The SEC Plays Hyzon Seek
Great Ones, I’m sure you’re all wondering about Great Stuff Pick’s most controversial stock today: Hyzon Motors (Nasdaq: HYZN).
In case you haven’t already heard, Hyzon announced that it received a subpoena from the U.S. Securities and Exchange Commission (SEC). The SEC subpoena seeks documents and information regarding Blue Orca Capital’s short seller report on Hyzon way back in October 2021.
You know, the report that Blue Orca put together without even reading any of Hyzon’s SEC filings?
The one that Hyzon blasted as “inaccurate and misleading” and “intended solely to generate profits on Blue Orca’s short position at the expense of Hyzon’s long-term shareholders?”
Yeah, that report.
Well, Hyzon announced that it’s fully cooperating with the SEC’s investigation. And if you want my opinion on this new wrinkle, I have just two things to say:
1. There is nothing to worry about here. Hyzon has already addressed everything and has nothing to hide, as Blue Orca would’ve found out if it had only talked with Hyzon when writing its report. But accuracy isn’t what Blue Orca was going for — it was going for profits at Hyzon’s expense.
2. It took the SEC less than a month to subpoena Nikola (Nasdaq: NKLA) for information, whereas it’s been nearly four months since the Hyzon short seller report came out. This caution by the SEC speaks to the veracity of Hyzon’s rebuttal, in my humble opinion.
In short, the SEC’s subpoena is a big nothingburger. There’s nothing to see here but a greedy short seller stoking fear and a government agency doing its due diligence. It’s time to move on … but try telling that to Wall Street.
News of the SEC subpoena sent HYZN stock down more than 13% in premarket trading and forced the shares to close down nearly 10% today.
Surprisingly, however, there was news that should have impacted HYZN stock today … but Wall Street was too distracted by the SEC news to notice.
Specifically, Hyzon announced that it delivered 87 hydrogen fuel cell (HFC) vehicles in 2021, exceeding forecasts for 85 vehicles. What’s more, the deliveries report did not include any trial leases or rentals — hinting that produced HFCs could’ve been higher.
Now, some of you might notice that Hyzon indicated that 2021 financial results would reflect lower average selling prices. This is due to the same supply-chain and manufacturing issues facing all other automakers and manufacturers.
It’s also due to Hyzon shifting its focus away from hydrogen-hesitant North America — seriously, guys, it’s way past time to get over the Hindenburg — and focusing on Asian markets where selling prices are broadly lower.
If there were a reason to sell HYZN stock today, this would kinda be it … but most of this was already known information anyway.
But while 2021 was rough all around, CEO Craig Knight is hyped about 2022:
Remember, Great Ones: Traditional EVs with their lithium-ion batteries lose power and mileage in cold weather while losing battery life in hot weather. HFCs are superior in both, which means Hyzon’s focus on HFCs for heavy-duty trucks is the right move for any business looking to futureproof their fleet.
What’s that? You want more info on hydrogen-powered vehicles? I’ve got you covered, fam:
What all this means is that Great Stuff Picks readers who bought HYZN stock should continue to hold — assuming the stock still meets your risk tolerance. I’d never tell you to buy or hold onto a stock that makes you uncomfortable.
But, if you’re gassing on HFCs and believe, as I do, that hydrogen power is the future, then keep holding HYZN stock. Heck … with today’s drop, you might even want to add a few shares on the cheap. Doing so is not only a bargain, it allows you to average down on your total HYZN stock position.
So, you do you … you’re the only one who can, after all.
You can also check out what else is shaking in the land of small caps and SPACs with my colleague Ian King.
Ian’s been following the SPAC market closely for the past three years. And today, he’s revealing everything you need to know about SPACs: Why they exploded onto the scene and why they’ve suddenly become the preferred way for small, forward-thinking private companies to go public.
You’ll learn about the major pitfalls lurking in the shadows of many of these opportunities. (Such as, I don’t know … spotting a Hyzon from a Nikola…)
He’s also going to give you the chance to see his private SPAC portfolio, including three stocks that have what it takes to become big winners.
The Good: Generally Used Motors
You ever wake up one morning and decide you want to get into the used-car game? Anyone? No? Good thing you don’t work for General Motors (NYSE: GM), then.
In a somewhat surprising turn of events, GM just announced the launch of a new app that will pair people with the used cars of their dreams … GM-manufactured or otherwise.
Considering how many used GM dealerships there are just in my neck of the woods, I can already see the company’s platform taking off like a moonshot, especially if the app gives people more choices and access to cars that aren’t located on one of their local lots.
In fact, the only issue I have with GM’s new digital digs is the company’s app name: CarBravo.
Really, GM? That’s the best your marketing team could come up with? Will I also be forced to work with a salesperson who says things like: “Wanna see me comb my hair, really fast?” and “I do my best work when I’m being worshiped like a god.”
For GM shareholders’ sake, I hope not.
The Bad: Blasting Biogen
The bad news keeps coming for banged-up Biogen (Nasdaq: BIIB), the maker of controversial Alzheimer’s drug Aduhelm that’s been shown to be “reasonably likely to result in a clinical benefit” against the amyloid beta plaques linked to the progressive memory disease.
(Note: Aduhelm doesn’t really fight Alzheimer’s or the dementia that accompanies it … which is probably the reason behind the drug’s $28,000 price cut. Just sayin.)
While ball-busting Biogen news tends to come out of the company’s own camp, this morning, the latest blow came from none other than the U.S. Centers for Medicare and Medicaid Services.
Basically, Medicare is limiting access to Biogen’s newly approved “Alzheimer’s” drug to patients who’re enrolled in clinical trials for the disease. In turn, this will severely limit the number of people who can take Aduhelm by a lot … as if the drug’s $28,000 price tag hadn’t already done the trick.
Furthermore, the ruling could dissuade doctors from prescribing the drug because of all the new loopholes patients will need to jump through just to get it. And seeing as Aduhelm is the main drug in Biogen’s pipeline, this could severely hurt the company’s profitability going forward … again, by a lot.
BIIB investors started dumping shares almost immediately after discovering this latest speed bump, which resulted in an 8% drop in Biogen’s share price. But if memory serves, this probably won’t be the last time that Biogen’s on blast.
Editor’s Note: Same Trade Every Week, And He Beat the Market by 51x?
All it took was the same special kind of trade — opening it every week on Monday and closing it on Wednesday. And Adam O’Dell beat the market by 51 times.
Watch this video for full details. However, please note that it’ll be taken down tomorrow, January 13.
So, if you want to discover what these special trades are, how they beat the market by 51x over six months and how they can bring huge triple-digit winners in just two days…
The Ugly: Take My Breath Away
“But don’t make it last forever, babe.” — Users of Philips’ (NYSE: PHG) CPAP machines, probably…
Yeah, so … if any of you sleep-apnea affected Great Ones have been using Dutch health care giant Philips’ ventilators to … well, hold on for one more day … you might want to check that your machine wasn’t one of an estimated 5.2 million devices that were just recalled due to “cancer-causing particles.”
Apparently, this latest recall is part of an ongoing saga that started last year, when it was discovered that certain CPAP and BiPAP machines made by Philips posed health risks to patients. I mean, they still do … but they used to too.
Thankfully, good guy Philips is finding it “difficult to deny a patient with an older [cancer-causing] unit a repair, if they are still using it,” and will replace your mutated machine if you ask for one. That’s peak customer service, right there.
This latest news also comes on the heels of weakening fourth-quarter sales figures for Philips, which the company expects to be 10% lower than last year. Why the weakening? You guessed it: Supply chain issues.
When is the answer not supply chain issues?
At this rate, any machine parts that Philips manages to snag should go toward its replacement machines first and foremost and not brand-new orders, which could dent the Dutch ventilator deliverer even further.
No wonder PHG stock was down almost 16% today… Ouch.
All right, Great Ones, Poll Day is upon us once again!
It’s your time to shine and chime in on the latest hot-button questions … or at least whatever’s been bouncing around the Great Stuff Team chat this week.
Don’t forget, if you’ve got more to say than a mere poll can satiate, by all means, write to us! GreatStuffToday@BanyanHill.com is where all the madness ends up. So, rant and rave to your heart’s content!
As you’ll see when we dive into the inbox this Friday, you can share literally anything that’s on your mind with the great, wide league of extraordinary Great Ones. And it’s a good thing because, in today’s poll, we’re getting personal.
Oh yes! We hear so much of “a bazillion-plus gains” this and “to the moon!” that, and it’s high time we talked about the other side of the investing shebang.
Today, we want to know what you find most challenging about trading. Forget the “good” — we wanna hear about the bad and the ugly!
Are … are you telling me that my portfolio sucks?
No, but without going all Tony Robbins on you … doesn’t everyone need a little help along the way to Greatness?
Between picking stocks to trade, knowing when to trade them, and what to do with all those sick gains you’re making … this market gets intense, even if you’re not a degenerate gambler on the internet.
Investing ain’t just about memes, you know… (OK, it is mostly about memes.) Tell us what you want to learn most about the market, and we’ll have our top men on the case!
Top … men. And not just the men, but the women and children, too…
Anyway, click below and let us know:
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Judging by last week’s poll on Coinbase (Nasdaq: COIN), I predict more than a few of you might put “trading crypto” on your to-do list.
We had asked whether or not y’all have ever used the Ace of Coinbase to trade crypto, and the crypto craziness simply overwhelmed us. A whole 54% of you are already trading coins like the based crypto ballers you are. (I’ll cool it with the lingo, I promise.)
Another 35% of you are out there on your own with the crypto cold feet, while the last 11% of you are off on some obscure crypto adventures the rest of us are too pedestrian to know about. Well … bully for y’all.
Thanks to all of you who have replied (or are about to reply) to our polls! If you’ve got more to say, drop us a line in the inbox!
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Until next time, stay Great!
Editor, Great Stuff