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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsTruth Social FAQ now tells you how to instruct your broker not to allow short selling on your Truth Social shares
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Josh Marshall
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Apr 18, 2024
@joshtpm
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Truth Social FAQ now tells you how to instruct your broker not to allow short selling on your Truth Social shares
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Josh Marshall
@joshtpm
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2/ they even created an anti-short selling form letter to send to your broker
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2:58 PM · Apr 18, 2024
Isn't this a form of stock manipulation?
Bernardo de La Paz
(49,032 posts)I wrote an OP, with diagram.
https://www.democraticunderground.com/11215319
WarGamer
(12,463 posts)It's a truly worthless company.
BUT it's a financial pipeline to the guy who is a 50/50 bet to be POTUS in less than a year.
Any foreign entity... or hell, domestic entity seeking Federal Gov't favor will be more then happy to spend a few million on this low volume, low market cap ticker to suck up to TFG.
The day of decision is Election Day.
If he wins... the stock doubles in a day. Maybe triples.
If he loses, it drops to penny stock in a few days.
Bernardo de La Paz
(49,032 posts)And it is not a low volume stock. Nearly 18 million shares traded yesterday. The market cap of over $4,500,000,000 is not low, which will be a problem for the bulls.
A bull trap is a trap that catches bulls as they think that the stock has suffered a setback but is back on track to climb to ever higher valuations.
Your points about tRump's hopes for a financial pipeline are good ones, including the reaction to the election.
keithbvadu2
(36,874 posts)WarGamer
(12,463 posts)And with little to no institutional ownership there just aren't many shares to short and interest rates are 500%...
Tough stock to short.
LetMyPeopleVote
(145,486 posts)Meme stocks rely on the greater fool theory. I was amused to see that DWAC/Trump Media is classified as a meme stock where the value is due to personality and not due to the real value of issuer of the meme stock. This article is a good discussion of the meme nature of DWAC/TMT.
https://www.vanityfair.com/news/donald-trump-truth-social-media-merger
Truth Social is a bad imitation of Twitter, where Trump was an unavoidable presence long before he ran for president. Its chock full of stale red-pilled memes, MAGA conspiracy theories, and of course, Trump. Thats the main draw. Truth Social is the only place the former president now regularly posts his unfettered thoughts......
DWAC is best thought of as a meme stock. You may remember the meme stock fad from when retail investors on Reddit successfully coordinated a short squeeze with GameStop stock, before glomming onto a series of other millennial nostalgia brands like AMC Entertainment, BlackBerry, and Bed Bath & Beyond. Meme stocks are often publicly traded companies that attract an inordinate percentage of individual investors and their stock performance fluctuates in a way thats significantly divorced from the reality of their underlying business. Combine those two trends and youll start to see why Trumps media company could be valued at roughly $9 billion if it merges with DWAC.
Jay Ritter, a finance professor at the University of Florida, says meme stocks often depend on the greater fool theory of investing, meaning rational investors might buy in expecting the stock price to rise and betting that they can sell their shares to a greater fool willing to buy them at a higher price. In this case, however, Ritter speculates there is an inordinate number of individual retail investors compared to institutional investors, such as hedge funds, that normally own SPAC shares prior to a merger. Here youve got ideology involved [too]as far as I can tell, the vast majority of DWAC investors are Trump political investors, and theyre to some degree putting their money where their mouth is My suspicion is most of them have bought the stock as a show of political support. In this way, Trump is conducting yet another public fundraising from his supportersthis time through the public markets.
Idiots who purchase meme stocks are betting that they can get out before the other idiots figure out that the stock is worthless
LetMyPeopleVote
(145,486 posts)Meme stocks rely on the greater fool theory. I was amused to see that DWAC/Trump Media is classified as a meme stock where the value is due to personality and not due to the real value of issuer of the meme stock. This article is a good discussion of the meme nature of DWAC/TMT.
https://www.vanityfair.com/news/donald-trump-truth-social-media-merger
Truth Social is a bad imitation of Twitter, where Trump was an unavoidable presence long before he ran for president. Its chock full of stale red-pilled memes, MAGA conspiracy theories, and of course, Trump. Thats the main draw. Truth Social is the only place the former president now regularly posts his unfettered thoughts......
DWAC is best thought of as a meme stock. You may remember the meme stock fad from when retail investors on Reddit successfully coordinated a short squeeze with GameStop stock, before glomming onto a series of other millennial nostalgia brands like AMC Entertainment, BlackBerry, and Bed Bath & Beyond. Meme stocks are often publicly traded companies that attract an inordinate percentage of individual investors and their stock performance fluctuates in a way thats significantly divorced from the reality of their underlying business. Combine those two trends and youll start to see why Trumps media company could be valued at roughly $9 billion if it merges with DWAC.
Jay Ritter, a finance professor at the University of Florida, says meme stocks often depend on the greater fool theory of investing, meaning rational investors might buy in expecting the stock price to rise and betting that they can sell their shares to a greater fool willing to buy them at a higher price. In this case, however, Ritter speculates there is an inordinate number of individual retail investors compared to institutional investors, such as hedge funds, that normally own SPAC shares prior to a merger. Here youve got ideology involved [too]as far as I can tell, the vast majority of DWAC investors are Trump political investors, and theyre to some degree putting their money where their mouth is My suspicion is most of them have bought the stock as a show of political support. In this way, Trump is conducting yet another public fundraising from his supportersthis time through the public markets.
Idiots who purchase meme stocks are betting that they can get out before the other idiots figure out that the stock is worthless