Exploring Strategic Opportunities: PolyMet Mining Corp. (PLM), NIO Limited (NIO)

PolyMet Mining Corp. (AMEX: PLM) shares are 24.14% up in the year-to-date (YTD) period and have moved -1.56% or -$0.05 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +110.67% lower. Comparatively, the stock is -67.42% down YTD and 28.09% over the trailing 3-month period. If we look at the shorter duration, its week performance is -6.78% and -33.47% over the month.

Analyst Recommendations

1 analysts offering the recommendations for the stock have a consensus rating of 2.00 to suggest that the PLM stock is a “Moderate Buy. 0 of the 1 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 1 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $3.16 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $2.50. The forecasts give the PolyMet Mining Corp. stock a price target range of $15.00 on the higher side while at least one analyst think the stock could plunge to a low of $15.00. The two limits represent an upside potential of 78.93% or 78.93%.

Earnings Forecast

Analysts estimate the earnings to decrease 0.00% in the current quarter to -$0.01, up from the -$0.01 reported in the same quarter a year ago. Wall Street estimates earnings per share to be at an average of -$0.03 for the next year.

NIO Limited (NYSE:NIO), on the other hand, is trading around $19.03 with a market cap of $24.22B and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $13.01 and spell out a less modest performance – a -46.27% return. Some analysts are even forecasting -$0.72 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the NIO Limited (NIO) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

NIO’s operating margin was negative on the trailing 12 months basis, remaining steady at -81.50%, while the operating expenses over the recent quarter were at $208.57 million. This represented a 60.38% of the company’s total revenues which amounted $526.38 million. With this in place, we can see that the company’s diluted EPS declined -$0.16 on the year-over-year period, shrinking to -$0.47 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Sep 2020), the total assets figure advanced to $3.28 billion from $2.17 billion over the previous quarter. Short term investments amounted to $32.78 million while total current assets were at $2.14 billion. The company’s free cash flow for the quarter was $0.0.

Major holders

Insiders own 0.72% of the company shares, while shares held by institutions stand at 45.70% with a share float percentage of 766.55M. Investors are also buoyed by the number of investors in a company, with NIO Limited having a total of 310 institutions that hold shares in the company. The top two institutional holders are Baillie Gifford and Company with over 97.78 million shares worth more than $754.84 million. As of Jun 29, 2020, Baillie Gifford and Company held 61.11% of shares outstanding.

The other major institutional holder is Blackrock Inc., with the investment firm holding over 42.7 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $329.61 million and represent 26.68% of shares outstanding.