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And is still valued way too high
He still has like 5 months before he can sell his shares and make money.
Not sure if it'll be before or after the election, but right now valuation only matters if some bank is dumb enough to use the shares as collateral on a loan.
Unless the board allows him to sell before the six-month mark. And considering the fact that the board is made up of his children and other sycophants, there’s a 100% chance they allow it if he asks. He just has to determine if he wants to sell a major stake in the company and potentially tank the stock, which I don’t think he’s shy about doing.
I really thought the 6 month thing for IPOs was a law...
But I really don't know, I just no it was a weird and probably not intentional loophole when redditors were able to immediately sell their stock they got before the IPO.
Like. I don't think its a "good faith" thing, if you get in before the IPO because you work for the company, theres no way around the wait.
But I might be wrong
The stock wouldn't be subject to IPO laws because there was no IPO.
Trump Media 'went public' by being bought by another, already publicly traded, company. That company changed its appearance to become the current Trump Media thus bypassing the IPO process.
...and bypassing a whole bunch of SEC oversight, which is why they did it that way.
I heard it mentioned that even if the board approved an early sale for Trump, the company may still be in trouble for failing it’s duty to share holders (since allowing a Trump dump would pretty much finish off the company).
I am also learning here, but I always thought that any short positions or intended divestures had to be part of the prospectus. Otherwise the principals are open to a flurry of lawsuits. Not that those would scare him.
There was no prospectus.
Bank of Putin has entered the chat. This is all a gigantic money laundering scheme.
Trump is Trump Media’s biggest shareholder, with 57.3 percent of the company, or 78.7 million shares — a stake worth about $2.9 billion based on the stock’s closing price Monday.<
Through an “earnout” provision, Trump stands to receive another 36 million shares if the price stays above $17.50 for 20 days, which could happen as soon as April 26 and would raise his total stake to $4.2 billion.< https://www.washingtonpost.com/technology/2024/04/07/trump-media-truth-social-payout/
I got my eye on that April 26 date. We're on track to see the mustard hit the wall on that day. God speed the short sellers!!
Hey! How else is Putin's Cock Holster supposed to get his rubles!!? Actually do proper business?
Pffft. As if.
This is one of Trump's biggest grifts.
The stock market is reality and Trump's minions have just received the most expensive reality check of their miserable lives.
However strong is my desire for DJT to tank, the statement "stock market is reality" does not reflect the said reality. It is the definition of fantasy, where valuations are driven by nothing fundamental. Only beliefs and expectations matter, and these change daily. Say, if Trump actually manages to win the election - and there is a terrifyingly high chance for that, - this joke of a company can actually skyrocket in valuation, as someone with money can try to buy his favour. Not that it will hold high for long, of course - just saying that manipulation is a reality (see what i did?).
It's only a matter of time before Trump complains that Biden and his Tech Bro friends are manipulating DJT's stock price to hurt him politically....
You love to see it, folks.
he only took this company public so that he could short the stock
And he can't sell it for 90 days, so everyone else gets to short it and leave him with dust lol
What? No.
Trump owns (iirc) about 58% of the shares in the company. He wants the price to go up. He at least wants to have the price up when his sell window is open (although a big sell off will crater the price because it both puts more shares on the market and because it signals disinterest/lack of faith).
Short sellers don’t own shares in the companies they’re shorting (with a couple of exceptions for hedging purposes). They borrow shares via their broker to sell XYZ at $50 and then buy the actual shares when XYZ hits $40.
The short interest in the company is insane, from everything I’ve read. It seems like most of the market is betting on it going down in flames probably this year.
Still, Trump’s going to walk away with what’s at least a billion or two. We need better regulation.
Would that not be illegal?
highly.. that's why he went to a shady Russian "bank" to get enough money to keep that miserable failure afloat long enough to be traded openly.. he and his Russian pals are using proxies to short it, because that's how you make BIG money FAST.. and it's perfect, because he's going to leave a bunch of True Believers holding the bag for it..
It entered the year worth $17/share, now it's worth $37/share. Yes, it was always insane to say it was worth more than Reddit but it's similarly not a flex when the valuation goes down from being worth more than Reddit to...still a lot of money.
Graph looks like a pump'n'dump to me
Damn, I should have shorted it.
More than a few did
So, what's stock in a company that loses ten time what it makes worth?
this post was submitted on 09 Apr 2024
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