Feb 23rd 2023 Free Analysis - FISKER

Hey MPA Investors!

It’s a short work week for a lot of people this week. Whether that’s a good thing or bad I hope you’re having a good one so far. Mine has been full and productive. That’s a nice change from the previous week where my son had a stomach bug and I just couldn’t get in everything I wanted to. Speaking of productive, let’s jump right in:

THIS WEEKS' MOVERS SNAPSHOT

Fisker (Stock Ticker: FISKER) - Anyone else listen to Childish Gambino?

"Ain't nobody sicker in my Fisker, “vroom-vroom,”

Ain't nobody—

(Fiskers don't make noise when they start up, just so you know)"

If so, you might have heard that verse in his song Sweatpants. He references a car manufactured by today's mover. Honestly, it's a car that I've only ever seen at a car show, but it doesn't mean there isn't an opportunity here. Fisker is an electric car company founded by Henrik Fisker. Henrik is an industry veteran and car designer who has worked for BMW Ford and Aston Martin. Today’s mover comes with a more risk and as a result a more potential upside. So let’s take a look.

Why FISKER?

Fisker Inc has projected around 80,000 reservations for its new vehicle launch. This is the first of several mass market vehicles Fisker Inc plans to launch. Long term the company plans to produce 1 million vehicles per year by 2027. If they hit that target it could be a big jump in business. Hitting that target would Solidify them as one of the contenders in the electric vehicle space.

A little backstory is important. Fisker Inc is actually a rebirth of its predecessor Fisker Automotive. Fisker Automotive went bankrupt and Fisker Inc is a kind of second chance company. So in a sense it’s an early stage company which comes with a bit more risk, but it also has a significant amount of industry knowledge and experience backing it.

Why we feel there’s a buying opportunity:

1. Fisker’s Q4 (sep-dec 2022) revenue is going to be reported on February 27th 2023. It just started delivering it’s pre-orders late last year and it’s Q4 revenue is expected to hit around $3.18 million. Up from Q3 where they only had $14,000. Yes, that’s correct. $14,000. Remember, they’re really starting out. That means great potential but also bigger risk.

2. The stock fell to an all time low this year. It went from it’s all time high in March of 2021 of $31.96 to $6.33 in February of 2023. That means if its sales do well the stock may be able to recover some of that loss. But it could fall more if sales aren’t as expected.

CURRENT PRICE (as of this email): $6.60

TERMS YOU NEED TO KNOW

Capital Gains Long Term -  The amount that a stock or other security has gone up from the purchase price but in the span of more than a year. NOTE: It’s important to know the difference between long term and short term capital gains since the tax implications change based on how long you hold an investment.

Are we missing anything?

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See you on Monday!Thibaud & PhilipFun fact about the stock market: There are more than 60 stock exchanges in the world.

Let’s talk investment risk:

No matter what anyone tells you, every investment comes with risk. Even keeping your money in the bank comes with risk. The risk isn’t very high for keeping your money in the bank, but there’s still a risk. Believe it or not, there’s even a risk for keeping cash. You could have it stolen or in 5 years it could be worth less than it’s worth now because of inflation. So it’s important to understand the different levels of risks that come with investing of all kinds. We would not recommend investing in individual stocks as a retirement plan. If you’re interested in investing in stocks for other reasons, the analysis we give you could help. But we have to be clear, these are NOT recommendations, this is analysis. We give you the analysis similar to what pros get and you decide what to do with it. Our mission is to put the same information that the pros get, into the hands of everyday investors like you in a way that is easy to understand.