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Analysis: From zero to $12 bln; investors chase Trump stock hype
Reuters ^ | 10/25/2021 | Krystal Hu and Anirban Sen

Posted on 10/25/2021 6:31:53 AM PDT by Presbyterian Reporter

Donald Trump has united some of his supporters and detractors in buying shares in his new company and hoping to score a big win. Anthony Nguyen, a 49-year-old software consultant from Austin, Texas, is a Republican who refused to vote for the former U.S. president in last year's election. Last week he joined the millions of online day traders who drove up the value of the company that will house Trump's new social media venture to almost $12 billion. The company's app has yet to be rolled out even on a trial basis, and Nguyen said he invested because he wanted to make a quick profit, not because he believed in the business. "Is Trump's social network going to work out? Probably not. But that doesn't mean you can't make money in the meantime," Nguyen said. Shares of Digital World Acquisition Corp (DWAC.O) have risen 842% since the blank-check acquisition company announced on Wednesday it would merge with Trump Media & Technology Group, which aims to launch a social media network called TRUTH Social. Trump Media was worth $8.2 billion based on the closing price of Digital World shares on Friday, while the company that would be created with the merger would have a close to $12 billion valuation. This assumes Digital World valued its shares in the deal at $10, as is customary for special purpose acquisition companies (SPACs). A detailed regulatory filing that will allow a precise calculation is expected this week. Many of the investors snapping up the shares are political supporters or fans of Trump. Shane Springer, a 28-year-old salesman from Norristown, Pennsylvania, is holding

(Excerpt) Read more at reuters.com ...


TOPICS: News/Current Events; US: Pennsylvania; US: Texas
KEYWORDS: alreuters; anirbansen; anthonynguyen; austin; ccp; china; digitalworld; digitalworldacquisit; dwac; krystalhu; norristown; pennsylvania; reuters; shanespringer; socialnetwork; spac; texas; trump; trumpmedia; truthsocial; unitedkingdom
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DWAC is up $25 one minute before opening bell

DWAC DIGITAL WORLD ACQUISITION CORP CLASS A COM $94.200.00 (0.00%) At close: Oct 22, 2021, 4:00 PM ET

Extended hours $119.54+25.34 (+26.90%)

1 posted on 10/25/2021 6:31:53 AM PDT by Presbyterian Reporter
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To: Presbyterian Reporter

“The higher the stock price goes, the more downside risk there is for investors,” Ritter said.


really?


2 posted on 10/25/2021 6:33:53 AM PDT by janetjanet998
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To: Presbyterian Reporter

Let me add—

I am surprised that none of the conservative bloggers and alternate news sites are writing about DWAC.

The Reuters news reporters claim that DWAC reached $12 billion market capitalization. That is not true. At its peak price of $175 DWAC was worth about $6 billion.


3 posted on 10/25/2021 6:35:00 AM PDT by Presbyterian Reporter
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To: Presbyterian Reporter
At its peak price of $175 DWAC was worth about $6 billion

The higher the price the better funded the new company will be and the greater chance of phenomenal success.

4 posted on 10/25/2021 6:37:09 AM PDT by 1Old Pro (Let's make crime illegal again!)
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To: Presbyterian Reporter

And don’t forget that everybody should go here and pre register

https://www.truthsocial.com/

Could you imagine if in the first month 50 million registered?


5 posted on 10/25/2021 6:40:47 AM PDT by Presbyterian Reporter
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To: Presbyterian Reporter

The Reuters news reporters claim that DWAC reached $12 billion market capitalization. That is not true. At its peak price of $175 DWAC was worth about $6 billion.


I am seen conflicting info on that

some say it is at 20 Billion..

it depends on how many shares are outstanding after the merger
37,000.000 now

but they will raise money at the $10 price... by issuing more shares

some say total share count could be 200 million after the merger so 200M times 100 is 20 Billion market cap


6 posted on 10/25/2021 6:44:31 AM PDT by janetjanet998
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To: Presbyterian Reporter

They HALTED it up only 15% in the first minute of trade. Then halted it again. I have never seen such blatant manipulation of a stock in decades in the market.


7 posted on 10/25/2021 6:46:40 AM PDT by montag813
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To: 1Old Pro
The higher the price the better funded the new company will be and the greater chance of phenomenal success.

Because that worked so well for Gamestop?

8 posted on 10/25/2021 6:48:37 AM PDT by DoodleDawg
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To: DoodleDawg
Because that worked so well for Gamestop?

Not the same comparison.

9 posted on 10/25/2021 6:51:55 AM PDT by 1Old Pro (Let's make crime illegal again!)
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To: 1Old Pro
Not the same comparison.
10 posted on 10/25/2021 6:54:11 AM PDT by DoodleDawg
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To: 1Old Pro
Not the same comparison.

In a lot of ways it is. You have a lot of people driving the price up for reasons other than financial. But then again a lot of IPOs have the same rollercoaster ride.

11 posted on 10/25/2021 6:55:41 AM PDT by DoodleDawg
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To: Presbyterian Reporter

I am unsure what to make of this stock. History tells me that it’s another Trump business deal and those usually don’t work out well for his parters. I look at how conservatives are being treated by the social media and see a real lack of places for conservatives to go. Fox News was created because nothing on the right (or even in the middle) existed. It now dominates cable news. After the shabby treatment that Trump and other conservative views received from social media I think a real opportunity exists for a Twitter/Facebook type (smaller off course) to exist in parallel to the larger SM. I threw a bit of money at the DWAC (200 shares) on Thursday. One thing that I have learned this year is that frequently the price for a stock has no relation to its financials or even earning potential. Gamestop would be exhibit A.


12 posted on 10/25/2021 6:58:11 AM PDT by doggieboy
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To: Presbyterian Reporter

I believe you are missing the difference between DWAC and the company it is funding.


13 posted on 10/25/2021 7:00:09 AM PDT by 9YearLurker
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To: Presbyterian Reporter

Nobody seems to care about the China connection. The new Trump company has already merged with Digital World Acquisition Group and, according to SEC filings, the CEO of Digital World, Patrick Orlando, is also the CEO of China Yunhong Holdings Ltd., a company that does nothing but mergers, securities transactions, asset acquisitions and stock purchases. It’s registered in the Cayman Islands with its HQ in . . . Wuhan, China. Talk about co-inky-dinks! And Truth Social has already been hacked at least once, the first time within hours of of its launch. With Trump, things are rarely what they seem, rarely what he would like you to believe.


14 posted on 10/25/2021 7:04:39 AM PDT by Blurb2350 (posted from my 1500-watt blow dryer)
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To: doggieboy

“””I am unsure what to make of this stock.”””


I share your sentiments. I bought shares of DWAC as my political contribution to the MAGA movement.

I can foresee great financial rewards if DWAC gobbles up conservative media like GETR and RUMLE to take on TWITTER and YOUTUBE.

On the other hand I can foresee DWAC not being successful.

That being said, my purchase was a political contribution and like all of my previous political contributions I have not received a return on my investment.

So I am no worse off than I always have been regarding politics.


15 posted on 10/25/2021 7:07:19 AM PDT by Presbyterian Reporter
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To: Presbyterian Reporter

And.....its gone.

It dropped a little at the open. For now.


16 posted on 10/25/2021 7:09:36 AM PDT by Vermont Lt
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To: Blurb2350

Nobody seems to care about the China connection.

One poster told me they have nothing to lose and nothing to hide as far as allowing the CCP which runs and manages Yunhong to have their data. Yunhong continues to climb.

Yet no one knows what this DJT product is and no one knows if the owners of the backbones and clouds will permit it on their networks.

I wager most of the eager-beavers for this stock and app have railed against China and the CCP, threatened to blow up 3 Gorges Dam etc, but have no problem with the CCP having their data because DJT is involved. Idiots.


17 posted on 10/25/2021 7:20:48 AM PDT by PIF (They came for me and mine ... now its your turn)
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To: Presbyterian Reporter

I can foresee great financial rewards if DWAC gobbles up conservative media like GETR and RUMLE to take on TWITTER and YOUTUBE.


Guess who is smiling at that thought? DWAC does not exist in a vacuum.


18 posted on 10/25/2021 7:23:01 AM PDT by PIF (They came for me and mine ... now its your turn)
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To: Blurb2350

https://en.wikipedia.org/wiki/Mastodon_(software)

That’s what the site is running on. It’s open source and if administered correctly, is secure. Evidently Trump doesn’t have people talented enough to admin it securely yet.

He should have just done something with Gettr.


19 posted on 10/25/2021 7:26:52 AM PDT by Pollard (PureBlood)
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To: Presbyterian Reporter

This stock is very hyped up (and rightly so). I am betting it will drop back below $50 on media-driven panic selling, then that will be the time to buy.

Any Freeper stock experts have an opinion on when to buy?


20 posted on 10/25/2021 8:07:51 AM PDT by UnwashedPeasant (The pandemic we suffer from is not COVID. It is Marxist Democrat Leftism.)
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