Damon motorcycles

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Can anyone think of a SPAC stock-market manoeuver that resulted in a successful operating business? (Truth Social doesn't count. LOL)

I have moved my probability-or-success expectation from "low" to "very low". LOL

Agree that they tried to do too much too soon. They assumed that their first prototype was close to production-ready ... clearly, it wasn't. And they should have skipped all the machine vision and AI nonsense and just built a working production-ready bike with normal off the shelf ABS and traction control and rear-view mirrors.
 
GreyGhost said:
Reverse split to prop up price? The whole thing is a vaporware green-washing scam. I had hopes. They were dashed long ago.
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That won’t work either. They are Nasdaq Global Market, so I believe the stock price is $4.

That’s moot, a reverse split does that. The hard part is they don’t meet income, shareholder equity, assets or market cap.

In addition to stock price minimum of $4, they have to meet at least one of the 4 financial benchmarks: income $1m, shareholder equity $30m, market cap of $75m, or revenue & assets of $75m.

I doubt they meet any.
 
Mad Mike said:
shareholder equity $30m or revenue & assets of $75m.

I doubt they meet any.
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on paper they may squeak by on one of those. How much is that prototype being carried on the books? How much are IP and patents on the books? Do they own the land that the factories were going to be built on? In any case, I'm sure the liabilities dwarf the assets and that's why they keep chasing funding. Save the original idiots at the expense of the new idiots.
 
Soulcatcher668 said:
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Sad but not at all surprising. Either it was a scam to attract idiot politicians/investors from the beginning or they were just idiots and perfection was the enemy of good enough. They needed to get a working bike in production before they spent any time or money on the transformer/self-riding crap. Those would make for an awesome second gen.

EDIT:
The rideable prototype didn't even have traction control? Were they trying to spin up controls from scratch? That seems like something that should not only be reasonably easy to implement, you can probably just buy an IMU and some wheel speed sensors from Bosch or others and be in a good place right out of the gate.
 
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Brian P said:
Can anyone think of a SPAC stock-market manoeuver that resulted in a successful operating business? (Truth Social doesn't count. LOL)
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100%. SPACs exist so we can buy in at $10-11, and then sell our shares to whoever's stupid enough to came in later. Especially during COVID when it was guaranteed money.

I made a lowly 15% return on the Livewire SPAC (yep, that Livewire). About 40% on the Playboy SPAC... and... I won't even even say how many times over I multiplied my money on the LAZR SPAC...

LAZR was just like random beginner luck striking gold. The other two, I had zero faith in for the long term, but in the short term I knew the brand strength of Harley and Playboy were so strong that as soon as word got out that the SPAC merger was complete, those two stocks would take off, and I'd cash out ASAP from there.

Worked both times. If I ever heard of a company with a strong brand doing a SPAC, and I could buy in close to $10, I'd 1000% do it again... but to your point: All of those stocks sell for peanuts now. Good old SPACs lol
 
TwistedKestrel said:
Shouldn't they have been delisted by now?

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Holy crap. Their market cap is $92K. That is substantially less than the single prototype bike is worth. Plotting the stock price on a graph that includes negative stock price on the scale is an interesting way to literally prop up the perceived price.

Investor Room | Damon Motorcycles - Stock Quote and Chart

ir.damon.com ir.damon.com
 
GreyGhost said:
Yup. When I pulled the market cap it was at about 4/100ths of a cent. It's falling fast today.
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How many shares would you have to own to even make selling worth the effort?

Cashing out 10,000 shares gets you 40 bucks, without the fees.
 
Soulcatcher668 said:
How many shares would you have to own to even make selling worth the effort?

Cashing out 10,000 shares gets you 40 bucks, without the fees.
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Considering that 12 months ago the shares were $5, I assume it's pretty much all dead money in there. If you bought $50K worth of shares a year ago and cash out now you get $35 (minus fees). You might as well let it ride on the tiny chance someone takes it private at a premium.

EDIT:
Today may be the day it officially dies. Average volume is 120M, today it's at almost 400M and climbing quickly. Price down 25% in an hour.
 
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GreyGhost said:
Yup. When I pulled the market cap it was at about 4/100ths of a cent. It's falling fast today.

EDIT:
Math fail. It's 3/10ths of a cent not 3/100ths.
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How much FARTHER could it possibly fall??????

I mean zero is still zero, and dropping below nothing is still impossible isn't it?

The stock certificates are LITERALLY not worth the paper they're printed on, yet the company is still operating?
 
xrljoel said:
How much FARTHER could it possibly fall??????

I mean zero is still zero, and dropping below nothing is still impossible isn't it?

The stock certificates are LITERALLY not worth the paper they're printed on, yet the company is still operating?
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I don't know who's buying the shares offered for sale. There doesn't seem to be much there. Given the low market cap, maybe someone is scooping shares to take it private and have the bike for themselves? Picking up a one-off prototype bike for $70K isn't a bad price. You may get equipment, IP and lots of others things in the deal too.

EDIT:
There are 158M shares outstanding. Volume since open has been 450M shares changing hands. Day traders trying to make hundredths of a cent on a volatile stock?
 
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GreyGhost said:
I don't know who's buying the shares offered for sale. There doesn't seem to be much there. Given the low market cap, maybe someone is scooping shares to take it private and have the bike for themselves? Picking up a one-off prototype bike for $70K isn't a bad price. You may get equipment, IP and lots of others things in the deal too.

EDIT:
There are 158M shares outstanding. Volume since open has been 450M shares changing hands. Day traders trying to make hundredths of a cent on a volatile stock?
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I don't think you want to take that company private.
The line of crediters is surely 10 miles long at this point.
I'm sure anything that could be moved out the back door is already gone.
 
Volume is over 800M today (average volume of 120M). Watching trades hit is weird. Eyeball math shows lows thousands to ~500K shares per trade. That is ~$10 to $1500 per trade. Even at $1500/trade if you sold after a 6% swing (which is not hard to get today), that is $100 minus expenses. If you are doing that tons of times a day, CRA will tax you as a business.

EDIT:
Ended the day with volume just under 1B (~7.5x normal volume) and a 26% drop. That drop was there in the first hour, the rest of the day was just oscillating.
 
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