When to sell your SHLL stock? Here is the evidence! What is your Hyliion Strategy?

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Recently Tortoise Acquisition, or soon to be Hyliion, made stock news by jumping up a lot these past couple weeks.

They’ve had some good news, and the merger with Tortoise is quickly approaching next month, with some people saying as soon as Sept. 15th.

What we’re going to do today is examine when you might want to buy, sell, and even if you’re bullish on this for the long term, when you should buy back in if you did decide to sell.

We’re going to look at some of the EV stocks and some companies that merged with a SPAC which stands for Special Purpose Acquisition Company, and review what their price did approaching the date, and what that share price did shortly after.

SPAC’s continue to gain popularity as a way to take a company public.

Even famed investor Bill Ackman of Pershing Square is getting in on the growing popularity of SPACs. Ackman recently announced that Pershing Square Capital Management said that his new special purpose acquisition company is the “most investor-friendly SPAC in the world.” He also said the company they acquire is a “mature unicorn.”

“I think it’s actually a much better process,” Ackman said of SPACs versus IPOs. “It’s much better for the issuer, and it’s much better for the shareholder because they get to make a thoughtful decision that’s not rushed by the typical IPO process.”

Nikola had a merger earlier this year and was trading before the merger under VTIQ – VTIQ ran up a good bit as Nikola’s IPO approached, similar to what SHLL is doing now. Nikola was listed on June 3, 2020, and was at 33.97. By June 9th, they were at almost $80. By July 7th, they were down to $40. They were pretty stable up until a month before they got listed. They shot up from appx—$ 10-$33.

NIO got listed on Sept. 12, 2018, Nio jumped 65%. From 6.00 to 9.90 only to fall back down to $6.26 by Oct. 5.

Workhorse, WKHS, was listed on Dec. 11, 2015, that same day they jumped up nearly 59% from $5.90 to $9.35. Only to fall 30% by Dec. 18 to $4.45 on Jan. 16. 2016. That may not seem like a lot, but when you have a significant amount of shares, it adds up.

One associated with WKHS to keep on the radar is Lordstown Motors. Lordstown will be merging with Diamond Peak Holdings soon. Ticker Symbol: DPHC

On the opposite end of prices jumping up, Electrameccanica Vehicles, SOLO listed on July 30th, 2018, at 6.35. On the same day, they dropped to $2.77 and then by Dec. were at $1.06.

But this could be one to keep an eye on and watch is Electra Meccanica Announced Production Start Date of August 26th for Flagship SOLO EV.

For long term context: Facebook IPO’d on May 18, 2012.

The nice thing about looking back on the Facebook IPO is that it provides a longer-term perspective. Facebook’s IPO was the most anticipated public offering in the technology sector since Google when public in 2004 (Disclosure: I covered Google in 2004 and 2005 when I worked on Wall Street).

Demand for Facebook’s stock was so high that the company increased both the range of its share price (from $28-$35 to $34-$38) and the number of shares it planned to sell (by 25%) just days before the IPO. These last-minute decisions increased the company’s cash receipts an astounding $5 billion (+51%) versus the original plan.

What happened?

The IPO price was $38, and the stock opened at $42.05. It then trended down, finishing at $38.23, nearly identical to the IPO price. In contrast to Uber, the IPO was not summarily declared a failure. Over the next weeks and months, Facebook’s valuation compression continued, with the stock troughing in mid-October under $20, a decrease of over 52% versus the open.

Now onto Hyliion, Tortoise Acquisition has been trending upward as it approaches the merger date.

Now the question you have to ask yourself is, do you sell right after the IPO occurs, do you sell right before, or do you just hold on tight and ride it out.

Now do I believe Hyliion has the potential to be an industry leader. Yes. Do I also believe it has the potential to drop off in share price after the merger? Unfortunately, Yes. It has nothing to do with them as a company. But, if history repeats itself, there is a good chance for a drop-off.

Personally, and I’m not a financial advisor, but I would wait for Hyliion to be listed, sell my shares as soon as I believe it had peaked, hold on to the profits, and try to buy back in when I thought it had dropped enough. Then I have more shares for the same amount I had in.

Unless it keeps running up and just stabilizes, then I would hold. However, that is not the case with a lot of these companies.

Let me know what you plan to do in the comments. I’d love to hear your thoughts. But until next time, take care and stay safe.

#shll #hyliion #nkla #nio #evstock #wkhs #solo #fb

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