5/9/2023 0 Comments Workhorse yahoo finance![]() They have found a way to turn a lot of lemons into lemonade. I’ve come to have a grudging admiration for the dedicated Reddit traders. ![]() “The company also faces plenty of competition in the market for electric delivery vehicles as other start-ups such as Rivian and Canoo (NASDAQ: GOEV ), as well as automotive giants such as Ford (NYSE: F ) and General Motors (NYSE: GM ) push into the space,” he wrote. As Baglole wrote recently even within its niche of electric delivery vehicles, Workhorse faces significant competition. My InvestorPlace colleague Joel Baglole shares my bearish sentiment on WKHS stock. While it seems likely that the bill will make it to a House vote in some fashion it remains unclear what line items will remain intact.īut until the final status of this contract is rendered, there is a glimmer of hope for WKHS stock. However, that approximately $8 billion in new funding is undoubtedly tied up in the administration’s infrastructure bill. Workhorse has the backing of several influential Congressional leaders making it a likely beneficiary of some or all of these new EVs. The Postmaster General Louis Dejoy informed the House Appropriation Committee that if they would provide more “resources” (i.e. Apparently, only 10% of the contract was devoted to electric vehicles. The second argument, which is justifiably more bullish, has to do with the language of the contract itself. As you would expect, Oshkosh is denying this claim. Workhorse claims that the Wisconsin-based manufacturer will only be able to deliver low-emission fossil fuel vehicles. The first has to do with Oshkosh’s ability to manufacture electric vehicles. In this case, there seem to be two arguments that Workhorse bulls are hanging their hats on. If that was the end of the story, there wouldn’t even be a glimmer of hope for Workhorse. WKHS stock took a beating after the federal government’s decision to award its contract for the United States Postal Service (USPS) to the Wisconsin-based truck manufacturer Oshkosh (NYSE: OSK ). But if you’re on the outside looking in at WKHS stock, allow me a few minutes to dispel you of that notion. If you fall in that category, you don’t need to keep reading. Today, it’s par for the course if you have the proper risk tolerance. A year ago, I would have said that’s an unconventional way to make money in the market. Undoubtedly many retail investors are trying to band together and force a short squeeze on WKHS stock. Sure enough on Monday, June 7, Workhorse stock was up over 5% in late-day trading, it continues pushing up and has added 17 percent in the last five days. This will likely be the fuel that will keep moving shares higher. As of this writing, short interest in WKHS stock remains around 30%. It faces scalability concerns in a sector with growing competition, and yet there are diamond hands within the retail sector that are committed to waiting on WKHS stock. “We expect these proceeds to provide corporate operating funds for the foreseeable future.The company has limited revenue and even more limited prospects for the same. “This financing will also allow us to continue to pursue a credit revolver, which we believe is the best financing vehicle for ramping up production,” Workhorse CFO Steve Schrader said in a statement. In addition, Workhorse may be required to redeem up to $3.5 million of principal in monthly installments in either cash or stock beginning October 1, 2020. The note matures on Jand contains a 4.5% annualized coupon to be paid quarterly in either cash or stock beginning October 1, 2020. The note will rank pari passu with Workhorse's senior secured convertible note issued in December 2019 and senior to all other debt and is convertible into common stock by the investor at $19 per share, or 131% of the closing price of Workhorse's common stock on June 29. After being delayed because of the coronavirus, Workhorse said earlier this month that it had successfully completed Federal Motor Vehicle Safety Standards (FMVSS) testing for its C650 and C1000 delivery vans. The company recently received federal approval for its all-electric vans. Workhorse has four buy ratings and no sells or holds, with an average price target of $11.13, according to MarketWatch. "Heading into the second half of the year, we'll be looking to meet our previously stated annual delivery target, which should have us in a strong position to accelerate our production ramp into 2021.” ![]() "With this note in place, we have much greater financial flexibility to support our current and future production needs," said Workhorse CEO Duane Hughes.
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