Lotus stock ( LOT ) given a thumbs down today on Barron's Roundtable financial show

[DerTheDer]

What are our estimates for close tomorrow? I am thinking around 7 dollars.

 

[brainf18]

What are our estimates for close tomorrow? I am thinking around 7 dollars.

I wish I could short the stock...

 

[DerTheDer]

I wish I could short the stock...

I never got into that or looked into shorts or puts...lol, all I know is some people lose some mad cash on it.

 

[wallstbear]

I bet if they just stick an M139 into an Eletre (or whatever they have to do to make it a gas car), they would expand the lineup with a strong revenue generator right off the bat. It's not even that hard for them. Gas cars are coming back, as odd as that sounds. I have 2 gas cars and 1 PHEV right now. No intention to get a full EV any time soon.

 

[supersix]

I think Lotus will have a hard time being public right now with a focus on EVs. It wouldn't surprise me if it's taken private again in a couple of years.

 

[Porter]

I think Lotus will have a hard time being public right now with a focus on EVs. It wouldn't surprise me if it's taken private again in a couple of years.

Or even in a couple of months, once they feel like they've extracted enough free cash from unsophisticated investors and the stock price hits a target low that they've likely already planned for.

 

[EZcheezy]

Or even in a couple of months, once they feel like they've extracted enough free cash from unsophisticated investors and the stock price hits a target low that they've likely already planned for.

how would hitting a target low be beneficial for them? im not arguing, im just asking. first time paying attention to a new company going public

 

[Nova]

how would hitting a target low be beneficial for them? im not arguing, im just asking. first time paying attention to a new company going public

I think the theory goes that they buy back all of the shares and take the company private again, pocketing whatever difference is from their stock selling price was and the buy back price.

 

[brainf18]

I think the theory goes that they buy back all of the shares and take the company private again, pocketing whatever difference is from their stock selling price was and the buy back price.

eeeehhh, that's not really how IPO's work

 

[Rupes]

I bet if they just stick an M139 into an Eletre (or whatever they have to do to make it a gas car), they would expand the lineup with a strong revenue generator right off the bat. It's not even that hard for them. Gas cars are coming back, as odd as that sounds. I have 2 gas cars and 1 PHEV right now. No intention to get a full EV any time soon.

As a car enthusiast/purist, I love the idea of a return to gas cars. As a tech nerd, I love EVs.

But as a realist, I recognize this train will be hard to stop (from Reuters): California's zero-emission[...] rules mandate 35% of the new cars sold be plug-in hybrid electric, EVs or hydrogen fuel cell by 2026. That proportion will rise to 68% by 2030 and 100% by 2035.

Same thing that's holding us up from getting our Emira right now will dictate the future of cars across the country (world).

 

[Porter]

eeeehhh, that's not really how IPO's work

It's not supposed to be how they work, but also, SPACs aren't how IPOs are supposed to work. And taking a public entity private again is just a matter of filing the right paperwork and forcing a sale (contingent on stockholder vote). I don't think any of the SPAC public offering was even voting shares though, were they? Makes it pretty easy.

 

[Porter]

how would hitting a target low be beneficial for them? im not arguing, im just asking. first time paying attention to a new company going public

This isn't how companies are supposed to go public. An IPO is supposed to be an orderly, well vetted process involving tons of public disclosure about financial performance to the SEC and the public, and the adoption of a bunch of very strict regulatory compliance that the publicly traded company must conform to, including the strict observation of shareholder rights.

A "SPAC" is a way of back-dooring the IPO process, avoiding a bunch of regulatory oversight and open financial disclosure that would be extremely useful to evaluate the company's actual merit and value, and will likely not remain a legal method to do this in the long term. Congress is already taking notice of the problems here, and will likely act within the next few years to stop the foolishness.

See also: https://3summit.com/in-the-spac-shell-game-dont-be-the-sucker/

More: https://www.reuters.com/breakingviews/spac-shell-games-will-keep-hiding-ball-2023-10-05/

 

[vdr]

This isn't how companies are supposed to go public. An IPO is supposed to be an orderly, well vetted process involving tons of public disclosure about financial performance to the SEC and the public, and the adoption of a bunch of very strict regulatory compliance that the publicly traded company must conform to, including the strict observation of shareholder rights.

A "SPAC" is a way of back-dooring the IPO process, avoiding a bunch of regulatory oversight and open financial disclosure that would be extremely useful to evaluate the company's actual merit and value, and will likely not remain a legal method to do this in the long term. Congress is already taking notice of the problems here, and will likely act within the next few years to stop the foolishness.

See also: https://3summit.com/in-the-spac-shell-game-dont-be-the-sucker/

More: https://www.reuters.com/breakingviews/spac-shell-games-will-keep-hiding-ball-2023-10-05/

For those interested in the aforementioned, I recommend this documentary, The China Hustle, on the perils of SPACS in the American market::

The China Hustle (2017) ⭐ 7.1 | Documentary

1h 22m | R

www.imdb.com

https://www.imdb.com/title/tt7215388/

 

[Superman]

I threw a few quid into this SPAC last year as a bit of a laugh. Tapped out today at 40% up. Would never have been brave (/stupid?) enough to put any meaningful money into this, but pretty sure there would have been people who did.

Honestly don't see this going anywhere but down in the longer term from here.

 

[wallstbear]

As a car enthusiast/purist, I love the idea of a return to gas cars. As a tech nerd, I love EVs.

But as a realist, I recognize this train will be hard to stop (from Reuters): California's zero-emission[...] rules mandate 35% of the new cars sold be plug-in hybrid electric, EVs or hydrogen fuel cell by 2026. That proportion will rise to 68% by 2030 and 100% by 2035.

Same thing that's holding us up from getting our Emira right now will dictate the future of cars across the country (world).

You are absolutely right... that being said, policies can be a bit too aggressive and many governments/corporations are scaling back EV targets for a variety of reasons.

Partly because batteries are not as environmentally friendly as people think, plus much of the world's electricity is still generated from coal or other traditional sources, not to mention weight/safety and a slew of other issues.

Hydrogen on the other hand is much cleaner but not commercially feasible at this point.

Responsible governments may need to revisit the premises for their policies.

 

[wallstbear]

It's not supposed to be how they work, but also, SPACs aren't how IPOs are supposed to work. And taking a public entity private again is just a matter of filing the right paperwork and forcing a sale (contingent on stockholder vote). I don't think any of the SPAC public offering was even voting shares though, were they? Makes it pretty easy.

SPACs are just weirdos of the capital market. I am surprised they let it exist.

 

[Speedy Emira]

SPACs are just weirdos of the capital market. I am surprised they let it exist.

I am sure there are a lot of already extremely rich people who make a lot of money from SPACS. Done in the right way it won’t be the billionaires losing out on these, but plenty of investors who would be hit by losing their money.
I was introduced to a company who dealt with SPACS and trade desk investments a couple of years ago. It wasn’t for me because most of the offers were not not regulated but backed with insurance and just didn’t sit well for me. I heard the company folded and the owners live abroad very well off.
I bought a house and the Emira instead. 😁

 

[wallstbear]

I am sure there are a lot of already extremely rich people who make a lot of money from SPACS. Done in the right way it won’t be the billionaires losing out on these, but plenty of investors who would be hit by losing their money.
I was introduced to a company who dealt with SPACS and trade desk investments a couple of years ago. It wasn’t for me because most of the offers were not not regulated but backed with insurance and just didn’t sit well for me. I heard the company folded and the owners live abroad very well off.
I bought a house and the Emira instead. 😁

A very smart move indeed!

 

[Ryder]

Just looked at the stock: down about 20% today and sinking quickly. I wonder if their marketing and client relations teams will preform better to right the ship than those in customer relations with the Emira depositors from th US ?????

 

[DerTheDer]

Just going to drop this here.....20% loss today......