I Just Invested 0,000 In This Stock… Here’s Why (SHLL/Hyliion Merger)

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So in this video today we’re going to be discussing a brand new 10 000 investment that i have made in a particular stock that is a bit of a speculation and it is another one of these specs or special purpose acquisition companies very similar to what happened with nikola motors with the reverse merger with vecto iq now a few weeks back i did a video talking about

The vecto iq reverse merger with a company called nikola motors which is going to be a direct competitor to tesla now i ended up buying a small position of 50 shares of vtiq before the merger at a cost basis of 18.97 per share now since i deemed this a speculation that’s only about a one thousand dollar investment so i didn’t put my life savings into this stock

And i’m not putting my life savings into this other stock either however based on the fundamentals of this company and what they are offering i am doing a larger investment this time rather than just one thousand dollars like i did with nikola motors now so far my investment in vt iq which eventually became nikola motors has been one of the best investments i

Have ever made so like i said i bought shares for a cost basis of 18.97 and now nikola motor stock is trading at around 65 per share so on a percentage basis that is a return of around 242 in less than two months now am i saying that is something you should expect to happen in the future absolutely not this is very rare circumstances for something like this to

Happen and obviously guys this is not any kind of financial advice and i am not a financial advisor however we do have another instance here of a reverse merger taking place with another ev company so i am not saying in any way shape or form it’s going to be the same as nikola motors however i am saying that i saw this as an interesting investment opportunity

And decided to invest ten thousand dollars so the new company i ended up purchasing shares of is called tortoise acquisition or trades under the symbol shl and they officially announced a merger with a private company called helion which is a competitor to both tesla as well as nikola motors in the ev market now i was not as early with this investment here guys

Because i ended up buying my shares at a cost basis of 29 and 65 cents per share and that is because this merger was announced about 10 days ago i wish i had gotten in there sooner but i’m still comfortable with my cost basis on these shares based on the future growth potential that this company has so first of all let’s cover what exactly shll or tortoise

Acquisition corp is it is essentially something called a spec or special purpose acquisition company and this is exactly what happened with nikola motors as well when they merged with a spec under the name vecto iq or vecto acquisition essentially think of it this way a large group of investors get together and pool money and have an initial public offering

Of this holding or shell company that is essentially just a blank check and then they have a set period of time to pick a company that is private to invest in once they merge with this company they change the name to what that private company was and that private company is now a publicly traded company so it’s pretty confusing guys i’m going to be honest

But essentially it allows a private company to go public without going through the traditional ipo process which is quite lengthy and complicated i don’t believe it was very common before but now we are seeing a lot of these spacks popping up uh and it provides for an interesting investment opportunity so the merger between helion and tortoise acquisition was

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Announced officially on june 19th and as i said i purchased my shares 10 days later on june 29th so they already have had quite the run up now when the merger closes which is expected in quarter 3 of 2020 shares of shll tortoise acquisition will be exchanged for shares of helion under the symbol h-y-l-n just like was the case with vecto iq and nicola motors now

Through this reverse merger helion will become a publicly traded company and they will also have access to 560 million dollars of new investment capital and the implied market cap or market value of hillian post merger is 1.5 billion dollars however i’m going to go out on a limb and say it’s probably going to be substantially higher based on the hype associated

With these ev companies we look at tesla hitting all-time highs with their share price one of the most valuable automakers in the world now and we see um a company like nikola motors valued at over 20 billion dollars pre revenue so in a little bit here we’re going to cover what hillian actually is what they’re developing and it’s my opinion that this stock

Will be valued at significantly higher than 1.5 billion dollars once the merger is completed now before we discuss what hillian actually does i do have a quick message from today’s video sponsor which is morning brew i actually subscribed to morning brew about a year ago so i was really glad when they reached out and asked to sponsor this video because this is

A service that i already use as part of my morning routine i used to spend my mornings doing what i call the death scroll on social media just clicking through random apps and wasting time but once i started adding morning brew to part of my daily routine i found that i enjoyed my mornings more and i was also better informed about the stock market and what is

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To morning brew today all right guys so here’s the deal with hillian this company aims to be the leading provider of electrified powertrain solutions for class 8 vehicles and don’t worry i’m going to explain that in layman’s terms now so the powertrain of a vehicle is essentially what is giving that vehicle power so this includes components such as the engine

The transmission the drivetrain etc and class 8 vehicles are just commercial semi trucks that we see carrying cargo on the road so essentially helion is involved in producing these power trains and they have a truck in the pipeline and they are laser focused on the class 8 semi commercial market so right off the bat that is one thing i do have to say that i

Like about hillian is they are way more focused than their competitors nikola motors and tesla motors tesla has their passenger vehicles they have the cyber truck they have the semis they also have the solar panels home charging batteries and they have potentially you know a atv down the road they’re kind of all over the place then you look at nikola motors and

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The same thing is the case they have the nicola badger they have the semi trucks they have the off-roading vehicles they have the jet ski and they have the entire hydrogen energy production business so helion is way more focused because they have one truck they are developing in the pipeline and then they offer their power trains as well as battery solutions

They’re not focused on 15 things at once and the reason why that is a positive is because starting up a new company when you are not profitable and not having revenue coming in you’re going to burn through cash pretty quick so if you’re spending all of your time diverted across four or five different products you’re not really focused on just one and it’s going

To get expensive quick so i like the fact that hillian is not trying to accomplish everything at once they are focused on one individual task pretty much which is the power trains and then the trucks that are also going to incorporate that same powertrain now another key difference between helion and nikola motors is that helion already has a product not only

That the product is already on the road in real world applications so there are already 20 of these helion powertrains on the road today being tested in real world scenarios also collecting data allowing them to build on and improve the product as we know already nikola motors doesn’t even have a product yet they are pre-revenue and valued at over 20 billion

Dollars so right now hillian is offering a hybrid diesel and electric powertrain but in the pipeline is a natural gas uh hybrid powertrain as well and that’s the same technology they’re going to be using in the truck that they release in the future and one of the things that i like the most about this powertrain is that this can be installed in any class 8 truck

So for example for a company to switch their fleet from gas to hybrid or electric with the competitors nikola motor or tesla they would have to purchase the entire truck whereas with helion they can just have this powertrain installed on their existing vehicles so this makes the commitment a lot lower and the cost a lot lower as well and it’s easier for them to

Test it out on a portion of their fleet without going all in on this decision to go electric so overall guys the products being offered by hillian in my opinion are just more practical and more likely to be adopted in the real world based on the fact that you can just pop them onto an existing vehicle rather than buying an entire brand new electric truck now

In the pipeline they do have a truck they are planning on developing called the erx it is not currently on the road however they do have over 1 000 pre-orders and one important thing to mention here is that each pre-order required a 5 000 deposit that is one of the issues with nikola motors is that they have 10 billion dollars in orders however there’s no real

Commitment there in terms of people actually taking orders uh and where it’s unclear whether or not people have actually put down deposits on all of those vehicles so this erx truck offered by helion is going to have a fully electric drivetrain with an onboard natural gas generator to recharge the batteries while the person is driving the vehicle so it’s really

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Interesting because hillian and tesla and nikola motors all seem to have different schools of thought here hilian is offering hybrid electric diesel and down the road hybrid electric natural gas then we have nikola motors who is launching at first an electric semi but then we’ll be offering trucks that are running on hydrogen fuel cells and then we have tesla

Who’s going 100 electric and not using hydrogen fuel cells so all of them tend to be using different technologies however down the road helion is going to be implementing hydrogen fuel cells in their trucks now why do you ask is helion doing a hybrid between electric and natural gas well the key reason is because there are already over 700 natural gas fueling

Stations available today whereas with nikola motors in order to offer the hydrogen fuel cell trucks they’re going to have to build out a massive network of hydrogen fueling stations at a cost of around 15 million to 20 million dollars per station so rather than hillian dumping hundreds of millions of dollars into that they’re going to piggyback off of a natural

Gas network that already exists today so again when we talk about practicality and the likelihood of companies implementing these trucks well it’s just way more practical to take advantage of a fueling network that already exists rather than building out that infrastructure down the road hillian does plan on releasing trucks powered by hydrogen fuel cells however

They’re going to let their competitors spend the money building out the hydrogen fueling stations and once there are enough for it to be practical that is when they will release their own truck piggybacking off of the infrastructure that their competitors have built so in a nutshell guys this is why i decided to invest ten thousand dollars in shll which will

Eventually be shares of helion first of all i like the fact that they already have a product and it’s already on the road being tested in real world applications second of all i just think the product is way more practical rather than committing to a whole truck people can just purchase the powertrain and have this installed on existing class 8 semis next rather

Than jumping way ahead into the future with the hydrogen fuel cells they’re focused on a type of fuel that is readily available today that is also way more sustainable and eco-friendly than diesel also the fact that each of their pre-orders had a 5 000 deposit gives me hope about the legitimacy and people actually taking delivery of those orders once the trucks

Are produced and lastly guys helion just seems way more narrowly focused which is a good thing when you’re a startup with limited cash reserves and you’re looking to get a product to market asap i do like nikola motors however i am concerned about the fact that there’s no product they’re pre-revenue and they’re kind of scattered all over the place so that being

Said guys that is why i invested ten thousand dollars in shll rather than just one thousand dollars because i have more faith in this company long term but that being said guys that is my new investment let me know what you guys think down in the comment section below if you own these shares if you don’t i would love to hear what you guys think if you enjoyed

This video guys please go ahead and drop a like and subscribe and as mentioned earlier if you want to check out morning brew that is the top link in the description below thanks so much for watching guys and i will see you in the next video

Transcribed from video
I Just Invested $10,000 In This Stock… Here's Why (SHLL/Hyliion Merger) By Ryan Scribner

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