r/nio
Nio shall start buy back share scheme now.
Author urges NIO to use $1B for a share buyback to boost confidence, citing financial stability and an undervalued stock price.
- NIO has achieved financial stability, ending cash burn and covering all operational and R&D costs with current revenue.
- The company is expected to generate more profit in the upcoming quarter.
- Current stock price is considered very low, making it an ideal time for a $1B buyback to boost confidence and prevent dilution.
With Nio financial stability achieved. No more cash burn. Their current revenue , expenditure and R&D all can be covered and need no dip into company reserve. Not to mention more profit seen in next qtr. Nio shall used USD 1 billion in their account ( out of the 7 billion they have ) to do a shares buyback to boast confident in their share prices and investor confident.
Nio is still far away from issuing dividend for shareholders but a buy back will be the best present for retail shareholders who put their money and faith into Nio advanture. It will also be a boast for Nio since the share price now , is still considered very low. If Nio is very sure of it's coming future and business prospect. This is the best time to do it now and de dilute Nio shares prices.
Makes no sense for a fast growing company to do buybacks at this point of time
The valuation of this company makes no sense
Why not when share price is low and if they are confident of future growth. You expect Nio to do a buy back when share prices might be much higher in future?
Why would management prioritize a buyback when clearly they have to compete in an extremely competitive market? Their money would obviously be better suited to reinforce their current business strategy which currently seems to be working. This is a long term play and not a short term play.
Because it does nothing for the company itself, resources should focus on growth, hell I’ll even say use it on advertisements ( which right now with oil prices sky high is good timing)
I don't think there will be buybacks now (put the money into swap stations instead please and thank you - that'll pay off better in the long run) but if its not going towards swap stations then it would be smart to reduce the share pool.
I'd be happy to see a mix of buybacks and new swap stations with some of the cash on hand and profits moving forward for the next couple years
That’s a stupid move. The best interest for shareholders to generate an increase in shareholder prices currently is to increase cash reserves while expanding their footprint and cash revenue generators. It’s an extremely capital intensive business and instead of parlor tricks to temporarily increase stock prices, you should be happy that the company is trying to be a serious company and not some pump and dump bullshit like Space X.
What are you smoking
Do you actually believe that you have the financial chops to make these decisions for large companies? Or are you playing make believe CEO in your basement?
Reminds me of all the people who called for leadership changes at AMD back when it was in the teens, 20s, 30s, etc. Or the ones who complained about dilution for the Global Foundries agreement which helped keep them afloat as they transitioned to TSMC. The worst kind of armchair quarterbacks.
lol. Short float has gone from about 6.6 to 6.4 and now about 6.8. I saw the short float go from 134 million shares which is around the 6.4% to 6.8% which means about 2-3 million shares being actively used to short. Which is enough to lower the price because long term investors are not selling but were also not buying until recently except for last Thursday-Friday. Now they are buying and wall street is increasing BUY ratings. Which is why you see the stock holding the level, where the bear case was supposed to be $4 and the charts say it should have been $4.78. If there was no buying over the last week or so, the almost 200 million share trade volume only on Thursday-Friday last week would have pulled the price down to historical lows.
You basically just stated that the stock has gone up because demand for the stock has gone up because Wall Street has increased the rating to “Buy” which was always going to happen if Nio proved to be financially a viable option. Therefore the 6.8 short float in your opinion caused enough downward pressure to make the stock go down because that would create the case that the stock is not as valuable.
Guess what also happened around this time? Nio posted a profitable quarter and that’s why the stock is holding and Wall Street labeled it a “buy”. Therefore it’s a tale as old as time; stock goes up if it’s more valuable and/or has potential and stock goes down when it’s not as valuable. Quite obvious no?
Nio barely made a profit last quarter. I don't think any company in their right mind would start a buyback this soon. Once annual profitability and some debt paid down, then sure. We are nowhere near that.
Tooo early bro : maybe in 5 years!
Isn’t an extra factory or expansion more logical?
The folks shorting nio are very stratgicitic and not going to stop any time soon. Institutions want the price suppressed to scare retail investors off particularly at a time like this after 2 consecutive positive reports, so removing the stock dilution is not completely crazy .
A balanced approach might work at the very least it would send the message that mansgement are truly confident and committed to the business model as I am. It would help reassure the retail base that the CEO truly has their back .
I moved away from US companies because of the lack of humanity in their view of the retailer investors .their commitment to capitalizem at all cost quit frankly is dangerous to humanity so let's get a little bit about humanity back into business there is enough wealth for everyone out there. LETS GET A LITTLE BIT OF FAIR PLAY BACK NOT ALLOT JUST A LITTLE
The ADRs did their job. NIO doesn't need capital investment. NIO share owners dont have shared in the company but in a shell company in the Cayman Islands or the like. Why would NIO ever want to buy back ADRs?