Executives at ‘‘Truth’’ are getting promissory notes for Honest Don. Yeah right, good luck with that!
A promissory note is a halfway house between an IOU and a loan agreement. It is a legally binding financial instrument that guarantees the holder a sum based on an agreement between two parties.’
But it says that it is a legally binding financial instrument. Surely Honest Don will honor a legally binding document, won’t he? lol They’ve been screwed more than Stormy was.
At least for Stormy it was over within minutes or possibly seconds. With these rubes, they have to deal with it day after day after day.
The other big difference is Stormy actually got paid.
On top of countries/people investing for future policy reasons, the other reason to invest would be that if trump wins he will make truth social the official news source of the government.
There would be immense value in the company if they are the only ones with access to the president/MAGA members of congress for 4 years. This would end up supplanting fox news. There is def value in the company if trump wins the election, then says all other news sources are fake/bias/the enemy of the people, and curtails access.
However, the stock is likely going to remain around $20 dollars per share until julyish. So there is no reason people would invest now.
The thing I dont understand for investors, is why is anyone putting any money into the company now. It is going to continue to drop until maybe november. Then people can see how the trials/polling/etc. is going.
Between now and november, Trump has much more at stake/wild cards than Biden. Between abortion laws being passed/Trumps criminal Trials/attack ads/etc. Biden has much more upside in the next 6 months vs. trump.
its going to be a close election, but the company stock prices are going to drop between november and now.
The other thing that people dont realize is that trump is going to sell most of his shares of truth social the second he becomes president. he will site previous calls for divestment, and say it is required. All of this will be a tax free windfall. After trump sells + collects on the windfall, he will likely reinvest on the tanked truth social - then implement it as the government’s news agency.
Exactly. I said earlier in this thread or another one that if he wins, this stock may be undervalued. Maybe by a lot.
I’m not sure “value” is quite the right term for what’s effectively a meme stock centered around a perpetually money losing business…but, yes, it could be a speculative instrument that takes flight again.
The thing I dont understand for investors, is why is anyone putting any money into the company now. It is going to continue to drop until maybe november. Then people can see how the trials/polling/etc. is going.
Nunes has a very positive take on all the speculators trying to take advantage of volatility, including massive short selling.
The most amazing part about our company, the retail investors. So when we went out to get this merger, we had it. It took a while. One of the reasons, not just the regulation, but we had almost 400,000 people, retail shareholders who had invested in this company. Now guess what’s happened over the last couple of weeks, we think we’ve added over 200,000 new retail investors. I would say there’s not another company out there that has retail investors like this
The thing I dont understand for investors, is why is anyone putting any money into the company now. It is going to continue to drop until maybe november. Then people can see how the trials/polling/etc. is going.
Short selling involves buying shares!
The cost to go short is unbelievable expensive.
The stock is plummeting in spite of highly constrained supply!
My guess:
Prudent and professional long investors (regardless of politics) know better.
Opportunistic professionals - want to short. But can’t get the shares at a sensible prive.
(Even if you believe DJT will be $0- very fast. The cost to short is still NOT sensible).
Trump can’t sell his shares yet.
In summary, it seems…
The current battle is between MAGA very, very faithful vs…
A) MAGA that want out already -
B) Improving liquidity for seller’s. That includes Trump himself (once his restrictions are lifted).
Trump’s powerful detractors are not even in the market yet!
Your B) is interesting market game theory. If the market 100% believes Trump will do a huge sell-off at the first opportunity, then the market, not being restricted in timing, will sell off before that point, crushing Trump’s share value.
Trump should try to convince the market he won’t…maybe won’t exceed X% share sale per month, or wait another year beyond the minimum.
Problem is Trump has little credibility. There is some % of pure cultists, like SDG’s fictional wife, but I bet even most diehard MAGA-sticker-types understand Trump well enough to balk at borrowing against their 401(k)s to bank on DJT.
This share price collapse kind of feels like a large shareholder is dumping stock as fast as they can. I don’t know how these insider lockup periods work, but given Cheeto’s propensity to flaunt every rule ever written, could he be dumping shares? Maybe he figures, “F it…let the SEC sue me. I’ll tie them up in court for years, and they’ll never be able to unwind this at that point anyway.”
This share price collapse kind of feels like a large shareholder is dumping stock as fast as they can. I don’t know how these insider lockup periods work, but given Cheeto’s propensity to flaunt every rule ever written, could he be dumping shares? Maybe he figures, “F it…let the SEC sue me. I’ll tie them up in court for years, and they’ll never be able to unwind this at that point anyway.”
No idea either - but fair point. Kind of the opposite of squatter’s rights. The first person to leave the house has a lot of leverage in the resulting court debacle.
Your B) is interesting market game theory. If the market 100% believes Trump will do a huge sell-off at the first opportunity, then the market, not being restricted in timing, will sell off before that point, crushing Trump’s share value.
Trump should try to convince the market he won’t…maybe won’t exceed X% share sale per month, or wait another year beyond the minimum.
Problem is Trump has little credibility. There is some % of pure cultists, like SDG’s fictional wife, but I bet even most diehard MAGA-sticker-types understand Trump well enough to balk at borrowing against their 401(k)s to bank on DJT.
Yes… I think most Trump supporter (who own the stock) want out - including Trump himself.
That’s why DJT is going down.
Huge constraints on selling are what is slowing the demise of the shares.
(One constraints - is that Trump can’t sell yet.
A second constraints- is that shorts can’t get their hands on the shares at a sensible cost).
This is really a fascinating and unusual situation.
I was looking at the stock trading $ graph and thought if I was riding my bike from East to West I wouldn’t want to climb that hill. Looks like an HC climb only backwards. Prolly go for disc brakes on the downhill too.
I was looking at the stock trading $ graph and thought if I was riding my bike from East to West I wouldn’t want to climb that hill. Looks like an HC climb only backwards. Prolly go for disc brakes on the downhill too.
And the market cap is STILL over $4B. Lots of money left to lose.
