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The Markets Never Stop. The Stock Lowes And Forward Looking Thinking.

An earning's report came out and some of the reason's the stock dropped made sense. Let me tell you what happened and why. Lowe's sold off in price over $12.00 in one day on an earnings report. How bad was the report? Well that is something that is debatable. Some people would say that past sales are not a good indication as to what might happen next. Not many option traders attempted to trade in it. Some traders derive more pleasure in playing the rebounds after these types of announcements come out. Here is what their C.E.O said. It is her job to try to put was a positive spin on things. Every word she uttered was well rehearsed. Lowes and Home Depot are always difficult to play because their stories can be spun in so many different ways. On a different note, the Put options five dollars "out-of-the-money", which were the 265 series of Puts were a cheaper and a more profitable way to play this action than the 270 Puts. Yet then again, if the stock only dro
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A 1 for 100 Reverse Stock Split. Imagine Living Through That?

Here it is, I have talked about Mullen before.
Now a letter from the C.E.O.
$1,000 worth of stock is now worth ten dollars. One would have to ask the question as to whether there is even any point in keeping this company going? Stumbling along shipping out a few EV trucks here and there is a recipe for a slow death. Here how it traded this week after the reverse split. ($9.84 prior to the reverse split was $.09 cents. People selling out on the morning of the reversal thinking the stock would continue to sink forever, it probably will, sold out only to watch new sharks buying it getting an amazing short term rise. That was somewhat unexpected).
Yes there was a bounce however who wants to buy in now? Look at it's five year chart. What a mess! This wasn't the first time the company did a reverse split.
There where some comments flying in the air last summer to address the issue of short sellers interfering but in all fairness management seemed to be to busy bragging about how quickly their one thousand and fifty horsepower EV could do time lapses around a race tract in California.
In all fairness it's a tough industry to get going in.
Faraday Future mentioned above is another stock we have mentioned in the past as it also has done a reverse stock split. It was a 1 for 70 reverse stock split in late September and then stock dropped another 50 percent after it started to trade at it's new price. See where it is trading now.
These stocks, while interesting to watch are a fools game. (Well not if you were shorting it).

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