FFIE: A Meme Story 1st Hand Experience.
$Faraday Future Intelligent Electric Inc.(FFIE)$
My Encounter.
This is my personal recount of my encounter with the infamous EV stock Faraday Future Intelligent Electric Inc.
If you have been reading my posts (regularly), you would’ve notice my few (critical) posts on this US luxury EV maker.
In my last post on Faraday on 22 Apr 2024 - titled “FFIE: To Zero & Beyond and Plan B!“, I recounted my exasperation with this meme stock and the worst case scenario.
Writing about it helped me to prep myself (“mentally”) for a possible chapter 11 filing by FFIE.
FFIE - 22 April & Beyond.
At that point of posting, things were not looking up for FFIE:
- They “conveniently” skipped filing of their Form 10-K.
- Stock price has fallen below the $1.00 per share for at least 30 consecutive business days.
- Stock price was at $0.0560 per share.
In retaliation, the SEC has threatened to delist the stock from the Exchange.
There was literally no light at the end of the tunnel, as far as I was concerned.
It bottomed, bottomed on 02 May 2024 at $0.04 per share.
Still remembered when I saw that price the next day, all I could mustered was to laugh about it.
I left it to its own devices without paying much attention to it, thereafter:
- If FFIE was able to convince the regulator to allow them to stay listed on the Exchange - good for them.
- Otherwise, I am prepared to lose it all (thankfully I did not invest too much in FFIE, still its hard earned money down the drain).
- Not looking at it, allows me to keep my “mood” in checked. Ha, ha.
On 13 May 2024, meme stocks - $GameStop(GME)$ & $AMC Entertainment(AMC)$
All thanks to the return of Roaring Kitty, who started that prior meme rally.
His sharing of the sketch of a gamer leaning forward, as if things were getting serious and followed up with a string of clips from movies and TV shows, got the market into a frenzy all over again.
GME rallied by as much as +110% during early Monday trading. It slipped but still ended the day up +74%.
Two days later, I decided to take a look at FFIE and I could not believed my eyes.
I quickly posted about it, sharing the perceived and most likely cause of its galloping stock price.
By then, FFIE has already started gaining speculative traction.
On Mon, 13 May 2024, FFIE shares opened for trading at $0.048 per share and the stock climbed > +3000% in the last 4 trading sessions.
Happily Ever After?
I am very pleased at the way things have turned out, no doubt about it.
One moment, it was all doom and gloom and in less than a month, it was blooming all over again.
When FFIE opened for trading on Fri, 17 Apr 2024, it was at $2.70 per share. I was “shocked” (albeit a good one).
When I last checked just before 12 noon (US time), it had risen to $3.85 - I had to rub my eyes to confirm it was not a double vision.
I was hoping for a runaway price on Sat, 18 May 2024 morning but was greeted with a -38% plunge.
So, How ?
My first reaction after learning about the -38% fall was to take a look at GME and AMC quickly.
Need to know what is the overall sentiments of US’s heavily rotated meme stocks. (see below)
- Both meme stocks peaked on Tue, 14 May 2024.
- For May 13 - 17 trading week, GME is down by -15.55%, while AMC is still up by +25.0%.
- Without a common direction between the 2 stocks, I had to dig deeper when it comes to FFIE. (see below)
Tracking institutional ownership of FFIE is important.
This is because large investors provide liquidity and support for stocks.
Based on the latest 13F filing (as of 31 Mar 2024), the 5 biggest FFIE buyers are : (see below)
Questions Without Answers.
- After reading the InvestorPlace article again, I noticed that the 13-F filings made by the top 5 FFIE institutions show their holdings of FFIE shares as of 31 Mar 2024.
- Have they offloaded FFIE shares during May 13 - 17 period, especially during Fri, 17 May 2024 opening hours ?
- FFIE’s after hours trading showed a gain of +9.70%.
- Does it imply that there is still some mojo left for at least one last push?
- Technically, FFIE have lost -98.04%, based on past 12 months performances.
- Compared to its average annual return of -93.57%, meaning the stock has underperformed its historical averages.
- As of Fri, 17 May 2024, with a relative strength index (RSI) at “69”, FFIE is not “overbought” zone.
To Buy or Sell is a question that I will have over the weekend to ponder.
- Do you think AMC and Gamestop will continue to rally the following week?
- Do you think FFIE will take directions from both AMC & GME or will it carve its own path of boom or bust ?
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Let’s see how long these investors can hold
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