With the recent Evergrande saga and the tightening of regulations by the Chinese government, $NIO Inc.(NIO)$looks rather cheap now. Especially when NIO is considered to be the front runner in the EV revolution in China. This looks to be a great growth play at the current prices. Once the situation stabilises and the effects of COVID (chip shortage) dwindles, i expect NIO to be on a bull run.
Supply chains has been disrupted for almost 18 months now, with the the global chip shortage being the most prominent area of disruption. Despite the rapid growth of tech stocks in the past year, it has been held back by the chip shortage that gradually becomes a more pressing issue each day. Many are hopeful that as the world recovers from the pandemic, the chip shortage might recover just as fast, however i beg to differ. There are 2 main reason for the chip shortage issue to continue to persist even as the COVID-19 recovery begins. Firstly, the increasing demand for chips. During the pandemic, the demand for electronics and consumer products spiked with over 10% growth in sales for PC in 2020. The Consumer Tech Association, an American trade group, said that 2020 was the biggest year on
$NIO Inc.(NIO)$ lis becoming a household name in China. With Investors coining it with the name "Telsa of China", NIO share price has seen a 2 fold increase in just the past year. It is no doubt that NIO is an absolute sleeping tiger that will one day dominate the EV market in China. However, how has it numbers compared to the World's Greatest EV maker,$Tesla Motors(TSLA)$?Market Cap.NIO market cap sits at $62B while Tesla's market cap sits at a staggering $750B as of writing.EPS.NIO is currently still unprofitable with an EPS of -0.88 while Tesla is at EPS of 1.902021 Q2 Delivery numbers.NIO deliveries sit at 21,896 while Tesla had almost 10 times NIO’s number at 201,2502021 Q2 Revenue.NIO has $1.308B Tesla has
The Amazon of China has fell from great heights. Since a year ago the tech giant has its share price drop by almost 50%, and the China's regulatory crackdowns has wiped off $400Bn of shareholders wealth. This presents us with one of the cheapest mega cap stock compared to $Microsoft(MSFT)$, and even $Amazon.com(AMZN)$. With the apparent crisis looming over $Alibaba(BABA)$, many has taken the hands-off approach with this company and has been looking for investment elsewhere. However, this presents one of the best opportunities to be part of the Alibaba company when it is at a 50% discount. I believe that it is
The stock market has undergone a major pivotal point in 2020 and that was the COVID-19 pandemic. AS a result of the pandemic, we saw the massive movements in the stock market and how it has affected the trajectory of stocks, especially growth stocks. With vaccination programs being rolled out quickly all over the world, many countries are looking at the endemic state of COVID-19. As the vaccination rates all over the world are growing steadily, we must now consider the impact its has on companies and the stock market.In this new series of posts, i will be giving my opinions on how it will affect different sectors of the economy and how you can tailor your investment portfolio differently.Firstly, recovery and its impact on Retail and Consumption. Over the past year or two, we have seen a d
Part 4 of Hedging the inflation crash series. After reading the past 3 posts, you might not prefer any of the aforementioned methods. Perhaps you are awaiting the correction to buy more at the dip and prefer to refrain from entering the stock market at the current moment. Without a doubt there is one more way to utilise your money rather than putting it in a “high” yield savings account. And that is the new field called Cryptocurrency.Crypto has been around for quite a while but has only recently gain traction due to the massive surge in market cap of both bitcoin and ethereum. With the recent rollout of Bitcoin's legal tender in El Savador, albeit troubled, we know that Bitcoin has gained sufficient traction for its permanent stay here in society. With the recent tumble in the price of cr
Part 3 of Hedging the inflation crash. Fear in the market often leads to massive selloffs in general. Buying anything right before the correction/crash is often accompanied by much regret and sometimes panic selling. One of the ways to reduce the risk that you are taking in a correction is by diversifying into ETFs such as $S&P 500(.SPX)$Most ETFs are diversified into various sectors and industry. In a market correction, although we see most industries turning red, there will be certain sectors that limits the downside. ETFs are a simple way to diversity and reduce the risk during a very volatile market. Some ETFs even provide dividend! One such ETF that I recommend in a volatile market is $Global X NASDAQ 100