Lithium Americas Corp.
Lithium Americas Corp. (NYSE: LAC) is concentrating its efforts on bringing the Cauchari-Olaroz project in Argentina, and the Thacker Pass project in the United States, to production.
Key Highlights:
- The Company has posted a net loss of USD 17.21 million in Q3 FY21 compared to USD 6.48 million in Q3 FY20 due to higher Thacker Pass expenditure.
- Since the Company is in its development stage and has yet to generate any revenue, it may be risky for the investors to take any position on the stock.
- The Company has increased its loan facilities to USD 172.27 million as of September 30, 2021, compared to USD 121.22 million as of December 31, 2021.
- Because the industry in which the Company works requires a lot of capital, most of the Company's spending is connected to capital programmes. As a result, the Company is at risk of running out of money because it is not earning.
- The stock is trading below its SMA 50 and above 200-days support levels along with an RSI of ~47.84, which indicates a bearish trend.
- The stock is leaning towards the lower band of the 52-week range of USD 11.84 to USD 41.56.
Stock Recommendation
Based on Company's performance, increase in losses, non-generation of revenue, increase in loan facilities and bearish technical indicators, we recommend a "Watch" rating on the stock at the closing price of USD 28.27, up 5.05% as of February 8, 2022.
LAC’s 1-Year Technical Price Chart. (Source: REFINITIV, Analysis by Kalkine Group)
. *The reference data in this report has been partly sourced from REFINITIV.
Nio Inc Class A ADR
Nio Inc Class A ADR (NYSE: NIO) is an automotive manufacturer based in China, specializing in electric vehicles. It also provides subscription services and charging solutions to the growing EV market.
Key Highlights:
- On January 3, 2022, the company announced repurchase right notification for 4.5% senior convertible notes, which is due in 2024. The repurchase right expires at 5:00 p.m. on Friday, January 28, 2022 (New York City time).
- The company's total revenue has increased by 116.6% to USD 1,521.8 million in Q3 FY21 compared to USD 702.44 million in Q3 FY20.
- EBITDA margins of the company are improving, from -21.9% in FY20 and -7.9% in FY21 to a near break-even -0.2% in FY22. Hence, NIO may begin generating profits in the coming quarters.
- Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, indicating a bearish trend
- Stock is leaning towards the lower band of the 52-week range of USD 19.31 to USD 64.60.
Stock Recommendation
Based on the macroeconomic conditions, increase in revenue, negative EBITDA, and bearish technical indicators. We suggest keeping an eye on the stock as the company primarily depends on China market. Hence, we recommend a "Watch" rating on the stock at the closing price of USD 24.69, up 2.91% as of February 8, 2022.
NIO’s 1-Year Technical Price Chart. (Source: REFINITIV, Analysis by Kalkine Group)
*The reference data in this report has been partly sourced from REFINITIV.
Niu Technologies
Niu Technologies (NASDAQ: NIU) creates high-performance smart e-scooters and sells them. Smart e-scooters based on advanced and innovative technologies, such as engine and battery technologies, and automotive-inspired features, have been developed by the business.
On March 7, 2022, Niu Technologies will release its fourth quarter and full-year 2021 results.
Key Highlights:
- The Company posted revenue of RMB 1226.4 million in Q3 FY21 from RMB 894.5 million in Q3 FY20. Whereas the per-unit revenue of the Company stood at RMB 3089 in Q3 FY21 against RMB 3565 in Q3 FY20, resulting in a decline of 13.4% mainly due to change in product mix.
- As per the recent announcement on January 4 2022, the Company's total sales volume for the Q4 FY21 was 238,188 against 150,465 in Q4 FY20.
- The Company’s gross margin was 20.0% in FY21, compared to 20.9% in FY20. Lower international sales primarily caused the drop. Further adjusted net income margins were 8.3% and 10.1% in FY 21 and FY20.
- Changes in China's economic, political, or social situations and government policies may hurt the Company's operations.
- From a technical viewpoint, the stock is currently trading below its crucial support level of SMA 50 and 200 days, indicating a bearish trend.
- The stock is leaning towards the lower band of the 52-week range of USD 11.90 to USD 53.38.
Stock Recommendation
Considering the recent quarter financials, revenue mix, decreasing margins, other macro factors and unfavourable technical indicators, we recommend a "Watch" rating on the stock at the closing price of USD 13.58, down 2.02% as of February 8, 2022.
NIU’s 1-Year Technical Price Chart. (Source: REFINITIV, Analysis by Kalkine Group)
. *The reference data in this report has been partly sourced from REFINITIV.
Disclaimer - This report has been issued by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and prepared by Kalkine and its related bodies corporate authorised to provide general financial product advice. Kalkine.com.au and associated pages are published by Kalkine.
Any advice provided in this report is general advice only and does not take into account your objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your objectives, financial situation and needs before acting upon it.
There may be a Product Disclosure Statement, Information Statement or other offer document for the securities or other financial products referred to in Kalkine reports. You should obtain a copy of the relevant Product Disclosure Statement, Information Statement or offer document and consider the statement or document before making any decision about whether to acquire the security or product.
You should also seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice in this report or on the Kalkine website. Not all investments are appropriate for all people.
The information in this report and on the Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of information contained in its reports, newsletters and websites. All information represents our views at the date of publication and may change without notice.
Kalkine does not guarantee the performance of, or returns on, any investment. To the extent permitted by law, Kalkine excludes all liability for any loss or damage arising from the use of this report, the Kalkine website and any information published on the Kalkine website (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine hereby limits its liability, to the extent permitted by law, to the resupply of services.
Please also read our Terms & Conditions and Financial Services Guide for further information.
On the date of publishing this report (referred to on the Kalkine website), employees and/or associates of Kalkine and its related entities do not hold interests in any of the securities or other financial products covered on the Kalkine website unless those persons comply with certain safeguards, procedures, and disclosures.
Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.