Back in October I wrote quite a few articles on Hyliion Holdings (NYSE:HYLN) stock, this one being quite interesting ,especially if you read the comment section. Back then I said how HYLN is going down to $25 and this happened.
And like kids ditching a once-favorite toy, investors fled shares of Hyliion, pushing its price even below $20. Nothing happened for months until yesterday when Hyliion announced the introduction of its next generation battery module.
“The development of this next generation battery module represents a key milestone in the Hybrid commercialization process, further strengthening our overall technology platform as we innovate future solutions.”-said CEO of Hyliion, Thomas Healy.
Following this news HYLN gained more than $5 in a day, and everyone thought- THIS IS IT!
But Friday selloff kinda ruined it for Hyliion shareholders. Or was it the chatter coming from WallStreetBets (WSB) subreddit.
Best known for GME short squeeze, loss porn memes and DDs, WSB always comes back with a surprise. This time, for some reason, one of the posters said how Hyliion has “No battery patent, no IP, no product” and he asked everybody if HYLN is Nikola 2.0, referring to the biggest SPAC scandal in 2020.
He started off with HYLN finances:”You will see this company is more of a joke than I can make about it.” he said, immediately reminding me of Hindenburg Research short sellers.
“Revenue: 0, PE: Divide by zero error, Profit Margin: Zilch, Operating Cash Flow: -11.53 million, net loss per share 2019: 0.45, Net Loss per share 2020: 0.76. They are burning more money faster.”.
We all know Hyliion finances are not good, that is why they went public, to pick up some cash so they can grow faster, but mattseg then continues with the latest and greatest from Hyliion, the battery pack that was announced yesterday.
Intangable assets (IP aka patents fall under this) 356 thousand. And somehow that went down from 2019’s number of 429 thousand. If they had dope IP it would be worth more. Also the “new battery” isn’t patented or at least mentioned heresource
Another Redditor that goes by geb161 concurs with the OP saying how “the whole next gen battery doesn’t even extend range, it just charges ’faster’ and supposedly lasts longer”.
The person behind the long post then concludes the article with Tl;DR saying what is, according to him, HYLN in a nutshell:”It’s a SPAC like Nikola, and it’s basically a less impressive dog and pony show without bad photoshops or theatrics. Like they don’t even care that much.”
At the time of writing this article HYLN stock is down 9% and you can buy it for $18.91.
In November I said that Hyliion might be a good buy under $25, not so sure anymore, we need to see some real results.