Posted on 04/15/2024 6:47:54 AM PDT by Reno89519
Shares of Trump Media plunged more than 17% in the pre-trading hours after the company filed to issue millions of additional shares of stock.
...
Shares of Trump Media plunged more than 11% on Monday after the company filed to issue millions of additional shares of stock.
Trump Media’s dramatic slide came as Donald Trump headed to a Manhattan court to begin jury selection for his criminal trial on hush money-related charges. Trump is the majority stakeholder in the company.
Trump Media, which created the Truth Social app and trades under the stock ticker DJT on the Nasdaq, fell nearly 20% last week.
The company’s intent to issue more common stock was made public Monday morning in a “preliminary prospectus” filed to the Securities and Exchange Commission. The shares cannot be issued until a registration statement with the SEC goes into effect.
The filing describes a plan to offer more than 21.4 million shares of common stock, issuable “upon the exercise of warrants,” the filing shows. Stock warrants give their holder the ability to buy shares at a predetermined price within a certain time frame.
The closing price of Trump Media’s warrants was $13.69 as of Friday, according to the filing. The warrants are being traded on the Nasdaq under the ticker “DJTWW.” That ticker was down more than 8% before the market opened Monday.
The company also seeks to offer the resale of up to 146.1 million shares of stock from “selling securityholders,” 114.8 million of which are held by Trump himself. Trump owns 78.8 million shares of the company, and stands to obtain 36 million “earnout shares” if the stock stays above a certain price for enough trading days.
(Excerpt) Read more at cnbc.com ...
Apparently, folks have no bloody idea about IPO’s. Never heard of one where stock price did not drop immediately after issuance. This is one reason why when you buy in you may not sell for XX days. Unless you are connected.
Yes Biden has ruined everything that Trump made good for the the country and it’s people and worthwhile for the future.
Biden’s stupidity is why he believes in the the communist agenda he like Jane Fonda believes communism has failed is because they didn’t embrace it.
He has the same mind set that he alone can make it work.
Stock in its wildest dreams was never an $80 stock.
Yes, its not unusual for a tech company to be losing money when it goes public, but this thing only had $4M in total revenue last year... which is just ridiculous.. I mean the average McDonalds Franchise has about 3.5M in revenue.
I really don’t have any idea who was buying this stock at that price, but they are going to have to wait a long long long time before they will be breaking even on it, if ever.
With that kind of Revenue stream, I really gotta question who’s running the ship there. With reports of about 5 Million members, it isn’t even generating $1 per member in annual revenue.
I know when they went live the focus was getting it stable and scalable, because of the fustercluck that was the launch, but that was 2 years ago, so in the time since what has leadership been doing?
Clearly the buyout/partnership was a good deal for the folks who had equity, but sure doesn’t seem to me that any focus at all has been spent on the actual fundamentals of the business itself.
Or course will it survive once Trump is out of the limelight? I honestly don’t know if it will survive Trump’s second term.
And note all of the lawsuits among staff and stockholders, the immediate after stock public date of bad financial news, and more.
This is all setting Trump up for embarrassment. Unnecessary, another bad hire.
The gang’s all here!
Not unless u get out on the way up
Data:
Trailing Twelve Months Sales about $4 million.
TTM income about ($40 million loss).
There is no historical comparison to prior years because the company is new.
Shares outstanding about 100 million (at a price of $27) so a market capitalization of the company is $2.7 billion.
Debt about $4.6M
Assets on hand $11M.
Many of these numbers predate the IPO and flow of cash to the company from it. A $40M loss TTM out of that market cap defines a not very rapid burn rate.
Frankly, they could invest $1B of the market cap in 5% short term gov’t instruments and earn $50M just from that, excluding the inevitable advertising revenue that should ramp as the company gets underway.
The numbers do not look like anything but Never Trumper hype. $40M loss is insignificant against $2.5B market cap.
bunch of freaks on FR wishing bad for conservatives and DJT.
this filing was ALWAYS part of the equation and has to do with shares and warrants that were outside the original pool.
because principle matters, that’s why
Nunes has been horrible. He failed to launch an Android app for the #1 platform for months after the site was opened for public signups.
He has been a disaster, not much different than the original two jokers who came up with the idea, whom Trump is suing now for their failures.
Luckily, the people at Rumble were able to step in and handle all the technology, but it’s still got occasional promises.
I also have to say that I think Elon Musk bought Twitter to hurt Truth Social. Most people sign up for social media websites to get as big of an audience as possible. Even though he still censors people, there are a lot of people who have come back to Twitter who might have been on an alternative but for Elon.
The handicap in shorting DJT is that the cost to borrow is extraordinarily high. A couple weeks ago the borrow rate was 30%.
“Never heard of one where stock price did not drop immediately after issuance.”
PACS went public Wednesday at $21. It’s $24 this morning.
Reddit (RDDT) is selling at 10x trailing revenues. DJT, even with its sharp decline, is selling at over 1000x.
I think that the company can be viable long-term, but the stock price makes no sense.
As a practical matter DJT is not a stock to buy to make money. Shouldn't lose either. Better, if planning to lose is just donate that money directly to Trump campaign instead of to a stock trader that doesn't benefit Trump campaign.
The borrow fees were 500% recently. Countrywide Financial, a certain bankruptcy in the immediate near future hit around 150% or 200%.
It may be overpriced but the reality is that it is not going anywhere anytime soon.
It’s also a neon target for the 90% of industry/institution/billionaires that are colluding and conspiring against us.
These threads exist to push anti Trump, anti MAGA and/or anti American hate.
The financial, mathematical and economic illiteracy going on around here is on par with the leftist’s sites.
Yeah, well, the majority stock holder is usually not under 50 bogus indictments either.
When Trump is proven innocent in all these cases, the stock will soar. To your chagrin.
18 percent is rather a lot just today. I’m not hoping he goes to jail. He does need to get some sleep though. He fell asleep in court. It’s day one.
New Reddit IPO stock price was at $65.11 on March 25, 2024
Today after just 3 weeks it is at $40.00
Reddit is a social media site that has never made money and it has been around since 2005. Big liberal site that bans any view some “moderator’ does not like.
DJT was $66.22 on March 22, 2024 and now at $25.61 some 3 weeks later.
Tech stocks have also plunged.
My AMD was at $227 on March 7, 2024 and today it is at $160.32
Nvidia was at about $922 and today is at $$860.01
Once Biden is gone and the democrats not in control of congress, the economy will roar ahead.
I have a handful of stocks set aside for the long run, they've dropped as much as 75% in one case. Others, like one I sold yesterday had gained 25%. (I'm dipping my toes in some cash day trading, sort of if I took the time to actually follow them a bit closer.)
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