This story was originally published here.
Workhorse (NASDAQ:WKHS) has been one of the latest electric vehicle (EV) stocks to come crashing down. Since closing at more than $30 in mid-September, WKHS stock dropped 30%. And if InvestorPlace contributor Thomas Niel is correct, Workhorse may soon be testing a level of support around $15 by year end.
Would this be a bad thing and how should investors react? These are two questions that don’t have easy answers. It’s possible that the market is developing a level of EV fatigue. It’s also possible that 2021 may be a year for future growth.
Last month, I suggested that WKHS stock was a speculative buy if you were willing to look beyond the news. The problem is that the news keeps getting in the way. Workhorse recently received good news by way of a purchase order for 500 trucks. And then it just as quickly received disappointing news as the United States Postal Service announced a further delay in its decision on which company (or companies) will be manufacturing its fleet.
The Good and the Bad of the USPS Delay
A significant reason behind the growth of WKHS stock in 2020 is its potential contract with USPS. The USPS is looking to renovate its fleet of utility trucks as part of its Next Generation Delivery Vehicle (NGDV) contract.
As many investors know, the decision on which firm(s) will be awarded the contract was pushed into the second quarter of 2021. On the surface, that’s really not a big deal. Workhorse announced that more than a third of its workforce being impacted by the virus.
And with a widespread vaccine being months away, it will likely be the second quarter of 2021 before we begin to remove the risk premium that many factory workers face.
Story continues here.
Dump America’s Most Popular Brand NOW
During times of great volatility, investors often cling to what they’re familiar with… including the stocks of companies they know best.
Fear and conventional wisdom push people to the biggest brands.
But what if I told you that America’s top stock picker — a man with 40 recommendations that have gained at least 1,000% in his career — believes that America’s most popular brand is a “must sell” right now?
That’s exactly what Eric Fry is saying…
Because this giant of the past was doomed with or without the fear of a pandemic. Eric believes it’s one of 25 big-name stocks that are going to experience hard times, even if a coronavirus cure is found tomorrow.
And, remember, Eric is the legendary trader that accurately predicted the collapse of more than 70 stocks. That includes Cisco (fell 75% in a year after his prediction), Tyco (fell 74% in the year after his prediction), and Countrywide Financial (fell 87% in the two years after his prediction).
Instead, Eric believes anyone with money in the market should focus on four companies that are in position right now to help people capture huge market gains.
You probably haven’t heard of a single one of these firms…
But you will.
Get the facts for yourself and be one of the first to learn more about the four stocks you should buy right now… as well as the 25 companies you should sell immediately, on our website, here…
Regards,
Brian Hunt
CEO, InvestorPlace
P.S. Tune in to this video presentation now, while it is still available, and Eric will reveal what he believes will be his next 1,000% winner. The name, the ticker symbol, and why it’s such a screaming buy… it’s all in Eric’s presentation and FREE to view. Just keep in mind, this valuable information won’t be up on our website forever.
