Following a crazy IPO day for Luminar, we have another rally for LAZR stock today. In just 2 days LAZR went from $22 to $32. That is 50% in two days or over 200% if your entry was three weeks ago at $10.00. What a great run for Luminar stockholders.
But the person that helped this rally was certainly Jim Cramer known for his ‘Mad Money’ show. This is what he said, and I am pretty sure many retail investors rushed to their Robin Hood App to buy this stock.
Cramer said Luminar has great prospects and the stock is actually cheap at current levels. He said shares are definitely worth owning, but he suggested starting with a small position and adding to it slowly over time.source
When Mr. Cramer say that a certain share is cheap at current levels and how these shares are “worth owning” you go and buy those shares because everyone else will buy them and push the price up. You just have to be first to get a better price and an opportunity to unload once the stock peaks.
@jimcramer Jim, I am a longtime subscriber to Real Money Pro. Great product. Also, I listen to you and bought $LAZR yesterday at $22.25. THANK YOU. your Action Alert Club and Real Money are great and taught a lot about the market. It help me retired early, too. 😀— Peter Leung (@oldtiger) December 4, 2020
But is LAZR stock going to continue the rally, or is it going to flop, the same way VLDR (another Lidar company that went IPO via SPAC merger) did just a 2 months ago? If you remember VLDR you probably remember how this, back then, attractive stock peaked at $30.00 just to lose 50% of its value since then.
Something is telling me that the same thing may happen with LAZR shares in the very near future. Given the resilience that SPACs have demonstrated in this recession, I think majority will move away from LAZR on Monday and invest their money into the next big (SPAC) thing.
Bullish case for LAZR is that market cap is still under $2B which is one billion lower than Velodyne Lidar market cap. So, there still might be some space for another rally.