Here is why investors should not avoid GGPI shares

It’s no secret why stocks Gores Guggenheim (NASDAQ:GGPI) turned off the course. But is it actually cheaper today to actually buy GGPI shares?

Let’s start with the tires on the GGPI price chart, and then offer a risk-adjusted decision for investors who align with these findings.

From EV Tesla (NASDAQ:TSLA) oz Lucid Motors (NASDAQ:LCID) to play a battery charge or next-generation technology such as ChargePoint (NYSE:CHPT) oz QuantumScape (NYSE:QS), stocks of electric vehicles of all kinds and sizes have been bearishly sideways in recent weeks.

Among the victims of EV is Gores Guggenheim, whose shares in GGPI are expected to merge with Swedish electric vehicle maker Polestar in the first quarter.

Gone are the days when the U.S. Infrastructure Administration planned the infrastructure and proposed a $ 7.5 billion EV recharge plan that helped aggressively raise many stocks of electric vehicles in the early winter of last fall.

Today, the mood for stock growth has deteriorated due to fears of interest rates, concerns about the supply of chips caused by Covid, affecting the electric vehicle industry, and perhaps nesting beliefs and observation. Netflix (NASDAQ:NFLX), instead of heading out into the open road, conspired to burden the GGPI and its peers.

Is now the time for GGPI shares?

But with GGPI shares falling 25% since the mid-November summit over these concerns, now is a good time to “inspect” the wreckage and pick up the shares at a healthy discount?

Some may see it that way, among others InvestorPlace’s Stavros Georgiadis.

Med Positive properties of GGPI, in November, Stavros was optimistic about Polestar’s long-standing racing relationship with Volvo, two sleek and muscular EVs Grand Turismo (GTs) already in production, and Gores Guggenheim’s own prolific business pedigree.

Even if we look under the hood, the breakthrough value of EBIT in 2023 was projected based on strong sales growth, which is estimated to generate $ 18 billion in revenue by 2025, a type of horsepower that supports GGPI shares and finances, about which one should be optimistic.

Recently, colleague Mark Hake and another CFA that tires, points to the potential of the GGPI to climb to about $ 14.50. However, in order to realize this fair value, it is necessary to face some “ifs”.

First, Mark notes that investors will need to raise their value expectations once the deal is concluded above the current GGPI “look through” price after the merger of $ 24.89 billion.

So does Wall Street basically have to become happy again? Jap But if you want to sound more professional in your views, bet on multiple extensions.

It is also important that the CFA is more confident about GGPI shares, the actual financial statements regarding Polestar’s $ 1.6 billion sales receivables for the past year will have to justify the company’s exciting presentation to investors.

Weekly price chart

source: TradingView charts

Obstacles will always arise, whether they are problems with the supply of chips or batteries, which some investors fear in Polestar or require additional clarity from a particular financial statement.

But the thing is, information is never complete or complete. Let’s not be fooled. And even if those devilish details existed, stock prices are a forward-looking mechanism.

Respectfully, waiting for clarity on the silver plate means that the purchase decision will look very different from today’s “fair value” in GGPI or any stock.

Look no further than TSLA shares and all the bear critics have proven time and time again to be wrong for princely sums of money. Or appreciate the ability to run stocks to liven up your life.

Technically, the good news on Gores Guggenheim’s price chart is that today’s customers are in a good position to take advantage of a fairly normal corrective cycle, which is just over 30% in depth.

GGPI stock and larger drawdown

All stocks are correct and this particular bearish phase has broken into a tighter congestion pattern, focusing on 76% Fibonacci levels, and confirmed the weekly bottom of the GGPI candlestick for Christmas. Nice, isn’t it? It is, but I wouldn’t be a customer either.

Currently, the biggest caveat relating to the purchase of GGPI shares is the large-scale, bear-swallowing and stochastic combination that emerged last week.

As much as it makes sense to step aside to avoid possible major pumping. But stay prepared to buy GGPI, as a favorable shift can happen quickly.

If GGPI can reunite and signal a bullish stochastic transition, then Gores Guggenheim in our estimation becomes a much better buy. In essence, however, the intermediate intermediate range of purchases, which is slightly out of the money, instead of buying GGPI shares, will greatly improve investors ’chances of safer travel.

At the time of publication, Chris Tyler did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are the subject of InvestorPlace.com Guidelines for publication.

Chris Tyler is a former derivatives market maker on the U.S. and Pacific stock exchanges. Follow Chris on Twitter for additional market insights and related reflections @Options_CAT in StockTwits.