Trump Media to fail?

[Gene2memE]

DJT Media stock closed at $22.84, down another 14% for the day. This is even with the company announcing it plans to launch a live streaming platform.

In early April, there was an article reporting that the interest rate for short sellers of DJT Media stock was above 550% (i.e, you have to annually pay 5.5 times the price of the stock in order to 'lend' shares for puts). For reference, the short interest on a healthy stock is usually 10% (or lower), and short interest above 20% usually indicates a company that is in trouble.

Market capitalization is currently about $3.1 billion. Based on financial results and peer comparison, future expected market capitalization of $50-125 million. Given the current free float of 39.6 million shares, the price will probably trend down towards somewhere around $1.50 to $4 per share.

 

[AlexB23]

Trump’s stake in Truth Social falls by $1bn after company reveals $58m loss

Shares in Trump Media dropped 21.5% as auditor discloses ‘substantial doubt’ over company’s ability to continue operating

www.theguardian.com

'The value of Donald Trump’s stake in Truth Social fell by more than $1bn on Monday after the social media company revealed it lost $58.2m last year and an auditor disclosed “substantial doubt” over its ability to continue operating.

While over $4m in sales marks significant growth from $1.47m in 2022, the previous year, it underlines the small scale of Trump Media’s operation – and the depth of its losses.

Net losses at Trump Media came to $58.2m in 2023.'

A high of $61.00 is now $48.66. Stay tuned...

Man, it gets worse. Now Trump's stock is at $22.84, according to the latest figures. It is fun watching Trump's businesses fail.

 

[Bradskii]

Well, if you consider the current case, attaching an expired state misdemeanor to a federal campaign fund charge from 8 years ago in an attempt to get criminal convictions in an election year when the defendant is actually running, utilizing as witnesses a prostitute (or shakedown artist, depending upon which iteration is accurate), a convicted felon for perjury (!!), and the National Enquirer as your witnesses to prove said crimes....you might be in the two standards demographic.

I guess if you hang around with hookers and employ people who need to perjure themselves to protect you from criminal proceedings then you run the risk eventually falling foul of the law.

And that's a novel defence: My client can't be charged because he's standing for office. Gee, I wonder if they'll use that...

 

[Trogdor the Burninator]

On the positive side, such a financial loss would be good for Mr. Trump's tax picture.

I've had to tell myself that a few times with some less than stellar stocks I've bought over the years - this year's loss is next years tax deduction!

 

[durangodawood]

Who here bought this thing?
And why?

 

[NxNW]

Trump Had A Public Company Before. It Was A Disaster.​

[Forbes] More than a quarter-century ago, the real estate baron took another company public, Trump Hotels and Casino Resorts, listing it on the New York Stock Exchange. The venture started with all the glamour and hype that you might expect from a 1995 Trump production. “This is such a big day for us,” Trump told a newscaster as his second wife, Marla Maples, looked on admiringly. Investors purchased $140 million of stock, betting on the business, yes, but also betting on the man. The ticker symbol for the company was DJT.

It didn’t take long for Donald John Trump to betray his shareholders, acting in ways that benefitted himself but harmed the larger business. Less than a year after taking the company public, he used it to buy one of his two other casinos, the debt-burdened Taj Mahal, in a deal that valued his stake at $40.5 million. The transaction improved Trump’s personal balance sheet, but the company suddenly had a disastrous amount of debt. As part of the agreement, Trump also collected $51 million of cash and $11 million of stock, in exchange for land that he had previously rented to the company for about 5% of that price annually. A couple of months later, Trump Hotels and Casino Resorts announced that it was going to pony up roughly another $500 million for Trump’s third Atlantic City casino. At the time, one analyst estimated that the property was worth more like $400 million, suggesting Trump was essentially robbing the public company of $100 million. Investors smelled a rotten deal, and shares plummeted 37% within days.

The self-dealing didn’t stop, though. In 1998, Trump treated himself to two personal loans from the company, taking out $11 million in one instance and $13.5 million in another. Trump Hotels and Casino Resorts racked up an estimated $13 million of expenses for things like entertaining at other Trump properties, using Trump’s personal planes and leasing space inside Trump Tower. Trump also collected lots of fees. He had one agreement that paid him based on the performance of a particular casino, but according to the deal, Trump had to “promptly” pay back the money if things went south. Things did go south, but Trump kept the $1.3 million. The publicly traded company eventually ended up crediting the missing funds against later earnings. In a different example, a separate Trump company collected $1.3 million as part of a “services agreement.” According to a document filed with the Securities and Exchange Commission, however, Trump’s separate company was “not required to devote any prescribed time to the performance of its duties” in order to collect the money. From 1995 to 2004, Trump personally received an estimated $50 million in fees, salaries, rents and so forth. Over that same stretch, the company lost $647 million. In 2004, it declared bankruptcy.

Trump retained his role as chairman of the company, which changed its name to Trump Entertainment Resorts, but he lost his job as chief executive. As part of a new services agreement, the firm still paid him about $2 million a year, more than the replacement CEO collected in annual salary. Trump also got the ability to nominate several board members. His 25-year-old daughter, Ivanka Trump, joined the board in 2007. For her services, Ivanka received $150,000 of cash annually. The company lost $189 million in 2007 and $232 million in 2008. On February 13, 2009, Ivanka and Donald Trump both resigned from the board. Four days later, the company declared bankruptcy again.

As we know, Trump went on to steal money from Trump University, and Trump Foundation. He admitted this in writing. And yet some people think he's actually a good businessman, when all he does is steal.

 

[Whyayeman]

Trump Had A Public Company Before. It Was A Disaster.​

[Forbes] More than a quarter-century ago, the real estate baron took another company public, Trump Hotels and Casino Resorts, listing it on the New York Stock Exchange. The venture started with all the glamour and hype that you might expect from a 1995 Trump production. “This is such a big day for us,” Trump told a newscaster as his second wife, Marla Maples, looked on admiringly. Investors purchased $140 million of stock, betting on the business, yes, but also betting on the man. The ticker symbol for the company was DJT.

It didn’t take long for Donald John Trump to betray his shareholders, acting in ways that benefitted himself but harmed the larger business. Less than a year after taking the company public, he used it to buy one of his two other casinos, the debt-burdened Taj Mahal, in a deal that valued his stake at $40.5 million. The transaction improved Trump’s personal balance sheet, but the company suddenly had a disastrous amount of debt. As part of the agreement, Trump also collected $51 million of cash and $11 million of stock, in exchange for land that he had previously rented to the company for about 5% of that price annually. A couple of months later, Trump Hotels and Casino Resorts announced that it was going to pony up roughly another $500 million for Trump’s third Atlantic City casino. At the time, one analyst estimated that the property was worth more like $400 million, suggesting Trump was essentially robbing the public company of $100 million. Investors smelled a rotten deal, and shares plummeted 37% within days.

The self-dealing didn’t stop, though. In 1998, Trump treated himself to two personal loans from the company, taking out $11 million in one instance and $13.5 million in another. Trump Hotels and Casino Resorts racked up an estimated $13 million of expenses for things like entertaining at other Trump properties, using Trump’s personal planes and leasing space inside Trump Tower. Trump also collected lots of fees. He had one agreement that paid him based on the performance of a particular casino, but according to the deal, Trump had to “promptly” pay back the money if things went south. Things did go south, but Trump kept the $1.3 million. The publicly traded company eventually ended up crediting the missing funds against later earnings. In a different example, a separate Trump company collected $1.3 million as part of a “services agreement.” According to a document filed with the Securities and Exchange Commission, however, Trump’s separate company was “not required to devote any prescribed time to the performance of its duties” in order to collect the money. From 1995 to 2004, Trump personally received an estimated $50 million in fees, salaries, rents and so forth. Over that same stretch, the company lost $647 million. In 2004, it declared bankruptcy.

Trump retained his role as chairman of the company, which changed its name to Trump Entertainment Resorts, but he lost his job as chief executive. As part of a new services agreement, the firm still paid him about $2 million a year, more than the replacement CEO collected in annual salary. Trump also got the ability to nominate several board members. His 25-year-old daughter, Ivanka Trump, joined the board in 2007. For her services, Ivanka received $150,000 of cash annually. The company lost $189 million in 2007 and $232 million in 2008. On February 13, 2009, Ivanka and Donald Trump both resigned from the board. Four days later, the company declared bankruptcy again.

As we know, Trump went on to steal money from Trump University, and Trump Foundation. He admitted this in writing. And yet some people think he's actually a good businessman, when all he does is steal.

Some people think he is a good man.

It is all a matter of judgment - or for many here, Judgment.

 

[RestoreTheJoy]

DJT Media stock closed at $22.84, down another 14% for the day. This is even with the company announcing it plans to launch a live streaming platform.

In early April, there was an article reporting that the interest rate for short sellers of DJT Media stock was above 550% (i.e, you have to annually pay 5.5 times the price of the stock in order to 'lend' shares for puts). For reference, the short interest on a healthy stock is usually 10% (or lower), and short interest above 20% usually indicates a company that is in trouble.

Market capitalization is currently about $3.1 billion. Based on financial results and peer comparison, future expected market capitalization of $50-125 million. Given the current free float of 39.6 million shares, the price will probably trend down towards somewhere around $1.50 to $4 per share.

And right now it is at $28.02 USD - I just looked out of curiosity. So now it is up.
Alert the media! Stocks rise and fall.

 

[Whyayeman]

And right now it is at $28.02 USD - I just looked out of curiosity. So now it is up.
Alert the media! Stocks rise and fall.

Hmm, the dead cat bounce?

 

[RestoreTheJoy]

Hmm, the dead cat bounce?

You aren't really interested, I see.

Never mind. Continue on joyfully crowing about the rise and fall of a stock - like that doesn't happen every day.

 

[Whyayeman]

You aren't really interested, I see.

Never mind. Continue on joyfully crowing about the rise and fall of a stock - like that doesn't happen every day.

I am not crowing. My view is that DJT stock is about as risky as it gets.

But for those who care to take the risk, why not put the farm on my new issue of shares in the gold mine I am digging at the bottom of my garden?

 

[RestoreTheJoy]

I am not crowing. My view is that DJT stock is about as risky as it gets.

But for those who care to take the risk, why not put the farm on my new issue of shares in the gold mine I am digging at the bottom of my garden?

Eh, probably. I decided to buy what Paul Pelosi buys...and guess what? That ALWAYS goes up, shockingly. But today it went down just a little.

That's the way it goes. Up and down.

 

[Whyayeman]

That ALWAYS goes up,

Well, the best of luck with that!