What’s was the fuss in NIO last Friday?

2020年11月15日

Last Friday Citron Research published an opinion that claims that the fair price of NIO is 25$ per share. 
Also, Citron announced that they are placing a short position on the company because the many investors are trading on NIO like a cassino gambling.

Citron’s publishment succeeded to affect NIO price and the company’s share made a bearish movement from new record of 54$ to 44$ (at close). 
And now, after Friday's trading day, NIO is starring in various Facebook groups trying to predict the future of her behavior on Monday: Is a bearish movement expected to be made? Or maybe go for a deeper correction?

Lets find out:

1. That’s totally fine when companies making a price-correction. We are all need to remember that this correction arrived right after an amazing bullish movement (more then 100 precent).
I bought it on 14$, and have a very nice quantity. those who follow me saw the enthusiasm for her all along.
One bad day doesn’t say anything about NIO.
2. That’s not the trigger to close the long position. That’s sure not the trigger to place a short position on it. 
I also think that it is very dangerous to place a short position in this moment.
3. I think that Citron research made a very ugly move. They bought it cheap and when they wanted to realize their profit they succeeded to sold in the highest price ever then they were opened a short position on it. WTF?!
4. . NIO has brought to the world something amazing: 
revolutionary technology at an equal price for every person. 
There is a reason that in China the company is popular and every month anew breaks sales records. 
This is a good company that is developing at an amazing pace. And as such it has a place of honor in the capital market.
5. A quality investor should measure things over time and not get excited about a correction. NIO has a lot of reasons that make its investors go to sleep quietly.
6. Generally, NIO has made a crazy bullish movement, even without being a great genius it is clear that she will make a correction at some point. I would prefer that the correction be around the price level of 44$, this price level is better and gives me relative peace of mind.

Things we must remember before reading other people's opinions about it:
* It is clear that anyone who believes in Tesla and holds its shares will only say bad things about NIO because it threatens Tesla in the Chinese market.
* There are also those who will say that the train passed - to those people I mention that there was also someone who said this when Tesla itself was at a price level of $ 40. And look where Tesla is today.

In the next two weeks NIO is expected to publish a quarterly report. I think the future of many investors will depend on this report and its published data. Until then we should not listen to background noises.