Posted on 11/09/2021 9:51:16 AM PST by HKMk23
DWAC stock could be worth chance as the Trump SPAC is far from done
In an age where polarization is king, Digital World Acquisition Corp. (NASDAQ:DWAC) stock makes a lot of sense.
The special purpose acquisition company (SPAC) has agreed to merge with former President Donald Trump’s social media venture, Truth Social.
Truth Social is extremely interesting in and of itself. Essentially, investors who believe in its cause should have plenty of reason to consider purchasing DWAC shares.
(Excerpt) Read more at investorplace.com ...
The security opened below $13 on October 21st and soared over the next couple of days; spiking at over $130 24hrs later. Over the past couple of weeks it has found a groove, but known events looming as 2022 nears keep it attractive.
REFERENCE:
10/21/2021
https://freerepublic.com/focus/f-news/4005350/posts
10/22/2021
https://freerepublic.com/focus/f-news/4005563/posts
https://freerepublic.com/focus/f-news/4005907/posts
I bought it at $24 and sold it at $100 a few days later.
What makes you think it will spike again?
They should make a crypto coin for it. MAGAcoin.
If Truth Social has a successful launch next year then there is no reason why the stock prices shouldn’t go up. If the launch has problems - and there are tens of thousands of anti-Trumpers who are determined to sabotage it - then the stock can tank. Hopefully the monitors will be in place for the launch and the zot button ready and waiting.
Good move! You jumped in on the initial ascent and made a nice exit. Congrats on that 400% gain.
I maybe should have bailed when it hit the big spike the second day; perhaps I could have got 1000% return, but my IRA account has no margin trading feature so I would have had to wait for that trade to Settle before I could get back in. Plus, I haven’t been Day Trading, though I’m considering being more active. I’ve operated more on finding opportunities and going in for long periods. I have holdings in Delta and Southwest I picked up when they were on the skids during the big COVID Crash. They peaked and have settled back some, because COVID is still cramping our flying style, but I’m comfortable that they’re sound holdings. I must be some kind of contrarian though; Schwab gives them both “F” ratings. LOL!
I’m encouraged to see how DWAC performs when Truth Social goes live.
I am aware that all the usual suspects will pull out all the stops to try to thwart, minimize, harry, and harangue that event, but success in spite of those factors would see the security become more attractive; I think there will be a rapid move upward, followed by a “settle back” period where it will plateau at a higher value than it has today.
I’m invested for the long term, and the potential for another substantive uptick is just mo betta on my balance sheet.
It went over 100 and now its down to 57. Its worth somewhere in the 10 area. So don’t think its worth 5 times its value. And if you buy it here you are not getting in on the ground floor. You are getting in near the top floor and the elevator is going down.
If trump does run for office he will need to sell any shares he owns. So it will go down again. If it does get down below 20 you may give it a shot. But now its worth about 6 times its value.
How did you buy it? Online site?
Harassing hordes of "Redditors" organizing and gaming the security a la GameStop (GME) would be a credible scenario. I do tend more toward the thought that "real investors" versed in the market will see through the "meme" hyping of any specific security, and sustain it -- or not -- basis real world, underlying fundamentals rooted in company balance sheets. On that score, I think downside risk is low; there's a good floor at the security's recent trading range.
Also, having mentioned GameStop, the "meme stock" continues to trade over $200 even though real world analysis of traditional balance sheet indicators only supports a price point someplace between $40 and $70. The takeaway, as I see it, is that "meme mob" interference created volume and a psychologically-based perception of value that the balance sheet sustained with its hard numbers. Against the argument that such interference could as easily kill a stock as amp it I'm willing to bet that the human bent toward making money prevails; if DWAC gets the meme treatment, it will be the rare specimen among them whose political zeal will see them buying high and selling low in the face of upward fundamental pressures on the security.
Yes, of course this is all speculative, and we will definitely be forced to wait and see, but I think I have a decent basis for some good hope in future gains.
Book value is $10 per share. But media companies go for several times book value. DIS 3.68x book. If you exclude intangibles, DIS book value is $13.3 billion - in the red. NFLX - 18.84x book, tangible book $13.7 billion - in the red. Other media companies same. TWTR - 5.93x book - net tangible book $5.8 billion black. Market value - $42.5 billion.
DWAC - market value $2.03 billion - tangible book N/A. Was trading at $10 per share before hoopla, but no indication how much was raised for the company in the private and public offerings.
“If [T]rump does run for office he will need to sell any shares he owns.”
Barron’s reports, “In its merger agreement with a special purpose acquisition company, Trump’s media venture agreed to structure his role so that operations won’t get disrupted if the former president were to run for office...”
As I read that, a Trump run won’t mean a stock dump, because such a sell off would be disruptive. There’s another dimension to this, and it strongly hints that the structure will be held in some sort of an arm’s length manner that leaves Trump free and clear.
Later.
P
Seems to me that qualifying it as not disruptive to operations implies it could be disruptive to investors.
Fair point.
The actual structure of the deal will be of great interest.
Yes.
I moved my 401K money to Vanguard around the time of the Covid mini crash because I saw it as an opportunity to buy stocks. Vanguard makes it pretty easy to buy and sell stocks on line - I’m sure there are lots of other brokerages that do the same thing - I just picked Vanguard because my son had an account there.
I don’t usually do day trading like I did with DWAC - it just seemed to me like it was being driven by that day’s news cycle and that the price would come back down.
Mostly, I just invest in a stock and hang onto it through thick and thin.
I put 75% in their VTI which is like a stock fund that follows the S&P 500’but trades like an ETF. I put the other 25% in Tesla, but now it’s about 50/50 since Tesla did so well.
Spacs go public at $10 per share. They often sit there. They are basically a group of prvate companies that use the SPAC money to infuse them with capital. The companies have been selling to the SPACs at a high price (above book value.) Most SPACs hover around $10 until a company either shoots up in value or goes belly up. This one shot up to 10 times its original SPAC value. Now its 5.7 times that value. So its not a deal. We will see if it ever makes money.
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