Trump Media Stock plummets: a joyous financial disaster

nbc GIF by Timeless

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Best known (the GIF nicely explains why) but “only” the fourth worst Zeppelin disaster.

Something, something, rookie numbers - Trump Media Stocks need to crash and burn so hard the resulting crater makes look Darvaza like a cozy camp fire.

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Well, sorta…
But the Hindenburg was a disaster. This is more comedy/drama/morality play. The tears are minimal.

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Forbes just called it. Sell you cowards!!!

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The bottom line: Protect your capital by selling now

Protecting your capital would’ve been not buying it in the first place.

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ross perot GIF

“That giant sucking sound you hear? That’s your daddie’s retirement going right into the pockets of New York day traders.”

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tears-cry

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I feel a little bad about how much joy watching this rock plummet is giving me. I mean, gravity works, loads of shit will fall, but this one is particularly enjoyable. And the redolent splat when it hits the ground will be particularly satisfying. I feel pretty safe that I won’t get splattered myself, so, you know, bombs away!

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Oops! Trying to pump the stock like that could open up his personal liability.

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Yes, clearly illegal, but when has Trump ever refrained from speaking/acting/grifting just because it was illegal?

Buying shares of DJT stock to support Real America will soon be the main message of his stump speech.

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any idea what these words mean?

  • Still-open new million-share spigot from the convertible securities and contracts that are converting

  • Highly diluting “bonus” 40M share issuance if the stock can remain above $17.50 for 20 of 30 days

i mean, i guess i’m familiar with all of them individually… just not in this particular arrangement.

oh! oh! i understand this one! :slight_smile:


eta, i asked brian. and well, it’s certainly more words.

Sure, I’d be happy to help explain the term!

In this context, “still-open new million-share spigot from the convertible securities and contracts that are converting” refers to the ability of investors to convert their holdings (such as convertible bonds or contracts) into a larger number of shares of Trump Media Stock. In this case, the conversion is producing an additional million shares. The use of the term “spigot” suggests that these conversions are likely to have a significant impact on the supply of available shares, and thus potentially on the stock price.

The “highly diluting ‘bonus’ 40M share issuance” refers to a situation where the company may issue an additional 40 million shares of stock, diluting the value of existing shares. This issuance is conditional on the stock price remaining above $17.50 for at least 20 of 30 days. If triggered, this issuance could potentially dilute existing shareholders’ ownership in the company by as much as 50%.

It is worth noting that both of these mechanisms can have a significant impact on the value of existing shares, potentially leading to significant losses for shareholders. It is important to carefully consider these risks before investing in any stock, especially in volatile markets.

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Elon Musk got himself into trouble that way, and he can afford good lawyers when he wants to pay for them.

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The Scorpion Stinging People Party.

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“I never thought the scorpion would sting my face!”

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He suspects the recent drops in share price have been the result of “stock manipulation” from an “organized effort” to make the company look bad.

As opposed to an “organized effort” at “stock manipulation” to inflate the price and make the company look good.

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Came to post that same quote, but a bit longer:

He suspects the recent drops in share price have been the result of “stock manipulation” from an “organized effort” to make the company look bad. There’s no proof of such a campaign, but Schlanger is convinced. “It’s got to be political,” he said, from all the “liberals that are trying to knock it down.”

Just gotta love their worldview of basically everything. If they’re doing well, it’s due to hard work and fortitude, they earned it, by golly.
But if they’re doing poorly, it’s due to nefarious outside forces they have no control over, and it’s so unfair!!!
But if others are doing poorly, they’re obviously lazy ne’er do wells, of course. :roll_eyes:

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The small investors in this stock are using cult logic, not financial logic. There’s no reason to feel bad for them. They need to learn that Fearless Leader is not God.

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For those who want it.

(TLDR: More stock plummeting to come)

Here’s a bit more detail that I have been able to glean from articles in Forbes, Business Insider, etc.

There are two ways the number of shares are going dramatically increase in the next two weeks. (This does not include the shares locked up by TFG and the other owners for 6 months)

First, there are warrants you can buy today that give you the right to buy the stock for $11.50 thirty days after the merger. So around April 25th. Currently these warrants (stock symbol: DJTWW) are trading at $13.69 which implies a value for the stock at $25.19.

Second, there are 40 million bonus shares that get distributed (I think mostly to TFG) if the stock price stays above $17.50 for at least 20 trading days out of the 30 days after the merger. We just passed day 18.

I do not know the exact timing if when the bonus shares are distributed, but it is fairly quick and they can be sold without any restrictions, aside from normal SEC disclosures, which might be after the fact. (IANA securities L)

The option market was pricing in a big drop in the next two weeks last time I checked. Put options, which give you the right to sell the stock for $30 were showing a larger than normal jump in price between the April 19 and April 26 expiration dates.

ETA: Both the bonus shares and shares from the warrants can be sold right away.

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Thin line, though. Have you ever talked to (or have been talked to by), at length, an economist?

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