And just when we thought we’ve seen it all…
From the article:
One of Vietnam’s biggest automakers has made a big splash on its entry to Wall Street, pushing its market capitalization above that of industry giants such as Volkswagen and Ford.
VinFast, an electric vehicle maker, enjoyed a red-hot debut in New York on Tuesday after merging with a special purpose acquisition company (SPAC), Black Spade Acquisition Co.
Shares of the newly combined company skyrocketed 270% on the Nasdaq on their first day of trade. They opened at $22, more than double the initial price of $10, and closed at $37 apiece.
The surge propelled VinFast’s market cap above $85 billion. That’s more than Volkswagen (VLKAF) or Ford (F), which are valued at 63.9 billion euros ($69.7 billion) and $48 billion, respectively, according to Refinitiv.
But wait, it gets even better…
So far, the company has released four electric vehicle models and delivered roughly 19,000 vehicles, according to its prospectus. For comparison, Volkswagen sold 4.4 million vehicles just in the first six months of 2023, more than 321,000 of which were electric.
Oy vey! Even for Cathie Wood this one might be a bit too much.
CONTRARIAN INDICATOR IN COMMODITIES
Long-time readers will know we’re big fans of various contrarian indicators here at Capitalist Exploits HQ.
More often than not, things like magazine covers, Superbowl ads, new ETFs and investment funds launching (or shuttering), etc. tend to signal market turning points with stunning accuracy.
With that in mind, this piece caught our attention the other day (h/t @PauloMacro)…
* Goldman Commodities Research Chief Jeff Currie Set to Leave Bank
This is the exact opposite of what we saw back in 2008 when oil rocketed to $150 and commodities went wild. There was a wave of commodity ETFs listed and commodity focused funds opened. Every week brought a new commodity fund… and just in time for the peak of the market.
But not right now. Today, most investors (still) prefer to chase money-losing EV companies rather than gorge on money-gushers in the commodities space.
ON BONDS
Check out this fascinating graphic from Charlie Bilello (@charliebilello):
We’ve been saying the bond market is a bug in search of a windshield for what feels like ages. And investing in bonds today — at the end of a multi-decade debt supercycle — strikes us as eating vindaloo that has been left out on the bench for a week and has gone furry. No bueno!
More By This Author:
Time To Get Back Into Bitcoin?
Here We Go Again
Obscure But Desirable Corner Of The Market: Offshore Drilling
Disclaimer: This is not intended to render investment advice. None of the principles of Capex Administrative Ltd or Chris MacIntosh are licensed as financial professionals, brokers, bankers or even ...
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Disclaimer: This is not intended to render investment advice. None of the principles of Capex Administrative Ltd or Chris MacIntosh are licensed as financial professionals, brokers, bankers or even candlestick makers in any jurisdiction, anywhere on this big ball of dirt.We do NOT know your individual situation, and you should always consult with your attorneys, accountants, financial planners, and those that are sanctioned to provide you with advice. DO YOUR OWN DUE DILIGENCE.
But seriously, all investments carry risk. Some of what I discuss arguably carries great risk. Investments which can lead to you losing 100% of your capital and maybe more if you are stupid and use margin.If you invest more than you can afford to lose, or borrow money from Joey down at the tavern, Master Card or Visa to make your investments, then you need to go and read a different website.
But really seriously…
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