![]() ![]() "We also are on track to achieve our goal of EBITDAS break even by Q3 2014." Reacting to this development, Quo Vadis Capital analyst John Zolidis wrote that Luckin now has very little debt, and he expects it to have about $1 billion cash as of the end of 2022."I firmly believe that this continuing momentum will carry on throughout 2014, and that orders for this year will total more than $150 million – almost four times our total for 2013," CEO Andy Marsh said in a statement. The move indicates that the company’s financial position is relatively strong, while it’s upbeat on its own longer-term outlook. On the fundamental side, the company’s balance sheet has greatly improved, as LKNCY “fully redeemed $110M worth of senior notes to help it reduce its interest cost” on Aug. Before June, its volume was frequently below 1 million, and since June 1, that phenomenon has occurred fairly rarely. Prior to that month, its daily trading volume rarely exceeded 2 million shares since that month, the metric has gone over 2 million shares quite regularly. Since June, Luckin’s trading volume has picked up noticeably. The company owns and operates hundreds of coffee shops and a coffee delivery business in China. Unsurprisingly, the shares were trading well above their 50-day and 200-day moving averages of $15.29 and $11.57, respectively. Luckin (OTC: LKNCY) stock has jumped 38% since July versus the S&P 500’s gain of less than 2% during the same period. The agreement also provides Rivian with an important foothold in the large European auto market. In addition to giving RIVN another partner with deep pockets (along with Amazon (NASDAQ: AMZN)), the deal increases Rivian’s respectability. 16, when 70.4 million shares of the stock changed hands.Īs far as fundamentals are concerned, the EV maker’s partnership with Daimler’s Mercedes-Benz, announced on Sept. Conversely, its volume has been above that level on four days between since Aug. ![]() On the daily volume front, Rivian never exceeded 30 million shares on any day between May 17 and August 1. Rivian trades above its 50-day moving average of $34.60, but is still meaningfully below its 200-day moving average of $49.19. During the same period, the S&P 500 was down slightly. Rivian (NASDAQ: RIVN) stock has exploded 84% higher since the end of May. Finally, as always, I like to find stocks to buy whose companies have good fundamentals. When I put on my “momentum trading hat,” I like to buy sectors and/or stocks the Street likes. ![]() That’s particularly true of those names that have climbed despite declines in the stock market.Īdditionally, equities that have advanced significantly on above-average trading volumes and those that have surpassed their key moving averages are likely to continue climbing.Īlthough I’m not a big fan of charts, I do consider equities that have shown an inverted head-and-shoulders pattern or have had one recently and kept rising as good stocks to buy. Consequently, I know a few methods of determining which stocks to buy that are on the cusp of major moves higher in the short-and-medium terms.Īn important rule for momentum investors is pretty obvious: Stocks that have gone up recently are, all else being equal, likely to continue doing so for a while longer. Once in a while, however, I do like to purchase equities as they’re rising. Years ago, I heard Leon Cooperman, widely viewed as a legendary investors, say that there are two types of stock investors: those who like to find stocks to buy that are rising and those who like to buy equities on weakness. ![]()
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