Editor’s Note: Retirement planning and technical options trading might seem to go together like water and oil…
But here at The Oxford Club, we believe there is a place for super-short-term investments in your retirement portfolio.
And I know the perfect person to help you jump-start your trading game: my good friend Nate Bear.
Nate is the Lead Technical Tactician at Monument Traders Alliance. He famously turned $37,000 into $2.7 MILLION in trading profits in just four years, and next week he’s offering you a chance to look over his shoulder and watch him trade his own REAL money… in REAL time… for FREE!
And don’t worry… Nate isn’t trading risky, flimsy penny stocks. Just in the past week alone, he’s booked double-digit winners on blue chip stocks Costco, Apple, Meta Platforms and Tesla… all in one day or less!
Go here to sign up for Nate’s FREE "Open House" and learn from a true trading pro.
– Rachel Gearhart, Publisher
A reader recently requested that I run luxury electric vehicle (EV) manufacturer Lucid Group (Nasdaq: LCID) through The Value Meter.
Lucid is far from the first EV company I’ve looked at.
And to say that I have not been bullish on EV stocks is a monumental understatement!
To date, every single time I’ve evaluated an EV company, I have advised readers to stay far away.
Back in June 2020, Nikola Corp. (Nasdaq: NKLA) came into my crosshairs.
I concluded that the company was absurdly overvalued.
The market quickly agreed with me, and Nikola’s stock has since dropped a stunning 96%.
Then, in October 2021, I examined Rivian Automotive (Nasdaq: RIVN) and again came to a bearish conclusion.
Rivian’s stock soon plummeted and is now down more than 80%.
More recently, just over a month ago, I put VinFast Auto (Nasdaq: VFS) through The Value Meter.
Yet again I concluded that the stock was significantly overvalued…
And the share price of VinFast has already dropped by more than half!
But what about shares of Lucid Group? Have we finally found an EV stock that presents a good value for investors?
My quick answer is, unfortunately, no.
Like every other EV company I have profiled, Lucid Group has a very large market valuation… but zero profits!
Despite a steady drop in its stock price over the past six months, Lucid still sports an enterprise value of more than $8 billion.
To me, that seems like an incredibly rich valuation for a company that has posted enormous losses of $706 million, $4.7 billion and $2.6 billion over the past three years.
And guess what… Over the first six months of 2023, Lucid again lost money. So far this year, this highly valued EV maker has lost another $1.5 billion.
Now, I understand that Lucid is considered a high-growth stock.
And growth stocks sometimes turn out to be wonderful investments after failing to make any money in their early years.
But the problem that I have with Lucid is the same one I’ve had with the other EV manufacturers I’ve analyzed: I don’t have any conviction that it will ever grow enough to become profitable.
The reality is EV manufacturing is going to be an incredibly competitive business going forward, and these young EV pure plays will be competing with legacy car manufacturers that have much deeper pockets.
Some growth stocks can be great value investments, but I don’t see that being the case with Lucid Group.
Buying shares of this company at its current valuation is merely speculation.
Due to Lucid Group’s large market valuation and the huge losses it’s taking, The Value Meter rates this stock as being “Extremely Overvalued.”
If you have a stock that you’d like to have rated by The Value Meter, leave the ticker symbol in the comments section below.
The post Lucid Group: A Promising Growth Stock… or Another EV Flop? appeared first on Wealthy Retirement.
