WKHS trade ideas
Workhorse Group Inc (WKHS)It shows developping Descending Triangle pattern with lower highs and support @ $14.50.
Bullish Long on Workhorse (WKHS); multiple catalyst aheadAbout Workhorse
Workhorse Group is known for manufacturing electrically powered delivery and utility trucks/drones.
Last month, Workhorse reported it received safety approvals for its electric vans. Workhorse noted that it actually became the first and only medium-duty battery electric vehicle (BEV) OEM to receive approvals from both the Environmental Protection Agency (EPA) as well as the California Air Resources Board (CARB) thus permitting the company to sell vehicles in all 50 states. Workhorse also saw more incoming orders for its vehicles. For example, Workhorse received an initial purchase order for 20 C-1000 trucks from eTrucks LLC, a newly-launched truck buyer, reseller, & financier and Ryder Systems also received two of Workhorse’s first vans in July. The company also reaffirmed previous production and delivery target of 300-400 vehicles in 2020.
Statement by management:
“In the first half of this year we accomplished a series of major operational and EV industry milestones, culminating in the first official deliveries of our C-Series trucks to Ryder just a few weeks ago,” said Hughes in a statement. “Additionally, after acquiring the requisite various state and federal approvals in recent months, we are now the only medium duty BEV OEM permitted and able to sell and deliver our vehicles in all 50 states, which should allow us to further distance ourselves as the first movers in the last-mile EV space. Widening our sales funnel through tax incentives, government programs, and strategic partnerships, all of which we now have, will allow us greater opportunities to build on our growing backlog. We are now focusing on maximising our efficiency and output as we look to ramp production throughout the remainder of this year to meet our ambitious delivery campaign goals.”
Take away:
*Management focus on parcel and miles delivery space
*Delivered two vehicle so far and 300 by end of this year
*Strong cash position and ability to deliver the orders
*1 of 4 bidders for USPS postal vehicle contract worth $5B -$6B to build as many as 180,000 delivery vans (result estimate 90days range)
*Some color about the contract participant:
Turkey-based Karsan, which makes commercial electric vehicles, teamed with long-time USPS supplier Morgan Olson of Sturgis, Mich. The team has offered a plug-in hybrid engine option for the new mail truck.
Mahindra Automotive North America was another but pulled out in the past week, according to the Postal Times. Mahindra was offering a gasoline or mild-hybrid power train option, according to government filings.
Workhorse Group, a small Loveland, Ohio, electric truck builder, had teamed up with truck body maker VT Hackney. But it said VT Hackney has dropped out of the project, leaving Workhorse to continue on its own. Workhorse paid $7 million for intellectual property related to the truck and acquired the right to bid for the contract.
The fourth team, specialty truck- and military vehicle maker, Oshkosh Corp., of Oshkosh, Wisc., and Ford Motor Co. of Dearborn, Mich., already have U.S. manufacturing facilities. They based their internal combustion engine entry on the Ford Transit cargo van.
Pros:
*Well positioned for Biden's blue wave
*Global focus moving towards ESG and working towards zero emission
*1 of 4 bidders for USPS postal vehicle contract worth $5B -$6B(result estimate 90days range), one of which dropped out from the bidding process leaving 1 of 3 bidders.
*Existing backlog orders to deliver
*China's upcoming emission policy will provide further global guidance towards EV adoption
Cons:
*If cash liquidity drys up over time, there could be possible equity funding (share dilution)
*May not deliver backlog orders as promised due to Covid19
*Fail to win bid for USPS contract
Technical:
Possible breakout play likely to gap up fueled by headline catalyst
$WKHS Workhorse On Alert For Trend-line Break
Potential Long entry above $18.00
target price $20.25 .
Option activity in the stock was quiet bullish today and unusual in volume
WKHS forming flag patternWKHS looks bullish with flag pattern and good volumes target ATH and levels mentioned in the chart. I would wait for a clear breakout of the pennant to make an entry.
Good Support for $WKHS so far!Waiting to see confirmation of uptrend on the RSI on the 1D chart. Good support so far at low $15's.
USPS to make its announcement anywhere from here to November.
Let me know your thoughts...
WKHS and Lordstown Motors deal and trade setup.With DiamondPeak (DPHC) buying EV startup Lordstorm Motors the EV stocks are all hot.
Of special interest is WKHS investment in Lordstorm. Barrons exlpians:
"The transaction will raise about $675 million for Lordstown and values the company at about $1.6 billion. That makes a 10% stake held by the electric-van maker Workhorse (WKHS) worth about $160 million.
Existing shareholders—including Workhorse—will own about 50% of the company post merger. Workhorse wasn’t immediately available to comment on the deal impact to ownership. General Motors (GM) is also investing $75 million in the company as part of the deal."
Technically, WKHS chart looks great! Holding the 20ma and breaking above resistance on strong volume.
Earning next week. Will cove half of position before earnings and move stop to break even.
Workhorse Group Inc WKHSIt shows developping cup and handle or triangle form, if breakout 19.18 level and then gonna go more higher 21 or more higher are expected.
disclaimer: This is just my thought and strategy. pls trade depend on your logic and your responsibility.
Opportunity here below 17Taking a position here 16.60. Looking for them to get the contract and run to 20 by weeks end.
EV Stock booming after Lordstown Motors and DPHC mergeWKHS has a 10% stake in Lordstown Motors, which, will merge with DiamondPeak (DPHC)-SPAC company
Sympathy play
www.investors.com
new Trade on WKHSIn today in Calls on quick retest and holding, sold 50% on day trade rest is for a few days holding to new targets depending how fast it moves.
WKHS LONG SWING* Nice breakout of a long consolidation.
* Good volume and news.
* Earnings soon
* MACD crossing on the daily
$WKHS Workhorse Stronger than Expected
$WKHS getting some love today and held support once again, so maybe
there is some relative strength to consider.
There is 2 major resistance levels to consider
- $16.45 Point of Control resistance
- $17.40 Horizontal Candle price resistance
Support looks quiet good at $15.00
Alert is set for break above Resistance for a possible long, which could result in a sharp
but short lives rally.
Bullish Charts - Coil, Pennant, Flag - Vans with DronesWorkhorse Group Inc. designs, manufactures, builds, sells, and leases battery-electric vehicles and aircraft in the United States. It operates through two divisions, Automotive and Aviation. The company also develops cloud-based and real-time telematics performance monitoring systems that enable fleet operators to optimize energy and route efficiency. Its products include electric cargo vans, and medium and light-duty pickup trucks, as well as HorseFly delivery drones systems. The company was formerly known as AMP Holding Inc. and changed its name to Workhorse Group Inc. in April 2015. Workhorse Group Inc. was founded in 2007 and is headquartered in Loveland, Ohio.
Today, there was an article on Dow Jones talking about Workhorse Pairing Vans with Drones to Drive Deliveries.
www.barrons.com
On 07/24/20, there was another article, "Trucks of the Future." & "Electric Trucks are the Future."
workhorse.com - Beautiful Electric Truck
On 07/23/20, Workhorse reported a purchase order for 20, C-1000 Electric Delivery Trucks.
On 07/21/20, Workhorse talks about supplying electric trucks to the Postal Service.
Does the news get any better?
Yes, on 07/14/20, Workhorse announces Ryder will now offer the C-1000 All-Electric Step Vans for rental locations.
On the Daily Chart, it looks to me like it's flagging, Bullish
To some, it might look like an uptrending coil or a Bullish Pennant.
No matter how you look at the daily chart, it looks to me like a very Bullish setup.
RSI is turning up, Bullish
OBV is turning up, Bullish
Stochastic is turning up, Bullish
Accumulation is Bullish
I see big things coming for this company!
Long!
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too high too earlynot profitable company
vwap crossover 9ema and 20sma is bearish signal
expecting break to 10.25 to find support
entry 10.25
stop loss 8.67
target >15.08-22.90
Risk/Reward -2/>+5-12
WKHS Daily chart
10.27 is the great support on Fib .618. This is the same range where 50 day MA will eventually meet the Fib level. This also fills the big gap.
Since technicals don't play out apple to apple, I would recommend buying between range 10.25 - 10.75, unless they get the news of USPS contract, then technicals may not matter for the downtrend.
Waiting for the Swings: WKHS and SHLLRight now, two stocks that I am keeping a close watch on include WKHS and SHLL. I think that WKHS and SHLL should both have a positive swing pattern very soon, and overall I'm bullish. I think resistance and the short sellers are about to pop. That being said, proceed in your own risk. As always, everything I say is on an opinion based basis. Please do your own due diligence.
$WKHS Bearish candlesticks pattern Targeting 50% Fib at 12Overbought RSI at 97 . negative MFI signal topped 3 days ago, Bearish candlesticks with lower volume. if it goes above Thursday high at 22.9 then targets will be changed but more likely it will drop to at least 50% fib near 12 or even filling below gaps at 9 and 5 currently at 20.91 which near 400% retracement of previous top.
