If you had been on Ihub or stocktwits, it would’ve seemed like nothing bad had happened at all! The board on stocktwits was just ecstatic! People were posting gifs, everybody was celebrating, the share price was up 10% in the premarket; it was just a big party over there!
Workhorse Group Inc., S-3, 12/26/18
Workhorse Group Inc., 8-K, 10/7/19, Monday, 4:30pm ET
So why did the price go up so much after this seemingly terrible news? Well, as is usual with this stock, this bad news was accompanied with some miraculously timed PR.
In the premarket they announced a contract with an organization known as the “USOG”, and to the untrained eye, this might have sounded like excellent news. USOG — sounds legitimate, right?
The use of the acronym “USOG” could easily trick novice investors into thinking that the company was some kind of large, respected, deeply entrenched organization. Also, the “U.S.” at the beginning might have even had you thinking that it was affiliated with the government. Surprisingly though, all it took was some quick “due diligence”, per se, to discover that this company wasn’t any of these things, but in fact just some obscure partnership with only two employees.
What also would have struck you as a little odd was the fact that their “website” was just a simple screenshot with no menus or any content whatsoever. Also, their Facebook page appeared to be designed by just a small group of drone enthusiasts, not the kind of business you would expect to be partnering with a company in talks to buy General Motors massive Lordstown complex, a facility equal in size to 665 football fields.
The gifs were strong that day. It took about 10 minutes of scrolling just to get to October.08. It is currently October.10 as I write this.
Just to refresh your memories everyone, the President of the United States of America says they are buying the Lordstown Complex from General Motors.
DISCLAIMER This is all my opinion, and I am not financial adviser. You should consult a financial adviser before making any decision with regard to publicly traded securities, or any security for that matter. You should not use this information as the basis for an investment decision. This company carries an extremely high degree of risk. You should consider this information as similar to personal insight from a peer/friend/acquaintance, and thus it should –obviously — not be the primary source material for basing an investment decision, because, similar to any opinion from a peer/friend/acquaintance, it could be completely and utterly incorrect! Good luck and happy trading everyone****