On April 5, This ‘X’ Pattern Changes Everything

It appeared before Ambrx Biopharma climbed 175%... before AMC soared over 1,000%... Now, it’s appearing in multiple stocks on a regular basis. Luke Lango believes he’s cracked the code. On April 5, he’s going to reveal everything – including a free X-pattern pick.

Wed, April 5 at 4:00PM ET

Why Is Mullen (MULN) Stock Heating Up Today?

  • Shares of Mullen Automotive (NASDAQ:MULN) are getting a boost as a result of bullish macro data released today.
  • Additionally, investors are cheering the announcement that a reverse stock split has been approved, but might not be enacted.
  • With MULN stock rebounding, it’s possible the shares won’t need the split, which could be even more bullish in the medium-term.
MULN stock - Why Is Mullen (MULN) Stock Heating Up Today?

Source: Ringo Chiu / Shutterstock.com

Investors in Mullen Automotive (NASDAQ:MULN) are seeing some impressive price action building today. Shares of MULN stock are now up more than 5% at the time of writing on news that shareholders in the company have approved a reverse stock split, but the company may choose not to enact it. Broadly bullish momentum in the markets is also helping matters, driven by a better-than-expected PCE report today.

With prices rising slower than expected in December, a moderation in inflation could lead to more accommodative monetary policy down the road. For early-stage high-growth companies such as Mullen, that’s welcome news. Indeed, the monetary policy tightening we’ve seen has impacted shares of such companies to a greater degree than more established firms over the past year.

That said, the company’s prospective reverse stock split is a bigger concern for investors right now. While shareholders have approved a split, reports that the company is holding off on initiating this split until it’s absolutely necessary are intriguing investors.

Mullen is likely to complete its reverse split in the coming weeks with a March 6 deadline looming. However, given the strong price action the company has seen of late, perhaps it’s possible for MULN stock to rise past the $1 threshold in time. At roughly 33 cents at the time of writing, that seems unlikely, but who knows.

Let’s dive into what investors may want to make of Mullen here.

Is Now the Time to Buy MULN Stock?

As an early-stage electric vehicle (EV) maker, Mullen’s incredible roller coaster ride with respect to its valuation has forced many investors to the sidelines. The 52-week range on MULN stock shows a high of $4.18. Thus, this stock is more than 90% off its yearly high and down much more from its all-time high. Like many EV names, such moves have been commonplace of late.

Investors appear to remain uncertain of Mullen’s prospects moving forward, given its doubling down on production last year. The company acquired bankrupt EV maker Electric Last Mile Solutions for $55 million in 2022, which included the assumption of $37 million in debt. Famous for looking to acquire its way to growth, it’s clear investors aren’t on board with such a strategy, as evidenced by the company’s share price.

It’s unclear whether this near-term rally can be sustained. Sure, there’s a much more positive macro backdrop out there. And perhaps we’re turning the corner on this recent impressive round of monetary tightening. However, it’s also unclear what the economy will look like a year or two from now. Thus, I think Mullen remains a great example of a company investors should watch from the sidelines right now.

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More:Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com  Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

Article printed from InvestorPlace Media, https://investorplace.com/2023/01/why-is-mullen-muln-stock-heating-up-today-2/.

©2023 InvestorPlace Media, LLC