First off, let me apologize to all the used car salespeople for comparing them to Trump.
Trump’s media company loses a third of value after initial surge in tradingKnowing all the business failures why would you buy stock in any of Trumps businesses? Oh I know… he is your cult leader!
Stock has become actively shorted as traders are betting on company’s fall, and the ex-president’s stake is now valued at $3bn
Guardian
By Edward Helmore
9 April 2024Trump’s media company loses a third of value after initial surge in trading
Stock has become actively shorted as traders are betting on company’s fall, and the ex-president’s stake is now valued at $3bn
Donald Trump’s media and technology group, DJT, has lost about 36% of its value since it began publicly trading on 22 March, dropping the former president’s stake to about $2.8bn.
As of Monday afternoon, DJT stock was priced at about $36 – down from a high of $66 seen on 27 March. But market analysts are saying it’s too soon to draw any firm conclusions from the depreciation because the stock has become one of the most actively shorted on the Nasdaq exchange – meaning traders have been betting that it will fall.
And the value of Trump’s social media company now stands at where it was when Trump Media merged under a special-purpose acquisition company (Spac) deal with shell company DWAC earlier in March.
The value of DWAC, renamed DJT, initially soared over several days in its infancy as a publicly traded company, briefly boosting Trump’s fortune – on paper – to more than $6bn. But the company generates minuscule revenue ($4.1m last year) and no profit.
Some investors bought shares in DJT as way to show their support for Trump’s campaign for a second presidency in November, on which he has embarked despite facing more than 80 pending criminal charges for election subversion, retaining classified materials after leaving the Oval Office and hush-money payments.
Meanwhile, Trump himself has not been able to cash out. He is under a lockup agreement requiring him to wait six months – or until September – to sell his shares.
The company and some of its executives are already awash in legal claims. The transaction was approved despite a US Securities and Exchange Commission investigation of DWAC. And criminal charges have been filed against one DWAC executive accusing him of insider trading.
Two former contestants on Trump’s former reality TV series The Apprentice also sued, claiming that the ex-president was planning to dilute their stakes in the company. Trump has counter-sued, arguing that they do not deserve their stakes.
Former president Donald Trump’s social media company generated just $4 million in revenue last year - about as much as the average McDonald’s franchise in the United States, according to a report last year by the fast-food industry publication QSR.
But that hasn’t stopped Trump Media & Technology Group, which runs Truth Social, from granting Trump a share package now worth billions of dollars - or from paying its leaders millions of dollars in salaries, bonuses and stock, according to documents it filed with the Securities and Exchange Commission.
Can you say suckers to all those who bought the stock? Just look at his failures...
- Trump Taj Mahal casino resort in Atlantic City, which filed for Chapter 11 bankruptcy in 1991.
- Trump Plaza Hotel and Casino in Atlantic City, which filed for Chapter 11 bankruptcy in 1992.
- Trump Hotels and Casino Resorts, which filed for Chapter 11 bankruptcy in 2004.
- Trump Entertainment Resorts, which filed for Chapter 11 bankruptcy in 2009.
- Trump’s three golf courses reported $63.6 million in losses between 2010 and 2018.
- Trump Airlines (Trump Shuttle) - Defaulted on $1 million monthly loan payments and surrendered ownership to creditors in 1992.
- Trump Beverages (Trump Ice, Trump Fire, Trump Power, Trump American Pale Ale) - Most never made it to market, trademarks were abandoned.
- Trump Mortgage - Closed down within 1.5 years due to poor timing and hiring.
- Trump University - Notorious for fraud lawsuits.
- Trump Magazine - Went out of business.
- Trump: The Game - Board game venture with Milton Bradley that failed to meet sales expectations.
Yet people lined up to gobble up the stock knowing all of his business failures.
Glazing into my crystal ball I see lawsuits coming over the sale of the stock.
Most IPO's are a con. Not all, but most of them. Why do they almost always go public during market peaks, and then, markets correct, and every new offering crashes ? The worst one's over time were the precious metal mining stocks followed by the technologies.
ReplyDeleteAngel Amore