Okay folks on this video, I want to give a violent update on today's market and place. and then I want to present one two dollar stock that is going parabolic right now and I want to discuss whether it's good or garbage. Regardless of what you think about this company, it's been getting a lot of attention and in some cases a lot of praise. Let's go ahead and get into it.

Okay, Marquetta: almost all major indices up. Not a lot of divergence from index to index. Usually you'd have one index outpacing the rest by quite a lot, but today, relatively similar values. I think that you have some fun managers that are trying to build on the foundation that Jerome Powell presented yesterday, but also trying to balance the continued uncertainty with this whole Russia invasion crisis.

Meanwhile, we've gotten that inevitable push back up of oil and energy as a whole without achieving some level of peace or at least de-escalation I don't see how energy prices are going to meaningfully be able to reverse their overall uptrend. Usually, every time you get escalation, oil prices are going to jump huge, trying to over factor in that risk, and then they're going to sell off afterwards. But as long as you have more escalation in the future rather than less, you're going to have that overall uptrend. There were some new warnings from the Iea today that suggested the supply loss from Russia would be substantial.

I was hoping that you get a bit more extreme of a run in spec energy plays like Imp or Indo, but most of the runs were in the extended hours and were fairly gappy. Obviously, Spec Energy disruption plays are going to do very, very well when you get an escalation and more disruption, and they're going to do bad when things start settling down, which means the big argument for them is more momentum based instead of buy and hold based. But anyways, you open up to the bigger picture of the market and the market is just convictionless. Despite the huge volatility in the huge back and forth, the market has net really not done anything month over month.

You compared today to about a month ago and we're trading at about the same price and we've been trading in this range all month. Quite frankly, the market hasn't really wanted to make lower lows since February 23rd, 24th, but also, it hasn't been willing to take much conviction to the upside either. It's very interesting because it's been a very, very dramatic month in terms of market events, but if you actually look at how much fear the market factored in early on and then how much it bounced back and forth from that fear throughout the entire month and then ended up doing nothing at all. Pretty insane.

Moving on though, to short-term catalyst plays. I know that people have increasingly wanted me to talk about what's working in these conditions, and one of the catalyst plays that I was excited about this morning was Peck P-i-k We briefed on this one in Ziptraderu because it was a small company that had just announced a partnership with Disney which fit our hype criteria. We briefed on it around 350 ish a share and then it ran up to 619-ish towards close and then at the time of extended hours trading, it's at about 507.. But why I like this stock was because it followed my usual formula: it's a super small stock.

It's at about 36 million dollars in market cap right now. After the run-up and they announced they were joining forces with a much bigger, much more well-known company Disney. Obviously, this partnership should have real tangible benefits for kidpick or ticker symbol pik and their overall ambitions. But the reason that I liked it is because it followed my hype formula of what needs to happen in order for it to get attention and catch on and then be likely to run.

Doesn't mean that it was guaranteed to run in lots of catalyst plays, especially in these markets don't run, but this one pretty much hit all the criteria that we wanted and it showed some proof of concept in that extended hours trading in the pre-market Whether you are a member of Zip Trader, you are not. If you are somebody that wants to trade short-term catalyst plays, the goal is to first show up every single day, find catalysts, narrow down the ones that are most likely to run based on the characteristics of the previous ones that worked, and then if you see a good opportunity, control your risk in it, and play that dirty momentum. Sometimes you get runners, sometimes you don't. It depends on the market condition, but for those of you who love the thrill of trying to capture momentum, it could be quite fun.

Okay, moving on to the main entree this evening. I hope you're hungry! Okay, so over the last couple of weeks, ticker symbol M-u-l-n has consistently been one of the hottest trending stocks across the retail trading sphere. Since February 24th, it's gone from 50 cents to 2.50 at Heist today, which is about a 5x in a very short time period, and obviously during the time period where the rest of the market has been pretty dirty. This ticker is attached to a small Ev company called Mullen Automotive, which has recently demoed their Mullen 5 vehicle at the La Auto Show.

Appearance wise, it has a bit of a lucid vibe, but in Suv form, they have a similar color combination and door handle look as compared to the lucid air, and it's expected to have a range of 325 miles and will do 0 to 60 in 3.2 seconds. It's also expected to start at about a 55 000 Msrp. The bottom line, Tesla Model X in comparison, has a slight amount more range at 332 miles, but it can only do 0 to 60 in 3.8 seconds and starts at just under 115 000, which is more than double the price as compared to the Mullen five. Probably a more fair comparison.

Charlie is the Fisker Ocean, which is slated to start meaningfully rolling out later this year and into Next Effects are pretty give or take with the Ocean. The companies also announced a planned opening of a manufacturing facility in Tennessee, but you're the only 10 I see I'm looking at. You hit that subscribe button, but they say they are doing this to create the necessary infrastructure to support large-scale electric vehicle production that will begin in Q3 of 2024.. And we've covered so many different Ev companies, both good and garbage.

But what sets Mullen apart is that its market cap is so damn tiny compared to its competitors. I mean, Fisker, although it's been destroyed, is sitting at 3.5 billion in market cap. Lucid is at 40 billion. Meanwhile, you got little lonely Mullen sitting at a market cap of 76 million dollars.

When I shot this video, its entire market cap is basically a rounding error for most of the companies in the space. Elon Musk doesn't even carry denominations that are less than 100 million, Which means that at a surface level glance of this company and its valuation, it seems like it has a very, very low bar to pass, and as of late, it has been attracting a lot of momentum. Ape Wisdom Dot Io ranks it as the number six most mentioned ticker in the last 24 hours, led only by stocks that are much, much, much more actively traded. and since essentially February 20th, this small Ev company has consistently ticked up in search interest despite all of the other concerns on top of investors minds during this period.

And really, as of the last week or so, you've seen a lot of financial media starting to cover the stock M-u-l-n Why? it's the penny stock of the moment. From the street seeking Alpha Mullen Automotive, a short squeeze could present short-selling opportunities. Yahoo Finance reported that Mullen was featured on Car Buzz and discovered and discussed their five Ev crossover and production plans as well as strategy. Car Buzz says Mullen is making performance Evs to get excited about.

Ev makers are 10 a penny. we think this one's different. Insider Monkey names Mullen Automotive a top penny stock to buy in March, and obviously we've discussed this one in passing on the channel, and we have discussed this in Zip Trader U, especially when they announced their progress on their battery pack at the end of last month. But of course again, we did that in the catalyst sense, the hype sense.

But again, what makes it so unique is that it's getting all of this hype and attention while also still being a stock that has a total market cap of just 76 million and this is a stock that fell quite a bit from grace. It was trading in a six dollar to twenty dollar range for the last two years, and the risk-off environment has been a disaster for it, taking it all the way down to 52 cents. at least that's what the chart would have you think. In reality, Mullen really only became Mullen in its current form back in November of 2021, because that's when it had a reverse merger with the company that was in place before.

But overall, this investment instrument is at a very big fall from grace. But the flip side of massive massive dysphoria is that once things get beat down so significantly, there starts being these weird opportunities where traders start thinking these stocks could easily double, triple or fripple. Yes, fripple is a new word that I just made up. What are you going to do about it? Think about it this way: Mullen, or the entity that owns Mullen now dropping from 20 to 52 cents is a 97 drop.

complete disaster. But once you get to 52 cents, there's an interesting dynamic that emerges. You see, if Mullen gets back just 10 of its lost value, that's a massive massive increase for you, that would be a jump from 52 cents to about 2.50 which would be a 380 percent gain. And so in the mind of a lot of spec traders are thinking, okay, well wait a second if there's actually some intrinsic value behind this company that makes it worth something rather than nothing, and it's getting more and more attention and it's gone down so significantly that going back up significantly isn't actually that much in the grand scheme of things, then why not take a calculated position in the momentum, which is the calculus that I think a lot of people are making right now and is what has helped it go up so fast and get so much more attention? I want to in this video actually walk you through if there's any real intrinsic value behind Mullen, because I think you're going to hear about Mullen a lot more over the upcoming weeks Based on the current trend of news coverage that we've seen so far and full disclaimer: I'm not in this position.

I know it's super low float. I'm not trying to pump the stock or anything like that. In fact, the financial media is already doing a pretty damn good job of it themselves. My goal is just simply to break down the fundamentals here and see if it makes sense for you and then you can make your own decision.

Keep in mind that everything I'm about to say about this company, both good and bad, is just my opinion. and an opinion isn't a fact, so you know, don't take it as a fact. Okay, so let's go ahead and start with the good Good is that the vehicle looks decent, the specs are competitive, and it's set to launch relatively soon in 2024.. you can't really say it's a Bs prototype.

if you're out there just to get good pr, you could tell a decent amount of thought went into the design and manufacturing. They also said they are ready for the Eevee Cargo Van production, which is a nice diversification tactic. Thirdly, and this is the one that I'm most excited about, but their testing revealed the potential for a 1 150 kilowatt hour battery pack that delivers over 600 miles of range and highlights an 18 minute Dc fast charge which can yield one 300 miles of range if they are right on. this, and their battery is able to offer 600 miles of range and be able to charge up 300 miles in just 18 minutes.

That does give them some substantial intrinsic value, even if they never produce a single vehicle, and if they do actually succeed in making vehicles that is very, very competitive. The only thing I am worried about is by the time these start meaningfully being produced, it could be a year or two or three, and by then it's going to be less and less and less competitive as their competitors start gaining more and more of an edge. If this came out today, that would be incredibly competitive, but they're not saying that it's out today. They're saying that they're going to start producing vehicles in two years, so the battery pack may not have any use for two years, and by then it won't be as competitive.

Mullen also owns Carhub.com which encompasses an online website and a chain of car dealerships in California and Arizona, which should help in some way with the distribution of the vehicle and with diversifying revenue streams a bit. It's also, unlike a lot of other Ev companies, hard to call it a fly-by-night company. They have been for the better part of the last decade been either acquiring or making moves to expand their presence in the Eevee space. I wouldn't say there's much in terms of heavy hitting trophy wins though, but still, they're doing something and participation trophies are a thing.

Okay, next, the bad. So we know that a Ev company that is pre-revenue and pre-sales is going to have a lot of losses quarter after quarter after quarter as it tries to scale up into the very, very competitive and expensive space. But usually they have a lot of liquidity to be able to handle that and or have the ability to raise more liquidity. But you look at how bad their situation is.

Their net loss the last three month reporting period was 36 million dollars. Their total assets are 45 million dollars based on the position they're in right now. If they spend like they did last quarter, they only have one more quarter left of operations. They need to come up with funds from somewhere else, and honestly, I'm worried they're not going to find much in terms of reasonable deals on financing.

You Look at their Sec disclosures, they borrowed already 14.5 million dollars at an interest rate of 28. I mean 28 folks, that's a disaster. And if they want to continue to operate like they've been operating, they're going to have to borrow a lot more than 14 million dollars. And it's unlikely they're going to find better interest rates into this rising interest rate environment.

And as they get more and more risk as they take on more and more debt, that's a disaster. And it tells me they're basically on the brink of what they can reasonably borrow. and when you run out of options to fund your operations via financing, you have to go and look towards investors. Which means they're probably going to have to resort to substantially diluting shareholders by issuing more and more shares.

There's just not that many options here to provide liquidity. and they need liquidity fast. I was trying to find some perspective somewhere on the internet because a lot of people are very bullish on this company fundamentally. and the only area where I could find any sort of explanation for why their financing isn't as bad as it looks is the seeking alpha opinion that I found.

They said Mullen also has a building which is valued at more than eight million dollars in 2021. In my view, if management needs financing to invest in capital expenditures or finance future, R. D. Mullen will be able to use the building to obtain further debt financing.

Let me tell you, to stay afloat, they need to borrow a heck of a lot more than what they can get leveraging that building. And secondly, when you have to start borrowing against the few assets you have, then you know you're in trouble. This is the kind of business where they're probably gonna have to spend 10x with their spending now and they're not going to be making much money for three four years. So quite frankly, the financing situation and the company health is a complete disaster.

Also, I just can't help myself. I know this is nitpicky and unscientific, but of course I did some digging on the Ceo and his linkedin picture is him sitting in what appears to be a private jet with a big watch and it just kind of looks like he's trying to pitch me a time share. And quite frankly, I don't like time shifts. You look at his experience, it basically says before Mullen his only other experience is working 27 years in the music entertainment industry in various roles.

I may have said that electric vehicles are music to my ears, but I didn't mean in this sense. But to his credit, he has been leading the company for the better part of the last decade and the Mullen website claims some vague experience, so maybe there's more to him that meets the eye. but you look at some of the other folks in leadership positions. Some of them have some qualified backgrounds.

nothing huge and exciting, but some qualified backgrounds. And then you look at a big position that's very, very important for this company. battery R D manager And it's this gentleman who may be a smart guy, but according to his own linkedin profile, it looks like Mullen hired him fresh out of school about a month before they went public via reverse merger. I'm just reading what's publicly available here.

Keep in mind that context is key here. I'm not saying that Mullen doesn't have the right intentions, or they don't want to make a big splash, but the Eevee industry is incredibly competitive, and fundamentally, in my opinion, Mullen's liquidity situation is a complete nightmare. Their financing situation is terrible. I don't see how they can raise much more capital from investors other than massive dilution of their shareholders on the public market.

and honestly, I don't have much faith in the competency of their team. It is what it is. I know that it's going to upset very strongly some folks who really like this company, but that's just my opinion based on my research on it at the end of the day. If a team is really, really good at bringing in capital and selling a vision, then they can excuse a lot of hiccups because they have funding to make everything happen.

That's just not what I'm seeing with this company and other companies are doing so much better at this and they're getting hammered. You need to be completely cutthroat in order to succeed in the Ev business. With this, I see many, many more years of struggling ahead of it and not much light at the end of the tunnel. Best scenario I think if someone acquires it and changes everything up and uses some of their technology and progress they did make in certain sectors like batteries and maybe in terms of design.

but that's about it. So fundamentally from Charlie, it's a definite no in terms of Momentum Trading on Catalysts. I would say it's a definite maybe when you get Catalysts like our briefing on the battery development, those can provide opportunity for Momentum Plane. But you have to be very careful because again, they can just do a massive share offering out of nowhere and then you get scruggled.

So over the upcoming weeks when this gets more and more attention, My take is sure if you want to and you have a high risk appetite, you could certainly play the Momentum. Just do it very, very conservatively, but also with the mind frame that at the end of the day this company's probably going to fail. That caps off today's video. If you have any questions, feel free to reach out to us below or join us on Ziptrader's Circle if you'd like to learn how to trade.

With our step-by-step lessons, our private chat, our daily morning briefings, as well as our full price target list, I'll go ahead and put a link to Zip, trader you below coupon code. Never give up. We'll get you a sizable discount before checkout. If you are looking for a broker to trade stocks on, we do have a link to Moomoo below.

If you sign up and deposit using our link below, you will get not just five free stocks but also a free share of Neo. Have a good one and I'll see you in the next video.