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igoringa
LSU Fan
South Mississippi
Member since Jun 2007
11674 posts

General Lee's NVVE
GL put some of us on to this Company a few weeks back. Sub 200 million market cap.

Just announced a JV that, based off the press release, involves a partner contributing up to $750 million in funding and NVVE contributing its technology. NVVE will own 51% of sub.

Now the PR is light on details, but on the surface, $750 million for 49% of their tech... when their market cap is under $200 million is suggestive that NVVE is significantly undervalued.

They have their earnings call in 10 minutes (8 Central). Not expecting a lot of numbers from that but more on this deal would be great


GeneralLee
LSU Fan
Member since Aug 2004
11541 posts

re: General Lee's NVVE
Q1 earnings came in a fair amount under expectations (only $0.8M Q1 revenue versus prior estimates of ~$2M), so hoping market sells off on that so I can load up even more. Revenue this year and even next year is pissing in the wind compared to what should happen in the next few years.

The LEVO JV PR gives Stonepeak warrants on NVVE that can be exercised at $10-40/share, and option to purchase commons at $50/share. That gives a pretty clear idea where management thinks that the share price will go long-term.

This post was edited on 5/17 at 8:11 am


igoringa
LSU Fan
South Mississippi
Member since Jun 2007
11674 posts

re: General Lee's NVVE
Yeah I doubled down pre earnings at the $9.40 point... seeing it drift below that on earnings.

But seriously, who is buying or selling on Q1 of this company. lol


GeneralLee
LSU Fan
Member since Aug 2004
11541 posts

re: General Lee's NVVE
I think you can buy some more in the high 8's after the open... Equity market is too focused on quarterly results not the long-term potential.


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GeneralLee
LSU Fan
Member since Aug 2004
11541 posts

re: General Lee's NVVE
If they hadn't missed on earnings I think this could have seen $15 today. Oh well. It's a long term hold for me so not too concerned. Loading the boat last week in the commons in $7's and $8's and warrants sub $1 will probably end up being one of the best investments I'll ever make.
This post was edited on 5/17 at 9:21 am


igoringa
LSU Fan
South Mississippi
Member since Jun 2007
11674 posts

re: General Lee's NVVE
Nice run right now.....


GeneralLee
LSU Fan
Member since Aug 2004
11541 posts

re: General Lee's NVVE
$12.50 holy sh*t. Volume that big has to be institutions loading.


igoringa
LSU Fan
South Mississippi
Member since Jun 2007
11674 posts

re: General Lee's NVVE
Crashed through 13....

Excited, although I did buy in the 12's a week or so ago lol

Averaged down since. Should have loaded with you sub 8 :p



GeneralLee
LSU Fan
Member since Aug 2004
11541 posts

re: General Lee's NVVE
Not sure how to play this... this is a long term play for me but man I feel like it might fade here later this week a bit given the rocket ship today. Might flip some shares in my Roth??


igoringa
LSU Fan
South Mississippi
Member since Jun 2007
11674 posts

re: General Lee's NVVE
Yeah, 50% move is hard not to take some.

As I speak it is now sub 12 so that window has closed for me. Going to ride it.

Info on warrants given for the JV partner.

2 million @$10
1 million @$15, $20, $30 and $40 with capex vesting requirements.

Then the $50 strike options.

This deal values this tech so far above trading, it is crazy.


GeneralLee
LSU Fan
Member since Aug 2004
11541 posts

re: General Lee's NVVE
Yeah I should've flipped at $13...

This market does not reward those wanting to hold onto gains long-term. Every strong intraday gain is sold off.

All good though, this stock is going much higher in the long-term which is what I should be focused on.


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go ta hell ole miss
New York Yankees Fan
Member since Jan 2007
10384 posts

re: General Lee's NVVE
Do you still like warrants below $1.60 or prefer common at the current price?


igoringa
LSU Fan
South Mississippi
Member since Jun 2007
11674 posts

re: General Lee's NVVE
Long term I think the Warrensburg great although I’ve gone in the common. Relatively speaking the words are a little more expensive than the ratio I like given their 2 to 1 warrants.

But long-term hold that leverage is pretty sweet


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GeneralLee
LSU Fan
Member since Aug 2004
11541 posts

re: General Lee's NVVE
I prefer warrants in my tax advantaged accounts and commons in my brokerage. When company calls the warrants, it generates a tax liability if you have warrants in your brokerage account.

At current prices (~$11.15 commons, $1.60 warrants), warrants give you about a 2x return over commons for each $ invested. They are the higher conviction play for sure.


jimjackandjose
Member since Jun 2011
5169 posts

re: General Lee's NVVE
I sold at 12.77. Plan to buyback this week thinking itll dip again.

My original buy price was over 12 though. Shouldve averages down


GeneralLee
LSU Fan
Member since Aug 2004
11541 posts

re: General Lee's NVVE
She rebounded nicely today....


igoringa
LSU Fan
South Mississippi
Member since Jun 2007
11674 posts

re: General Lee's NVVE
That she did - nice to regain a big chunk of the late pullback yesterday.

I am interested in more of the details of the JV but what is known really is suggestive of big value over market cap


GeneralLee
LSU Fan
Member since Aug 2004
11541 posts

re: General Lee's NVVE
I'm a bit concerned now that my $15 May 21 covered calls I sold today are gonna get exercised at this point... Well, if they do, I'll deal with the cap gains tax bill I suppose. 2x my money in a week, not a bad deal if that were to happen.


thejudge
USA Fan
Westlake, LA
Member since Sep 2009
11630 posts

re: General Lee's NVVE
What a difference a day makes.

Out yesterday and my bfarf didn't sell to pick this up yesterday when you posted lol.

Missed everything and bfarf never triggerd


GeneralLee
LSU Fan
Member since Aug 2004
11541 posts

re: General Lee's NVVE
Warrants (1.78) are more attractively priced than commons (12.63) at today’s close.


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