Skip to main content

Canoo (NASDAQ: GOEV) Stock is an EV Play for Patient Investors

Wednesday, January 13, 2021 | Jea Yu

Canoo (NASDAQ: GOEV) Stock is an EV Play for Patient InvestorsCalifornia-based electric vehicle (EV) manufacturer Canoo Holdings Ltd. (NASDAQ: GOEV) stock went public through reverse merger on Dec. 22, 2020. Shares are just starting to solidify a base after collapsing nearly (-50%). The Company is still in concept mode as it puts together an infrastructure and starts production with full scale commercial production of its EVs planned for 2022-2025. The momentum in EV stocks  led by  Tesla (NASDAQ: TSLA) continues to surge as the market is hungry for U.S. EVs. In the absence of U.S. EV production, the momentum has carried over to Chinese EV makers led by NIO (NYSE: NIO) , Xpeng (NYSE: XPEV) and Li Auto (NYSE: LI). The Canoo uses a skateboard architecture and top hat design for expansive interior and storage functionality. The revenue model will also incorporate a subscription-based plan for consumers while commercial delivery vehicles will be sold. The Company also incorporates a unique marketing program called The First Wave where members earn Wave points for free merchandise and improved wait-list positions with feedback and referrals. Risk-tolerant long-term investors looking for exposure in a disruptive U.S. EV play can use opportunistic pullback price levels for exposure in Canoo shares.

SPAC Reverse Merger Plunge

Canoo came “public” on Dec. 22, 2020, under the new symbol GOEV from the previous special purpose acquisition company (SPAC) Hennessey Capital Acquisition Corporation IV old symbol HCAC. Shares collapsed from a high of $24.90 selling off for eight straight days to a low of $12.00 on Jan. 4, 2021, before putting in a bottom. This is the common reality of investing in SPACs ahead of the reverse merger and assuming the stock will gap and move higher immediately upon trading under the new symbol. The reality is the opposite as insiders cash in their shares into the liquidity. For patient investors, it provides an opportunity to get in a cheaper levels than the momentum chasers.

Canoo Models and Wave Points

Canoo has planned three EV models each targeting a different end user. The lifestyle vehicle is a spacious 7-seater van with a range of 280 miles and 28-minute charging capacity planned as a subscription-based offering in 2022. Canoo has a free membership program called The First Wave that consumers can join to get on the “waiting line” for the initial rollout of the first Canoo lifestyle vehicle. Members are called Wavemakers and have priority in line by earnings Wave points by providing feedback and successful new member referrals. Wave points also earn prizes ranging from Canoo hats to 3D printed models to Design books.

MPDVs and Sport

The high cargo class L3H3 multi-purpose delivery vehicle (MPDV) targets small businesses to large commercial fleets. It’s ideal for service technicians, independent contractors to last-mile and package delivery fleets, retailers and logistics companies. These are expected to rollout in 2023 for sales, not subscriptions. The sleek sport vehicle is modeled to complete with the likes of Tesla but targeted for 2025 rollout.

Theme and Concept

The Company is in the early stages of rollout. The design is unique but how the EV market evolves in the next two-years is a wild card. The Company will have to build its brand as it plans to implement a direct-to-consumer model meaning no dealers or middlemen. However, the subscription model has been rumored to cost as much as $900 per month, which covers all expenses including maintenance, charging fees, no registration with MVA, batteries and no contractual obligations like a lease. In fact, the Company claims its model is 40% cheaper than a traditional automobile lease. The subscription has no enrollment fees or long-term commitments like a lease. It’s designed for convenience and a frictionless experience. Canoo (NASDAQ: GOEV) Stock is an EV Play for Patient Investors

 GOEV Opportunistic Pullback Levels

Using the rifle charts on the weekly and daily time frames provides a precision near-term view of the landscape for GOEV stock. The weekly rifle chart is in a make or break as the uptrend stalls with the 5-period moving average (MA) sits at the $17.18 Fibonacci (fib) level and the weekly 15-period MA sits near the $13.26 fib level. The weekly stochastic has crossed down as GOEV has tagged both the weekly 5-period MA and the 15-period MA as chops in the middle around the daily market structure low (MSL) trigger at $14.42 and below the daily market structure high (MSH) trigger at $18.91. The daily rifle chart also has a make or break but with a stalled downtrend with a rising 5-period MA near the $14.06 fib and a daily stochastic mini pup. If the daily stochastic mini pup can cross up through the 20-band, then a channel tightening to the daily 15-period MA at $16.12 before pulling back to the rising daily 5-period MA. Prudent investors can look for opportunistic pullback levels at the $14.42 daily MSL trigger, $14 fib, $13.26 fib, $12.84 fib and the $11.60 fib. then the lower price pullbacks may test with the best overlapping pullback levels at the $11.46 overlapping fib. Upside trajectories range from $16.73 up to $23.26.

Featured Article: What is the Dow Jones Industrial Average (DJIA)?


7 Low-Priced Dividend Stocks Under $10

The recent trading activity surrounding low-priced stocks like GameStop (NYSE:GME) is a reminder to investors of the high-risk nature involved with these stocks. Often when a stock trades for under $10 (also termed a penny stock), it is trading that low for a reason. The company may not be profitable, or in the case of GameStop, it finds itself with a business model that no longer fits with consumer trends.

But that’s not always the case. It is possible to find low-priced stocks, even penny stocks, that offer great value. This is particularly true if the stock offers investors a dividend. Dividend-earning stocks are a diversification source for a consumer’s portfolio, particularly if the dividend gets reinvested. It’s literally like paying yourself for owning the stock.

And the stocks in this presentation look ready also to deliver some additional stock price growth that can increase your total return.

View the "7 Low-Priced Dividend Stocks Under $10".


Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Tesla (TSLA)1.4$589.74+3.2%N/A1,184.22Hold$411.09
NIO (NIO)1.6$33.42+7.0%N/A-35.94Buy$50.78
XPeng (XPEV)1.6$25.70+9.1%N/AN/ABuy$53.40
Compare These Stocks  Add These Stocks to My Watchlist 

MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau

© American Consumer News, LLC dba MarketBeat® 2010-2021. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information

© 2021 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research. As a bonus to opt-ing into our email newsletters, you will also get a free subscription to the Liberty Through Wealth e-newsletter. You can opt out at any time.