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“Fraud Built on Dozens of Lies”

Story Highlights:
  • Buzzy stock Nikola had a meteoric rise, then a meteoric fall.
  • Its founder has been accused of fraud on a massive scale.
  • Avoiding terrible managers like this is one of our Alpha Investor
“Fraud Built on Dozens of Lies”

Things looked great for Nikola Corporation (Nasdaq: NKLA).

In six months, the electric truckmaker went from about $10 per share to about $79 — a gain of more than 650%!

The stock was absolutely soaring.

Fast-forward to today, and Nikola is back down to earth:

Chart showing Nikola's stock price rising 650% and then falling back down to earth.

So, what happened in three months that caused the stock to fall from $79 to $27 per share?

Look no further than Nikola’s founder, Trevor Milton.

On September 10, Hindenburg Research put out a report claiming that Nikola was a “fraud built on dozens of lies” constructed by Milton.

Hindenburg then detailed the many falsehoods he allegedly put into motion.

According to the report, Milton:

  • Misled partners into signing agreements by falsely claiming to have extensive proprietary technology.
  • Staged a video called Nikola One in Motion.
  • Had an artist stencil “H2” and “Zero Emission Hydrogen Electric” on the side of the Nikola One, despite it having no hydrogen capabilities whatsoever.
  • Laid the groundwork to extract hundreds of millions from his company years before ever delivering on his promises.

Now, these claims sound incriminating … but they weren’t even the tip of the iceberg.

And this week, with the news of Milton’s resignation, Nikola has continued on its downward spiral, dropping 17%.

Situations like this, however unfortunate, underscore the importance of having an “Alpha Manager” at the helm of every company you invest in.

And Charles Mizrahi knows this better than anyone.

Who’s Steering the Ship?

With 37 years of experience in the market as a former investor, money manager and hedge fund manager, Charles knows the value that an Alpha Manager can bring to the table.

Because, at the end of the day, that person is the one steering the ship — executing strategy, allocating capital and coming up with a focus for the company.

That’s why we look for rock star leaders with excellent performance history — managers who go above and beyond to unlock shareholder value.

If a company doesn’t have an Alpha Manager to call the shots, Charles knows that it’s not worth his time … or yours.

Instead, he finds companies being led by CEOs who are simply outstanding.

And he likes Global X Founder-Run Companies ETF (BOSS) for that very reason.

This exchange-traded fund (ETF) provides exposure primarily to U.S. companies led by the CEOs who founded them, such as Tesla Inc. (Nasdaq: TSLA), Wayfair Inc. (NYSE: W) and Square Inc. (NYSE: SQ).

These are Alpha Managers with a vested interest in the companies they lead, and it shows in the ETF’s steady returns.

But these aren’t the only Alpha Managers worth following.

In fact, Charles’ Alpha Investor model portfolio is packed with leaders he believes “belong in the CEO Hall of Fame.” Readers have seen some huge gains already.

If you want access to Charles’s full track record, every single one of this recommendations, currently 19 profit opportunities, subscribe here.


Nicole Zdzieba
Assistant Managing Editor, Alpha Investor

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