect of closed businesses that do not return, bankruptcies and restructurings, 6-8% lower numbers of white-collar jobs that never come back, 14-20% fewer energy jobs from the downsizing and recovery--I have lived in 6 oil patch booms and busts, 3-5% more early retirements and 6-8% more working-class/manufacturing labor jobs permanently replaced by technology/AI/robotics and 20% closed bars, restaurants, small retail and service storefronts).
America 2.0 will NOT be the America of January 2020 for a long time. But while I know it seems like ancient economic history, economic recessions ARE SUPPOSED TO put the marginal operators out of business and move their capital and employees to stronger hands. Recessions are like economic forest fires--the seeds of new business start-ups are fertilized by the ashes of the burned down trees (i.e., closed businesses).
But until we have a vaccine that works and everyone can get it (or prove immunity), the virus pandemic is still in control of the pace and size of the America 2.0 recovery.
What is The Other Side?
The "V" uptick in the US and world economy comes, of course, when the world can pass the "middle aisle test" as in would you would comfortably 1) take the middle seat in transportation and travel, 2) sit on a bar stool or restaurant counter between others, 3) attend sports or entertainment events or other public gatherings.
We at this point have to assume the following "known knowns' with respect to the Fed, the COVID-19 Pandemic, and "post-pandemic America 2.0 when the "middle seat test" is positive in developed countries
1) The Fed is Not Nearly Done. With the Fed today, "moral hazard does not apply to this pandemic." This means the Fed's monetary policy is not bailing out the too-big-to-fail bad guys who got caught speculating with huge 20-70-to-one leverage in high-risk mortgage bonds and derivatives like 2007-2008. This economic disaster is a man-made recession caused to flatten the infection and hospitalization curve of nature made a highly contagious virus--that recession and the pandemic is no one's fault (although our preparedness for such a predictable event--see Bill Gate's Ted Talk in 2015--will be scrutinized.)
Known Knowns--Fed Policy in literally unlimited and we should expect $trillions more. The magnitude of $12 trillion in monetary and fiscal policy so far outweighs the depression-like short term 25% drop in jobs, 10% drop in GDP in April/May/June, and the giant layoffs coming to state/county/local governments.
2) Interest Rates ARE THE FINANCIAL GRAVITY of financial asset valuations--when they fall to less than zero including inflation financial assets rise, financial assets rise. Look---with such negative Fed Funds rates (0-.25) when you subtract mild price inflation, the Fed already is monetizing the after inflation Federal Debt ok? (for you economic geeks--I can't help myself!)
Known Knowns: here is what happens next--the Fed continues to jack up the money supply. The federal budget deficit largely will be financed by Federal Reserve System purchases of Treasury debt. The Fed will credit the Treasury’s deposit accounts as the Treasury implements stimulus measures instead of the Treasury having to tap private savings. The accompanying rise in private deposits from the stimulus funds will add to the nation’s money supply that otherwise would be depleted due to falling business revenues and household wages and salaries.
Such effective Fed monetization of the rising federal deficit in the near term will help to maintain very low-interest rates for private borrowers. In the years after the crisis abates the Fed will roll over maturing Treasury issues instead of requiring the Treasury to refinance by tapping the private savings pool. And the interest collected by the Fed will, as always, be returned to the Treasury, thus effectively limiting any future taxpayer debt burden stemming from the current stimulus measures (last fiscal year over $120 billion returned to the Treasury--expect double that in fiscal 2020.)
But listen--the monetization of the rising federal deficit will not raise price inflation. The Fed’s monetization is a temporary replacement of purchasing power that otherwise would be plummeting. When the economy and private incomes and deposits recover, the Fed will cease such purchasing power supplements, thus preventing aggregate purchasing power and demand from outrunning aggregate supply and rising price inflation.
The Known Known: Milton Friedman’s most important lesson was that the Great Depression would have been much less disastrous if the Fed had prevented a huge decline in the nation’s money supply. Hopefully, economists and policymakers won’t forget this lesson by instead fixating on the rising budget deficit, interest rates, and inflation.
3) Known Knowns: We WILL absolutely get a second blast of COVID-19 cases in the late fall in the Northern Hemisphere and continued cases in the Southern Hemisphere right now as they move into their fall and winter (our spring and summer). History is clear on this--from the Spanish Flu to basic influenza today, unless there is widespread community/herd immunity or a proven vaccine shot before flu season, highly infectious coronaviruses don't die in the heat and ultra-violet light of summer--they just ping pong back and forth across the hemispheres.
Adaptable as human beings are, we will become basically used to this Social Distancing drill soon and that will help America's Great-Reopining hamlet by hamlet, city by city, state by state.
4) We assume that at least Moderna (MRNA) will rapidly roll out a vaccine by Q1 2021 or sooner and Gilead et all have a viable therapeutic along with "community plasma" antibody treatments for the intubated ventilator cases. However, despite all the firepower of modern pharmacology, let's bear in mind that the SARS virus has no vaccine. HIV has no vaccine. Dengue Fever has no vaccine (but the Gates Foundation says they are close).
Here is the most current list of over 140 pharma companies racing for COVID-19 vaccines and cures from the Milliken Institute COVID 19-Tracker.
PS- YES I failed to pull the trigger on MRNA under $40-grrrrr. Our NIH/FDA insiders obviously could not legally or ethically, of course, tell us ahead of the world that the NIH was funding $500 million to ramp their vaccine. We will get another shot at it--but it is the leader in the clubhouse for the first scalable COVID-19 vaccine.
5) Much like the Depression, consumer behavior about spending and saving for a rainy day and discretionary spending will be altered for the next 20 years for most adults but particularly for the 95 million Millennials who have now suffered through two Great Recessions at their beginning and mid-career stages. Adults over 55 accounts for 42% of all US consumer spending and those in the bottom 70% of household income will reduce discretionary spending as well.
Known Knowns: While consumer's consumption of goods and services (and payments of interest) fuel 70% of the US economy (and a significant amount of the world's $95 trillion economies), it will be multiple years before the US consumer returns to 2019 consumption. That is unless we have a big Corona Baby boom.
6) As the Great Recession, states without the ability to borrow money to run deficit spending (all but Alaska) will start massive layoffs soon unless the Fed backs another Congress/Treasury CARE grants program (which they are now left out of) or the Fed buys zero-coupon investment grade tax revenue based bonds.
Known Knowns: The Federal Reserve will take $200-$300 billion of Treasury cash and lever it up (with the push on a keystroke) to $2 trillion and use it to buy state bonds with investment-grade ratings.
7) By the time the Fed is done monetizing all this new Federal debt, the actual US money supply will explode and since the Fed can't buy oil as a reserve, it will...and we will...be buying more gold as a reserve currency since it is the ONLY physical monetary asset the Fed can buy without strengthening the US dollar too high
8) The Game Over Digital World SaaS Cloud Dominators (MSFT FB Alphabet APPL Amazon BABA) and the key Digital Business Process Verticals Dominators (MSFT AMZN ADBE SHOP WDAY NOW DOCU INTU MDB VEEV ADSK ZS COUP AYX) will rule the new Enterprise 2.0
9) The Digital AI/ML/Autonomous Driving/iOT/5G/Robotics IO Semiconductor Engines will power the Post-Pandemic Business 2.0 (AMD NVDA TSMC ASML LRCX AMAT Qorvo Skyworks Marvel) and others.
We will rebuild our 63% appreciation per year TR Ultra Growth Portfolio from these spaces. But first...
2021--We Enter the Next Golden Age of Natural Gas
Right on cue, yesterday and today nat gas futures for 2021 are trading UP 300%-800%+ at $2.50 and 2022 at near $3 (from .42 lows). The reason is a simple major reduction of supply ahead with a coming return to 2019 demand.
We always make the point that the value of ANY traded security or product is set by the marginal buyer (who is making a limit order or an index ETF making a market order) and the marginal producer (who, at the margin, is producing more or less product than the current market demand can absorb). In the case of US natural gas, since it is NOT a transportation fuel, annual demand has been growing since 2009 while marginal new supply (from the natty gas that comes from presently uneconomic oil fracking aka "associated gas") began to oversupply the market in 2016.
In fact, spot natural gas prices (NG1:COM) at the Permian Basin's Waha hub have dropped to their lowest in a year, but longer-term Waha forwards is trading at multiyear highs on expectations that gas supplies will fall as record low crude prices cause shale energy firms to cut rigs. Compare today's numbers with an average of $0.42/MMBtu so far in 2020, $0.91 in 2019, $2.10 in 2018, and a five-year average of $2.12.
The BIG issue that has driven nat gas prices to historic lows is the "associated gas" production number (the nat gas that comes from uneconomic oil fracking: IHS Markit has said U.S. gas volumes associated with the production of crude oil could fall by 8B-10B cf/day by the end of 2021 because of associated gas accounts for about a 15-30% third of the country's total 96B cf/day of gas output depending on the region. The giant Permian fracking basin, for instance, is very "gassy" per barrel of fracked oil.
When you cut out the marginal new producer on nat gas, nat gas prices rise. In addition, the older a fracked well is, the more water comes out and less gas out of the well, too.
Nat gas and Nat Gas Liquids (propane, butane, etc.) consumption will be flat to down only 1-2% this year vs. world oil consumption down 30%+ (from 100M barrels per day to 70M per day). This is because most of its natty gas's main uses throughout the world-- electricity production, water heating and air conditioning of homes and buildings, cooking, fertilizer production, petrochemicals, petrochemical-based plastics, etc. --- do NOT decline in a recession nor as people are shut-in due to COVID-19.
As you can see below, during the Great Recession natural gas consumption followed its normal seasonal pattern in the US with barely a hiccup. During the oil price crash of 2015, natural gas volume consumed even went up.
Source: US Energy Information Administration
We are adding 3-4 solid gold Ultra Income plays in midstream companies that like USAC (which is 90%+ nat gas centric) that have A) already reported and did not cut their dividend (like USAC--told ya they would not cut dammit!) or ones that have cut their divvy (which gives us huge income upside at these prices) and that have gone UP after they announced a cut (which means the cut was less than investors assumed).
Here are the new recommended names for our Ultra Income Portfolio that we have vetted and have 100% reaffirmed their dividend
Nat gas producer Antero Resources (AR)
Action to Take: Buy Under $2.25 with $6 target and 28% annual dividend
Nat gas midstream Antero Midstream (AM)
Action to Take: Buy Under $6 $12 target and 28% annual dividend
Natural Gas midstream NGL Preferred C: NGL.PC
Action to Take: Buy Under $12 target and 26% annual dividend
We will deliver our deeper investment analysis in the next few days--but we have taken weeks to suss out and validate their dividend coverage and EBITDA (cash flow) numbers.
The following midstream companies (aka The 50% Dividend Cut Club) have temporarily cut their dividend (which gives us big upside and 2X current when it is restored)
DCP Midstream DCP-which announced yesterday a 50% cut of dividends which now is paying a 25% yield--and the stock is up today!
Action to Take: Buy Under $8 target with $22 target and 22% annual dividend
Enable Midstream Partners, LP (NYSE: ENBL) slashed its dividend by 50% to $0.16525/share but at $3.26 share price that 64 cent dividend (now covered by long term contract cash flow by 2X!) is 20%
Action to Take: Buy Under $4 target with $22 target and 20% annual dividend
AND NOW--BUY VTIQ under $18 VTIQU <$22
A VERY SPECIAL PRE-ANNOUNCEMENT: THIS IS THE NEXT $100 BILLION American COMPANY And You GOTTA GET IN NOW BEFORE THE IPO MERGER in Late JUNE
We have a VERY special new transformational growth company to add to our growth stock list that I have labeled "The New Tesla" before it's IPO that we will buy today under $15!.
The tease is this: Knowing what you know today about the future and fortunes being made from electronic transportation technology, if you could go back in time to June 10, 2010, and buy the Tesla IPO at $18, would you?
OF course, you would...so then let me ask you this: Knowing what you know today about the future and fortunes being made from electronic transportation technology, would you buy the NEXT Tesla before it's IPO under $18 today if you could? For under $15?
Yea I thought so--you would be an idiot not to right?
But what if...what if you could buy one share of the Next Tesla for under $18 today and get a warrant to buy another share for just $11.50 or a total basis of $15?
The company I am referring to is Nikola Corporation in Phoenix, AZ.
They will be Nasdaq listed under the NKLA ticker symbol by end of June in a merger IPO. I have spent a lot of quality time investigating this company (I was tipped off by an NKLA engineer who is part of our TR Experts Alliance this year).
I am here to tell you all the future valuation models we have made say this $3 billion IPO company is on a very strong pathway to becoming a $100 billion market cap company.
Yes--a 30X bagger from here as the world comes out of a deep recession (disclosure: AFTER this email and a large newsletter subscription campaign, my family office and managed accounts will be buying a LOT of this combined stock + $11.50 Warrant unit under the ticker VTIQU)
Why? Because the short answer is they are the fast track to becoming the crown jewel of $600B annual long and short-haul industrial transportation industry or better said what Tesla is to the electric consumer vehicle industry.
They also will be the MUST OWN stock for the $30 trillion ESG pension investment world (more on that in a moment).
YOU get a shot to buy the shares pre-IPO because Nikola is merging with a $200 million in cash Special Purpose Acquisition Company Vector Capital VTIQ in late June (run by the ex-Vice Chairman of GM BTW). When they merge, the raise $500 million with a pre-funded private investment in public equity deal run by Fidelity and Morgan Stanley (aka a PIPE).
A special purpose acquisition company (SPAC) is a type of investment fund that allows public stock market investors to invest in private equity-type transactions or in this case a pre-package IPO.
There are multiple highly compelling reasons to grab as much of their <$15 pre-IPO stock VTIQ as you can afford NOW before the late June official merger and even more reason to grab their stock+$11.50 warrant unit VTIQU.
The Top 10 Reasons Why Nikola is the Next $100 billion Tesla (And Why You Would be a Knucklehead TO NOT to Buy Shares BEFORE the IPO in late June)
1) BECAUSE as of today, Nikola has literally sold out their ENTIRE production for the next 24 months! That is right--Nikola has in cash deposits and contracts for over $10 billion/2 years of production ALREADY booked with deposits from EVERY large transportation company in the world.
Who has pre-ordered Nikola Self-Charging Long haul e-truck and short-haul E-Truck? Anheuser Busch, ABInBev, Pepsi, Wal-Mart, Amazon, Fed-X, Ryder, and many more.
Why the massive 2 years sold-out demand?
1) Because a the Nikola self-charging electric long haul/short-haul commercial truck has a combined value-proposition that diesel trucks could NEVER EVER match
A. Because every major company that uses long haul transport knows that diesel fuel is getting outlawed or highly restricted emissions in many key regions (already in Europe, China, and Southeast Asia) all over the world.
B. For consumer brands, using Nikol's fuel-cell charged zero-carbon emission electric truck positions their company as a leading GREEN and global warming killer, not a global warming villain (ask a Millenial how they feel about global warming and climate change, OK. If you are a consumer brand, it's vital to show you are not only AGAINST global warming and killing the earth to its tipping point at 2050--that you are doing something BIG to fight back ).
C. Because the total cost of buying and operating the Nikola vehicle is a fixed cost per mile lease for 7 YEARS--and while that cost is comparable to diesel trucks for now
D. Nikola trucks are 100% ready for autonomous/driverless long haul operation which gives Nikola rigs a 15% LOWER per mile cost of operation than loud, slow, polluting diesel rigs (and a proven and simple solution to America's shortage of 100,000 truck drivers)
2) Amazing Exponential Growth! Nikola's Incredible growth from zero to $10 billion in contracted sales. Look--Tesla was founded on July 1, 2003. In comparison, it took Tesla 14 YEARS to get to $10 Billion in sales.
In comparison, Nikola gets to $10 billion in sales in less than 5 years. And 100% of those sales are pre-sold TODAY. To Wall Street secular growth investors, they have never ever SEEN sold-out growth like that from an IPO.
3) Because unlike a normal truck sales transaction where the dealer is paid for the truck and then sells service and parts to the truck owner, Nikola gets paid roughly one dollar for every mile their truck in driven (via an all-inclusive 7-year lease)
4) $30 TRILLION in ESG Capital is Drolling For Nikola Corp. Stock. Nikola is an absolute MUST OWN stock for the now $30 TRILLION in capital dedicated to ESG investing. ESG investing — or strategies that take a company's environmental, social, and governance factors into consideration — grew to more than $30 trillion in 2018, according to Global Sustainable Investment Alliance, and that number is set to keep rising as consumer tastes shift and investors demand more transparency (read "Millenials and Public Endowments and Pensions).
FACT: My investment management firm Tranformity Family Office is in the process of setting up an ESG growth 2050 fund for other Family Offices. I can tell you--by going public early and 100% pledged to follow ALL the ESG sustainable/social and fully transparent governance standards which you have to follow to be an ESG worthy investment, NIKOLA is literally the MOST ESG WORTHY publically trade stock in the world.
Think of the FORCED buying demand as Nikola becomes a member of EVERY ESG index fund. Literally every ESG fund that invests in U.S. companies will HAVE TO OWN THIS STOCK or turn in their ESG certification. Nikola will be literally the FIRST ESG stock we buy with my fund--and Nikola will be the toast of the ESG world in Davos in January trust me.
5) The best news? The post-money valuation is just $3 billion. I am not exaggerating that as this rolls out, it will be another 30x-40x winner with just $40,000 in stock now becoming our next "Meltdown Millionaire" investment.
I have spent time some incredible time with our insider (they are in Phoenix; I am in Scottsdale).In fact, in my 20 years of editing investment newsletters, almost every 30-40X winner we have ever recommended (APPL/Monster Beverage/ ANSS/WFR/CREE/XM Radio/AMD/Nvidia) came from one of our investment research syndicate.
Yes in this case like many of our 20X bagger stocks, I first learned about Nikola late last year from one of our TR Experts Alliance members who is a fuel cell engineer and works for the company.
The REALLY BIG IDEA: Carbon Free Commerical Transportation-as-a-Service at 50% LOWER Total Cost
The Nikola transformative vision is NOT to build electric trucks. Yes, they are building very amazing long haul e-trucks. But those trucks batteries are charged by an onboard fuel cell by 2021. The Nikola truck goes 1800 miles before it gets a refill of...hydrogen! In 20 minutes or less, they are ready to roll another 1800 miles without a fill-up.
But what Nikola is really selling is an unbeatable value proposition: By the time autonomous long haul truck driving is legal, they will cut the cost of owning, servicing, and fueling a long haul (or short-haul) truck by over 15% vs. owning, servicing, repairing and diesel truck. The driver cost is the same no matter the truck (but the Nikola is 100% set up with autonomous driving technology when autonomous truck transport is legal).
Nikola is also building a national network of hydrogen fuel-based electric battery charging stations on EVERY major regional and long haul transportation corridor for ANY Electric Truck. They can charge an electric battery truck or a Nikola Fuel Cell that charges the battery on the Nikola truck.
Final Point: When up and running, the NIKOLA ZERO carbon footprint is so transformative I wanted you to see this amazing opportunity for yourself before we put this out in a newsletter promotion we are starting next week to 250,000 plus investment newsletter subscribers, OK?
I Am POUNDING the Table Buy for VTIQ shares Under $18-20. We are lights out crazy about this company. I am pounding the table for you to buy the VTIQU today <$18 which has one share of stock and a warrant to buy another share at $11.25--and put it away and not look at it for 24 months.
NOTE: I fully expect NKLA to double or triple in price the first day it is available for public trading like Tesla did and rings the NASDAQ buzzer and spends the next 48 hours on a mammoth media tour.
To be there for the open, you have to be in BEFORE the reverse merger transaction close in late May/ mid-June. Because NKLA is in their quiet period until the merger closes, VTIQU will be under investor radar except for our thousands of new subscribers who will be getting our special report on Nikola starting next week as part of their new TR PRO subscription.
PS: My investor group plans on owning and controlling a significant number of shares AFTER our newsletter promotion cycle is over--early bird gets the worm!
For you engineering types, here is ALL the background data and facts behind this once-in-a-lifetime pre-IPO opportunity.
PS: Here is my link to the NKLA business merger deck--You MUST read this amazing deck which is no longer available to the public (but I got one anyway--thanks to our insider).
Here is the NKLA video Analyst Day introduction
Here is the first announcement on CNBC of the merger
Here is the Fox Business interview on the merger (you gotta let the ad run)
Here is the press release on the merger and company.
Here are just a few of the 413 Articles on Nikola.
Final Piece of Advice: BUY the VTIQW and some VTIQ common tomorrow and put them away for the next 36 months--do NOT think of selling them on the first or second day IPO melt-up I expect. $3 billion market cap to $100 billion market cap is a 33X winner--$40,000 becomes $1.2 million and a legendary investment score with ZERO revenue risk for the next 24 months, OK?
NKLA Merger Transaction Details
NKLA Q&A
VectoIQ currently has three types of securities outstanding. Common shares trade under VTIQ. Warrants trade under VTIQW. Units (each consisting of one common share and one warrant) trade under VTIQU. Both the warrants and common shares will remain outstanding following completion of the transaction. The ticker of the common shares will change to NKLA, and the ticker of the warrants will change to NKLAW. At the closing, each unit will automatically separate into its components (one share of common stock and one warrant).
What percentage ownership in Nikola will the SPAC shares in VectoIQ receive?
Assuming no redemptions, public VectoIQ shareholders will own approximately 6%, and VectoIQ sponsor shareholders will own approximately 2% of Nikola.
If I have 1,000 VectoIQ warrants, will I have the right to buy 1,000 shares of NKLA stock at $11.50?
Yes. The warrants that trade under the ticker VTIQW will remain outstanding following the transaction and trade under a new ticker, NKLAW. Each warrant has a 5 year exercise period from the closing date of the transaction and is exercisable into one share at an $11.50 exercise price.
If I own 1,000 VTIQU units, how many shares of NKLA, after the closing, do I have a right to buy?
Each unit consists of one share of common stock and one warrant. After the closing of the business combination, you would own 1,000 shares of NKLA common stock and 1,000 NKLAW warrants. These warrants would have the same terms as described in the question above.
What was the implied enterprise value of Nikola when it announced the business combination with VectoIQ?
$3.3 billion valuation or 1X 2022 presold truck revenues.
What is the sales multiple valuation of TSLA today?
Tesla TSLA on April 22, 2020, has a market cap of $120 billion on $24.5 billion of 2019 sales or 5X sales multiple. in 2020 TSLA has had up to an 8X 2019 sales multiple.