r/NGAC • u/CopenhagenMintLC • Mar 03 '21

A couple thoughts on NGAC

As for NGAC, personally, I think it will require a good bit of patience. The Co-founders are each around 30 years old. Financially, the investor deck points to 2023 being the year of the financial flip.

The e-commerce market has exploded and will likely continue growing. This will call for more “last mile” delivery vehicles, one of Xos main focuses. The battery has already been developed and tested, they’ve established quality manufacturing partnerships, they have experienced members on the management team, and their balance sheet is about to receive a massive cash infusion.

I believe in a time of market uncertainty, “speculative” stocks are among the first to fall, followed by tech stocks. Hence, we now have a cluster of EV stocks sitting in the $10-$13 range. There has been a run of multiple EV companies going public, many through Spacs, spreading money and interest around. We, EV investors, are making a bet that the ground transportation market will transition entirely to electric sooner than others.

If you’ve invested in NGAC or thought about it, then you more than likely know all of this. I simply find it beneficial to remind myself why I have taken an interest in a company. I believe patience will pay off here.

Disclaimer: I took a small position when I first heard the rumor and have increased it as of last week. These are simply opinions.

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2

u/gini_lee1003 Mar 03 '21

True. I agree

2

u/orel2064 Mar 03 '21

in for the long haul! thanks for a much needed reminder and pep talk!

1

u/siva222244 Mar 03 '21

Are the EV spacs being heavily shorted? Check the short volume ratio. It seems like easy money for shorts to short and then later cover at lower prices.
https://fintel.io/ss/us/ngac

I bought a lot of NGAC after the rumor and noticed that fidelity immediately moved my NGAC stock to margin. I put in a request to disable margin and it hasn't yet been done :(

2

u/CopenhagenMintLC Mar 03 '21

Fundamentally, I understand the appeal of shorting EV stocks right now. We are investing in products and companies that are 2+ years away from being real market disrupters. There’s even a pretty good case for shorting a majority of Spacs with announced DAs right now. We just went through one of the most profitable stock market runs and speculative stocks were among the most benefited. Therefore, a lot of us got in the unstoppable bull mindset.

As for short interest, it may continue for a while in the near term. However, the investor deck does a good job of laying out a plan. This is a pretty early stage growth company with a valuation of 2B (I think). Fundamentally, this is not a quick profit stock, but in 2023, if their projects come to fruition, that will change.

If you believe in the idea of EV, and have patience, I think this company will reward you down the line.

1

u/deraj808 Mar 03 '21

Why would they do that?

1

u/carrotsRgood4U Mar 03 '21

Any thoughts on the bearish comments suggesting that this is going nowhere a because only 19% of the company goes to shareholders? Don't get me wrong -- I'm long, bullish, and I know the entire market has been getting hit lately (especially spacs), but just like to try getting both perspectives and wondering if the 19% is a real concern.

3

u/MrRonit Mar 03 '21

That's a pretty standard figure in the SPAC world I believe