Hyliion (NYSE:HYLN) stock offers a unique way to enter the new energy boom for shareholders.
I am a big bull when it comes to the future of alternative energy sources. I was totally mesmerized by Nikola hydrogen story and later on I really liked the RNG story Hyliion promoted during pre-IPO days, but soon realized that all of these companies are fully priced and than some.
Where is HYLN going from here?
Just a few weeks ago Hyliion was begging investors to go and vote on a merger that will take them to NYSE… only for investors to get broke in the process. But not all investors lost the money. The people who took benefit and profited were the CEO and top company holders. But it is always like this, or at least almost always.
You cannot expect to enter at the peak of the hype and earn money trading stocks. Hyliion is no different.
The easy money has been made, in my opinion. Don’t get me wrong if you are not the one that took that money. Hyliion remains a good company with earnings growth ahead of it, but I don’t think investors should expect the kind of returns they saw during pre-merger months. So far, they’re not getting them: Hyliion’s stock is down nearly 55% in the last 30 days.
What’s changed for HYLN? The product cycle, competitive environment and, most importantly, expectations. Let’s address that last bit first. Simply put, investors’ expectations of Hyliion have inflated drastically in the course of a couple of months. Success has a way of doing that.
And those heightened expectations were followed by a cold shower at a time when the HYLN is getting a little long in the tooth. When the Hyliion truck hit the scene, it was a fashion statement, a refreshingly simple and “green” product.
What Hyliion needs is a stellar second act, and some analysts aren’t sure if it’s got one. Bottom line, the end of the year could be a tougher road for Hyliion, and that’s a call investors might not be expecting.