a 1-for-15 reverse stock spli<\/a>t<\/strong> as of May 24, when its stock price hovered around 26 cents a share, down from its peak of $31.80 a share. The split reduces the number of outstanding Lordstown shares to 16 million from 243 million. Its price closed down 0.48% Friday at $4.19 a share.<\/p>\n\n\n\nStock splits typically increase the number of outstanding shares and lower the price of the stock. But this hardly amounts to generosity; rather, it’s a typically an indication of management optimism of continued share price growth.<\/p>\n\n\n\n
As you might expect, a reverse stock split is the opposite, typically happening after a challenging period. That is undoubtedly true of both manufacturers. They lack cash, and their sliding share price reflects concerns that they\u2019ll run out of financing before being able to break even or turn a profit. Spending it on a reverse stock split does little to help their increasingly precarious financial prospects, however, which is why their stocks have sunk below $1 a share.<\/p>\n","protected":false},"excerpt":{"rendered":"
Look for Faraday Future to continue to make a bad situation look good. TheDetroitBureau.com has the details. <\/p>\n","protected":false},"author":13752,"featured_media":220167,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[5,7,8,1908,10,1164,2648,13,1347,9],"tags":[10532,6271,11295,7110,11296],"make":[52],"post-state":[],"category_old":[],"acf":[],"_links":{"self":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/244496"}],"collection":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/users\/13752"}],"replies":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/comments?post=244496"}],"version-history":[{"count":4,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/244496\/revisions"}],"predecessor-version":[{"id":244502,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/244496\/revisions\/244502"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media\/220167"}],"wp:attachment":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media?parent=244496"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/categories?post=244496"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/tags?post=244496"},{"taxonomy":"make","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/make?post=244496"},{"taxonomy":"post-state","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/post-state?post=244496"},{"taxonomy":"category_old","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/category_old?post=244496"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}