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Futures rise in early trading 📈
The market is building steam after a lackluster performance on Wednesday.
Chris Dinello
March 14, 2024
Good Morning!
It's Chris from Elite Trade Club, here to give you this morning's premarket trading news.
Let’s get ready to trade!
Markets 📈
The market posted mixed results on Wednesday after an uncertain rally in the previous day’s trading session. The Russ2K and Dow managed small gains, while U.S. large-caps sank.
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Futures are jumping out to early leads this morning. S&P 500 and Dow contracts are both showing gains of 0.3%.
What to Watch Today:
Keep an eye on today’s retail sales report. The market is beginning to get a little jittery about inflation and the health of U.S. consumers, so an unexpectedly weak - or strong - number could drive volatility in today’s session.
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Premarket Highlights 🔎
🔋 Fisker Navigates Rough Financial Waters
Electric vehicle (EV) pioneer Fisker [FSR] finds itself at a critical juncture, having enlisted the expertise of restructuring advisers in anticipation of a possible bankruptcy filing.
Amid stark warnings of a potential cash shortfall within the year, Fisker has engaged financial advisory firm FTI Consulting and law firm Davis Polk to explore its options. Last month's financial disclosures revealed a challenging landscape: $273 million in sales juxtaposed against a daunting $1 billion debt load.
🚨 A Signal of Distress
The situation took a more ominous turn with Fisker's issuance of a going-concern warning, casting "substantial doubt" over its continued viability.
Efforts to secure additional funding from investors and to identify a new manufacturing partner in the U.S. are underway, indicating the company's determination to navigate through its financial straits.
However, the immediate reaction was stark, with Fisker's shares plummeting over 46% in after-hours trading following news of the restructuring advisory hires.
🏦 Financial Reporting Challenges
Compounding its fiscal woes, Fisker delayed releasing its comprehensive financial results for the previous year, citing a shortfall of experienced accounting personnel.
This delay underscores the operational hurdles the company faces, beyond its immediate financial concerns.
⚡ Hard Realities
Fisker is emblematic of a broader wave of EV startups that burst onto the public market scene via SPACs, buoyed by investor optimism for potential successors to Tesla's EV throne.
However, the journey from high hopes to harsh realities has been fraught with challenges, from the intricacies of mass production to wavering demand among American consumers.
🛣️ A Henrik Fisker Special
For Henrik Fisker, the renowned car designer behind the venture, the specter of bankruptcy is a familiar foe. His previous foray into the automotive world with Fisker Automotive met a similar fate in 2013.
As Fisker Inc. confronts its current predicament, the EV industry watches closely, recognizing the thin line between innovation's promise and the perilous road to commercial success.
Featured Earnings 💰️
Dollar General [DG] ... AM
Dick's Sporting Goods [DKS] ... AM
Futu Holdings [FUTU] ... AM
Talen Energy [TLNE] ... AM
Adobe [ADBE] ... PM
Ulta Beauty [ULTA] ... PM
Smartsheet [SMAR] ... PM
Getty Images Holdings [GETY] ... PM
PagerDuty [PD] ... PM
EverCommerce [EVCM] ... PM
Economy 🏗
U.S. retail sales [Feb] ... 8:30a
Producer price index [Feb] ... 8:30a
Initial jobless claims [Mar] ... 8:30a
Business inventories [Jan] ... 10:00a
Running Hot 🔥
Gainers
Presto Automation [PRST] >> +62.8%
CCSC Tech [CCTG] >> +28.6%
DHC Acquisition [DHCA] >> +17.7%
Decliners
Spruce [SPRB] >> (77.8%)
Fisker [FSR] >> (41.7%)
Solidon Tech [STI] >> (28.0%)
Auddia [AUUD] - Last Close: $2.75
This morning, this tiny AI-powered audio platform announced a new beta program for subscription podcasting.
Auddia said participating podcasts will be paid on a “pay-per-play” basis for each ad-free podcast played on its “Faidr Audio Superapp”.
AUUD is a top mover with a 32.0% gain on roughly 2 million shares traded.
My Take: AUUD has undergone a brutal sell-off over the past few months, but spiking volume and today’s breakout could indicate a turnaround is ahead.
Turtle Beach [HEAR] - Last Close: $11.03
A strong earnings release in Wednesday’s after-market is rallying shares of Turtle Beach ahead of today’s opening bell.
Turtle Beach missed analysts’ estimates for EPS and revenues in Q4 2023, but its full-year 2024 revenue guidance exceeded expectations by a big margin.
HEAR Is up 27.2% on roughly 200K shares traded.
My Take: HEAR’s Q4 numbers were actually worse than expected, but it’s getting a boost from its strong outlook. However, guidance is just a guest, at beast, so I wouldn’t bet the farm on this one.
Lithium Americas [LAC] - Last Close: $5.73
Canadian mining outfit Lithium Americas has received a conditional commitment for a US$2.26 billion loan from the U.S. Dept. of Energy.
The loan will advanced Lithium America’s Thacker Pass lithium project in Nevada, and it includes interest of $290 million over its three-year term.
LAC is up 19.7% on roughly 1 million shares traded.
My Take: LAC sounds like they just got the government’s blessing for this major domestic lithium project, and it’s difficult to fail when D.C.’s got your back. I’ll be monitoring this one closely.
ShiftPixy [PIXY] - Last Close: $3.13
ShiftPixy continues to run hot in the wake of its recent dismissal of two top-tier C-suite executives.
Pixy announced the termination of CFO Douglas Beck and CEO Amanda Murphy after Monday’s close, sending shares lower at the open.
PIXY was up 29.3% when I wrote yesterday’s report, but it managed to close with only a 3.6% gain.
Today, PIXY is up 20.9% on over 2 million shares traded in the premarket.
My Take: Beware of another pullback here. PIXY was up even more in yesterday’s premarket, but nearly all its gains disappeared by the time the trading session close.
That's it for today! Thanks for reading, and good luck out there!
Best Regards,
— Chris D.
Elite Trade Club
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