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Fisker (FSR) is now a buy as rising latent demand for its Ocean SUV looks set to be converted to sales as deliveries begin to ramp up against a 65,000 vehicle order book as of
Fisker: Why It Might Be Time For A Speculative Buy
Summary
- Fisker's $2.28 billion market cap is set against a 65,000-strong order pipeline for its Ocean SUV.
- The company has a short interest of just under 40% with bears betting on potential liquidity issues against trailing 12-month free cash outflow of $621 million.
- Cash and equivalents of roughly $650 million as of the end of the first quarter is being boosted by $600 million from a convertible notes offering.
- Production is set to ramp to a monthly run rate of 6,000 vehicles before the end of the year.
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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in FSR over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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