$Lucid Group (LCID.US)$ The management announced selling of ...
$Lucid Group(LCID.US$ The management announced selling of senior convertible notes to raise funds for expansion and such, which is considered normal in a new growing company. The trade volume shot up greatly once the news was out. I guess maybe it dilutes the value of each share? On top of that the shortists also exploited t the news fully.
It is truly disheartening to see all other stocks rising yet LCID keeps falling again and again but this time is a strategic move by company so it should be short lived. The only problem is that LCID is now the hot favourite for shortists becos of its high interest in the public eyes as a new highly potential growing company, so every little news from LCID can send its price moving very fast in both directions. So it’s a pros & cons, which actually makes it exciting and even more profitable if you learn to trade it well. I’m still learning and hopefully get better with each lesson learnt from these news.
Let’s hope there’s no more sudden negative news for LCID and can climb back to previous high. After that I should know how to plot my moves better. (I think. Hahaha!) Meanwhile for today, let’s observe how the stock will play out today when market opens. If unfortunately it gets pull back further again, buy in more for those with the money to do so. Those without, grit tight! it is merely a short term paper loss. I’m pretty confident it should not be going lower than its previous low and should recover back to mid $40s pretty fast after that. How low exactly though, I do not know. Just hope for the best and prepare for the worst. 😁
Once again, I want to reiterate strongly that this is just my postulation. I can be wrong, so trade with caution and make your own decision. Only you are responsible for your own action at the end of the day.
It is truly disheartening to see all other stocks rising yet LCID keeps falling again and again but this time is a strategic move by company so it should be short lived. The only problem is that LCID is now the hot favourite for shortists becos of its high interest in the public eyes as a new highly potential growing company, so every little news from LCID can send its price moving very fast in both directions. So it’s a pros & cons, which actually makes it exciting and even more profitable if you learn to trade it well. I’m still learning and hopefully get better with each lesson learnt from these news.
Let’s hope there’s no more sudden negative news for LCID and can climb back to previous high. After that I should know how to plot my moves better. (I think. Hahaha!) Meanwhile for today, let’s observe how the stock will play out today when market opens. If unfortunately it gets pull back further again, buy in more for those with the money to do so. Those without, grit tight! it is merely a short term paper loss. I’m pretty confident it should not be going lower than its previous low and should recover back to mid $40s pretty fast after that. How low exactly though, I do not know. Just hope for the best and prepare for the worst. 😁
Once again, I want to reiterate strongly that this is just my postulation. I can be wrong, so trade with caution and make your own decision. Only you are responsible for your own action at the end of the day.
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DeviltonOP : I read that doing so doesn’t dilute value of each share from other comments. If so, can anyone who truly knows the reason share with us in my post’s comment? I would like to learn the real reason for the fall by this piece of news. Thank you.
101671257 DeviltonOP: Just go google how convertible notes work and you get your answer.
As the name “convertible” already suggest, so those still claiming there no dilutions are mostly likely bag holders with ill intentions.
DeviltonOP 101671257: So I’m right that there is dilution effect. Thanks! I was confusing by those who keep saying there is not. If there really is not, then there is really no reason for the price to dip so much. Thanks again.
Twmt888 : So the sale of the convertible notes explains the price and its not due to trade? Sorry, im complete noob at trading so im just asking. Me feeling satisfied in at almost sorry point..