1 Swing. 1,000 Runs. NOMI PINS – Tiny Firm saving AmazonListened to puff piece – this is an EV stock – could be Rivian – but RiVN doesn’t have obvious warrants
More likely to be Lion Electric with LEV+ warrant – especially since the warrant is up 68% Sept 1 2022 – after the presentation
I just bought a few shares of the stock – by some miracle they have income and a PE of 4.4
FYI
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Hi it looks like the CEO of Lion comes from the wood industry in Canada as heard in the presentation from Nomi.
Lion’s web site has info about the CEO and mentions the “wood” background.
Interesting that Nomi or her “host” alluded to working with wood NOT being so technical. That was a misstep.
He was their CFO so not exactly blue collar as was claimed! And you could say, I suppose, that accountancy is technical, though in a different way. I doubt the guy ever used a saw lol!
Yes, look like the LEV warrants to me also. ~$1 each. $29MM revenue last quarter, matches her teaser.
Looking at the warrants today they’re $11!
THERE IS A STOCK AND ALSO A WARRANT . WHICH IS BETTER TO BUY AT THIS TIME ?
I don’t think it’s Rivian because they discussed that company openly during the presentation. I agree that it’s most likely to be Lion Electric – all the clues fit. There are just a couple of things that don’t quite match what was said. Firstly, this deal hasn’t been ‘hidden’ – I found a publicly available reference to it dated Jan 2021. Secondly, the founder – Marc Bedard – did indeed work in the wood industry prior to founding Lion. But he was most definitely not a blue collar worker, as was implied by Nomi Prins! He is a qualified CPA and during his time at the wood company he served as Vice President and CFO. So, a little bit economic with the truth there – if indeed it is Lion that was being referred to.
It certainly is NOT Vivian, which is in luxury EVs. This is LEV which makes the most basic EV urban vehicles/delivery trucks. Nothing fancy. The warrants were $0.99 last night and Fidelity did not allow the purchase under $1. The regular stock was about $3.8. The CEO and founder of this small Canadian co. bought large amounts of their own stocks, and Nomi reported this today too. A couple of hundred dollars is what I am ready to put into their stocks and warrants.
Did Prins mention the name of the hedge fund Amazon created or is working through to purchase warrants? I get dame brammage listening to these pitches.
I was wondering if anybody could tell me where I can purchase LEV warrants?
I see them on my brokerage account, under the ‘trade’ menu along with stocks, options etc.
I could only find options to purchase stock not warrants. I messaged the brokerage and they said the warrants were not available for purchase at this time.
Strange. They’re available on mine, $1.05 each.
That is so weird! If you have a minute, I upload some of the chat regarding the warrant purchase to see if I am asking the correct question..
Still there today, in fact they’ve gone down a few cents.
Strange indeed. They are available on E*Trade under LEV.WS Bought them today at 0.8296
LEV/WS ($0.99) can be purchased at your brokerage, but some do not allow investments in equity that cost less than $1.
As of 9/6/22 LEV Reports:
Good evening and thank you for your interest in Lion and its activities. This should help.
1. Warrants became exercisable 12 months after NGA IPO, which was in August 17,2020. They therefore became exercisable in August 2021 and expire 5 years after close, in May 2026,
2. Exercise price of $11.50
Please find a link to the warrant agreement below https://www.sec.gov/Archives/edgar/data/1815495/000121390020020925/fs12020a1ex4-4_northern.htm
Our next earning call, for Q3 results, should be the week of November 7. We will confirm via press release mid-October. Regards
Thank you so much for the information, very very helpful!
Why buy a warrant for $11.50 when you can buy the stork for around $3.80?
I’ve never bought warrants… just trying to make sense (dollars) out of this.
Apologies, my error – they are around $1 to buy. $11.50 is what you can get the stock for at a future time in exchange for the warrant.
Rivian is involved with Amazon:
From wikipedia: Rivian entered into a commercial agreement with its investor Amazon, Inc. in February 2019. By September 2019, Amazon’s Logistics division had agreed to collaborate with Rivian to design, produce, and purchase 100,000 electric delivery vehicles (EDVs). Initial plans suggested a first delivery date in 2021.[66][16] As of 2019, Amazon expected to have as many as 10,000 electric vans in operation by 2022, but was not planning to take delivery of the entire 100,000 Rivian vans the contract calls for until 2030″ Also Lion started before 2008, which is when Nomi said her pick started.
From Nomi’s ad “In 2008… a man just like that… a man with no background in engineering, science, or even the auto industry… a man who spent much of his career working in the wood industry… went in front of the world… and said, “I’m going to start selling electric vehicles.” But Lion started before 2008. On the other hand she says “can play for under “$1 – not a stock or future – so that sounds like the warrents. Here’s Nomi’s pitch
https://secure.rogueeconomics.com/?cid=MKT670856&eid=MKT675843&encryptedSnaid=7nWSE8AAioibqJZDIao7LUkz79WvQTCBn9DN0%2F23bmU%3D&step=start&emailjobid=5221131&emailname=04-Non-Opener-RTD-Running-On-Empty-Summit&assetId=AST260575&page=2
Thanks folks for info on both. Lion sounds like a natural but Rivian DOES have a contract for 100,000 vehicles with Rivian already. That caught my attention some time ago – was in the news. Love to hear further comments. Both are interesting investment opportunities.
Nomi specifically referred to Rivian during her session. She said that they had gone wrong by making their vehicles too luxurious – too many bells, whistles and gadgets etc. This had negatively affected their production capabilities and timelines. Whereas ‘her’ tip (which we’re now sure is Lion) had done the right thing by making their vehicles simpler, which allowed them to achieve faster turnarounds and deliveries. Yes Amazon is definitely involved with Rivian but they are not the company that Nomi is referring to.
I am still trying to figure out exactly how the publicly traded warrants work. Right now, I don’t see the benefit of buying LEV warrants instead of the actual stock. Let’s say I put in 10 dollars to buy 10 LEV.WS at 1$ each. This gives me the right to buy, until May 2026, 10 pieces of the actual LEV stock at $11.50. So, to determine when to sell my warrants, I should be looking at the price of the LEV stock, not the LEV warrant. When it’s higher (ideally significantly so) than $11.50, then I should sell my warrants. Let’s say the stock reaches $20 (today is only 2.86 USD) and I decide to exercise my warrants. I am guessing that the way this is done through my online trading platform, is that I place in a request to ‘sell’ LEV.WS, the same way I would sell a stock. Since these are warrants though, I assume that at that point I would be asked to pay for the 10 stocks at the price of $11.50. So, at a time when the market value of 10 LEV stocks is 200, I get them for 115. I paid 10 dollars for the original purchase + 115 to exercise my right at a later date. I can then sell the stock for 200 and make a profit of 75 dollars. If instead of warrants, I had bought the actual stock at today’s price (10X$2.86=$28.6) and then the sold it when it reached $20, then my profit would be 171.4. Is there something that I am missing?
No, you haven’t missed anything, you’re right. It depends on how you look at it. If you want to manage your risk – for example, the risk that the stock might never reach $11.50 by the expiry date, or even anywhere close to that amount, then you might choose to just buy the warrants. That way, you’ve only spent $10 on getting in on the stock rather than $28 at the current price (it probably makes more sense if you’re buying larger numbers of shares). But I agree, when the stock is at such a low price, it’s tempting just to go in and buy it anyway, which would be a perfectly valid option.
I live in Illinois and there was a news release that LEV is opening a plant in Joliet! That is the midwest just an Nomi stated.
Further to my previous post, I did more research and managed to confirm that I can either sell the LEV warrants at a future date or exercise them. Both options are available to me. I listened again to Nomi Prins’ briefing and my understanding of her claim is that profits can arise from the selling (not the exercising) of the LEV warrants. I looked up the numbers of Purple Innovation Inc, which Nomi Prins uses as an example when she’s presumably making the pitch for LEV.WS, and this is what I came up with:
Purple Innovations Inc
Date Warrant price (PRPLW) Stock price (PRPL)
February 2019 $0.0001 5.75
October 2020 $ 0.0049 (4,900% increase) 28.37 (493% increase)
My first thought when seeing these numbers was that, to achieve such high returns from the future sale of LEV.WS, the price of the publicly traded warrant would have to be much lower than the current $0.8 . But then I decided to do a quick comparison of past LEV warrant and stock prices. Let’s take 15 January 2021 for instance, when the price of the LEV warrant was $13.47 and the price of the LEV stock was 33.48. If we believe that the warrant and the stock will reach these levels again, then we are talking about an increase of the warrant by 1,583% and an increase of the stock (current price of the stock is 2.95) by 1,035% .
Mind you though. It is important to note that in November 2020, Purple Innovation redeemed the warrant by paying each holder the redemption price of $0.01 per Warrant. Lion Electronic can do the same. The Lion Electric Company Description of Securities Registered under Section 12 of the Exchange Act (https://www.sec.gov/Archives/edgar/data/1834974/000162828022007721/exhibit21-descriptionofsec.htm) stipulates that The public Lion Warrants, may be redeemed by the Company,
in whole at a price of $0.01 per public Lion Warrant, provided that the last reported sales price of the Company’s common shares equals or exceeds $18.00 per share for any 20 trading days within a 30 trading-day period commencing once the public Lion Warrants become exercisable and ending on the third trading day prior to the date on which the Company gives proper notice of such redemption.
My conclusion, the warrants seem to have even greater potential (compared to the stock) to yield great returns in case of steep increases in the price of the stock, but this comes with risks. I personally feel more comfortable owning both LEV warrants and the LEV stock.
Thanks so much for sharing, really interesting and helpful 🙂
My question is, Nomi mentioned there are more than one type of warrant, so don’t tryh to buy the warrants yourself – invest in her offer to get info on WHICH LEV warrents to buy (and where to buy them). Any clue about other types of LEV warrants and where to buy them and of course which kind to buy????
FYI:
It’s definately Lion LEV. I was able to buy warrants from Charles Schwab – I just went to trade stocks and typed in LEV. LEV/WS came up as one of the options. You can buy & sell warrants just like you do stocks. So if you buy warrant for $1 (it sold for slightly under) Then you’d sell it for $2 and make 100%, for example. The catch is for the buy price to reach $2, the stock would have to be nearly certain to reach 11.50 + 2 = 13.50 before anyone would buy it for that. If it already reached well over $13.50 then it’s a no-brainer to buy the warrant for $2. But Nomi says the Amazon purchase will have to be made public “soon.” Like the next quarterly report I’d guess. Then according to Nomi, the quarterly sales would go up by like 10x. That might make the stock worth 10x or like $30. It’d only have to go up about 4X to make a profit on the warrant.
The odd thing is that the deal is already public. Which is why I couldn’t understand what all the fuss and time sensitivity was about. Unless there’s an aspect of it that I’ve missed, that isn’t public yet. For instance, this article was published in early 2021: https://www.theglobeandmail.com/business/article-canadian-ev-maker-lion-electric-partners-with-amazon-gives-retailer/
@gretablue, very interesting. Based on that deal, Amazon’s warrants to purchase up to 15.8 per cent of Lion can be exercised at US$5.66 per share, and they expire in 2028. So, definitely better terms than the ones we got publicly :)!
Why not just buy the option? How is the warrant potentially more profitable?
Amazon and Lion Electric, it’s give and take.
I live in Quebec, and I confirm that the CEO of Lion Electric, Marc Bédard, worked in the wood industry, for “Les entreprises Barrette Ltée” (Leader in North America in the manufacture of wood products, sale and distribution of lumber, etc.)
Finding the reference that Marc Bédard worked in wood for the company “Barrette” was not easy even for me who lives in Quebec. See here in French: https://eebeauce.com/fr/calendrier/immersion-avec/marc-bedard-compagnie-electrique-lion
Now one of the big investors in Lion Electric is Power Corp. of Canada. If you were French Canadian like me, you would already know that the leaders of Power Corp. can call the Prime Minister in the middle of the night if they feel like it.
If I remember correctly, Lion Electric’s production capacity went from 400 to 14,000 vehicles per year.
So yes, it could be Lion Electric that can save Amazon.
In addition, Quebec produces the least expensive electricity in North America, and the government wishes to promote the establishment of Big Data, including Amazon, in Quebec.
It’s give-and-take.
See this article in French in a mainstream newspaper:
https://www.ledevoir.com/economie/770321/hydro-quebec-prevoit-une-multiplication-des-centres-de-donnees