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Trump’s SPAC Is A Suckers Bet
FORBES ^ | 10/23/2021 | Chuck Jones

Posted on 10/24/2021 6:44:05 AM PDT by Presbyterian Reporter

Former President Trump announced on Thursday that a newly formed company, TMTG or Trump Media & Technology Group, would merge with Digital World Acquisition Corporation. Digital World is a SPAC or Special Purpose Acquisition Company that was formed in September and whose stock price had essentially been trading around $10 before the TMTG announcement. On Thursday the stock rose to $52 before closing at $45.50 and on Friday it hit a high of $175 and closed at $94.20.

Digital World (symbol DWAC) raised $299 million on September 8 when it sold 29.9 million shares at $10 each. It appears from TMTG’s press release that essentially all the money that was raised will be available for TMTG to use. The devil will be in the details with the soon to be published SEC filings.

Pushing a $20 billion market cap

Prior to Digital World’s IPO there were 6.25 million shares sold for $25,000 or $0.004 per share as Founder shares, which from reading the prospectus are owned by Patrick Orlando, Digital World’s CEO. After the IPO these shares are a bit less than 20% of all the outstanding shares.

After Digital World’s IPO it had just over 36 million outstanding shares. At Friday’s peak price of $175 it was valued at $6.3 billion and at its close of $94.20 was worth $3.4 billion.

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


TOPICS: News/Current Events
KEYWORDS: chat; chuckjones; clintonnonnews; concerntroll; digitalworldacquisit; dwac; forbes; mediawingofthednc; partisanmediashill; partisanmediashills; phunware; presidenttrump; socialmedia; spac; tmtg; trump; truthsocial
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Not surprisingly Main Stream Media is either ignoring the story about huge response to Trump's DWAC or is going out of their way to do a hit piece as Forbes has done here.

I did a search via Bing news this morning.

1 posted on 10/24/2021 6:44:05 AM PDT by Presbyterian Reporter
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To: Presbyterian Reporter

About the author Chuck Jones—
“”I provide independent research of technology companies””


In other words for those in Rio Linda, Chuck Jones does not have a job.


2 posted on 10/24/2021 6:50:38 AM PDT by Presbyterian Reporter
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To: Presbyterian Reporter

Forbes is currently owned by China.


3 posted on 10/24/2021 6:51:33 AM PDT by DesertRhino (Dogs are called man's best friend. Moslems hate dogs. Add it up....)
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To: Presbyterian Reporter

Forbes.

Congratulations. You made the list.


4 posted on 10/24/2021 6:51:38 AM PDT by Eddie01
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To: DesertRhino

Bump


5 posted on 10/24/2021 6:55:41 AM PDT by Track9 (Agamemnon came home to a HRC type party. )
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To: Presbyterian Reporter

The company has no revenue or earnings.

Does anyone think for a second that any programming or platforms created wouldn’t start generating revenue in seconds?

This event is more akin to funding by venture capitalists than an IPO.

I would think Forbes would know better.


6 posted on 10/24/2021 6:55:53 AM PDT by Vermont Lt
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To: Presbyterian Reporter

As Digital World’s IPO prospectus stated, “We have neither engaged in any operations nor generated any revenues to date. Our only activities since inception have been organizational activities and those necessary to prepare for this offering. Following this offering, we will not generate any operating revenues until after completion of our initial business combination.” Have fun with that. I am with the Forbes guy on this one.


7 posted on 10/24/2021 6:56:17 AM PDT by xcullen
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To: Presbyterian Reporter

Possibly but some people made some serious money last week. LOL.
I remember when the geniuses said buying things by mail would not beat going to store because the costs were too high.


8 posted on 10/24/2021 6:58:50 AM PDT by arkfreepdom
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To: xcullen

They should just buy out Gab and run with it.


9 posted on 10/24/2021 6:59:01 AM PDT by FreedomPoster (Islam delenda est)
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To: Presbyterian Reporter

I thought Chuck Jones was a WB cartoonist


10 posted on 10/24/2021 6:59:47 AM PDT by chajin ("There is no other name under heaven given among people by which we must be saved." Acts 4:12)
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To: Presbyterian Reporter
Not surprisingly Main Stream Media is either ignoring the story about huge response to Trump's DWAC or is going out of their way to do a hit piece as Forbes has done here.

IPOs generally have wide swings shortly after their offer because the markets thrive on rumor and hope. The fact that in one day Trump's company went from a high of $175 to a close of around $95 is meaningless. It will find it's real value soon enough. Going forward as long as the company meets its stated goals it should do fine.

11 posted on 10/24/2021 6:59:50 AM PDT by DoodleDawg
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To: Presbyterian Reporter
SPACs generally do not provide great returns for investors...here are some stats.


12 posted on 10/24/2021 7:00:07 AM PDT by mac_truck (aide toi et dieu t'aidera)
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To: Vermont Lt

The company has no revenue or earnings.

Does anyone think for a second that any programming or platforms created wouldn’t start generating revenue in seconds?

This event is more akin to funding by venture capitalists than an IPO.

I would think Forbes would know better.


An initial offering like this has lots of orders placed without price limits.

Sure, some sold at $175 but how many shares? The market eventually will speak.

Your points are good.


13 posted on 10/24/2021 7:00:35 AM PDT by PeterPrinciple (Thinking Caps are no longer being issued but there must be a warehouse full of them somewhere.)
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To: chajin
I thought Chuck Jones was a WB cartoonist

No, that was Bob Smith

14 posted on 10/24/2021 7:01:55 AM PDT by mac_truck (aide toi et dieu t'aidera)
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To: Presbyterian Reporter

Let’s watch the 90 day mark. In Olde Business classes, 90 days was the first mark, containing contacts, supply vendors, 1st advertising attempt, leasing equipment, and establishing a storefront.
This can be carried to the electronic front as well.

Considering some states have elections this November, the 90 days would be nominal for this observation period.


15 posted on 10/24/2021 7:04:06 AM PDT by Terry L Smith
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To: FreedomPoster

“””They should just buy out Gab and run with it.”””


The first two purchases by Digital World Acquisition Corp (DWAC) should be GETR and RUMBLE.

DWAC would immediately be in competition with TWITTER and YOUTUBE.

No matter what happens in the next few months, it will be fun to watch and chatter about.


16 posted on 10/24/2021 7:06:34 AM PDT by Presbyterian Reporter
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To: Vermont Lt
This event is more akin to funding by venture capitalists than an IPO

...or possibly a FReepathon that Wall Street is collaterally (sp?) helping to finance because they just don't "get it"

jmo

17 posted on 10/24/2021 7:14:11 AM PDT by Roccus (Prima di ogni altra cosa, siati armati!)
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To: Vermont Lt

Forbes is a deep state propaganda outlet. Has been for years.


18 posted on 10/24/2021 7:20:29 AM PDT by silent majority rising
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To: Presbyterian Reporter

This article means BUY BUY BUY. Forbes is a left-wing, Trump-hating whore of the Big Boys who did not get in on DWAC.


19 posted on 10/24/2021 7:24:21 AM PDT by montag813
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To: Presbyterian Reporter

Forbes was sold to a Chinese company, IIRC


20 posted on 10/24/2021 7:30:13 AM PDT by aMorePerfectUnion (Fraud vitiates everything ᡕᠵ᠊ᡃ࡚ࠢ࠘ ⸝່ࠡࠣ᠊߯᠆ࠣ࠘ᡁࠣ࠘᠊᠊ࠢ࠘𐡏⁻ )
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