Kingsview CIO Scott Martin discusses buying opportunities, volatile stocks and the electric vehicle space.
Program: Cavuto Coast to Coast
Station: Fox Business News
NEIL CAVUTO: All right, at such a loss for the Dow here, we’re still waiting, by the way, on really in the electric vehicle maker backed by the likes of Amazon and Ford. This one has been a fascinating story to follow because it was originally going to be priced in the 72 to 74 bucks a share level that was essentially doubled from the early talk. And then now they’re saying, you know what? It does debut maybe a hundred fourteen or fifteen dollars a share. So this thing’s like a rocket here, although we be watching it closely. But again, still waiting for that debut, a good opportunity to talk to Scott Martin back with us right now. Kingsview Asset Management. You know, it’s got the right IPO at the right time can tell a lot about what clicks with investors too early to say, whether that you know this electric vehicle maker will be right. But it does seem to get the advanced positive buzz. How do guys like you decide where attention is warranted and where maybe standing back is just as well?
SCOTT MARTIN: Yeah, I think get a look at the space first and foremost, Neil. As far as where some of these companies are located, you mentioned that this happens to be in the electric vehicle space, which is very hot. Obviously, the price is being chased up as we speak. So that’s an area where I think you’ve got to start with respect to where the company is operating. And then secondarily, look at the pricing. As you mentioned, it’s already called up another 30 points above the initial IPO price. Usually don’t chase things like that, but companies that actually come in say around the appropriate IPO valuation, those are companies that we like to buy into because usually the chasing starts happening after they start publicly trading.
CAVUTO: You know, a lot of people get into ideas of all sorts here, and that does seem like you just stated to be a fairly, you know, reliable rule of thumb that the faster you come out the gate, sometimes the more problematic, the longer term. Conversely, you know, sometimes when you stumble, coming out of the former Facebook comes to mind. It took, you know, almost a year before things stabilize and then it was off to the races. All these controversies notwithstanding. Do you play these at all or do you just hold off until the dust settles?
MARTIN: We do play them. You mentioned Facebook. What a great buying opportunity that was felt by about 50 percent. And then those who were lucky enough to scoop it in the high 20s did very well. Bumble is a recent one that did that as well, Neil. And then, of course, Airbnb as well, and DoorDash too. So we do play in that space. But as you mentioned, I mean, some of these things come hot right out of the gate, and they’re just not good stocks to chase. But as long as they come back with some relative valuation, as you mentioned with the latest IPO that we talked about just a second ago, I mean, they’re losing money hand over fist every quarter. So we don’t chase ones that aren’t as fundamentally strong. But there are companies out there coming public that are attractive.
CAVUTO: You know, that’s to Tesla for a second electric vehicle players. But you know, the stock lost about $2 billion in market value over the last couple of days. And now it’s up about it looks like at about 40 bucks or so, it’s around one thousand sixty four a share. But what’s interesting is it all started with Elon Musk, you know, putting out the Twitter this poll to say, I think I should sell some stock up to 21 billion. He lost more than 50 billion on paper in the interim. But it does remind you how dependent that that stock is, you know, joined at the hip to its owner.
MARTIN: Yeah, I mean, he is a rock star, and so what he does affects all aspects of the company and certainly the stock price. It’s kind of funny how he did take the the poll or the opinion of Twitter. It end up costing him more than he actually sold. But the reality is that stock’s volatile and it’s at some near all time highs, and therefore it’s going to move around quite a bit. But that space, the electric vehicle space is so hot that that company is going to do very well, especially with a lot of the cars that they have coming down the line.
CAVUTO: Thank you, my friend. Scott Martin. Following all of these developments.