deqingjames
2023-08-29

$VinFast Auto(VFS)$ Amid the soaring surge in VinFast Auto (VFS) stock, investors are contemplating a strategic approach—holding onto their shares until the stock reaches the pivotal $100 threshold. This decision is rooted in various factors, as discussed earlier, which underscore the reasons behind this cautious yet potentially rewarding choice.

As VFS stock continues its relentless upward momentum, marked by six consecutive days of gains and an eye-popping market capitalization, investors are contemplating the implications of their actions. The remarkable ascent, however, may not necessarily equate to the anticipated wealth for investors in the absence of a comprehensive strategy.

The stock's value has surged by around 20%, positioning it at approximately $82.50 per share. This rally propels the market capitalization to an astonishing $190 billion, eclipsing the combined valuation of industry giants such as General Motors (GM), Ford Motor (F), and Stellantis (STLA), the parent company of Chrysler. Moreover, this value surpasses the market capitalization of BYD (1211.Hong Kong), a prominent electric vehicle manufacturer in China. Notably, this valuation approximates one-quarter of Tesla's (TSLA) total market value, making it a notable contender in the electric vehicle sector.

These figures, on the surface, raise questions about the rationality of such exponential growth. VinFast, a relatively new entrant in the electric vehicle market, has yet to establish profitability and operates with a fraction of the production capacity of established automakers. This rapid ascent can be seen as indicative of the stock's emergence within meme-driven territory, amplified by the limited availability of shares for trading—only 16 million to 17 million shares out of the total 2.3 billion outstanding shares are accessible for trading, with the majority being held by insiders.

Amid this scenario, investors are deliberating the notion of holding their VFS shares until the stock attains the coveted $100 benchmark. This decision is underpinned by several strategic considerations that align with the investors' objectives:

1. Profit Maximization: Investors recognize the potential for VFS stock to sustain its upward trajectory and potentially reach or surpass the $100 mark. Holding onto the stock until this target is achieved can lead to maximized profits, aligning with their long-term financial goals.

2. Capitalizing on Momentum: By holding the stock until $100, investors intend to capitalize on the current momentum. The stock's upward movement might be indicative of broader market sentiment, and investors seek to ride this momentum for further gains.

3. Psychological Threshold: Crossing the $100 threshold can have psychological implications for both investors and the market. This milestone could attract more attention, potentially attracting new investors and driving the stock's value even higher.

4. Insiders' Holdings: Given that a significant portion of VFS shares are held by insiders, the supply available for trading is limited. By holding the stock, investors potentially create scarcity in the market, influencing the stock's price positively.

While this strategic approach holds promise, it's essential to recognize the inherent risks and uncertainties associated with the stock market. The journey to $100 might not be straightforward, and market dynamics can change rapidly. Investors should exercise careful consideration, conduct thorough research, and remain attentive to market developments to make informed decisions aligned with their individual risk tolerance and financial objectives.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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