Hit on Nikola, Lost Banking Boys and Zombies
The One That Won’t Go Away
Welcome to Reader Feedback day! As always, this day is all about you, the Great Stuff reader.
There’s a reason we call you the Great One. Not only are you subscribed to the (potentially) greatest free financial newsletter on Earth, but you are also among the greatest readers … ever.
I mean that. You humble me every week with your emails, support and political exposes (more on that later). Thank you.
And if you haven’t written in yet, now’s your chance. Send Great Stuff your questions, stock ideas, options ideas, rambling diatribes … whatever. We take all kinds here. And while I might not get to every question, know that I read all … I see all.
So, drop us a line at GreatStuffToday@BanyanHill.com. What have you got to lose? Your sanity? We’ve already lost ours; you’ll fit right in.
Without any further ado, let’s get right to the main event.
I bought Nikola when it was between $45 and $65. Do you think I should hold, or sell and take that big loss?
– Nancy K.
Thank you for writing in Nancy! You’re today’s feature presentation … lucky you.
Nikola, Nikola … Nikola. This is the stock that will not go away. I recommended Nikola Corp. (Nasdaq: NKLA) in Great Stuff Picks earlier this year as a way to ride the wave of the hydrogen power market. That didn’t pan out so well, and we officially closed out NKLA at a loss – though, not because of hydrogen power or Nikola’s prospects. Thanks, Trevor Milton.
I still believe the company has great things in store, eventually.
The problem is that Nikola has a rather large stigma attached right now. And we have former CEO Trevor Milton and his (allegedly) deceitful ways to thank for that. The deal with General Motors Co. (NYSE: GM) is a major feather in Nikola’s hat, but that deal isn’t set in stone just yet.
In short, it’s going to take considerably longer for Nikola to realize its hydrogen power dreams … dreams it may only realize as a division of GM.
So, do you hold NKLA or sell? Should you stay or should you go?
That, in all honesty, depends on your investment outlook and your patience.
If you initially invested in NKLA for the long-term, you should eventually recoup your losses. But we’re talking looong term here, and that’s only if GM continues its relationship with Nikola. Patience is crucial, and it will be a bumpy road, but you could get your investment back and make a profit if things go right.
However, if you invested in NKLA to score profit from the recent surge in the hydrogen market, I’m sorry to say that you are probably out of luck. Barring a GM buyout, I don’t see any catalysts on the horizon to drive NKLA shares back to the $45 to $65 area within the next six months to a year.
Losses are hard, but it’s often better to bite the bullet and put that investment capital to better use elsewhere.
Speaking of better uses for capital, a few weeks ago I detailed three stocks in the hydrogen power sector that could fill that Nikola void. Have a look: Hydrogen: 3 Stocks for an $11 Trillion Market.
Finally, if you’re itching to buy into the new power generation today and just can’t wait another molecule-separating minute…
Now, let’s get to the rest of the Great Stuff inbox. If you haven’t written in yet, drop us a line at GreatStuffToday@BanyanHill.com. We don’t bite … that costs extra.
All right, now for the rest of you. You were quite the eager beavers this week. We’ve got Great Stuff emails on banks. We’ve got Great Stuff emails on stimulus. We’ve even got Great Stuff emails on zombies!
Yes. Zombies. This is why we love you. (Let’s get ready to rumble!)
Money laundering. BILLION dollar fines. It all goes away. England gets top honors for the most banks laundering for rich and criminal while raising FEES for EVERYONE else. World Bank corrupting (already corrupt) and BANKrupting 3rd world countries, essentially funding terrorism…
Do you dare touch those subjects???
– Gregg G.
First, thank you for writing in Gregg!
Second, there’s a simple rule that my grandfather taught me years ago. It’s served me well all my life. That rule? Don’t sweat the petty things, and don’t pet the sweaty things.
And those are some pretty sweaty topics.
The thing is, banks are fined all … the … time for doing stuff like this. And nothing else is said.
No one is in jail for the 2008 financial crisis.
No one even remembers the Panama Papers scandal any more.
Wall Street has already completely forgotten about this whole “funding terrorism” thing.
What I’m saying is: I hear you, Gregg. I understand why these topics upset you and multitudes of other concerned citizens (or something).
But I’m just this guy, you know? I’m here to look out for your well-being in the market,give you some tips on investing, make some jokes and provide entertainment while doing so. If those (or any other sweat dripping) topics directly impact your portfolio or 401k, I’ll be sure to let you know.
But I’m not a member of the Justice League. Apparently, Mr. Great Stuff just wasn’t cool enough. Maybe you need Batman? Maybe I need a cape?
Lost Boys and Zombies
Joseph, I look forward to the hilarious captions on photos and movie clip shots. It ties all the market insanity together in a neat bundle for us lost boys (investors).
I’ve come to believe that politicians, no matter what flag they sail under, and whether they go into the “Swamp” to drain it or party like it’s 1999, come out of the cycle more like Zombies or raving Lunatics. They can’t remember things anymore or they no longer speak coherently.
I like your logic. “Keep the powder dry” I rely on you and your other colleagues to help ferret out good trade routes and dangerous straits as well as safe harbors, because investing is a precarious activity.
Ultimately investors are Captains of their own ships and know the value of their powder. Keep the Great Stuff coming!!!
– Don W.
Don, my brother from another mother, thanks for writing in! I certainly like the cut of your jib and am glad you’re finding useful market information and entertainment here at Great Stuff.
Since we’re talking Lost Boys, I think paraphrasing Edgar Frog suits this market rather well:
I think I should warn you all, when the stock market bites it, it’s never a pretty sight. No two stock market rallies go the same way. Some yell and scream, some go quietly, some explode, some implode, but all will try to take you with them.
As for zombies … I’ll hand that one off to my colleague Ted Bauman, editor of The Bauman Letter:
But the Federal Reserve can do no more to rescue growth stocks and “zombie companies” sacked with mountains of debt. From here on out, raw market reality takes over.
See? Zombies are real. Now, grab your copy of The (Financial) Zombie Survival Guide and go hit up Ted to see how you can find big profits in Wall Street’s looming zombie apocalypse.
The Good Ole Days
You’re absolute right about Logitech.My webcam is logitech.I have logitech keyboards.I have lots of cd’s from logitech. But you can’t win them all. I also agree with you about not chasing old news. If logitech continues to go up God bless them. But i’m with you. Should’ve gotten in sooner. I worked for CBOE Chicago Board Options Exchange for almost 30 years.I picked about 5 people to show how to roll their 401 k’s.The S&P is about a block from where I worked as a quote reporter. My job was to enter the market makers bids & offers.Sounds easy? It’s not when you have over a hundred people screaming markets at the same time. But I’d learned a lot from other quote reporters…
Hello Dreamlover. This is Mr. Great Stuff – editor of … well … Great Stuff and protector of the GreatStuffToday@BanyanHill.com inbox in which your correspondence arrived.
If you were looking for Paul Mampilly, you can contact him at BoldProfits@BanyanHill.com.
That said, thank you so much for kind words on Logitech and the trading floor story! I wasn’t able to publish all of it. It was a quite long and interesting tale about the good ol’ days of shouting out trades and market-making.
If you’re sticking with Great Stuff, I’d certainly love to hear more stories about your time on the trading floor.
Odds & Ends
The greatest! Thank you for the opportunity.
– Abubakar M.
Great interviews. Keep it up.
– M. T. C.
– Ed from FL
Abubakar: No, thank you! We appreciate each and every one of our Great Ones. Glad to have you aboard.
M.T.C.: Thanks for the feedback! We’re looking at doing more interviews with other Banyan Hill gurus in the future. Stay tuned!
Ed from FL: Dude … If I knew how to stop the emails, I would. They just keep coming! But they’re not half as annoying as those people calling about my car warranty.
Lets cut a deal. You help me stop the warranty people, and I’ll see what I can do about emails? Sound good?
Great Stuff: That’s All Folks
What a day. What a day!
Thank you to everyone who wrote in!
If I didn’t get to you, my apologies. We’ll get to you next week, especially Tom J., Judith S. and Richard K. We only have so much room, you know?
If you’d like your comments, rants or questions to feature in Reader Feedback, be sure to drop us a line at GreatStuffToday@BanyanHill.com. You might just see your email in next week’s Reader Feedback! But in the meantime, keep up with us on social media too: Facebook, Instagram and Twitter.
Until next time, be Great!
Editor, Great Stuff