Amazon’s newest truck supplier is going public…
Lion Electric Co. is a leading manufacturer of electric trucks and buses, with over 300 vehicles on the road and over six million miles driven. Which is why it comes as no surprise that Amazon, the largest company in the world, signed a contract with Lion to bolster its shipping fleet.
Back in September, Lion revealed that Amazon had ordered ten all-electric trucks. And if this pilot test proves successful, Lion could become the sole provider of Amazon’s electric truck brigade.
Lion also plans to deliver 650 trucks and buses in 2021. In fact, they expect 6,000 potential vehicle sales in the next four years – along with more manufacturing factories built in the USA. And they recently announced they’re going public via a SPAC merger.
Lion will merge with Northern Genesis Acquisition Corp. This deal is expected to raise $500 million. And the combined entity would be worth about $2 billion.
It’s only a matter of time before the electric vehicle (EV) industry overtakes the traditional car industry. And Lion has carved out a very lucrative niche in the urban, heavy-duty vehicle sector – building all-electric trucks, buses, and school buses. This merger is the next logical step for Lion to maintain market dominance in its sector.
The deal is expected to close in the first quarter of 2021. The combined entity’s ticker symbol will be NYSE:LEV. And you will be the first person I notify when I see any major developments surrounding this groundbreaking new deal.
The earnings report to watch:
This week, the only earnings report that I think you should pay attention to is:
Lululemon Athletica Inc. (LULU)
I’ve been keeping my eyes on LULU for a while. Back in March, when the entire stock market dropped because of Covid-19, LULU shares took a slight hit, dropping from the $250 range down to the $165 range. But since then, the stock has been soaring. At the time of writing, it’s trading at $377.
Not to mention, this past August the company had already reopened 492 out of its 506 locations worldwide. The LULU brand also boasts an intense, cult-like following. LULU customers are just as loyal as iPhone customers. And LULU has the highest sales per square foot in its entire industry – $1,560 per square foot.
This company is absolutely flourishing and it looks like nothing will slow it down. So, be on the lookout for my next LULU update.
Trading tip of the week…
One of the major reasons why traders lose money is because they have poor reward-to-risk setups.
Good traders think about how much they could make. But great traders think about how much they will lose if they’re wrong. Whether it’s a percentage of your total portfolio, or a specific dollar amount, you must always be aware of how much money you are risking.
For example, you should never place a trade where you are risking $100 just to make $10. Simply being aware of a trade’s reward-to-risk setup will save you from a huge headache.
Speaking of “Amazon Profits…”
My colleague, top quant trader Chris Johnson, is almost ready to release his newest strategy for maximizing your trading returns.
Over the course of a nearly three-year back-testing period, his Strikepoint formula could’ve turned $5k into $100k… and tomorrow, he’s going to share it with you!
Keep an eye out for tomorrow’s issue, where he’ll give you the chance to learn all about his revolutionary new method.