Anthony Speciale Stock Market Analyst

Better Way to

WEALTH
MORE MONEY, MORE QUICKLY, MORE SAFELY.
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Electric Vehicle Stocks

Speaker 1 (00:00):

Hi, this is Carter flus, and I am here with Tim Melvin to talk about a better way to wealth, Tim. Welcome

Speaker 2 (00:08):

Carter. Thank you very much. It’s good to be here today. Great talking to you as always.

Speaker 1 (00:11):

Thank you. It’s mine. It’s my pleasure, Tim. You have advised top investors on how to make mega bucks and very, very successfully. And now we’re going to draw on you for the same kind of advice. And as matter of fact, let’s get right. Let’s cut right to the chase about an area where there’s a lot of myth, a lot of misconception, maybe a little hype and hoax electric cars. What’s really what is the real lowdown on this whole electric car investment craze right now?

Speaker 2 (00:40):

Okay, well, everybody’s talking about electric cars and let’s be honest. Upfront the electric cars are, are eventually going to replace internal combustion vehicles. It just makes sense. Then if you can go to an electric car, that’s going to leave the world a little bit cleaner that we’re probably going to do that. It’s not going to happen as quickly as wall street in some of the talking heads on the media are telling you right now, but it’s going to happen, but what’s not going to happen. Carter is everybody’s not going to get rich overnight off of electric vehicles. It’s the car business. It’s capital intensive, there’s low profit margins. It’s super competitive. You’re really only as good as your last big design win. Now starting like mid 2020. And into this year, we started to see a lot of these smaller electric vehicles come public and everybody got real excited about them. And bunch of them came public via the special purpose acquisition company or SPAC market. Not going into too much detail on that market today. We do have a lot to say about it.

Speaker 1 (01:54):

Talk about splash backs in the future. A lot of myths there. Yeah,

Speaker 2 (01:58):

We will talk about that, but not for today, but I knew a lot of these companies did come public through this back process and they’ve been very popular and they’re getting lots of attention from investors and on some of the, the, the chat boards and certainly on TV. But let’s, let’s talk about some of these they’re coming public and here’s one lucid motors. They’re coming public via a merger, and I’m gonna have to turn my head here guys, cause I want to get all my numbers, correct.

Speaker 3 (02:29):

You’re

Speaker 1 (02:30):

Going to lay out now. I have read it lucid. I’ve had recommended in newsletters to meet other small electric car companies. And what you’re telling us is these may not be very smart investments. No, they’re, they’re probably

Speaker 2 (02:43):

They’re they’re, they’re probably not. Let’s take lucid. Okay. Lucia is there’s a couple of Tesla executives left Tesla and found this company. The car’s being raved about it. Allegedly, this is a fantastic luxury car, but here’s the problem. They’ve never one. So, you know, they’ve never sold a car. They’re hoping to go into production in sales later this year, guys, this company is worth almost $7 billion. They have zero sales and zero sales, and they want you to pay $7 billion for this company. So when you buy the stock, you’re thinking, oh, I’m only paying 26 bucks. No, you’re paying $7 billion for a company with zero sales. That’s absolutely ridiculous. This thing got all the way up to over 60, a little bit of sanity came in. It’s back down to 26. Look, the lucid could come out and be the best car anybody’s ever driven. It’s still not going to be worth $7 billion for a decade or more or, or more.

Speaker 1 (03:47):

I’m not gonna, I’m not going to be getting my money back anytime soon. In fact, if I stick it in there,

Speaker 2 (03:52):

When these guys start reporting earnings and people realize how much money is being lost, it’s going to get ugly. Then you’ve got we just get this one up versus this is one

Speaker 3 (04:00):

Of my favorite stories. 

Speaker 2 (04:04):

Worker’s group. Now they make electric work horse group, the symbol here’s w K H S. Okay. It came out again. SPAC merger got up over 40 because they were bidding on doing the replacement of the post office fleet. And remarkably, there were people out there dumb enough to believe that the United States post office was going to give this company, this multi-year decades, long contract to revitalize the post office fleet, which by the way, was not going to be 100% electric. There was still going to be lots of internal combustion engines in that fleet. Now, you know who that contract went to.

Speaker 1 (04:45):

So let’s make it clear. Now this is a company that doesn’t have any cars on the roads, essentially right now.

Speaker 4 (04:49):

Yeah, no, they have $1.8 million

Speaker 2 (04:52):

In total revenue. So now, but now this is a us federal government contract. So the contract went to Oshkosh. Oshkosh has been building tanks and trucks and vehicles for the United States military in the United States government for decades. So the government looked around and they were like, okay, do I give it to this new guy, this upstart that by the way, can’t handle the internal combustion side, or do I give the contract to this guy that I’ve been doing business with literally for decades,

Speaker 1 (05:24):

But folks were told to invest in the company. And some obviously did that had no track record and frankly, not a lot of hope for the future. And yet they were getting that advice from the from some of these TV talking heads and yeah,

Speaker 2 (05:38):

And then you’ve got, you know, Fisker that came public via SPAC, Apollo global did it, did this back. And I love the folks who Apollo global they’re wonderful investors, but remember, and again, we’ll get into more detail. They Mo made more money off the spec deal than anybody else did, but the stock came out and everybody was excited, gets up to $28 a share back down to 10 and back up to 19.

Speaker 5 (05:58):

But again, they’ve not

Speaker 2 (06:01):

Sold a car. The only money they’ve made is interest on the proceeds from the offering, sitting in the bank. Okay. They want you to pay 5.8, $5 billion to be an owner in this company. That is a special form of absolute insanity. Most of these little companies that we’re talking about, they’re just not going to be here. They may get bought by one of the existing car companies, but nowhere near these current valuations, that’s just crazy.

Speaker 1 (06:35):

Yeah. You know, Tim, as you’re checking out other one, it reminds me, you’ve told me over and over again, you don’t invest in the stock. You invest in the store, you invest in the company. And I was listening to monger the other day and, and a buffet. And they said exactly the same thing. Look, folks, don’t think you’re buying don’t don’t think about back on buying a stock. What would you buy that store? And the stores you’ve just mentioned. I ain’t buying no, there’s, there’s going

Speaker 2 (07:01):

To be winners in the electric vehicle market. Okay. Tesla is going to be one of them and you know, Tesla it’s run by the greatest show man in the, probably the history of the United States Elon Musk. And he did a great job of getting that car on the road probably a little bit before the public was really ready for an electric car. He’s done a good job. He’s built a loyal following that company’s probably going to be here for the long haul, unless Ilan of course finds a way to blow that money, sending stuff into space, who knows, but they should be here. There’ll be a competitor, but they’re not going to be the big winner. And you know, I look at some of these companies and, you know Lordstown motors is a company. They came public via SPAC, and everybody was really excited about this. Cause they, they took, they took over an old GM plant in Lordstown, Ohio, a company that would, you know, a town that was really suffering because GM had moved. You had a small Ohio and Michigan towns that had auto plants. They were totally dependent on those auto plants. So here comes Lordstown. They’re going to make a commercial truck and they’re going to compete against everybody. And they’re gonna sell this truck to fleet managers all over the United States. It’s never going to happen, Carter. It’s, it’s almost impossible.

Speaker 4 (08:24):

And here’s why, you know, Lordstown did their offering

Speaker 1 (08:28):

Invest in it. It’s not really to happen, but they’re asking me to put my money into it. It’s just it’s insanity. Yeah. That’s insanity.

Speaker 2 (08:36):

It’s, it’s so much easier to sell your story than it is a fact.

Speaker 1 (08:39):

Yeah. Yeah.

Speaker 2 (08:41):

So now let’s, let’s look at Lordstown $2 billion valuation and that’s down by two thirds off of the high. So at one time it was valued at 6 billion and then along comes Ford for dominates. They absolutely own and control the pickup truck market. So now Lordstown is going to go in and they’re going to pitch the purchasing manager to county, your company, their truck, and Ford is going to pitch theirs. Now the purchasing manager, he’s got, you know, one kid go to college, one that needs braces. He wants to take his wife on a nice vacation next year. And he likes his job. He’s an American, he’s got hope, streams and bills that need to be paid. So if he accepts the proposal from Lordstown and that truck doesn’t work out, that’s his problem. He owns that, right? Because he went against convention. That bad truck is his problem.

Speaker 2 (09:37):

He gets fired, no college, no braces, no crews. If however, he buys the Ford, which they’ve been buying for decades, they’ve been buying from Ford or general motors. But if he buys the Ford tried and true and there’s something wrong with that truck that is forged problem. Right? So everybody’s gonna yell at Ford. He still gets paid. You know, one kid goes to college, the other one gets braces and he and mom are going on a cruise this winter. So everybody’s happy. There’s career risk with some of these, these products. So we look at these smaller companies, they’re just not going to be it. So who’s going to be the winner. Yeah.

Speaker 1 (10:18):

What is the, the better way? What, what, let me ask what is

Speaker 4 (10:21):

The better way, better

Speaker 2 (10:25):

Way. The number one retailer of electric vehicles in the world by let’s say 2040, it’s going to be Volkswagen by far. Yes. Volkswagen is spending a ton of money to get at to everybody. And now we look at Tesla is trading at 90 times earnings and I think 20 some times sales. And then we look at Volkswagen, which is trading at 12 times earnings and for just a little bit more than the total value of the assets that they own. So it sounds to me, Carter, like Tesla’s the better way don’t you think? So excellent. No Volkswagen Volkswagen Volkswagen.

Speaker 1 (11:04):

I’m reaching for my wife. Don’t

Speaker 2 (11:06):

Do that. I don’t want you to buy Volkswagen. We’re not going to buy Volkswagen. We’re going to buy shares of Porsche. Several years ago, the Porsche family sold Porsche to brand to Volkswagen in return for stock, the stock, they got represents 53% ownership will folks wagon, but here’s the best part Porsche share, sell for 10 times earnings. So less than everybody else, but 80% of the value of the assets that they own, the biggest asset of course is shares of Volkswagen. So you get to buy Volkswagen, the company that’s going to dominate the electric vehicle market over the next several decades at 20% lower than the quoted price of Volkswagen shares. The symbol of traits. Your over the counter is P a H Y. And you get about a two and a half percent dividend to own the stock. The best part is unlike Tesla or any of the electric vehicle companies. Some of us are going to stick with internal combustion engines for awhile. So are all of the brands that Volkswagen owns like Volkswagen, like pores like Audi. So whether the customer buys an electric vehicle or an old-fashioned internal combustion, gasoline powered or diesel powered vehicle Volkswagen is going to make money. That’s going to flow through to us as poor shareholders. So the trick to the electric vehicle market guys is to buy shares of Porsche. Not Tesla, not even Volkswagen. Porsche is actually the better way to make money in this situation.

Speaker 1 (12:35):

All right, folks, certainly not loosen Lordstown. Any of these small wins. You’ve heard it from the man who has made popped investors for three more than three decades now, a literal fortune. And and this, and this is the better way. I mean, it’s the better way. And poor, I’m surprised I got to say it. You have me on Volkswagen. I was reaching for my wallet, but I’m more than happy to go with force. And what are the what’s what’s the ticker symbol one more time. Okay. Pete

Speaker 2 (13:04):

P O a H Y and usual limit order folks. Cause it does trade over the counter.

Speaker 1 (13:10):

Excellent. All right. Now there’s more to say about electric vehicles. As a matter of fact, there is a whole nother story where people have to be warned off of myths and alerted to opportunities, Tim, that that you’re going to share with us, but we’re out of time today. Okay.

Speaker 2 (13:28):

Yeah, let’s, let’s, let’s talk about that tomorrow Carter and we can share another better way to make money off one of the the obstacles as it were to the electric, the vehicle market. All right, Tim. Thank you. Thank you.