RIDEW - Lordstown Motors - Stock Craters After Foxconn Deal Hits Snag - Sell

• Strategic transaction remains in limbo as Foxconn has not agreed to the proposed terms of a joint product development and associated funding agreement.
• There's no apparent incentive for Foxconn to provide additional funding to the ailing company as its primary target appears to be the Lordstown facility.
• Given Lordstown Motors' stated inability to repay the down payments already received under the asset purchase agreement, Foxconn could simply walk away from the negotiations and foreclose on the plant.
• At least, in my opinion, bankruptcy appears to be the most likely outcome at this point. Even with the stock trading at all-time lows, a short sale could still yield decent results.
• Only the most speculative investors should consider shorting the stock at this point, as a successful close of the transaction is likely to result in a violent rally.

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