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Nio Stock Looks Great on the Strength of This Norway SUV Push

It’s mind-blowing to think about how far Chinese electric vehicle (EV) maker Nio (NYSE:NIO) has progressed in just a couple of years. Once NIO stock…

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This article was originally published by Investor Place

It’s mind-blowing to think about how far Chinese electric vehicle (EV) maker Nio (NYSE:NIO) has progressed in just a couple of years. Once NIO stock was plunging towards $2, but today it’s easily in the double digits.

Source: Sundry Photography / Shutterstock.com

Not that it’s been a perfectly smooth ride. Indeed, the stock has pulled back recently, likely due to a broader drawdown in Chinese stocks and concerns about the supply chain for tech products.

These are legitimate concerns – no doubt about that. On the other hand, NIO stock has a tendency to bounce back after each and every dip.

Will this time be different? There’s no guarantee, but some impressive delivery stats – along with interesting news coming out of Scandinavia – should keep the investing community engaged.

A Closer Look at NIO Stock

This year started off strongly for NIO stock as it quickly hit $62 in January. However, that turned out to be a strong resistance level.

Interestingly, the stock touched $62 twice in January and once in February, before declining sharply. By early March, it was down to $35.

NIO stock chopped around for a while, but it was still at $35 at the end of September (it trades today at a little more than $33). So, I can fully understand the frustration that some investors must be feeling now.

Furthermore, Nio’s trailing 12-month earnings per share is -88 cents. That’s negative, I’ll grant, but it’s not too bad for a $33 stock.

The immediate goal, then, should be to get the company into a positive per-share earnings scenario. After that, the sky’s the limit.

One more quick point: Nio just announced an at-the-market offering of $2 billion worth of its American depositary shares.

The current stockholders might not like the idea of more shares circulating into the market. However, at least Nio should receive a hefty amount of capital from this transaction.

Delivering the Good News

One common way to measure an automaker’s growth is by keeping track of its vehicle deliveries, month by month.

Nio’s evolution has hinged on its delivery statistics. The company’s improvement in this area has kept investors optimistic, and the latest numbers shouldn’t disappoint anyone.

In August, Nio delivered 5,880 vehicles. That represents a 48.3% year-over-year increase.

Moreover, Nio achieved this result despite supply chain constraints resulting from the Covid-19 pandemic in areas of China and Malaysia, which disrupted the manufacturing of the ES6 and EC6 vehicle models.

With that, Nio’s running total is growing quickly. As of Aug. 31, the automaker’s cumulative deliveries of the ES8, ES6 and EC6 models reached 131,408 vehicles.

Achieving that number seemed unimaginable in March of last year, when the world was thrown into chaos and vehicle sales practically halted.

Big Launch in Norway

Sometimes it’s easy to forget that even though Nio is a Chinese automaker, the company’s vision for expansion is global.

We can see an example of this in a recent news development. Specifically, Nio is launching its ES8 electric sports utility vehicle in Oslo, Norway.

To celebrate this event, Nio tweeted a sneak peek of the showroom called Nio House in Oslo. This is, according to the company, the first Nio House outside of China.

In addition, Nio revealed that it’s following a global pricing strategy and, after adjusting for logistics and operating costs, the ES8 would go on sale at an entry price of around $59,575 for the standard-range battery, or $66,422 for the long-range battery.

On top of all that, Nio disclosed that it plans to add 20 Power battery swap stations in Norway by the end of 2022.

It won’t be long now, as the company’s first integrated station for battery charging and swapping in Norway is expected to be up and running by the end of October.

The Bottom Line

Clearly, Nio is making substantial progress in terms of its vehicle delivery growth.

Plus, the company is rapidly expanding its operations beyond Chinese borders.

So, don’t worry too much about the recent pullback in NIO stock. Given all of the encouraging news, a share-price breakout could be just around the corner.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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Precious Metals

Falcon Gold Stakes Claims Near Lithium Discovery, Shares Rise 10% Today

Falcon Gold Corp. [FG-TSXV, 3FA, GR] said Friday it has doubled the size of its…

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Falcon Gold Corp. [FG-TSXV, 3FA, GR] said Friday it has doubled the size of its Hope Brook project in Newfoundland, picking up ground near the maritime province’s first reported discovery of significant lithium mineralization.

The company said it has now staked a total of 1,660 claims, covering 41,500 hectares, which are strategically located and contiguous to First Mining Gold Corp. [FF-TSX, FFMGF-OTCQX, FMG-Frankfurt, Sokoman-Benton and Marvel Discovery Corp. [MARV-TSXV, MARVF-OTCQB, 04T1-Frankfurt].

After forming a gold exploration alliance, Sokoman and Benton recently made headlines by announcing a lithium pegmatite discovery at Hope Brook, less than 400 metres from Falcon’s newly expanded property boundary.

Sokoman and Benton said the area containing lithium-bearing pegmatite dykes, now known as The Kraken Pegmatite Swarm, measures approximately 2.2 kilometres long by 0.85 kilometres wide. They said assays from rock samples have shown that the dyke system contains economic grades of lithium (including 1.04% Li20), is widespread and open along strike.

“The highly prospective ground held by Falcon shows various lithium clusters that may extend on the company’s ground,” Falcon said in a press release.  Falcon is currently evaluating the data from government reports, which include high-resolution radiometric and magnetic surveys.

Falcon shares advanced on the news, rising 10% to 11 cents on volume of 256,000. The shares are currently trading in a 52-week range of 16 cents and $0.075.

Falcon Gold is an Americas focused exploration company. In Ontario, its portfolio of projects includes the flagship Central Canada gold project, which is located 21.5 kilometres east of Atikokan, and about 160 kilometres west of Thunder Bay and 20 kilometres southeast of Agnico Eagle Mines Ltd.’s (AEM-TSX, AEM-NYSE) Hammond Reef gold deposit.

The company holds six additional gold projects: the Camping Lake gold property and Springpole west property near Red Lake, Ont.; a 49% stake in the Burton gold property with Iamgold Corp [IMG-TSX, IAG-NYSE] near Sudbury, Ont.; in British Columbia, the Spitfire-Sunny Boy and Gaspard gold claims; and most recently the Hope Brook.

Falcon CEO Karim Rayani said the Sokoman-Benton discovery speaks to the multi-commodity nature of the large land package which his company has acquired. “Falcon’s land is situated in a very active structural corridor, giving us a tremendous opportunity for finding the next potential discovery in this camp,” he said.

Within this immediate area, the most significant deposit is the Hope Brook gold mine, which was in production from 1987 to 1997, producing 752,163 ounces of gold. The Hope Brook, now owned by First Mining, has since been optioned to Big Ridge Exploration, which has outlined an additional 6.33 million tonnes at an average grade of 4.68 g/t gold or 954,000 ounces in the indicated and inferred categories.

 

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Energy & Critical Metals

NIO Stock: There Are 240,000 Reasons EV Maker Nio Is Revving Up Today

Yesterday brought some bad news for Nio (NYSE:NIO) as the Chinese electric vehicle producer failed to make the list of the top 15 best-selling EVs in China…

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Yesterday brought some bad news for Nio (NYSE:NIO) as the Chinese electric vehicle producer failed to make the list of the top 15 best-selling EVs in China for the year. While its competitors Tesla (NASDAQ:TSLA) and Li Auto (NASDAQ:LI) both made the list, Nio’s name was nowhere to be found. However, an announcement from the company bringing good news has given investors cause for optimism with NIO stock.

Source: Sundry Photography / Shutterstock.com

What Happened With NIO Stock

According to yesterday’s announcement, Nio will be doubling the production capacity of its Hefei plan, located in China’s Anhui Province. Previous production capacity had been 120,000 units per year but this expansion will allow the company to double this figure, completing 240,000 throughout 2022.

This news has already sent NIO stock up by 4.27% as of this writing and it doesn’t show signs of slowing down. The month has been turbulent, but the future looks promising.

What It Means

It has been reported that Nio’s newly expanded production line will be completed within the first half of 2022, gearing it up for a productive second half. Shareholders should be able to anticipate what comes next in 2022 with confidence.

Despite some turbulence, the fall has been generally good for Nio. The company delivered “10,628 vehicles globally in September 2021, an all-time high monthly record representing a robust growth of 125.7% year-over-year.” This development indicated that both the company and its sector have so far been able to make progress despite the difficulties posed by supply chain problems.

The following week, a Goldman Sachs =analyst set a $56 price target for NIO stock. His reasoning?  The fast-growing company still holds considerable upside. Today’s production expansion news should only further his bull case.

Why It Matters

China’s EV market is red hot and it’s still heating up. While Tesla has a dominant slice of the market, there’s plenty of room for innovative startups to grab their own. Nio is trying to do exactly that, positioning itself well to move forward as demand increases across continents.

InvestorPlace’s Vandita Jadeja recently spoke to NIO stock’s long-term potential, noting “Nio looks attractive for long-term investors. It has low risk and the valuation will grow with time. The sales are going to increase in the coming months as the chip shortage is almost over and the company will try to meet the international demand. The strong delivery numbers will ensure that the key margins are improved.”

For anyone considering a long-term play among EV stocks, Nio is absolutely worth watching.

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines

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3 Hot Mining Stocks To Watch For Mid October

Which mining stocks are on your October 2021 watchlist? The COVID-19 situation…
The post 3 Hot Mining Stocks To Watch For Mid October appeared first…

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Which mining stocks are on your October 2021 watchlist?

The COVID-19 situation in 2020 caused many mining stocks to reach new highs. Metals and materials prices surged as the economy collapsed. The fundamental reason for the spike was increased demand and more shortages. When it comes to mining stocks, the majority of people will look at gold and silver stocks first. Last year, both of these assets hit fresh all-time highs.

So, in 2021, you might be wondering where things stand. Mining stocks soared at first but then began to decline. For a long time, gold and silver assets were unable to break through significant price barriers. Copper, lithium, iron ore, and other mining stocks took advantage of the opportunity to increase in the market at this time. Many mining stocks are still heading upwards in the market this year.

What should you look for when investing in mining stocks, you might be wondering? There are a few key steps one can take to ensure that investing in a company is the informed option. The first and most obvious is to read the news from across the world. Consider how the pandemic impacted and continues to impact the mining industry. News from the industry is also crucial; things like shortages and growing demand are useful bits of information to know. Let’s take a look at three mining stocks that are performing well in the market as we head into mid-October.

Best Mining Stocks To Watch

  1. McEwen Mining Inc. (NYSE: MUX)
  2. IAMGOLD Corporation (NYSE: IAG)
  3. Harmony Gold Mining Company Limited (NYSE: HMY)

McEwen Mining Inc. (NYSE: MUX)

On October 14th, the mining stock McEwen Mining Inc. saw its shares rise 1.69 percent in the market. This is a business that searches for, develops, manufactures, and sells various resources. Silver, gold, and copper make up the majority of the company’s sales. It has a 100 percent stake in the El Gallo project, the Fenix project, the Black Fox mine, and many more projects. Mexico, Canada, Argentina, and the United States are among the countries where it has properties.

McEwen announced its consolidation production for the third quarter of 2021 on October 6th. In the same period last year, the business reported 30,400 gold equivalent ounces, compared to 42,900 this year. McEwen was able to achieve his target thanks to 32,100 ounces of gold and 792,000 ounces of silver production. Its consolidated production for the nine months ending September 30th, 2021 was 114,300 gold equivalent ounces, up from 85,700 in 2020.

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This signifies that its output this year is approaching the midpoint of its annual projection range. McEwen just completed commercial production at the Froome deposit three months ahead of plan. Noting this new info, will MUX be on your list of mining stocks to watch right now?

IAMGOLD Corporation (NYSE: IAG)

IAMGOLD is a gold mining business that searches for, develops, and runs a few gold mines. The Americas and West Africa are the locations of these properties. It now owns the Rosebel mine, the Essakane mine, the Westwood mine, the Diakha-Siribaya project, and a number of other assets. This company just experienced an uptick in its stock price on October 14th, 2021.

Read MoreTop Mining Stocks To Watch Under $5

IAMGOLD hasn’t made any recent announcements. However, the business aims to reveal its third-quarter financial figures for 2021 on Wednesday, November 3rd. After the market closes on that date, these results will be revealed. The next day, IAMGOLD will host a conference call with management to explain the situation. Now on October 14th, IAG stock has increased by nearly 2%. Keeping this in mind, will IAG be on your mining stock watchlist?

Harmony Gold Mining Company Limited (NYSE: HMY)

Harmony Gold Mining Company Limited, a mining stock we’ve mentioned on goldstocks.com before, has recently performed well in the market. This is a company that recovers and processes gold, silver, copper, and uranium from mines. Its activities are based in South Africa and Papua New Guinea, both of which have proven to be favorable to Harmony.

Harmony recently released an operating report for the fiscal year ending June 30th, 2021. The company’s sales climbed by 45.2 percent year over year throughout this time period. Furthermore, its net debt decreased by 52% year over year. Although the company’s performance was good, it was not the sole factor for determining its stock price. The stock price of HMY fluctuates on the market in tandem with gold prices. Will you add HMY stock to your watchlist this month as a result of this information?

The Future of Mining Stocks

The world will see how the market reacts if mining stocks continue to rise as the pandemic slowly diminishes. At the moment, the world is still in a constant state of change. Materials are increasing in value as industrial demand and retail sales both rise. So, which mining stocks will you add to your portfolio in mid-October?

The post 3 Hot Mining Stocks To Watch For Mid October appeared first on Gold Stocks to Buy, Picks, News and Information | GoldStocks.com.

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