Tesla, NIO, MGM & Carl Icahn
Welcome to the first Rude Awakening of 2021!
I am so excited to start a new year with you, and can’t wait to bring you more trading strategies and market hot spots to focus and trade each and every day.
So, let’s start today off doing just that…
Hot Spots in Today’s Market
First one to add to your watchlist is MGM Resorts International (MGM), the $15 billion gaming facilities company.
MGM is making an $11 billion takeover bid for the British gambling brand Ladbrokes… which makes for the second time MGM Resorts is aspiring to acquire them after an all-cash $10-billion overture was rejected earlier.
Ladbrokes believes the bid undervalues them, but this piece of news is going to create some activity in MGM.
This morning, MGM is actually down over 3%, but in the past few weeks it’s been pushing up nearing its all time highs.
It will be interesting to watch where this stock goes.
Another one we’re watching is Herbalife Nutrition Ltd. (HLF).
Now, Carl Icahn, one of the smartest guys to ever be on Wall Street, has just reduced his HLF holdings by about half. That’s a massive move for Icahn. This shows that he believes HLF is fairly valued at this point, at around the $48 level.
This is also reflected in the technicals. It is certainly in a topping mode currently, meaning we might see some downside action soon. The way HLF is looking now, it would be a perfect setup for a bear call options spread.
EVs Hitting New All Time Highs
Next up, the electrified car market is in the news today in a few big ways.
NIO Limited (NIO) has taken the forefront on the newscycle. NIO, a Chinese company, is referred to as China’s homegrown Tesla, and they are hitting on all cylinders right now, with a ton of growth potential.
The stock is a bit rich right now, at the $54 level this morning — while as recently as last summer they were at about $2 a share — but it’s definitely pushing the EV market right now.
We also have Tesla (TSLA) in the news after reporting they hit their extremely aggressive goal of 500,000 vehicles sold in the last quarter. This has pushed them to a brand-new all time high at $744 per share.
These are the main ones we’re looking at today, folks!
Have a great trading day.
We’ll talk again tomorrow.
Editor, Rude Awakening