To whom are interested,
Over the last couple weeks i have been posting technical drawings about MVST and the reversal that is happening right now. I have been in the trade since 10/21/21, opened more positions on 11/1/21 and will likley be opening more tomorrow or Monday depending on the movement. options are super cheap for a stock up ~30% in the last 2 weeks. It is not widely talked about and volume is slowly increasing, i will show some data below. I am not a financial advisor, this is not advice, it is speculation on data.
MVST is a SPAC Play, they produce batteries for commercial vehicles and have solid partner ships and contracts today. Their battery tech is in 30k vehicles, in 160 countries with 3.8B miles collectively traveled on the batteries to date (as of 7/26/21). There is a two year share lock up, expiring in two waves, the first of which is next year, so plenty of time. The share break down is below. there is an obscene about of SI against them, which is not justifiable IMO since they are the provider of batteries to Oshkosh who won the $7B USPS electrification project.
Here are some details:
This is bullish IMO, both wedges are broken and there is an upward trend leading into earnings on 11/15.
Averae volume is 2m, low volume right now. RSI is increasing on the daily.
options are Cheap AF (images are not posting)
Its a play that has been working and i have shared, but i was asked in a super snarky way to write it up today, so i finished the half written DD that i started a week ago. God speed.
Obviously interested in what others have to say, i am like a retard trying to hump a doorknob.
Thanks for the post! I’m long on MVST, been in since the merger. The amended S1 just got filed, earnings next week and web conference. They have a lot going on but just need some solid PR, which they haven’t had at all.
And your positions are? Or is there a new rule where we are not allowed to state them?!
You can see some of my Call positions on the options chain:
11/16 $8C, 9C, and 13C
12/17 $9C, 10C, 12.5C
Good dd on this Reddit post
USPS deal is in a separate bill that has not passed yet
Build back better bill
They are likely to get a boost from the infrastructure bill that passed friday due a bunch of EV and battery tech getting grant money and projects.
My bad… missed those. Thanks
Here is the EOD today chart:
The volume was super low last week, MVST continued with bullish momentum. the weekly chart showed a tricky green hammer candle which is not a good/bad indicator. PM picked up strong and the Daily high was $10.23. The daily chart is very bullish, RSI is 54 with the EMA trending above, you can see the EMA bounce off the RSI continuing the upward movement.
We broke the largest of the three wedges, today as well. The news infrastructure bill definitely gave some additional momentum needed.
Borrowing rate looks to be 126% (iBorrow) or 99% on Fidelity. showing 3000 shares available to short. the powder keg continues to grow with low liquidity for shorts to exit.
The options chain is still relatively cheap leading up to earnings.
@Greatbrewbino Do you intend on holding the calls through earnings? Or is this just a play leading up to earnings?
I have been trimming my 11/19 calls and buying more 12/17 calls ahead of earnings. I will continue to trim my 11/17s which are up well. the 12/17s are a game time decision depending on the environment at the time. If market sentiment is up and the charts/indicators are bullish, i will hold, if i trim it would be light.
Reverse heads and shoulders on the 1 hr chart over the past week
Curious what your thoughts are on today’s movement or if you have any updates
@anon59732070 i just got back from dinner with a client, i have not had time to look into the numbers, but my first impression is a cup and handle. the whole market ate a dick today and MVST took on water. I need to check indicators and direction, the earnings call is the catalyst, all the same.
Looking at the chart, the daily looks strong IMO, we have RSI in 55, RSI is bouncing off the EMA 14 trending upwards, the decent bounced off the support. the handle is forming and im holding. the market is rocky, but we cannot control that, we could just sell everything right now, but the reality is the conviction is still here, earnings around the corner, positive indicators, and in the rigth industry.
The stock is still shorted to hell with low float. math is up top, just a matter of time here.
Looking at these MVST numbers from Mimir and StockBot. Is there a potential for some sort of squeeze here?
Or is there some weird aggregation that is off here?
I think that’s what the OP is indicating, based on the short interest numbers that were posted previously. If aggregate shorted shares is correct, shorts will have a lot of trouble closing out their position with such low volume on the stock.
This has definitely caught my eye. With the bill signing next week, I wonder if this could be a catalyst for a short squeeze type event. For now, I might dip in with just a couple shares. I am unsure how they will perform next week earnings so will avoid options and IV crush. OP, do you feel pretty bullish on the company on a fundamental level going towards earnings?
People are finally paying attention?! The bot numbers are reporting accurate figures now?! wow. Fantastic. Yes, there is an unlikely squeeze scenario here, there is not enough volume and the shorts are not underwater yet, which is why it is unlikely ATM. But the stock is an EV, is shipping product, is expanding operations, and has the USPS contract with OshKosh. I like the stock and believe it is viable.
Retail can move it, the stock moves on no volume and is growing in value. As i mentioned, on Tuesday i got stopped out of a bunch of ITM contracts, but moved back into more Wednesday and today on the dip. there is a cup and handle forming on the chart. I have not looked at the other technical today and am running out the door, but i am bullish on this play and am already profitable and bough the dip.
i would appreciate someone posing a counter argument so i am not operating with blinders on, but if the OI grows this has the potential to explode. IMO
If this isnt a great picture of FU… idk what is, look at shares available to short:
The FF is all locked up because of the SPAC deal. the SI is 50%+ of shares available. Look at my math above, i have questions on how to calculate the institutional and internal ownership against the FF from the lock up. It could be outrageously short, but i need someone to validate.