ChargePoint’s Reverse Reckoning

Behold the tale of ChargePoint , the electric car charging company, whose shares plummeted 14.3% through 10:50 a.m. ET Monday morning after performing a 1-for-20 reverse splendiferous.

What is a reverse split?

Imagine, if you will, a sorcerer’s spell that takes twenty tiny pebbles and fuses them into one glistening gem. A reverse split is this very trick, but for shares of stock. Instead of multiplying your coins, it swallows them whole, leaving you with fewer, pricier tokens. Your treasure remains the same, but the coins now gleam with a gaudier sheen.

From a shareholder’s perspective, after this alchemy, you own fewer coins than before, yet they sparkle with higher value. Your true wealth, however, remains unchanged—like a magician’s rabbit, always hidden in the hat.

Why reverse split?

The reason? A dire plight! ChargePoint’s shares were languishing below the $1-per-share threshold, a perilous pitfall for any company seeking to dance on the New York Stock Exchange’s stage. To escape this doom, the company performed a most peculiar rite: merging 20 shares into one, thereby elevating its price to a lofty $10. A cunning ploy, though one that whispers of desperation.

Thus, the delisting dragon was pacified, at least for now. But mark my words: such tricks are but temporary bandages on a festering wound.

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Is ChargePoint stock a buy?

No, dear reader, it is not. For when a company cannot lift its stock through growth or profit, but instead resorts to sleight of hand, it speaks volumes of its frailty. ChargePoint’s reverse split is a sly fox’s tail, wagging to distract from the hollow core within.

It is, in truth, a most suspicious deal. A sell, I say—a cautionary tale for those who dare to chase fleeting glimmers over solid ground.

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2025-07-28 19:25