ticker DJT

[Cheesy FL-Vol]

Apr 15, 2024 18:19:16 GMT -5 happyhoix said:

Ok, maybe a dumb question from a STEM major who doesn’t ‘know’ business - if your company stock is tanking, why create 21 million more shares of it? Clearly that will make the stock drop even more? What is the ultimate goal?

[pulmonarymd]

To screw people out of money to enrich Trump. Isn’t it obvious?

[djAdvocate]

Apr 15, 2024 18:19:16 GMT -5 happyhoix said:

Ok, maybe a dumb question from a STEM major who doesn’t ‘know’ business - if your company stock is tanking, why create 21 million more shares of it? Clearly that will make the stock drop even more? What is the ultimate goal?

this is actually something i know a lot about.  and i am 100% certain i know the answer to this question:

you create them to generate revenue, because you KNOW you won't be generating revenue through profit.

one of my favourite instruments in junior mines.  junior mines don't have ANY revenue.  the way you make money off these stocks is by assessing the value of the minerals they own (which they generally obtain through an IPO).  as the value of those assets increase, they increasingly become targets for takeover by SENIOR mines (companies that actually generate a profit).  WHEN that happens, the penny stocks can sell for dollars.  or, alternatively, you can spot something coming like a global lithium or uranium or copper shortage and buy the juniors in those fields.  those stocks generally move 2x as fast as the underlying commodity.  but since they have no revenue, they ONLY can continue operating by selling stock.

the same holds for Trump media.  they are banking on NOT having revenue.  they are bilking the public and lining their pockets. 

_BUYER BEWARE_ 

[djAdvocate]

a follow-on to the previous post:

one might speculate that the "asset" of DJT (Trump) would have some value to someone, and that this asset might increase over time. but here is why this investment WILL fail:

DJT will die. his health is already getting worse. he is fatter, more pale, and more delusional every day. he is less and less of a "good prospect" for appreciation. his peak was January 6th, 2017. he has been a bad investment ever since.

short this stock, or buy the PUT.

[happyhoix]

Apr 15, 2024 19:16:45 GMT -5 djAdvocate said:

Apr 15, 2024 18:19:16 GMT -5 happyhoix said:

Ok, maybe a dumb question from a STEM major who doesn’t ‘know’ business - if your company stock is tanking, why create 21 million more shares of it? Clearly that will make the stock drop even more? What is the ultimate goal?

this is actually something i know a lot about.  and i am 100% certain i know the answer to this question:

you create them to generate revenue, because you KNOW you won't be generating revenue through profit.

one of my favourite instruments in junior mines.  junior mines don't have ANY revenue.  the way you make money off these stocks is by assessing the value of the minerals they own (which they generally obtain through an IPO).  as the value of those assets increase, they increasingly become targets for takeover by SENIOR mines (companies that actually generate a profit).  WHEN that happens, the penny stocks can sell for dollars.  or, alternatively, you can spot something coming like a global lithium or uranium or copper shortage and buy the juniors in those fields.  those stocks generally move 2x as fast as the underlying commodity.  but since they have no revenue, they ONLY can continue operating by selling stock.

the same holds for Trump media.  they are banking on NOT having revenue.  they are bilking the public and lining their pockets. 

_BUYER BEWARE_ 

Well, that’s what it seemed like to me, but who would fall for that kind of blatant grift?

MAGA minions, I guess…

[djAdvocate]

Apr 15, 2024 19:27:49 GMT -5 happyhoix said:

Apr 15, 2024 19:16:45 GMT -5 djAdvocate said:

this is actually something i know a lot about.  and i am 100% certain i know the answer to this question:

you create them to generate revenue, because you KNOW you won't be generating revenue through profit.

one of my favourite instruments in junior mines.  junior mines don't have ANY revenue.  the way you make money off these stocks is by assessing the value of the minerals they own (which they generally obtain through an IPO).  as the value of those assets increase, they increasingly become targets for takeover by SENIOR mines (companies that actually generate a profit).  WHEN that happens, the penny stocks can sell for dollars.  or, alternatively, you can spot something coming like a global lithium or uranium or copper shortage and buy the juniors in those fields.  those stocks generally move 2x as fast as the underlying commodity.  but since they have no revenue, they ONLY can continue operating by selling stock.

the same holds for Trump media.  they are banking on NOT having revenue.  they are bilking the public and lining their pockets. 

_BUYER BEWARE_ 

Well, that’s what it seemed like to me, but who would fall for that kind of blatant grift?

MAGA minions, I guess…

i can think of a reason, if you are asking for a devil's advocate.

let's say you felt fairly sure that DT would get elected.  because of the emoluments clause, it is illegal for him to profit from being president.  however, he could use DJT as a conduit for "investment" profit, by funneling money through the equity to fund him personally.  since he already tested the waters in his first term by NOT putting his businesses in a blind trust, he now is emboldened to try this crazy grifting.

i can't honestly fathom how they will stop him from doing that.  this is a publicly traded company.  there are a dozen ways for graft to flow through it to Trump without it being detected.

[djAdvocate]

assuming you want to know why i am short on this:

i don't expect him to win.

[happyhoix]

Apr 15, 2024 19:35:39 GMT -5 djAdvocate said:

Apr 15, 2024 19:27:49 GMT -5 happyhoix said:

Well, that’s what it seemed like to me, but who would fall for that kind of blatant grift?

MAGA minions, I guess…

i can think of a reason, if you are asking for a devil's advocate.

let's say you felt fairly sure that DT would get elected.  because of the emoluments clause, it is illegal for him to profit from being president.  however, he could use DJT as a conduit for "investment" profit, by funneling money through the equity to fund him personally.  since he already tested the waters in his first term by NOT putting his businesses in a blind trust, he now is emboldened to try this crazy grifting.

i can't honestly fathom how they will stop him from doing that.  this is a publicly traded company.  there are a dozen ways for graft to flow through it to Trump without it being detected.

OH - kind of like how people/countries who wanted favors from Trump in his first term would rent a floor full of rooms at his DC hotel - and then promptly sold that hotel after he lost the election and he couldn’t run that scam anymore. 

I hadn’t even thought about that. 

DJ it’s a good thing you don’t lean to the Dark Side, you could be a great Villain with a capital V. 

[djAdvocate]

i could make so much money ripping people off. but i was raised on principles of goodwill to others. i ran my business for 20 years before i became the top earner. until then, it was our first employee- a second generation Chinese_American who graduated from JC with a technical degree in welding. he was our most valuable employee until we had enough people that i had to manage to make me more valuable. that didn't last long, as i started allocating my job to others and backing out the business as soon as that happened.

he is the #1 earner, again.

you either spend your life lifting people up and standing on their shoulders or tearing them down and feeding off their mortal remains, like a dog or a vulture. Trump is the latter kind of person. he should be nowhere near any enterprise than enables him to do so.

[tallguy]

Apr 15, 2024 19:16:45 GMT -5 djAdvocate said:

Apr 15, 2024 18:19:16 GMT -5 happyhoix said:

Ok, maybe a dumb question from a STEM major who doesn’t ‘know’ business - if your company stock is tanking, why create 21 million more shares of it? Clearly that will make the stock drop even more? What is the ultimate goal?

this is actually something i know a lot about.  and i am 100% certain i know the answer to this question:

you create them to generate revenue, because you KNOW you won't be generating revenue through profit.

one of my favourite instruments in junior mines.  junior mines don't have ANY revenue.  the way you make money off these stocks is by assessing the value of the minerals they own (which they generally obtain through an IPO).  as the value of those assets increase, they increasingly become targets for takeover by SENIOR mines (companies that actually generate a profit).  WHEN that happens, the penny stocks can sell for dollars.  or, alternatively, you can spot something coming like a global lithium or uranium or copper shortage and buy the juniors in those fields.  those stocks generally move 2x as fast as the underlying commodity.  but since they have no revenue, they ONLY can continue operating by selling stock.

the same holds for Trump media.  they are banking on NOT having revenue.  they are bilking the public and lining their pockets. 

_BUYER BEWARE_ 

Yeah, it's for revenue for the company so they can string out their ultimate failure over a longer period.  I know you know this dj, but for those who don't.... 

The company itself makes no money if people buy a stock that someone else owns.  All that does is redistribute money from the buyer to the seller.  The money only flows to the company if they sell new shares of stock.  In this case, I think I read it was up to 21 million new shares to be issued.  That money would go to the company, and they could limp along for a few more years while still losing a fortune.  Yes it will dilute the value of the shares currently outstanding, and current shareholders should hate the idea.  Fortunately for Trump, he doesn't give a f**k about them anyway.  And in fact, two of the co-founders filed suit against Trump Media for authorizing the issuing of a billion new shares of stock, which would dramatically dilute their holdings.  Even worse, they argued that some or all of those shares would be given to Trump or his buddies.  The co-founders were guaranteed a certain percentage of the company, and the issuance of those shares would destroy that guarantee. 

[djAdvocate]

Trump is also SAYING he will sue the major shareholders, saying that they didn't earn their shares (as if he did).

TG got it exactly right. they might make half a billion off that stock sale, and that might last them the better part of a decade, but i doubt it.

[minnesotapaintlady]

Well, the live TV streaming announcement helped for about 5 minutes before the markets opened. 

[djAdvocate]

it is down ANOTHER 10%.

shorting this thing would have netted you 70%, so far.

[djAdvocate]

i was thinking about buying this a month ago:

finance.yahoo.com/quote/DJT241115P00030000

it is now up about 20%. it was "out of the money" by $40, then. it is in the money, now. in fact, it looks like a bargain to me. the "value" of this option is currently about -$15. that means the stock needs to fall another $10 by November for the option to be worth holding. i would wager that could happen much sooner.

[djAdvocate]

DJT was -14% today. that put was +7%.

[djAdvocate]

Some DJT shareholders are Trump fans who bought in not as a principled investment but as a way of supporting their man. The Washington Post recently profiled a few of them, including some who feel anxious as they lose money and others who have faith that Trump has a big move up his sleeve. Media titan Barry Diller called such investors “dopes.”


finance.yahoo.com/news/trumps-campaign-is-going-the-way-of-his-media-company-211151954.html

[billisonboard]

Apr 16, 2024 19:21:54 GMT -5 djAdvocate said:

Some DJT shareholders are Trump fans who bought in not as a principled investment but as a way of supporting their man. The Washington Post recently profiled a few of them, including some who feel anxious as they lose money and others who have faith that Trump has a big move up his sleeve. Media titan Barry Diller called such investors “dopes.”


finance.yahoo.com/news/trumps-campaign-is-going-the-way-of-his-media-company-211151954.html

Trump will be making that big move in two weeks.

[djAdvocate]

he has big moves, but they are not up his sleeve. they are up his backside.

[Cheesy FL-Vol]

Apr 16, 2024 19:48:15 GMT -5 djAdvocate said:

he has big moves, but they are not up his sleeve. they are up his backside.

He may have out-farted himself in court yesterday with that "big move".

[djAdvocate]

DJT is having a nice dead cat bounce today. +10%

[djAdvocate]

for those of you not watching this, it had a nice rebound to $50+

it held that level to May 31st- the day that Trump was convicted of 34 felonies. in the 18 days since then, it has lost 1/3 of it's value. it is trading at around $34 this morning.

the first quarter report was absolutely horrendous. it lost $12M on less than $1M in revenue. it has $271M cash on hand, which gives them a few years to straighten it out. i suspect the stock will continue falling until at least June 27th, and probably until July 11th.

[djAdvocate]

i am changing my price target this year from $12 to "less than $10".
it hit $22 earlier, so i still think it has a long way to go.

[djAdvocate]

DJT fell 14% after hours, on an announcement that they are selling more shares to raise capital.

it is funny to read the company blurb on it. it is all roses and sunshine- something about raising capital to finance the corporate vision. i think that most people understand that the corporate vision means Trump selling 50 million of his shares, while his sheep take it in the shorts.

[billisonboard]

... it has $271M cash on hand, ...

... raising capital to finance the corporate vision. 

[djAdvocate]

down 15% today!

this is actually the FOURTH lowest close since the merger.
it will have to drop another 15% to break the record tomorrow.

i would not rule it out.

[djAdvocate]

quick aside:

you know what i love about the courts and the stock market? they don't generally tolerate bullshit at all. there are some exceptions, but they are rare.

[djAdvocate]

it made it to $25. now it is back up to $37.
we will see how the debate goes for Trump tonight.
i suspect it will not go well.

i just heard they will turn the mics off between questions.