Today I want to talk about a few things. The main thing is whether or not Neo is a buy at 44. Then I want to talk about why we briefed on the Rocket play this morning in the pre-market what the heck happened with it? And I want to give you some updates on some of our biggest plays and the only thing that I ask of you in return is that you hit that ravishing like button And also don't forget to subscribe. Fairly choppy Red Market today.

Definitely a tea day. You could see the tea bag which means red day right? I'm gonna screw myself over one day because I'm gonna want tea on a green day and people are gonna be like it was a red day. Charlie, what are you saying? Pretty choppy in the beginning of the day, then it just got plain red and then in the after hours it was looking a little bit more positive. Rocket pretty much held a lot of us up today.

This guy rallied up wild today and we briefed on it about 30 minutes before market opened. It went from around 27 to over 45-ish That being said, the market pretty much sucked the energy out of many of our other place. But what I'm saying about Rocket is that hey, it helps to have a diversification of your place. Of course folks, every market condition that you have is going to have huge opportunities.

You just have to be open to spotting them and playing them. the stock market. There's many little battles. you can have, some other battles that you're fighting and winning on one day and then on the other days come back to the other battles.

Anyways, folks, the reason we briefed on this was because it was a multi-runner It was heavily shorted and it's a ticker that was receiving huge amounts of volume, receiving a huge amount of what we call social sentiment boosts. People were talking about it all over the different stock forms. All these things separately don't really mean too much, but if you put them all together, hey, you've got a good play and you've got a good candidate for a short squeeze. But anyways, folks, shout out to folks who caught some of this run.

Let me know below if you played Rkt, but at the same time, these are short-term plays. Don't expect these every day. Pretty tough day for Mara. Lovely Mara.

Who knew she'd be teasing? I never expect Mara to teach, but Mauro is down a little bit today. Not too much for Mara. She likes to fluctuate a lot, so when you have a day like this, you're like, okay, well, Mars just doing a little bit of teasing again. In terms of Bitcoin, though, we're continuing to see more and more institutions basically endorse Bitcoin by participating in the Bitcoin Rally.

What I said this morning is that Goldman Sachs is restarting their crypto desk after years of abandoning that idea back in 2018. Some institutions are buying Bitcoin. Some institutions are getting on the wave of selling and helping trade Bitcoin. Some institutions are including it in their Etfs and funds.

And on the bear side, they're still saying the same thing that they've been saying ever since Bitcoin's inception. there is no value to cryptocurrencies. They've been saying that since literally the day Bitcoin started. Do Not Buy this.

This is a scam. There is no value to it. yet. It's been more than a decade and the only thing that's been true is that it just keeps going up and up and up.

Does that mean that there's no threats to Bitcoin or cryptocurrencies in general? Of course not. There's always threats to everything. But anyways, a lot of our tech players are pretty red today, but we did see some strength in our Sq play on the 26th after the dip, I added a price target of 280 on this square play. Certainly rocky conditions and many of our plays aren't providing this level of instant gratification, but this one provided pretty instant gratification.

It's nice to see some diamonds in the rough or is it diamonds in the row, but the reason they are popping today is because they announced they're going to be opening brick and mortar shops. Why does that matter? Well, because brick-and-mortar shops means that they can now offer small business loans and deposit accounts, which being just a payment processor online, you can't offer those. Now they are becoming a more full financial services company by doing this, they strategically open themselves up to a lot of opportunities in certain markets where there's regulations as to what you can and can't offer without a brick-and-mortar shop. Okay, now it's time to get to work the ticker of the hour, Neo.

So for context, we projected last year that you'd see Neo pre-anticipatory run up to Neo Day in early January and that afterwards, you'd likely see some cooling off. and that's pretty much exactly what happened on our pre-anticipatory run up to Neodate. And to be fair, it actually held pretty decently. I thought it was going to be an abrupt cool off because you didn't have any new catalyst.

You actually got some pretty nice handling into January and February, holding within a pretty consistent range. until now, with the overall market panic in the last couple of weeks, we saw Neo dramatically cooling off. and now after the latest earnings report reaching down into the low 40s, now we're in the situation where Neo, it's trading like in a range that it hasn't seen since 2020.. So is this a buy at 44.? Well, for the three of you who haven't heard of Neo before, Neo is the leading luxury vehicle manufacturer in China.

This is a market with a lot of competition, but a market that Neo has a huge advantage in has a very strong brand name. It's the head of the competition in terms of that luxury eevee market. It's expected to grow the fastest in a market that is expected to grow the fastest in the world. If Neo can continue on its current pace ahead of the pack, it would be cemented as a huge player for the next decade and perhaps decades down the road.

So this is definitely a high-stakes play. They have two different drivers of revenue in their business model. They of course make revenue from selling their cars, but they also make money from customers getting locked in into recurring subscriptions and fees related to their battery swapping stations and charging equipment. The battery swapping station's battery as a service service model is one of my favorite things about Neo.

They are a double win because on one hand, Neo gets reoccurring revenue and customer retention, and on the other hand, it makes the entry to buy a Neo cheaper since the customer just buys a subscription to the battery and pays monthly instead of actually having to buy a whole battery with the car because the battery costs a decent amount of the total purchase price. When you take that out of the picture, that means that Neo can easily undercut its competitors that aren't doing this. And the other thing that's great about this business model is that you can get the latest batteries because every time a new battery comes out, you don't have to buy a whole new battery, you just swap it out. But in order to understand what's actually being factored into Neo share price, you have to go and break down Neo's chart.

Back in November, I did a pretty good job of this. Number one is Neo's intrinsic value. What they are actually worth based on what they are doing, the deliveries, the production capacity, the batteries, the technology, market share they have right now where they stand with their competitors, the leadership, blah blah blah. This is their intrinsic value.

Pretty straightforward, Number Two is Neo-specific hype. This is how much extra price we have on Neo. Specifically because people are pouring money based on Neo's promises for the future, the future of the market potential, and the future speculation. And the last one is Ev hype money that is flowing into all Evs because of general excitement for that sector.

Now, over the last couple of weeks, you've seen Ev hype get crushed. And since Neo-day's anticipatory run that we got back in the beginning of January, while Neo's specific hype has gone down as well, it had a little bit of a boom with January's deliveries, but overall it's gone down. However, while these two have both been hammered, the truth is that Neo's intrinsic value has gone up. Since we made this graph on November 24th, Neo has completed more deliveries, they've gained more customers, released a new sedan, they've introduced new battery improvements, they've introduced new battery swapping stations, and overall they've beat many of the expectations that people had for them for 2020, despite it being a hard year.

So essentially, we have more intrinsic value than ever, but less hype than ever. Why would Neo's hype go down? Why Neo-specific hype, not Ev hype in general, Because that's the broader market trend. But why would Neo's hype go down? Well, the answer is in this: T: it's not in the tea, Actually, it's in the earnings report. So overall deliveries are on a very strong trend on a quarter over quarter basis.

In 2020, they delivered 43 728 vehicles. In 2019, they delivered 20 565 vehicles. So we doubled. And that's again, despite the pandemic really really hitting Neo and China hard In the beginning of 2020, 2020 was basically a record year for Neo.

However, what investors are worried about isn't so much 2020, but what's going to happen in 2021. In January 2021, Neo delivered 7 225 vehicles, which was good. That beat the prior month. that satisfied expectation.

but in February they only delivered 5 578 vehicles, which is a little bit of a drop. However, the reason they underperformed in February has a lot more to do with the Chinese Lunar New Year than it has to do with Neo. It's in February, and generally this does cause short-term pullbacks in Chinese company numbers. We've seen this with many companies that we've covered in the past couple of years.

Fact: Investor place reports that in February of 2019, Neo's delivery numbers dropped 56 month over month for the same reason. This time it was only 23. So that's pretty consistent with missing a week. But it actually gets more impressive when you think of some of the existential issues that a lot of these companies are having right now.

Right now, there is a huge global chip shortage, so probably saw some of the beginning issues with that in February. But Neo is projecting and this is where it all gets bad. But Neo and their guidance basically projected that their outlook for 2021, especially in the first part of the year, is gonna look fairly bad because of this chip shortage. And we're seeing this in a lot of different companies.

It's not just Neo, everybody is struggling with this global chip shortage. Eo is projecting that only 20 000 to 20 500 vehicles to be delivered in Q1, Which is of course, still a drastic increase from last year. Remember, last year, the whole year we pretty much only got twice that amount and they're gonna be doing this in a quarter that they're bogged down with. Based on my research and many of the different estimates I've read from the experts, it looks like this chip shortage is not going to be lasting for very long.

Seems like worst case scenario, we get a few quarters of this and then it goes back to normal. I think that it's good that some of the more impatient players are gonna have to sell out at a discount so that we could snap it up at better prices. Overall, what we saw in earnings is that hey, Neo did a great, great job in 2020. basically beat the pandemic and made it look like nothing.

and they had a very strong start to 2021 before they had the whole country take off for Lunar New Year and then they had some chip shortages. So I'd say look at this as an opportunity to snap this up at good prices. In terms of whether Neo is a buy at 45, I'd say it depends on the type of trade that you're looking to take back. Last year I said if you want to take short-term trades on Neo, you should be playing pre-anticipatory runs up to Neo-day and then take your profits afterwards, but that if you want to hold past that, you need to be in this for the long term.

This is why I always say you need to keep short-term trade short-term and long-term trades Long-term If you don't actually believe in the company, why the heck are you holding through all this instability? So if you're in this for a short term play, I would say it's probably not going to be a short term. Instant gratification results probably going to be a rough couple quarters. Maybe You have a few catalysts we have in March 17th. I believe we have Move America where Neal might be presenting some opportunities for them to come to America.

But overall I see a rocky road for Neo. I'd say as a short-term trade, I don't think we're ready yet for a long-term trade. 45 is a pretty damn good deal. You're getting a lot of value for your money at these prices folks.

Well anyways, Neil was actually a requested ticker of the day. So many of you guys have asked me about whether or not Neo was a buy at these prices, so I decided to go ahead and make you a whole video. I really do read most of your comments and when you have a ticker that I see a lot come up and a lot of people are interested in, I almost always make a video on it or I discuss it in the next video at the end, but keep leaving me comments if you have kickers that you'd like me to discuss in future videos. Also, I'm going to give you one more day for Voozie.

I asked you guys to do some due diligence on Woozy and present me with your findings. A lot of you have already done it, but I'm going to give you a little bit more time to do it tomorrow. After the end of tomorrow's video, I'm going to be discussing my due diligence on Voozi why I like it, some of the threats that I see, but I want to give you some time to do that homework and look at Voozi. Maybe we'll even get a little bit better of a deal on Voozie.

And of course a lot of people always ask me Charlie what broker should we trade these stocks on and I always like to tell them. Weeble Weeble is a great platform. They offer pre-market and after hours trading. A lot of the biggest moves like Cciv workhorse.

All of that good stuff. A lot of those big moves happened in the pre-market and the after hours, so if you didn't have a broker that allows you to trade during that period, well, you'd be screwjawed. I'll put the link below, but they are a great platform and I think they're worth checking out. And if you'd like to learn how to trade, would like access to our private chat and daily morning briefings as well as our price target updates.

When we do update our price targets, well, I will go ahead and put the link to Zip Trader you below. You can learn all about it on the website see if it's a good fit or not. Take some time to think about it. We want to make sure that you're a good fit and you feel confident and ready to put in the work.

So anyways, folks have a great day and I'll see you in the next video.