• tal@lemmy.today
    link
    fedilink
    English
    arrow-up
    22
    ·
    edit-2
    4 months ago

    John Rekenthaler, vice president of research at Morningstar (MORN+0.470%), previously called DJT an “affinity stock” — one that trades on people’s feelings and perceptions of the former president, rather than its business performance. Rekenthaler warned that Trump Media stock would “go to zero or something close to it” if Trump were to lose the presidential election in November.

    These new lows come just weeks before Trump will get the green light to offload his 114.75 million shares of Trump Media, or about 60% of the company’s outstanding stock. The Republican presidential hopeful stands to make upwards of $2 billion from the stock sale — although the value of those returns depends on the share price.

    I think that it’s going to go to “zero or something close to it” once Trump starts bailing out. I don’t think that it’s going to need to reach the election and have Trump lose.

    • radiohead37@lemmynsfw.com
      link
      fedilink
      arrow-up
      9
      ·
      4 months ago

      Agreed. He doesn’t care about the shareholders. He will just dump and leave the suckers holding the bag.

      I just wish the blackout period extended beyond the election. If he lost, his stake could be just a fraction of what it is today.

    • Evilcoleslaw@lemmy.world
      link
      fedilink
      arrow-up
      5
      ·
      4 months ago

      If he has to divulge his divestment it’s going to go to 0 before he can sell it all. If he doesn’t need to divulge it, it’s still going to go close to zero because the market for that stock won’t hold if 60% of it hits the market. If he’s been able to borrow against it, he’ll probably default and leave his lenders holding the bag.

      • tal@lemmy.today
        link
        fedilink
        English
        arrow-up
        4
        ·
        4 months ago

        the market for that stock won’t hold if 60% of it hits the market

        There was also that legal fight that I haven’t been following earlier from some other cofounders trying to get the ability to exit earlier.

        https://www.nytimes.com/2024/04/18/business/trump-media-ownership-fight.html

        In their lawsuit, Mr. Moss and Mr. Litinsky claimed their right to 8 percent of Trump Media’s shares and the ability to sell them immediately. They alleged that Trump Media had unfairly barred their company, United Atlantic, from selling any shares for six months, just as the merger with Digital World was being completed. The timing of the action was punitive and “retaliatory,” Mr. Moss and Mr. Litinsky alleged.

        If they haven’t managed to get the ability to exit before Trump, I’m assuming that those guys are going to be jumping ship at the first opportunity as well.