Updated: Here's How to Play the VTIQ MeltUp We Predicted June 2-5th for another $10!
Dear Subscriber,
Quick apology.
We had the original June 3rd merger vote date in our calendar system---but the merger vote was changed to today's weeks ago.
So . . . Everything I assumed would happen on Wednesday happened today.
No excuses--I messed up the dates--nobody else.
As you may have noticed, we got the spike up I thought we'd get on Wednesday today.
If you followed our 10-minute chart advice, It became clear in about 20 minutes this morning that the spike was basically a clone of the mid-May blow-off melt-up to $35. The good news is the stock is firmly holding $28-$32 range, unlike the last meltdown to $22.
I know from All-Access members that many sold their June 6 calls into the spike (one member texted me and said "Out at 9--almost a five bagger--NOW I have financed putting in new floors and doors and vacation home--my WIFE thanks you!")
But for the non-traders, today was like deja vu all over again--$6 spike, double top, and then day/swing trader profit-taking. The real investors showed up $32-$33 and 25 MILLION shares later (only 31 million in the float) and we turned the entire stock ownership over in 2 trading days.
PS--trading in the VTIQU units (one share one warrant) was halted on the spike up--that is why they went UP while the underlying VTIQ stock was going down.
What's next?
As I have said on many of these VTIQ updates, VTIQ morphed from a "stock" into Nikola the Millenial Monster cult stock and day/swing traders LOVE the volatility.
The shares convert to NKLA Wednesday night and your VTIQ shares will automatically change to the NKLA ticker when the market opens Thursday.
PS--there was a rumor going around today that Nikola would change the Warrant deal. That's insane--the need ALL those 40 million warrants to convert at $11.50--they need ALL that cash ok?
Since we got the melt-up from the "merger passed" announcement at the open today, I assume manana will be a bull/bear showdown and that we get an NKLA pop on Thursday as they ring the Nasdaq Bell at the open and tell their story again to business TV interviews all morning.
I'll keep the Buy Under at $30--with a strong buy if it dips down to $28 or lower on volatility.
PSS-- the FIAT subsidiary CNHI than NKLA is partners with in building the first 14,000 trucks in Europe is publicly traded on the NYSE. They are 50/50 partners with Nikola on their Nikola battery truck assembly in Europe.
CNHI owns $250 million in NKLA stock at $10 which means they are sitting on a huge increase in book value. CNHI is a $25 billion a year monster with non-pandemic $1.10 in EBITDA cash flow per share selling at just $6.75 per share. Here is very good summary of the CNHI story in 2021-2022 from Seeking Alpha.
The market has just started to notice this--it's the perfect secondary effect play on NKLA at a $10+ billion value when all the shares are converted to NKLA listed shares.
Action To Take: Buy CNHI Under $7 with a $12 2021 target.
Again--apologies for the #%$^$#%$ UP... inexcusable.