Dear Subscriber,

Welcome new TR subscribers--you certainly picked a historic moment to join Team Transformity Research! 

If you were following the amazing journey of VTIQ yesterday and today, you may be asking "What the $@%^@$&$@#%&$#% just happened???

Well, we DID tell you that VTIQ/VTIQU soon to be Nikola Motors NKLA after the merger has all the ingredients to become our latest "millionaire-maker stock"  and join the ChangeWave/Transformity Research Millionaire Maker Hall of Fame along with Microstrategy at $10 (topped out at $355 in 2000), Apple in 2004 at $4 (split-adjusted), XMradio (XMSR) at $2 (bought out at $35), ANSS at $6 2006, Monster Beverage at .50 in 07 (split-adjusted bought by Coca Colar at $225) or more lately $AMD at $3 (now $50) and Nvidia at $24 in late 2016 (now $305).

But $15 to $35 in three weeks?

Let me take you through the last few days--especially if you are like me today with my head still spinning (I'll show you how we traded this insane $10 swing up, back and up again from $25 to $35 in a moment.)

PS Transformity Research is NOT A DAY or SWING trading service!!.  But for our managed accounts today, we were selling and buying call options and 1-2 hour swing trades like a machine gunner on Iwa Jima beach landing!

What happened?

A combination of unique one-time events is what happened. And then the day trading hedge fund trading desks discovered their ultra-liquid Huckleberry stock with just a 26 million share float and bought and sold the ENTIRE float in 5 days on 3 days of negative overall stock market action (as the S&P 500 rally bounced to the 2850 top of the range and took a much-needed breather.)

Voila! Our 2 long ultra growth positions (VTIQ and VTIQU) turned into the day trading/swing trading dream of every trading desk on Wall Street!

The triggering catalyst in order. First, as we talked about in our "Forget the BS VTIQ "Tender Offer" update last week, some civilian shareholders were just so confused about the "$10.50 tender offer" they got from their broker that some did sell but most would-be buyers just sat on their hands until last Friday (warning--a slew of Wall Street terms are about to be unleashed--can't be helped!). 

Then Monday, the plan to transform VTIQ into Nikola Corp was validated as stockholders at VectoIQ Acquisitions Corp. agreed to extend the time to complete the deal beyond this week’s deadline, paving the way for the final merger vote, and sending VectoIQ shares sharply higher.

Trevor Milton
@nikolatrevor
Great news and progress on the merger. We anticipate the merger being completed in first two weeks of June!
Trevor Milton
@nikolatrevor

Then yesterday, CEO Trevor Milton on his twitter account @nikolatrevor tweeted "Europe! Nikola Tre 720 kWh BEV (battery electric vehicle) is being built in Ulm, German for Europe. The first units are being assembled now and production begins next year! When other OEM's waited, remember this, @nikolamotor and @IVECO proved it could be done today. Others will follow us to a zero-emission future (but if you read between the lines the message really is "And we have over $10 BILLION of hard orders and are 100% sold out of our Fuel Cell Electic Vehicle (FCEV) production for 2021-2022 and now 2023--and no one else is even close!).

BOOM--the meltup and scramble for shares "Was on like Donkey Kong!
 
Here is the 5-day chart--notice 44 MILLION shares traded in just 5 trading days!. That means that with many long term holders of VTIQ/NKLA like our subscribers, the "real trading float" of 15 million shares traded over 3X in 5 days! 

This morning was insane. As Fed Chairman Powell told the nation what they should already understand (that we have nearly 40% of the country's lowest-income 44% of households with at least one breadwinner unemployed and the financial damage on Main Street and the average $62,0000 income household right now is staggering and much of the damage in permanent), VTIQ shares traded UP in the pre-market to $32 on an ugly red tape. I looked at our managed accounts (heavy in our Ultra Income 24%+ yielding winners) and say GREEN everywhere--like six and seven-figure green.

Then BOOM--NTIQ fell to around $28 for--I'd say about 10 minutes. We put in a $35 June 14 call option order at $8 and the stock (and option) exploded 40% to $35 in the bat of an eye on HUGE volume. This was a classic short-covering rally. 

But here is the key point: the average individual can't short VTIQ! You have to be a hedge fund with a prime broker (like Goldman Sachs our prime broker). It also costs 20 cents per share to borrow VTIQ shares and sell them short--per day!

So the hedge fund trading desks (my old life in the 2000's--I know the drill) crushed the shorts who had "buy stops" on their positions. Those rolling buy stops simply say "Buy VTIQ if it goes up more than 10% of my short position." The stock imploded from $25 to $35 in the bat of an eye on HUGE volume--more than the 15 million shares. 

Then--it was like every trading desk guy and gal with a Bloomberg terminal got an instant message (and trust me--this happens every trading day but especially with a "face being ripped off" short rally") BOOM--the winning positions are dumped and traders take profits and some short again. We sell our options for a stupid profit (and to simply this, the market maker who created the call option for us to buy) closed out his short position on the stock (this is how option making works--the market-maker hedges his long and short calls/puts with being long or short the underlying stock.)

OK--I know your head is spinning. But I am trying to make the point I have NOT SEEN this bi-polar trading of 3X the entire real float of a stock in 6 hours since the late 90's and the Internet bubble.

Of course, after the stock falls down again, it rallies into the close to $30.30--UP FOR THE DAY after 44 million shares traded!

MORAL of the story? #1 We did a discounted present value of 18,000 Nikola Class 8 Trucks on the road at $1 a mile times 110,000 miles a year (the mean average long haul truck is driven 110,000 miles per year in the US). Add in the BV trucks in Europe and the retail trucks being sold not leased starting 2021 (more on THAT FCEV retail pickup truck in the next few weeks--it is amazing and does NOT LOOK like the TSLA tank truck.)

Our math has the present value of NKLA shares (assuming all 20 million warrants are exercised at $11.50) and we get a end of 2020 value at $45.

Action to Take: TAKE advantage of the short term extreme volatility with LIMIT to buy orders under $27. The stock is WAY OVER BOUGHT at 93 RSI (relative strength) but because of the impending merger completion, the news flow and media coverage are going to be huge before and after the merger. 

BTW: In the May Newsletter (as we mentioned in the welcome letter, I HATE fixed linear investment newsletter editorial schedules--THAT IS NOT HOW LIFE WORKS!)  I'll get into why we have been waiting for a much-needed correction to "load the Transformity Ultra Growth portfolio up" with our favorite "The Next Normal Digital Workplace/School Space/Home Space/Healthcare/Service Space/Entertainment Space/Biotech/COVID-19 vaccines + therapeutics" stocks in the May newsletter.

But I will say this: for an equity/macro research group that specializes SOLELY in the researching and investing in the immense wealth creation and wealth destructive power of macro and micro transformative change, the world COVID-19 pandemic is the most transformative economic and socioeconomic event since the Great Depression and World War II.

As tragic as this all is of course, this is the most amazing time for you to be a subscriber to our research and stock/ETF stock picking. I guarantee we will continue to outperform the 8% annual S&P 500 returns by 8-10X because when I show you our subscriber P&L with our closed out QQQ IQM XPO put options from Jan 24 and cash Feb 24 plus our 100%+ gains from VTIQ at $13-$15 entry points, our P&L for 2020 is significantly over 100%.

But what counts now, with so many new subscribers, is to make 2020 YOUR best year!

PS: here is our April 23 initial recommendation on VTIQ/VTIQU

BUY VTIQ under $15 VTIQU <$18

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 NKLA ticker symbol by end of June in a merger IPO (now first or second week). 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 own 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, Nikola Motors is in the sole pole position to become the game-over dominator in Fuel Cell Electric Vehicles (FCEVs) and trucking and trucks in particular. 

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 (now $4.5 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 are 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. 

Toby