In an apparent effort to justify their upbeat view of Workhorse, despite all of its failings, WKHS stock bulls have identified a number of remaining positive catalysts for the company that are all highly unlikely to materialize. With Workhorse struggling in the increasingly competitive commercial EV market, I think that its most likely fate is bankruptcy. Missed Opportunities and WKHS Stockĭespite the still-large, $1.7 billion market capitalization of WKHS stock, the automaker has not made any large deals or cemented any major partnerships. Partly due to its failures on those fronts, Workhorse’s first-quarter results were fairly dismal. What’s more, in the company’s Q1 earnings press release and in the prepared remarks of its executives on its Q1 earnings conference call, Workhorse appeared to make no mention of the number of vehicle orders that it had accumulated. The struggles of Lordstown, which recently announced that it may go out of business in the next year, should certainly not increase anyone’s confidence in WKHS stock. Lordstown’s issues certainly do undermine my confidence in Workhorse.Īlso worth mentioning is that Workhorse bulls were touting Workhorse’s shares of Lordstown stock as an important asset last year. WKHS stock bulls continue to hope that Congress will intervene to give the USPS contract to Workhorse.Įven if the latter company is up to the task (and a report by a short seller stated that Workhorse could not fulfill the contract), Democrats probably do not have enough votes in Congress to take the deal away from Wisconsin’s Oshkosh and give it to Workhorse. Nor would Democrats be thrilled to upset voters in Wisconsin - which is a major swing state that could determine both control of Congress and the White House in the coming years - by overturning the USPS decision.
Stocktwits workhorse registration#
Two other potential positive catalysts identified by bulls - a trademark registration and a court challenge to the USPS’ decision - probably would not prevent Workhorse from going belly up because they would likely take many years to materialize. Workhorse had just $205 million of cash as of March 31, and with the Street souring on the stock and many Reddit-oriented investors turning more to other names like BlackBerry (NYSE: BB), AMC (NYSE: AMC), and ContextLogic (NASDAQ: WISH). I think the EV maker would have trouble selling many new shares of its stock at decent prices.įinally, bulls reportedly now believe that Workhorse’s drones could save the day for the company and for WKHS stock. But back in September Barron’s reported that a buyer of Workhorse’s drones said that they had malfunctioned. Workhorse has missed too many opportunities and its shares now looks poised to, at best, tumble sharply in the next year. At worst, the company could be bankrupt by the middle of 2022. Investors should definitely sell WKHS stock. On the date of publication, Larry Ramer held long positions in ARVL and BB. Larry has conducted research and written articles on U.S. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Among his highly successful contrarian picks have been solar stocks, Roku, and Snap. You can reach him on StockTwits at Larry began writing columns for InvestorPlace in 2015. Workhorse's stock price plunged after it failed to win a major contract from the US Postal Service.But experts said there are still reasons to be optimistic about the electric-van company.It has a head start over competitors, orders from UPS, and a licensing deal with Lordstown Motors.Workhorse's stock price plunged after news broke that the electric-vehicle company had lost a contract to make delivery vans for the United States Postal Service to defense contractor Oshkosh. The sharp drop suggests investors viewed the potential USPS contract as a significant percentage of Workhorse's potential value.
0 kommentar(er)
