Why Lithium Americas Stock Tumbled in December
Reversing much of its gains from November, lithium stock Lithium Americas (NYSE: LAC) tumbled 25.9% in the month of December, according to data provided by S&P Global Market Intelligence. Lithium prices continued to soar, and Lithium Americas was busy building a cash pile, so why did its shares sink?
Lithium Americas shares dropped sharply the very first day of December as investors took note of the company's latest move to raise debt. Lithium Americas raised $258.75 million in debt in the form of convertible senior notes in a move investors couldn't seem to understand given that the company was already flush with cash -- it held cash and cash equivalents worth nearly $482 million at that time.
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Source Fool.com
