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WP: Trump Media co-founders sue company, alleging a scheme to dilute shares


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DJT stock is such an obvious loser that it's cost-prohibitive to short it.

 

https://finance.yahoo.com/news/why-shorting-trump-djt-stock-175000212.html

 

Why shorting Trump’s DJT stock could cost you a 500% fee

 

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To short a stock — the act of selling a stock without ever owning it, on the expectation it can be bought back later at a lower price — that stock first has to be borrowed from someone who does own it and is willing and able to lend it. The fewer shares there are available to borrow, the higher the cost to borrow them.

 

“There is very little stock available to borrow to support new short selling — less than 50,000 shares — and with demand to short this stock extremely high, we are seeing stock-borrow rates at 500% to 600% fee levels,” Dusaniwsky told Marke****ch on Tuesday.

 

Based on that data, to short 100 shares of Trump Media & Technology Group at the current price, it would cost between $24,895 and $29,874 a year. That means the stock would have to fall about 1.4% a day just to cover the cost of shorting it. And if the short were held for a year, the bet would still lose about $20,000 to $25,000, even if the stock price fell to $1.

 

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35 minutes ago, Fergasun said:

Even with it being the most shorted stock, it's crashing?

Are you sure it's the most shorted stock? There's no shares available to short. There was an article posted in this thread about the cost to short the stock due to the unavailablity of shares.

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I doubt it's the most shorted stock.  If nothing else, for there to be a lot of action on the option chain, there has to be healthy disagreement on the speculation dividing the masses on seller and buyer side of options.  Currently, almost everyone transacting in puts are gambling over when and how drastically it goes down, not on direction of the price action.  Add in the high potential of irrational price pump action by those who may view buying the stock as proxy support for Trump, the axium that market may stay irrational for longer than you can stay solvent has never been truer.  People shouldn't short the stock (except maybe extremely far out leaps at extremely low premium, if such are available), not because anything about the company fundamentals would support any valuation above penny stock levels, but because there is a high likelihood that price action of this stock would have no connection whatsoever with the realities of the company.

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I don’t know enough to know without invest more time than I care to, but i wonder if there’s money to be made taking a long position so you can collect on someone wanting it to short it (even with the loss on the long position)

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“There is a lot of great content that simply can't find an audience for unjust reasons, and we want to let these creators know they'll soon have a guaranteed platform where they won't be canceled.”

 

Yeah they can't find an audience because their content is **** and people don't wanna watch it. 🤣

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Here's how users on Truth Social are feeling about Trump Media's steep stock decline

 

Truth Social users are feeling glum about Trump Media's stock crash.

 

Users on the social media platform — referred to on the site as "Truthsayers" — have been buzzing about the stock's steep decline since it went public at the end of March. Shares of Trump Media have tanked more than 50% since March 27, with the stock dropping another 18% this week after the company moved to allow insider shareholders to potentially sell stock before the six-month lockup period is up. Shares declined further on Tuesday after the company announced that it would launch a streaming platform.

 

Reactions to the plunge on the social media site ranged, with some users expressing shock and dismay, to acknowledgment that the shares might not regain lost value. A few said the sell-off was evidence of a conspiracy to discredit the former president and tank his net worth.

 

"What is happening to DJT stock," one user said in a reply to a post from Donald Trump's official account, claiming they had invested their life savings into the company. "Please do something about the crash."

 

More conspiratorial Truthsayers have accused short-sellers of foul play, claiming that the share price has been artificially lowered somehow.

 

"Remain Calm," one user wrote on April 15, the day Trump Media shares plummeted 18%. "This drop was literally just someone selling 140k shares in 10 minutes premarket. This is extreme manipulation at best. There isn't a massive sell-off. It's one or a handful of people trying to cause panic."

 

"They'll do anything to discredit President Trump," another user replied. "God has different plans and will save the nations in HIS Perfect timing."

 

Other users blamed the Securities and Exchange Commission, as regulators did not pause trading of the stock during its decline. 

 

Click on the link for more

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Aside from the obvious, this is great news for another reason. With so many of his rubes putting their meager nest eggs into this legalized swindle, hopefully they won’t be able to donate to his campaign. Since even Tя☭mp isn’t dumb enough to donate to his own campaign, the stock is like a black hole for small donations. I hope all of them double down on the Lord’s chosen one. 

Edited by The Sisko
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1 hour ago, Cooked Crack said:

 

 

Because you generate less revenue than a Chick-fil-a franchise, Devin.

 

Your target market is limited and they aren't exactly the type that buys a new iPhone every year. You aren't going to have some boom of new users on your social media platform. Saying you're going to launch a streaming platform isn't the same as actually doing it. and, go ahead. Not all the people (numbers are dropping) that post on your social media platform are going to pay to stream your shows. How much a month are you going to charge? 

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CNBC: DJT stock plunges 8% as Trump qualifies for 36 million bonus shares

 

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    • Trump Media shares fell 8% ahead of an expected earnout bonus for former President Donald Trump.
    • Trump will receive an additional 36 million shares, worth about $1.15 billion, if the stock closes above a $17.50 minimum share price.
    • The former president's stake in the company will be worth about $3.7 billion with the earnout bonus

     

     

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