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Well on yesterday’s video so many of you guys were commenting about this stock named neo out of china and so i looked into this company last night i spent several hours on it looked fully into it and today i want to go ahead and first i want to give you all the base information you need to know about this neo stock and if this stock is a scam out of china okay
And then after i give you all the base information i will go into my personal opinion on this stock okay so i’m gonna give you the facts first then i’ll go into my opinion afterward all right so like i said there was ridiculous how many comments i got about this stock yesterday okay so first off it is branded as the tesla of china okay it is branded as the tesla
China because they make electric vehicles that’s how it’s branded alright here’s what we know about this company name me all right they claim to make a tesla comparable car for basically half the price at tesla can alright so they say their cars just as good as a tesla or something around there and they can produce it for like 65 thousand we’re talking about the
Suv whereas suv and china consult for one hundred and thirty thousand sometimes more than that so they claim that they can make a tesla for basically half the price of tesla right this company had seven million dollars in revenue in the first six months this year seven million dollars like i said i’ll give you my opinion afterward this company has over 11 billion
Dollar valuation on it currently over eleven billion dollar valuation on currently they claim to have seventeen thousand vehicles in backorder alright 10 set in baidu have invested in in the past and have investments in this company this company raised 1 billion dollars in their ipo this company is four years old same age is one of my children lost they lost 503
Million in the first six months this year but if you take into account a one-time expense they actually lost 1.5 billion dollars in the first six months but we’ll give them just the the will you know without the one-time deal in there so they still lost a five two and three million dollars in the first six months this year it doesn’t even make its own cars meaning
They can do to the design of the cars and think like that but they don’t actually even manufacture the cars themselves as of right now goldman sachs morgan stanley jp morgan are the ones that took this company public all right it went public like two or three days ago three days ago and i just wanted to throw this out there tesla right now did seven point four
Billion dollars in revenue in the first six months of 2018 all right all right now for my opinion now for the fun part all right now for the fun part how dare you how dare you bring yourself as the tests of china and you did seven million dollars in revenue how dare you brand yourself as that that is the biggest joke i may have ever heard in my life their tests
Of china you do seven million dollars in six months span that is ridiculous the fact that anybody’s going to brand this company as the tesla china is disgusting tesla is seven point four billion dollars in revenue in the first six months okay this company is not the tesla china they’re want to be just because i go out there and i get like ten people together and we
Make like a smart phone okay and we make some little you know smart phone software and i saw a few of those smart phones doesn’t mean i’m the next apple of las vegas okay that does not mean that this is absolutely absurd that they call themselves a tesla china when they have proven nothing okay they have proven absolutely nothing claim to make a tesla comparable
Car for half the price you know i won’t even get into that let me get into that eleven billion dollar valuation on this company currently are you kidding me okay you do seven million dollars in a six month span and you want an eleven billion dollar plus valuation on this company currently it is a biggest joke i may have ever heard okay that is unbelievable i mean
I’ve seen a lot of companies be severely overvalued i’ve been a stock market for ten years i’ve seen so many stocks that i’m like that one is massively overvalued this one’s massively over value this one takes a cake over every stock ever in history i’ve never seen a stock with seven million dollars in revenue in a six month span and have an eleven billion plus
Dollar valuation on that’s disgusting okay they claim to have 17,000 back orders i’ll take their word on that i will take their word on that there’s nothing i say that oh that’s wrong or anything i’ll take their word on that i believe them okay i’ll believe i’m telling you no otherwise all right 1070 i do have investments in a lot of people who say well 10 cents
Invest in this massive chinese i do is another huge chinese company they have invested in this company in the past all right they’ve seen their money get burnt but hey as of right now so they’ve invested in the past and they say well these companies have invested in it so you know what that means this is a good stock all right this means this is a good stock well
Ten seven bye dude they don’t even care about this company and then they then you know what the ten seventy i do executives were thinking about you when they invest in this company they were thinking about hmm this company this looks like it can make a lot of money in the public markets i mean this company was founded you know tesla stock was just rising and rising
And resi and they said well if we can you know come out with if there could be a company that’s branded as a tesla china i mean we can make a lot of money on our investment so a 10-7 buy do they bought in theirs knowing that this is pretty much guaranteed money for them regardless if the company succeeds long-term or fails long-term they’ll be able to finesse
For the check real quick okay and that’s pretty much exactly what they’ve been able to do so the fact that these big companies out of china have invest in it they just want to make a lot of money on their investment okay this company raised 1 billion dollars in their ipo they wanted to raise like 1.8 billion but there just was not that investor appetite for this
Company they raised 1 billion dollars in the ipo all right this company is once again four years old four years old my son’s one of my son’s is four years old they’ve gasps that’s crazy okay they lost five hundred three million dollars in the first six months 1.5 billion dollars if you take in the one-time expense that’s impressive like to lose that much money on
Only seven million dollars in revenue that they deserve a trophy for that like you really should get a trophy for being able to lose that kind of money i haven’t seen you know anything any company ever do that that had this small of a amount of revenue like that is really really impressive okay it doesn’t even make its own cars as of right now this company does so
You could say okay they lost this massive amount of money in that first six months must be because they’re just like building out factories and they’re getting tons of machines in there and they’re really getting ready to rip no this company doesn’t even make its own cars yet okay another company manufactures the small amount of cars that they make right now okay
So they don’t even have their own factories they don’t even have their own machines and all that type of stuff all right goldman sachs morgan stanley jp morgan chase took this company public people might say well those are really well establish banks out there they took this company public must mean it’s a safe investment or good investment or something like that
You think these guys care any bit about if this is a good investment long term or not no and it’s really not their job to care if this is a good investment or not their job is to take a company public and whatever you know the value is for that company out there depending on investor appetite that is what they do and they make their 25 million or whatever they
Do offer that ipo that’s what they care about in the end man you know they’re not gonna say no we’re not gonna take this company public at this ridiculous valuation they say no we’ll take this company public that’s what they do okay so if you think wall street’s gonna step up and say oh no no this company’s ridiculous no absolutely not that’s not their job their
Job is to take that company public regardless of the valuation if it’s way overvalued or undervalued by the way most companies that go ipo are severely overvalued at the end of the day okay that’s their job so just don’t look don’t look at it as old those big banks took them public that means as a safe stock know that their job is to take them public they make a
Ridiculous amount of money off that off a very easy process they can do that in a flip of a of a switch okay tesla did seven point four billion dollars in revenue in the first six months so it’s just a ridiculous ridiculous company here if you are investing in this company you’re pretty much being finessed at this point okay it doesn’t mean you can’t make money in
It there are two ways you could make money in this stock one is your gamble which if you’re investing as a company you are a hundred percent gambling okay you are 100 percent gambling and there’s no question about it there’s no way you can make any type of valuation or any type of oh this is a good investment based upon a company that’s cents seven million dollars
In revenue in six months and they’re literally youtubers that produce youtube videos that make more than seven million dollars in a six month span this company that has an 11 billion plus dollar valuation aren’t right now has seven million dollars in a six month span there’s no way you can look at me and say oh though this is a good deal or this and good investment
You are a hundred percent gambling if you invest in this company a hundred percent okay no different than if i went down the strip tonight and i’m like dude i’m gonna play some high limit slots and maybe i’ll win maybe i’ll lose i’ll probably lose okay the chances i win a jackpot very slim to none okay so one way is maybe either your gamble pays off in this company
Does become the test of china okay which they have proven nothing as of right now to become that okay the second way you could finesse this for money as a little abs a the finesse to you for money is basically you could maybe short treat this as a short term trade and try to hope that you know the hype gets back in this stock and it shoots back up no it was really
Fishy because this company goes public okay and the stock doesn’t move the day they go public it was a very disappointing ipo okay the next day all the sudden the stock shoots up massively okay which means a massive amount of money had to a flood in the on the buy side just a massive amount of money how to flooded in the buy side who flooded it all that money on
The buy side we don’t know unfortunately could have been the chinese government directly or indirectly could have been chinese firms put it up in you know some of the bigger chinese companies that said hey we need to get this stock to pop it’ll create a lot of hype out there it’ll get everybody invested money in their left and rating them we can sell out shares
At a much you know much higher price and previously thought that’s easily you know that’s what we call a pump and dump at the end of the day the only difference is if you pump it up enough you don’t even if you if you pump it up enough as far as the stock price goes then you don’t even need to put out a bunch of articles about it you can just get the share price
Going up massively everybody sees it the researcher real quick the tesla china they invest money in it and you get to sell out and you dump your shares at a much higher price okay that’s a great way to do it they’re okay but maybe you can make money on the short term maybe you can hope it goes up a bunch more but the fact is right now as of this company is right
Now this could not be a public company it’s almost absurd that this company can go public and at this type of valuation it is absolutely ridiculous but they just took that a billion dollars of investor money and who knows what’s gonna happen with it no one’s gonna oversee that money who knows where it’s gonna go and what’s gonna happen with it but uh it’s a joke
It’s an absolute joke maybe someday it becomes big and if you invest this company being on the long side you want to hold it for the next five ten years i hope you make money i hope it becomes a big company but just realize you are a hundred percent gambling there’s nothing didn’t no doubt about it there’s no valuation you can say you’re just a hundred percent
Gambling you invest in this company right now okay so that’s my take on it it’s a it’s an absolute joke of an ipo most ipos are overvalued bottom line most ipos are massively overvalued doesn’t mean you can’t make money in ipos because sometimes there’s the hype is too much everybody wants to flood in my and they say they see old my gosh the stocks are hud stock
It’s going up let me just put money in it so it doesn’t mean you can’t make money in as you know short term trading ipos but the bottom line is this company is ridiculous the overvalued most most overvalued company i’ve ever seen ever in the history of stock market and that’s saying a lot guys that’s saying a lot anyways i want to know your guy’s opinion down there
About this company in that comment section what is your opinion on this nio company also if you want to follow me on instagram go ahead and do that i produce a lot of stock market news in my instagram stories i try to keep you guys up to date on different things going on out there thank you for watching have a great day
Transcribed from video
IS NIO STOCK A SCAM (Tesla of China) By Financial Education
