Shares of Landcadia Holdings (LCA) are taking another hit on Thursday, following a $2 drop on Wednesday. But why is LCA stock going down? For the same reason it went up. When LCA was going up entire market was going up and everyone felt like they will miss out on this opportunity so even more money flooded the market.
This pushed the stock prices even more, especially the ones connected with SPACs. The biggest SPAC winner 2 months ago was Nikola (NKLA) stock. Everyone thought how SPACs are the easy way to get the retirement money in a couple of months.
But following Nikola scandal everything started to change. And since bad news always come in groups Tesla (TSLA) disappointed with their Battery Day and Apple also went south (lost $30 per share since September 1st). When big Tesla and Apple lose value, stocks in their niche lose value as well, especially if there is no good news on the horizon.
Good news for LCA stock would be a vote of approval for merger with Golden Nugget. So, even if Golden Nuggets revenue is skyrocketing, this means nothing as long as there is no merger news. Besides no-news, fear is also pushing the shares down.
Now, the question is- How deep is your pocket? Can you afford to keep the stocks until they rebound? Or, can you afford to sell stocks now, with prices already down that much?