Last week, in a short series of thrilling stock market sessions, a tiny, all-but-unknown Australian maker of electrical equipment -- Tritium DCFC Limited (DCFC 0.05%) -- rocketed to stock market stardom. President Joe Biden appeared to make Tritium the centerpiece of his $7.5 billion plan to build a nationwide network of electric vehicle charging stations, you see. And before you knew it, Tritium stock had exploded 130% higher.
But easy come, easy go. Just two days after its run higher began, Tritium stock lost all its momentum and proceeded to plunge. On Monday, that slump continued, and as of 11:35 a.m. ET, Tritium shares are down another 10.2%.
On Friday, you see, after close of trading for the weekend, Tritium notified investors some shareholders may be preparing to cash in on those gains.
Filing an F-1 statement with the SEC, Tritium advised that insider shareholders may be preparing to sell 115.4 million shares of stock that they already hold, as well as 8.4 million warrants that confer the right to buy 21.8 million more shares.
In short, there's now the potential for more than 137 million shares of Tritium to soon flood onto the market and swamp demand for the stock, driving down share prices even more than they've already fallen.
Investors who've already seen almost all of their gains from last week washed away aren't interested in waiting around for the next flood. They're selling Tritium shares en masse. And given that Tritium is unprofitable and burning cash, and yet the stock still sells for a multiple of 25 times sales, I cannot say I blame them.