Today's 100B convertible announcement confirms downtrend
Pre-Market announcement of US100M Short-Term Convertible.
Unfortunately, this confirms the assumptions I made in my latest video on my YT channel "DONGXii"
> NIO is cash strapped and not able to close a big financing round.
> 1B funding rumours with GAC will not materialise (for now).
> Strategy is to finance operations through creating cash flow by selling cars, which I find very dangerous considering NIO reported dramatically lower average selling prices (ASP), Q1 is usually the weakest quarter for all automotive OEM in terms of sales, impact of corona virus.
> Issuing bond after bond with goal of securing larger sum at terms accepted by management including CEO Li Bin.
> 🔥 Playing with fire: 100M USD in convertible funding. 200M+ USD burn rate.
My prediction is that NIO will be stuck in downward channel and will only find support in the 3 USD area. If by then a real funding round of around 1B is finally announced and secured, it may break out again opening a bullish reversal.
Otherwise NIO could even break below 3USD.
You can see my video I posted on my DONGXii YT channel to get the detailed reasons on the funding situation. I was all correct to suggest that NIO tries to fund for now by going bond by bond. This is very dangerous and should be recognised by the market!
Meanwhile I stay neutral on the stock.
Unfortunately, this confirms the assumptions I made in my latest video on my YT channel "DONGXii"
> NIO is cash strapped and not able to close a big financing round.
> 1B funding rumours with GAC will not materialise (for now).
> Strategy is to finance operations through creating cash flow by selling cars, which I find very dangerous considering NIO reported dramatically lower average selling prices (ASP), Q1 is usually the weakest quarter for all automotive OEM in terms of sales, impact of corona virus.
> Issuing bond after bond with goal of securing larger sum at terms accepted by management including CEO Li Bin.
> 🔥 Playing with fire: 100M USD in convertible funding. 200M+ USD burn rate.
My prediction is that NIO will be stuck in downward channel and will only find support in the 3 USD area. If by then a real funding round of around 1B is finally announced and secured, it may break out again opening a bullish reversal.
Otherwise NIO could even break below 3USD.
You can see my video I posted on my DONGXii YT channel to get the detailed reasons on the funding situation. I was all correct to suggest that NIO tries to fund for now by going bond by bond. This is very dangerous and should be recognised by the market!
Meanwhile I stay neutral on the stock.
כתב ויתור
המידע והפרסומים אינם אמורים להיות, ואינם מהווים, עצות פיננסיות, השקעות, מסחר או סוגים אחרים של עצות או המלצות שסופקו או מאושרים על ידי TradingView. קרא עוד בתנאים וההגבלות.