On January 19, 2021, I bought 8 shares of LI (NASDAQ:LI) for our daughter's stock portfolio, paying $34.62 per share. Funds for this purchase were taken from my dad's inheritance fund.
Li Auto Inc., also known as Li Xiang, is a Chinese electric vehicle manufacturer headquartered in Beijing, with manufacturing facilities in Changzhou
Unlike most of my other buys - LI is not a dividend stock. When buying this stock I'm looking at potential value growth.
The 12 analysts offering 12-month price forecasts for Li Auto Inc. have a median target of 261.56, with a high estimate of 394.93 and a low estimate of 139.98. The median estimate represents a +645.81% increase from the last price of 35.07.
Now, that's some nice forecast, and frankly speaking, we feel very bullish on EV stocks.
We are now holding 8 shares with LI
Our average buy price: $34.62
I plan to increase the total share count to 100 in a reasonable time frame (say the end of 2021) and once we have 100 shares start selling covered calls on it to generate extra income.
Just for the illustration:
We could sell a covered call on LI today (January 20, 2021) with expiry on January 29, 2021 (weekly options), with a strike price of $35, and get for that about $1.93 premium. That about 5.57% potential income return in 9 days
By now LI stock takes 0.86% from our US stock portfolio.
92 shares to go!
