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POLITICS Trump Media shares plunge 17% with newly available DJT shares set to dilute stock value
CNBC ^ | JUN 18 20244:44 PM EDT | David Mangan

Posted on 06/18/2024 2:22:26 PM PDT by Miami Rebel

The stock price of Trump Media plunged by more than 17% in after-hours trading Tuesday after the Truth Social app owner said its registration of additional shares had been declared effective by the Securities and Exchange Commission.

Trump Media, which trades under the DJT ticker, had seen its share price slump by nearly 10% during the regular trading day.

The SEC’s declaration authorizes early investors in Trump Media to exercise public warrants they hold in the company, whose majority shareholder is former President Donald Trump.

Trump Media said up to 14,375,000 additional shares would be issuable upon the exercise of those warrants.

“If all warrants covered by the Registration Statement are exercised for cash, [Trump Media] may receive up to an aggregate of approximately $247 million in proceeds,” the company said in an SEC filing Tuesday.

“Additionally, $40 million of restricted cash on the Company’s balance sheet will become unrestricted as a result of the Registration Statement becoming effective. These funds would supplement the more than $200 million in unrestricted cash the Company now retains.”


TOPICS: Miscellaneous
KEYWORDS: 11; djt; hh2; mediastock; trumpmedia; trumpstock; truthsocial
The big long-term issue for DJT is revenue growth, but the short-term problem with the registration just announced is that current holders will be diluted now that the insiders have an opportunity to sell, and the concern that the new shares might get dumped on the market. I've never had a position, but I'd take a flyer below $20.
1 posted on 06/18/2024 2:22:26 PM PDT by Miami Rebel
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To: Miami Rebel

Looks like they dumped big time today. May see a move higher on Thursday when trading resumes.


2 posted on 06/18/2024 2:24:19 PM PDT by montag813
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To: montag813

The news was announced after the close, so I don’t think that insider selling has begun. There’s a possibility we saw some in the after-hours swoon, though that doesn’t seem cricket to me as the information hasn’t had enough time to be thoroughly disseminated.


3 posted on 06/18/2024 2:30:26 PM PDT by Miami Rebel
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To: montag813

I like a lower price, that makes it even easier to bet on their rise, especially as he returns to the White House.


4 posted on 06/18/2024 2:38:40 PM PDT by Robert DeLong
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To: Miami Rebel

Duh.. that’s normal in stocks

It’s not like its some sort of statement from the public or something...


5 posted on 06/18/2024 2:52:35 PM PDT by Mr. K (No consequence of repealing Obamacare is worse than Obamacare)
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To: Miami Rebel

Obviously, convicted criminal Trump’s various “businesses” have all been mis-managed incompetently-run frudulent enterprise, created just to swindle poor foks and small businesses.

The market is just catching up to this crooked enterprise. Chapter eleven must be close, because I WANT it to be close!

(How’m I doin’? Did I qualify to write for the Noo Yawk Times yet?)


6 posted on 06/18/2024 3:26:11 PM PDT by William of Barsoom (In Omnia, Paratus)
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To: Miami Rebel

Five days ago it was trading over $41.

Currently - $27

That is a 34% decline.

Ouch!


7 posted on 06/18/2024 3:28:52 PM PDT by zeestephen (Trump "Lost" By 43,000 Votes - Spread Across Three States - GA, WI, AZ)
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To: zeestephen

“When the streets are cryin’, you should be buyin’”


8 posted on 06/18/2024 4:55:01 PM PDT by Fireone (Who killed Obama's chef?)
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To: Fireone

Not sure it will dip to $20, but 22-23 is surely possible.
Sitting like a buzzard in a tree, watching.


9 posted on 06/18/2024 5:02:27 PM PDT by Fireone (Who killed Obama's chef?)
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To: Miami Rebel

This is a play on the election if you believe Trump will win even with share dilution you keep buying more on dips…if you believe the election will go the other way you bail on shares.
This is the ultimate boom or bust stock as like most other stocks in mass media it needs user engagement from people other then Trump I would be bet this beats earnings though in the next quarter with the election coming up.


10 posted on 06/18/2024 5:31:27 PM PDT by Lod881019
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To: Miami Rebel

And...?


11 posted on 06/18/2024 5:34:00 PM PDT by jmaroneps37 (Freedom is never free. It must be won rewon and jealously guarded.)
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To: Miami Rebel

Buy the dip


12 posted on 06/18/2024 5:34:24 PM PDT by halfright (Voter ID. No Exceptions. Paper Ballots and no voting before or after the election.)
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