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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsTrump's Unbearable Temptation to Dump His Truth Social Stock
https://newrepublic.com/article/180205/trump-dump-truth-social-stock-unbearable-temptationNo paywall link
https://archive.li/9b97z
Remember in Godfather II when the mobster Hyman Roth tells Michael Corleone, his co-investor in President Fulgencio Batistas Cuba, Michael, were bigger than U.S. Steel? U.S. Steel is no longer the colossus it was in 1958, when that scene takes place. But it still caught my attention when The Wall Street Journal reported Tuesday that the valuation of Donald Trumps Truth Social was almost as big as U.S. Steels. This was the very first day of trading for the apps parent company, Trump Media & Technology Group (ticker symbol: DJT), when the stock price rose 56 percent to $78 per share; it closed Wednesday just south of $70. Thats a remarkably strong performance for a money-losing social media platform.
You may recall from Godfather II that the Mafias stake in Cuba is abruptly reduced on New Years Eve by Fidel Castro to zero. DJT is similarly unstable. Jay Ritter, a finance professor at the University of Florida, told CNN that if the companys stock reflected its actual value it would be priced not at $70 but at $2. The large mismatch between stock price and stock value will sorely tempt the cash-poor Trump to sell off a significant portion of his shares, in a potential maneuver that I believe I am the first to label Trump and Dump.
How worthless an investment is Truth Social? Looking at what killjoys call the fundamentals, the platforms monthly active users fell 51 percent in February compared to the previous year, down to a very modest 494,000. Facebook, Twitter, and even Threads all have monthly active users in excess of 100 million. If Trumps poll numbers followed the same trend as Truth Social traffic, Nikki Haley would today be the Republicans presumptive nominee.
DJT is what brokers call a meme stock and what the rest of us call a sucker bet. Meme stocks, of which GameStop is, in the words of The Streets Martin Baccardax, patient zero, resemble internet memes in their volatility. Whens the last time you watched Charlie bit me? Probably not long before GameStop was last judged a plausible investment. To give you some sense of the culture behind the meme-stock phenomenon, meme-stock investors refer to themselves as apes. Apes can make money with meme stocks because, with the right mixture of tactical skill and dumb luck, you can make money with anything. But most apes end up like that poor bastard who gets his skull bashed in at the start of 2001: A Space Odyssey. The Securities and Exchange Commission would really prefer that you dont invest in meme stocks.
*snip*
He'll burn it all down and take all of the money from the cult morons. Then he'll tell them he did it for their own good and they'll applaud.
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Trump's Unbearable Temptation to Dump His Truth Social Stock (Original Post)
Nevilledog
Mar 28
OP
Ohio Joe
(21,756 posts)1. " and they'll applaud"
That is exactly what makes it a cult. tfg has openly scammed them many times and they applaud him every time. Its fuckin weird.
SergeStorms
(19,201 posts)2. Trump's big donors.....
have found a new way to get Trump's attention. Buy massive blocks of his shitty stock, driving the price sky high, and then that'll pad his pockets with money! Foolproof!
The golden rule: them that have the gold make the rules.
NickB79
(19,243 posts)3. Pump. And I can't emphasize this enough......
Dump.
Walleye
(31,024 posts)4. Donald, no matter how much wealth you acquire you will still have to die someday
I think he really believes he can buy off the Grim Reaper with enough money
Best_man23
(4,898 posts)5. All of P01135809's "businesses" engage in accounting irregularities
And in the investing world, there is a pretty firm rule that says "Accounting Irregularities = SELL."
In this case, don't buy.
kimbutgar
(21,148 posts)6. I bet he is short selling the stock he owns right now and will make the profit back when the stock drops and
He buys it back to cover his short. I wouldnt be surprised if he has an alias account somewhere.