Stocks were looking to add to yesterday’s gains this morning in early trading. The Dow shot up nearly 600 points in yesterday’s session for it’s best day since March. Thanks to yesterday’s comeback the S&P 500 is now less than 1% away from its record high.
We’ll see if positive sentiment will hold through Fed Chairman J. Powell’s testimony before the House of Representatives. The Fed Chair is expected to testify on the central bank’s response to the pandemic at 2pm this afternoon.
Our trade alert for today highlights a company that’s making waves in the EV market in the U.S. and also in the largest EV market in the world – China. So if you’re looking to capitalize on the rosy EV market prospects with a not-so-traditional option, read on.
Tesla’s Worst Nightmare
The tiny, little-known stock behind the “Tesla Killer” trades for just a few bucks. [Full Story…]
Ontario-based auto component producer Magna International Inc. (MGA) is making considerable strides in revving up vehicle electrification capabilities. To demonstrate its EV prowess, the company has two newly released advanced electrified propulsion systems with enhanced range, improved drive dynamics and lower emissions by 38%.
The company has just seen earnings accelerate for a third straight quarter. They also raised guidance for the rest of 2021 as it sees stronger China sales on the horizon. But the U.S. still remains Magna’s largest market and there is plenty happening closer to home.
The company is set to benefit as Legacy automakers like Ford (F) and General Motors (GM) are committing to heavy EV spending. To meet growing demand, Magna says it will invest $70 million over the next five years to construct an EV battery-component plant in Michigan. Production at the state of the art facility is set to commence in early 2022 with battery enclosures for General Motors’ new GMC Hummer EV.
Meanwhile, there are whispers in the pipeline that the long-rumored EV from Apple (APPL) may come to life with the help of Magna. In April, The Korea Times said LG Electronics and Magna were “very near” to signing a deal with Apple to build its initial electric cars. There hasn’t been confirmation on that, but the prospect is pretty exciting.
Magna share price has lost nearly 6% in the past month due to near-term challenges amid supply issues and rising prices for key manufacturing materials. Current conditions may put pressure on gross margins in the near-term. But these hiccups shouldn’t diminish your faith in the stock. In fact, this may be a great opportunity to buy the dip.
Of 20 polled analysts 14 rate the stock a Buy, 5 say Hold and only one calls MGA a Sell. The median price target of $113.50 implies a 23.75% increase over the next 12 months.
Where to invest $1,000 right now...
Before you consider buying Magna, you'll want to see this.
Investing legend, Keith Kohl just revealed his #1 stock for 2022...
And it's not Magna.
Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.
Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.
Find that to be extraordinary?
But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.
Jeff Bezos Just Poured $10 Billion Into This…
Not many people know this story… But in 1998, Bezos invested $250,000 of his own money in Google, when the company was just getting started out of a garage in California. When Google went public in 2004, that $250,000 investment translated into 3.3 million shares of Google stock. Nobody knows if Bezos has sold any shares. If he hasn’t, today they’re worth more than $5.6 billion.Jeff Bezos is betting big on a new trend. This time he’s planning to invest $10 billion of his own money in this exciting new trend. That’s 40,000 times more money than what he invested in Google. That’s how big he thinks this could be. [Full Story…]