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Polestar GGPI Stock Set To Explode Tomorrow馃挵 EV SPAC Stock Has Massive Growth Potential - YouTube
Channel: Paul Thomas Investing
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what's up guys and welcome back to the
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channel the ev market is really heating
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up again in the past few weeks and looks
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to have a huge future so with so much
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focus now being on lucid's earnings
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report due tomorrow and rivian's ipo
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this week a stock that has previously
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gone under the radar is now hugely in
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focus
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gore's guggenheim ticker ggpi is one of
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the most talked about stocks in the
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world right now across discord twitter
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and the number one trending stock on
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stock twits
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i made a video about this merger
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yesterday gore's guggenheim is taking
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swedish ev care company polstar public i
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made a video about this yesterday check
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it out and i'll go into further detail
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in this video
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if you've been watching my channel over
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the past few months then you will have
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seen the huge gains that we made
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recently
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over the past few months we've seen 9x
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games on ils since my first eyeless
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video
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we've had 10x games on shiba inu from
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the time of my first shiba inu video
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back in may when nobody else was talking
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about this
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and in the past few weeks alone we've
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seen aabb stock
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3x from the time of my video in
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september
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if you watch my recent petrotek videos i
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covered the stock a few weeks ago at
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only 11 cents telling you about a
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potential buyout offer coming this stock
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reached as high as 34 cents just a few
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days later and even now it's a bargain
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at only 18 cents the board of directors
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currently has an offer on the table to
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buy the shares at 74 cents per share so
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what are you waiting for hit that
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subscribe button now and stop missing
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out on these huge money making stocks
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turn on notifications and find out about
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these stocks as soon as i make a video
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instead of finding my video after the
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stocks have made huge gains it costs you
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nothing but it could make you a lot of
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money this is not financial advice i
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encourage everyone to do your own due
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diligence now let's dive into it
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ggpi gore's guggenheim went public
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with its ipo in march poor's guggenheim
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announced his reverse merger with
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polstar the pollster deal will be
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supported by cash proceeds of around 800
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million dollars from gore's guggenheim
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and includes a pipe
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or private investment in public equity
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of 250 million dollars from top tier
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institutional investors
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polls there backed by volvo care group
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and julie
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also counts hollywood actor
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leonardo dicaprio among its investors
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polestar is a global
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pure play premium electric vehicle
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company based in sweden with a mission
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to produce progressive electric
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performance cares designed and
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engineered without compromise they say
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that they are
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design focused electric performance care
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brand harnessing refined performance and
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cutting edge technology i have just come
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across this seeking alpha article gore's
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guggenheim pulls their merger should
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entice ev bulls the spak gore's
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guggenheim is merging with sweden's pole
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stare in a deal value to 20 billion
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dollars
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unlike other ev companies that have gone
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this back route poster has an
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established business
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and the company has further advantages
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over rivals
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valuation is a concern but the solid and
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intriguing story and the lack of
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enthusiasm towards ggpi stock seems like
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a surprise
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poster is merging with ggpi and
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investors don't seem all that excited
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ggpi stock gained just 4.7 percent on
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the news so this article is from a few
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weeks back just before lucid really took
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off again and the eb boom was in full
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flow again
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when cciv announced his merger with
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lucid it ran from 10 to 57
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in contrast ggpi stock closed on that
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friday at 10 24.
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even with the heavy volume that the
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stock had
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clearly the appetite for ev specs had
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dimmed but the more negative sentiment
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towards the space may actually be
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creating an opportunity for gore's
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guggenheim stock
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which doesn't necessarily deserve to be
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lumped in with the other ev
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manufacturers that have gone this back
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route
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pulse there is certainly not a mature
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company but it is far more established
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than the likes of lucid or fisker
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looking forward there seem to be real
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and significant advantages to its model
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versus other startups in the industry
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certainly there are risks this is being
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valued at 20 billion
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but they still need to produce and sell
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a significant number of vehicles with
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ever increasing competition from rivals
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now this is something that i've spoke
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about multiple times on the channel
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before when it comes to these new and
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emerging sectors the ev sector is a very
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new one when you consider that tesla is
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by far the most definitely the market
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leader
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and number one company in the industry
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they were founded less than 20 years ago
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and they have only really taken off in
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the past few years
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compare this then
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with the rest of the automotive industry
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with the likes of ford which were
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founded nearly 100 years ago
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so when you have these new emerging
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sectors
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there will be a number of new entrants
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to the market
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but over time only a number of these
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will succeed
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over the past 12 to 18 months we've
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really seen tesla take off
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in china we've seen neo go from around
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one dollar to over 60 dollars a share at
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one point
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that said there's a lot to like here and
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a far more stable story than most
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industry participants have to offer ev
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bulls need to seriously consider polster
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and even investors less optimistic
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towards the sector should be taking a
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long look as a business poster has two
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core differentiators
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the first is the post there isn't
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pre-revenue poster delivered 10 000
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vehicles in 2020 three quarters into
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2021 the company is estimating 29 unit
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sales and 1.6 billion dollars in revenue
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this year there's already a business
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here even if the business at the moment
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has some work to do post our projects
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operating margins worse than minus 60
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percent in 2021
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now if these margins are concerning just
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think about how many years tesla was
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operating before they ever turned a
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profit
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the second way which posthair differs
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from other passenger ev plays is that
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the company already has a global
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footprint established this is in large
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part due to its relationship with
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china's gili auto and volvo cares and
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this is a very deep relationship
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poststar vehicles will be manufactured
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at existing jeely volvo facilities in
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china and worldwide the pulster 3 a
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premium sports utility vehicle launching
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next year will have some of its
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production located in charlestown south
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carolina that manufacturing reach has
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allowed polstar to move into new markets
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10 so far with four more coming by the
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end of the year and the company aims to
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be in more than 30 markets with over 150
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sales locations
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but investors in the ev do need to be
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cautious the sheer number of startups
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and the flood of investment from legacy
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ice manufacturers is going to
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create intense competition yes the
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market is going to grow
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yes
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subsidies are likely to help and yes
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many customers are going to switch from
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evs
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from ice models but the market can only
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grow so fast and the simple fact is
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that there are going to be passenger ev
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companies that fail
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the good news for ggpi stock is that
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relatively speaking pulsed air seems far
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less likely than its peers to be one of
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these companies the outsourced
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manufacturing with glee and volvo also
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limits capital needs
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finally the existing
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geely volvo footprint is allowing poster
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to get out of the market relatively
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quickly
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current plans suggest
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that three years from now the company
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should have five different models on the
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market there won't be too many ev rivals
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that can stay the same providing a
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potential competitive advantage there
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are only two pure play ev models with
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global reach polestar and tesla neo and
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xping4 now are regional it's worth
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noting here that neo are now beginning
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to expand into europe through norway and
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germany mainly it will be interesting to
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see how this plays out for neo with
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poles there being swedish there is a
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scandinavian connection
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and the german market is surely one of
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the most competitive markets in europe
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with the likes of bmw audi
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mercedes-benz and volkswagen to name
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just a few all being german
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in fact volkswagen announced
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big ev plans earlier this year that seen
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the share price gain about 20 overnight
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back in march
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however polls there has a far lower
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valuation than any of those peers as we
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can see here
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but there are risks
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first and foremost the level of
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competitors which i just spoke about
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then many things can go wrong a massive
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recall battery or range problems or
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simply a launch that receives a soft
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reception now i don't agree with this
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for the simple fact that these are risks
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for absolutely every care company every
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care company has produced some model
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that has failed to sell as well as its
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other models
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every car company has had to recall cars
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at some point for various reasons
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usually it's not a major problem and
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just requires the dealership to replace
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a certain part but it can produce
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negative pr
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think of volkswagen
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with their emissions controversy
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tesla have had their controversies over
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the years
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the manufacturing agreement with gili
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does limit cash burn and provide a
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faster route to market but it also
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depresses long-term margins gross
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merchants are targeted at just 22
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percent in 2025 tesla hit 27 in the
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first half of this year
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first of all a gross margin of 22 is not
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bad yes tesla has hit 27
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but how many years did tesla have lower
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margins than this just look at the share
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price over the past year at tesla
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compared to the previous 10 years
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the author here then points out some
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poor reviews for the poster too
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motor trend said it was a little
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disappointing
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car
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gave the poster 2 and 8 out of 10
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while similarly giving it a modestly
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negative comparison to the model 3
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top gear assigned an 8.5 out of 10
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rating
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first of all
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this is comparing a new ev company's
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care
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to the market leaders care
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and personally i don't see how a rating
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of 8 or 8.5 out of 10 are considered bad
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reviews
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let's not forget that wards auto have
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chosen poster 2 as one of 2021's best
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engine and propulsion system winners as
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well as this year's best aux winners
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saying that the near perfect blend of
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the bev formulation post r2 is a blast
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to drive
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and say that this is one of the most
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intuitive efficient
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human machine interfaces ever
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encountered in a care the ipo price
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plays an enterprise valuation of just 20
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billion on pollster the transaction will
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result in approximately 995 million
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dollars of cash added to posters balance
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sheet to go towards funding its business
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plan and future model launches so to
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have nearly one billion of cash at its
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disposal will be significant
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and poster price of 20 billion dollars
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means that it is three times its 2023
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estimated revenue and 1.5 times its 2024
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estimated revenue
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this is very favorable when compared
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with its u.s peers lucid and tesla who
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have 10.8 times and 6.5 times
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of their 2023 estimates and 9.3 and 3.6
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times the 2024 estimates now this
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investors presentation
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is from its merger announcement in
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september so i have adjusted these
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figures to reflect the current price
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changes
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tesla was trading at over 1200 before
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elon musk decided to crash the price
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with a huge sell-off
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at that price
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tesla would have been 63 percent above
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the price in this presentation
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or trading at 15 times projected 2024
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revenue
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lucid at the time of this presentation
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was only about twenty four dollars so it
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is currently seventy five percent above
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that price and therefore about six times
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2024 estimated revenue
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ggpi was trading
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at ten dollars at the time
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now this is up to 1281.
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so that's a 28 rise so the current price
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is still less than two times its 2024
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estimated revenues
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which is an extremely low
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valuation in my opinion
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and this is reflected by alec goes who
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said that the spac deal represented a
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great entry point into pollster because
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ggpi was conservative in its valuations
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this stock has got huge gains to make
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yet and pulse there also compares very
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well to neo and x-ping
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who each have market capitalizations far
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in excess of pollsters 20 billion
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valuation
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when it comes to projected growth over
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the next four years we can see that pole
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star is second to only lucid on the
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annual growth rate projections
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now it's worth noting here that tesla is
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the lowest of these but that is because
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tesla is very much the market leader
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tesla is the most established and is a
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leader in the ev sector
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lucid is due to publish its first
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earnings report on monday and has only
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began
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its very first deliveries in the past
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two weeks
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over the next four years it's expected
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that pole stair two three and four are
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expected key drivers of volume from 2003
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onwards mainly from the launch of the
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latter two models resulting in
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significant sales increases
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so guys that brings us to the end of the
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video if you've watched all the way
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through please hit that like button it
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really helps the channel out a lot if
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you're new hit the subscribe button and
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bell notification follow me on twitter
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and i'll catch you in the next one
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you
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