Fake Stock News

Discussion in 'Stocks' started by earth_imperator, May 28, 2023.

  1. https://finance.yahoo.com/m/1a49d37e-0b34-37e7-a46e-f632207f143f/lordstown-motors-and-atea.html
    "Lordstown Motors (RIDE)
    Steve Burns, the former CEO of Lordstown Motors, reduced his stake in the maker of light-duty electric trucks to 12,457,306 shares, a 5.2% stake. Burns sold 4,345,647 Lordstown shares from May 5 through May 15 for $1.5 million, or 35 cents per share on average.
    [...]"


    Can anybody explain why this writerling of the above news says "35 cents per share on average", when the stock price is and has been been more than $3.50 in the said time period, as can be seen on the below chart?

    RIDE.png
     
  2. ph1l

    ph1l

    The average price calculation probably used data before the recent 15 to 1 reverse stock split.
    upload_2023-5-28_10-25-20.png
     
    earth_imperator likes this.
  3. deaddog

    deaddog

    Lordstown Motors (RIDE) has 1 split in our Lordstown Motors stock split history database. The split for RIDE took place on May 24, 2023. This was a 1 for 15 reverse split, meaning for each 15 shares of RIDE owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 66.6666666666667 share position following the split.
     
  4. Yes, that explains it, indeed.
     
  5. BMK

    BMK

    Okay, so does that mean that the news is not fake?
     
  6. Depends... The writerling could/should easily have known about the stock split as these are announced many weeks in advance, then he could have fixed/converted the said 35 cents accordingly, as well even mention the split itself too in his article.
    Bad research & analysis by a bad writer, IMO. But maybe it was one of these dumb AI's... :)
     
    Last edited: May 29, 2023
  7. vanzandt

    vanzandt

    I saw this thread before I logged on. The Imp has me on "block-all", but I don't think it has anything to do with the recent split.

    Back when they did the merger there was a conversion formula for the major shareholders.

    Had Impy done any DD before he post a silly thread, (AS Robert M. pointed out above)... ie went to to EDGAR before jumping to more conclusions that the world is out to get him and everything is geared in that direction, he might have found this.

    https://www.sec.gov/Archives/edgar/data/1759546/000121390020019762/ea124863ex2-1_diamondpeak.htm

    For our math expert:


    (a) At the Effective Time, by virtue of the Merger and without any action on the part of the Parties or any holder of any capital stock of the Company, (i) each share of Company Common Stock issued and outstanding at the Effective Time (other than (x) shares of Company Common Stock that are held by Dissenting Stockholders (“Dissenting Shares”) and (y) shares of Company Common Stock that are held by Non-Accredited Investors (“Non-Accredited Investor Shares”) shall be converted into, and become exchangeable for the number of shares of Parent Class A Common Stock equal to the quotient obtained by dividing (A) the Purchase Price by (B) $10.00 by (C) the Fully Diluted Share Number (such number of shares of Parent Class A Common Stock, the “Stock Merger Consideration”) and (ii) each Non-Accredited Investor Share shall be converted into, and become exchangeable for, the right to receive an amount in cash in Dollars equal to the quotient obtained by dividing (A) the Purchase Price by (B) the Fully Diluted Share Number (such number of shares of Parent Class A Common Stock, the “Cash Merger Consideration”). The Cash Merger Consideration or Stock Merger Consideration that a Stockholder shall be entitled to receive pursuant to this Section 2.1(a) is referred to as the “Merger Consideration”. Notwithstanding the foregoing, in the event that Parent, in its sole discretion, determines that any Stockholder is an Accredited Investor despite such holder’s failure to deliver an investor questionnaire, then Parent may elect to treat such holder as an Accredited Investor for all purposes under this Agreement.

    _____________________________________________

    Or.... he might have just read some of the other 13-d's and noticed this... for example this one from Feb 2022

    https://www.sec.gov/Archives/edgar/data/1481717/000110465922030091/tm228359d1_sc13da.htm
    Which is one of handful way before this split that might have piqued his curiosity a bit to actually do some work and read things.


    This:

    At the Effective Time, the 829,461.91 shares of the Legacy Lordstown common stock held by the Reporting Person were automatically converted into 46,351,745 shares of the Common Stock. On November 12, 2021, the Reporting Person sold 3,204,000 shares of Common Stock on the open market at an average price per share of $5.88. On February 28, 2022, the Reporting Person sold 5,285,000 shares of Common Stock on the open market at an average price per share of $2.56. On March 2, 2022, the Reporting Person sold 2,500,000 shares of Common Stock on the open market at an average price per share of $2.44.

    Item 7. Material to be Filed as Exhibits.


    Exhibit No. Name
    1. Agreement and Plan of Merger, dated August 1, 2020, among DiamondPeak Holdings Corp., DPL Merger Sub Corp. and Lordstown Motors Corp. (incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K filed on August 3, 2020)
    2. Registration Rights and Lockup Agreement (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed on October 29, 2020)



    5





    SIGNATURE



    After reasonable inquiry and to the best of my knowledge and belief, I hereby certify that the information set forth in this statement is true, complete and correct.



    Date: March 3, 2022


    /s/ Stephen S. Burns
    By:
    Stephen S. Burns

    As one can see the prices filed and recorded back then also reflect the ~.07 multiplier delineated in boldface above.

    "I am an expert"--- yeah right.
    More like a rookie living in a world of paranoia.
    :rolleyes: