Don't Fall for the Nikola Rebound – Buy This Stock Instead
September 23, 2020 at 06:00 AM EDT
Nikola Corp. saw its stock gain 3% yesterday - despite still being in the middle of a major fiasco. As I told you last week, Nikola has been dealing with legal issues regarding a slew of fraud allegations. And while the company was thoroughly investigated and mostly cleared, the investigation's impact is still playing out. The biggest loser happens to be Nikola's founder and chair, Trevor Milton. It was announced on Monday that the founder voluntarily resigned - 10 days after short-selling firm Hindenburg Research released a report claiming Nikola was an "intricate fraud." Milton's resignation only further spooked already-shaken investors, and the stock plunged nearly 30% in premarket trading on Monday. While Nikola had a backup plan already in place - including adding Stephen Girsky, former vice chair of General Motors and a member of Nikola's board, as chair of the board, effective immediately - investors still piled selling pressure onto the stock. Now, while Milton has stepped away, he's nowhere near done. Here's what the young founder had to say... "I asked the Board of Directors to let me step aside from my roles as Executive Chairman and as member of Nikola Board of Directors. The focus should be on the company and its world-changing mission, not me. I intend to defend myself against false allegations leveled against me by outside detractors." But regardless of whether Milton "clears his name" or not, Nikola is still in a tough spot. And it's going to be one that's hard for the company to bounce back from - especially as the stock continues to move down. So, while the new low price tag on NKLA might seem attractive, I'm not going for it. There's a much better move you can make to keep your portfolio safe and profit from this scenario... Full Story The post Don't Fall for the Nikola Rebound – Buy This Stock Instead appeared first on Money Morning - We Make Investing Profitable . So, while the new low price tag on NKLA might seem attractive, I'm not going for it. There's a much better move you can make to keep your portfolio safe and profit from this scenario... Tags: trading strategies To get full access to all Money Morning content, click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free . Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors. Disclaimer: © 2020 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201.