A big post-IPO loss and a bleak short-term outlook landed the HYLN stock in, what seems to be, the bargain bin.
Three days ago, I saw a problem with HYLN stock so I wrote an article where I predicted that HYLN may see $25. Hyliion (NYSE:HYLN) shareholders claimed how I was wrong. On Tuesday HYLN shares saw a 15% loss, which pushed the stock price to $33.20.
There is no HYLN news, everything is already baked in the price
Seems as if the biggest disappointment, from the HYLN stockholder point of view, was the fact that CEO of Hyliion did not come up with some contract news or anything that could push the price up.
Thomas, your shareholders and $HYLN need your ATTENTION. News and PR are NEEDED. We know it's a great company and bright future. But you need to support the falling stock. NEWS about contracts ASAP please!— Elena Daniel (@elena1daniel) October 7, 2020
Everyone and his dog knows that Hyliion is after commercial vehicles and that they want to be the leader in this niche. But Mr. Healy keeps talking about that in all interviews for a couple of months already.
The reality is $HYLN failed on the merger. We were expecting orders and partnerships and nothing new has been announced. I"m so disapointed.— Markus Market (@moreramarcus) October 7, 2020
We all know that, Yahoo Finance published it again, seems like Mr. Healy have nothing new to offer, at least for now.
…these fleet operators that we speak with, they operate hundreds if not thousands of vehicles. And so once you convince them that our technology is the right one for their fleet, then you have this recurring revenue stream.Hyliion CEO-source
I really like Mr. Healy, he looks like a leprechaun dork but he is doing trucks and trying to fight against Tesla. You need big balls for that. I applaud him for this.
Furthermore I believe that the HYLN stock price will continue to be pressured as the SPAC market continues to transition following NKLA scandal. But in the long run HYLN seems like a great company to be invested in, unless big clients decide that natural gas powered trucks are not that interesting.
The bottom line
While a shift to a zero pollution market could be good for investors and for the HYLN itself, selloff has created an uncertainty that is anything but encouraging for the traders.
My rating on the shares is “stay away (for now)”, as I believe market changes will make trading profits more easier to come by in future periods. Of course, just one good deal could push the HYLN shares well above $40 but the future prospects for the stock won’t be easy. A great idea that will take some time to catch the fire, until then investors need to be patient.