Again IMO
So the definition of Speculative stock I’ve got is
“The term speculative company refers to a business that invests a majority of its earnings and assets in high-risk investments in order to generate extraordinary returns. Speculative companies need not be new or small but can be large and well-established companies as well. Biotechs, startups, and others,including those that pour their resources into product development and research and development, would be classified as speculative companies as these tend to be fairly risky ventures”
To me mns does meet much of this definition
Battery manufacturing is a high risk/high reward game. These companies go through funding like no tomorrow and mns are no different. The number and size of raises shows this and if they lose the ability to raise more funds (which almost seems periodically) they will find things difficult. And raises/loans are much harder in recessions (and government funding isn’t a guarantee as nothing is
I also disagree that governments will throw money their way as they’re yet to establish a track record for battery production. Governments won’t give them money as soon as they turn the production button on they would need to prove they can reliably produce to the requirements the government needs,not just because they’re ALL AMERICAN. Then there’s the competition – Huge Multinationals that are building larger sized gigafactories. These organisations already have very highly experienced teams from top to bottom for executing such projects and with more money/resources given to these companies would allow them build gigafactories with more. To add to this they could do this much faster.
I agree with you that they are progressed but to say they aren’t a speculative stock entering a recession I don’t agree with. Lots can still go wrong for these guys and to all these other small unproven gigafactory battery manufacturers
I really do hope everything plays out as planned for holders as we’re all here to make money but it’s not as easy as go out and build a factory, flick the production switch on and all of a sudden we’re competing with Tesla which seems to be the sentiment around here at times
(20min delay)