Fogbow

raison de arizona wrote: ↑Mon Apr 01, 2024 5:47 pm I dunno what you are all talking about, the sky's the limit!

Lansdowne wrote: ↑Mon Apr 01, 2024 1:47 pm If that figure is right, for every $13 fall in share price he loses $1 Billion. If it goes from the original $79 down to $40 that's $3 Billion. Dwindle may not be an adequate word.

No, Casa Centipedro is not even worth that much.

Dr. Ken wrote: ↑Tue Apr 02, 2024 9:13 am It's down 50 cents in the pretrading. Current ask is 48.16 a share. How low will it go today?

Trump sues his Truth Social partners after stock loses $4 billion in first week of trading

Former President Donald Trump was set to reap a multibillion-dollar payday from the initial public offering (IPO) of Trump Media and Technology Group (TMTG). But now, it looks like the stock could be worth a fraction of what it initially traded for by the time he can actually capitalize on it.

The stock (trading as "DJT" on the Nasdaq Composite) has already lost nearly $4 billion in value after its first week of trading, cheapening the value of Trump's shares in the company. As a result of the stock's poor performance, Trump has personally lost $1 billion in his estimated net worth as $DJT continues to crater. This has resulted in Trump lashing out at his partners in the business venture, attempting to zero out their shares as punishment for allegedly setting up the company improperly.

Bloomberg reported Tuesday that Trump sued Andy Litinsky and Wes Moss in Florida state court in an attempt to have the court give him their combined 8.6% stake in TMTG, which is worth over $600 million. The former president alleges that Litinsky and Moss botched the establishment of the company's corporate governance structure and mishandled its merger with a special purpose acquisition company (SPAC) earlier this year dubbed Digital World Acquisition.

"Moss and Litinsky failed spectacularly at every turn," the lawsuit alleges. "They made a series of reckless and wasteful decisions at a critical time that caused significant damage to TMTG and a decline in the stock price of its merger partner."

Trump's lawsuit in Florida comes after Litinsky and Moss filed their own lawsuit against the former president in Delaware Chancery Court in February. The two investors accused Trump of orchestrating a scheme to "drastically dilute" the value of TMTG's shares in what they referred to as "11th hour, pre-merger corporate maneuvering." While Trump initially had control of 90% of the company and had 78 million shares in the company, his business partners alleged that he tried to inflate the number of shares to one billion, which would have reduced their stake to less than 1% of the company.

"[Litinsky and Moss' company was] promised 8.6 percent of this company and sadly its business partners are baselessly trying to renege," attorney, Christopher J. Clark told the Washington Post in February. "They feel like: We made Truth Social for you. You get 90 percent. But some people just aren’t happy with 90 percent."

Trump's business partners alleged that the former president's schemed to artificially create new shares to possibly then give to himself and his family members. Prior to going public last week, the SPAC that facilitated TMTG's merger told the Securities and Exchange Commission that the pending litigation could "negatively impact investor confidence and market perception."

According to Bloomberg, the fact that Trump filed a lawsuit in Florida rather than countersuing Litinsky and Moss in Delaware angered chancery court Judge Sam Glasscock III, who may sanction Trump over the suit. Glasscock was reportedly "gobsmacked" at learning of the former president pursuing separate litigation outside of his courtroom.

While the litigation between Trump and his business partners may have played a role in the nosedive of TMTG's stock, the primary cause for $DJT plummeting by $4 billion in value was a recent filing with regulators. That filing stated that TMTG needed the SPAC's funding to remain operational, and that the company suffered $58 million in losses last year.

In raw numbers, Truth Social remains far below its competitors in the social media world, like Facebook, X/Twitter, Instagram, WhatsApp and TikTok. Truth Social is apparently not even counted among the top 100 apps on the Apple App Store.

raison de arizona wrote: ↑Tue Apr 02, 2024 6:56 pm

Trump sues his Truth Social partners after stock loses $4 billion in first week of trading

Former President Donald Trump was set to reap a multibillion-dollar payday from the initial public offering (IPO) of Trump Media and Technology Group (TMTG). But now, it looks like the stock could be worth a fraction of what it initially traded for by the time he can actually capitalize on it.

bill_g wrote: ↑Mon Apr 01, 2024 6:45 pm

Trump Media Is Not a Meme Stock. It’s a Cryptocurrency
Investors aren’t buying DJT for future cash flows.
John Rekenthaler
Mar 28, 2024

https://www.morningstar.com/stocks/trum ... meme-stock

Stage Number Five: Cryptocurrency
Many observers have called Trump Media a meme stock, but the label does not fit. Meme stocks consist either of established firms that have stagnated, such as 2021’s stars, or they are growth stories, as with this year’s heroes. In either case, meme-stock investors care about their companies’ business operations. When I wrote in January 2021 about GameStop GME, several shareholders quarreled with my assessment of the company’s prospects. But business results are not the issue with Trump Media. If they were, the DWAC transaction never would have been consummated, and DJT stock never would have come to market.

Trump Media is instead a cryptocurrency. As with bitcoin, people buy Trump Media not for future cash flows but because: 1) they expect its price to rise, and 2) they feel an affiliation for the asset. Bitcoin owners are members of a club. So, too, are Trump Media investors, to an even greater degree. For them, DJT shares represent a currency by which they can express their beliefs and commitment.
Which is why I will make no forecasts about Trump Media’s stock price. In January 2022, I offered my view on DWAC, correctly as it turned out. I will not make a second attempt as the normal investment rules no longer apply. Predicting DJT’s fortune is like predicting the direction of bitcoin. Others may try, but not me.

Update
When this column was originally published, I stated that Trump Media & Technology Group’s DJT annual revenue had “plateaued,” which is terrible for a company that was only in its second year of operations. As it turns out, I was too kind. SEC filings on April 1 revealed that after treading water in the third quarter of 2023, Trump Media’s revenue dropped sharply in the fourth quarter. During the first nine months of the year, the company’s sales were an annualized $4.5 million, but in the final quarter, they sunk to an annualized $3.0 million.

The market’s reaction has cast doubt on my claim that Trump Media is a form of cryptocurrency, owned by people who do not expect the business to ever generate cash. Per that logic, Trump Media’s operational results are beside the point because everybody realizes that the company lacks meaningful business prospects. Yet the stock has lost 25% of its value since the filing was released, suggesting that Trump Media shareholders do, in fact, care about the business results.