HI, any futur for LION (LEV). Still a fan but stock never picked up ?

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Asked on October 13, 2023 5:36 pm
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Hey there,

Still a long ways to go yet for LION Electric. From my perspective it is an industry leader, but the industry is still very much early stage and as such, the company will be subject to extreme volatility. Especially in light of current global events and the accompanying market volatility.

Since the company is not yet profitably, it'll be one of the first type of stocks investors will dump amid uncertainty - we've seen this across the entire growth stock spectrum. That said, it continues to perform fairly well and has a reasonable debt load (D/E of 0.36) which it should be able to manage in this difficult rate environment.

Patience will be very key for a company like LEV and it likely won't make any material move until the markets start to become more risk-on. Today, we are definitely in a risk-off environment which makes holding small caps like LEV difficult. This isn't to say its a bad company, its just the reality of the market situation today.

Mat

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Posted by Mathieu Litalien
Answered on October 16, 2023 5:48 am