THE ROARING KITTY
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An electric truck maker whose entire thesis hung on one government decision.
Workhorse was a retail favourite going into 2021, widely expected to win a major United States Postal Service contract.
The contract went elsewhere. The stock collapsed on the news, and the retail base that had built up around the story took the loss directly.
It stayed in the basket afterwards, trading on sentiment long after the fundamental catalyst had gone.
Concentrating a thesis on a single binary event means you are not investing, you are waiting for a coin to land.
The clearest lesson in the set about single-catalyst risk.