What's new
By:

Reverse Split

M

MackWang

Member

Joined
Jan 23, 2025
Messages
30
Reaction score
30
Cars
Lucid Air Pure
What do folks think of a 1:10 reverse split? It's got pros and cons. Wondering what someone with investment acumen thinks.
 
I am in with Lucid for the long term, I am not very concerned about it. as a matter of fact, I am happy when I see the stock in red , so I can buy more, for less.

having said that, I prefer they keep it that way until it is necessary to do the reverse to keep it trading in the market. I can not control what Lucid will do, but, I can control my strategy.

if Lucid decides to go ahead and it goes up, I will hold my position or cash out for short term gain, then buy the next dip.
 
I selected for. RS shall stimulate the price in the short term, and the long-term will depend on their production
 
I selected for, it’s a good way to being in institutional money. At the current stock price it’s difficult for institutional money to hold the stock because of the chance of it being delisted and its rating “penny stock” price. So that makes it difficult to bring in “smart money”.

I’m excited to see it happen if only to get some more stable investors in that aren’t speculators riding the wave of IV crush… but I digress.
 
The earnings call was a bit of a kick in the balls.
 
MackWang said:
The earnings call was a bit of a kick in the balls.
Click to expand...
The one that hasn’t happened yet?

Lucid will host a conference call for analysts and investors at 2:30 P.M. PT / 5:30 P.M. ET on August 5, 2025.

Lucid Motors 2025 : Lucid Announces Second Quarter 2025 Financial Results

Lucid Group, Inc. (NASDAQ: LCID), maker of the world’s most advanced electric vehicles, today announced financial results for its second quarter ended June 30, 2025. The earnings presentation is available on its investor relations website (https://ir.lucidmotors.com).
media.lucidmotors.com media.lucidmotors.com
 
Voted no. While I understand why Lucid feels they need to do it, it hurts retail investors. I've worked hard accumulating my shares since the early CCIV days, shares will cost 10x as much after the split. That hurts us little guys.
 
Babyrocko1908 said:
Voted no. While I understand why Lucid feels they need to do it, it hurts retail investors. I've worked hard accumulating my shares since the early CCIV days, shares will cost 10x as much after the split. That hurts us little guys.
Click to expand...
And, as a retail investor when the stock gets delisted what do you intend to do with your holdings?
 
californiaboy935 said:
And, as a retail investor when the stock gets delisted what do you intend to do with your holdings?
Click to expand...
We're still quite a way away from delisting! Have faith.
 
Delisting and possible need to raise additional funds needed to bring mid-size vehicle to market are two of the reasons to reverse split. Without it management choices for growing the company in the future will be limited.
 
Babyrocko1908 said:
Voted no. While I understand why Lucid feels they need to do it, it hurts retail investors. I've worked hard accumulating my shares since the early CCIV days, shares will cost 10x as much after the split. That hurts us little guys.
Click to expand...
I’m not sure I follow your reasoning. If you periodically want to add, say, $2K in new Lucid investment, right now that would mean buying around 1000 shares—after the split, you can do the same thing by buying about 100 shares. If you’re buying in smaller chunks, like $200 at a time, same deal: instead of buying 100 shares, buy 10!

I don’t see how the split is affecting our ability to continue buying at whatever scale we want to.

(all of us do also need to keep in mind that the company will need to be raising more cash in the next year or two, and by putting more shares out there for purchase, that will indeed dilute the tiny proportion of the company that we each hold…. And may make the upside potential a little smaller for us. But the split itself is not a problem for our stake in the company, or our ability to keep buying in.)
 
Pragmatic said:
Delisting and possible need to raise additional funds needed to bring mid-size vehicle to market are two of the reasons to reverse split. Without it management choices for growing the company in the future will be limited.
Click to expand...
None of this is new. They needed to raise funds to bring Gravity to market. They just didn't need to potentially hurt retail investors in the process. No matter how this is reasoned, retail investors will lose with this split.
 
jedwin said:
I’m not sure if I follow your reasoning. If you periodically want to add, say, $2K in new Lucid investment, right now that would mean buying around 1000 shares—after the split, you can do the same thing by buying about 100 shares. If you’re buying in smaller chunks, like $200 at a time, same deal: instead of buying 100 shares, buy 10!

I don’t see how the split is affecting our ability to continue buying at whatever scale we want to.

(all of us do also need to keep in mind that the company will need to be raising more cash in the next year or two, and by putting more shares out there for purchase, that will indeed dilute the tiny proportion of the company that we each hold…. And may make the upside potential a little smaller for us. But the split itself is not a problem for our stake in the company, or our ability to keep buying in.)
Click to expand...
You answered your own question, I want to buy 1,000 like I have been not 100! That's my issue! Shares will be 10X more expensive with no guarantee the price doesn't continue to fall on our reduced amount that we now hold.
 
Babyrocko1908 said:
You answered your own question, I want to buy 1,000 like I have been not 100! That's my issue! Shares will be 10X more expensive with no guarantee the price doesn't continue to fall on our reduced amount that we now hold.
Click to expand...
IMG_3787.gif
 
Babyrocko1908 said:
You answered your own question, I want to buy 1,000 like I have been not 100! That's my issue! Shares will be 10X more expensive with no guarantee the price doesn't continue to fall on our reduced amount that we now hold.
Click to expand...
…but that’s not how math works. If you buy 100 shares at $10, or 1000 shares at $1, you’ve still spent $1000 total, and the number of shares you own is irrelevant, as you don’t actually care about “number of shares held” as the number that matters to you, but the actual realized or unrealized gains (or losses) in actual USD.

If you had 1000 shares pre-split, you’ll now own 100 shares at 10x the per-share cost. Your overall cost basis and gains/losses don’t change at all. The only thing that happens is you’re moving a decimal point in two places (canceling each other out).

I fail to see how this is bad for retail investors. The only way it could be is that the obvious reason for a reverse split is worries about delisting, which isn’t a good look. It makes the stock more attractive to other institutional investors, but I don’t see how it harms retail investors.

Educate me if I’m wrong or misunderstanding something please.
 
You must log in or register to reply here.

Similar threads

californiaboy935
Goldman Sachs Doubles Down on Lucid; Charles Schwab follows - Exciting news for retail investors.
Replies
18
Views
5K
Batteryman
B
W
Gravity Plan B
4 5 6
Replies
111
Views
10K
DeaneG
DeaneG
fadooly
Is the stock a steal or not at 2.2
2
Replies
28
Views
2K
MJAir23TheGoat
MJAir23TheGoat
R
  • Locked
OTA Update 2.7.0
Replies
5
Views
711
borski
borski
DJR
Latest update - weird bug where it wouldn't go into reverse (due to rain?)
Replies
6
Views
658
borski
borski
Back
Top