I’m not sure anything is typical with a SPAC acquisition. One reason to do it is to avoid the usual scrutiny associated with an IPO.
I see. It really does seem like a scam.
But when wealthy individuals do this, they’re typically putting up high quality securities like blue-chip stocks which for collateral purposes can be valued at a relatively high percentage of market price.
DJT is not a quality stock. It’s the opposite. If Trump can’t unload it without cratering the price, then neither could a lender, and they’d be valued as a highly volatile stock with a downside that goes right down to zero. Unless, I suppose, that lender was Knight Specialty Insurance and its chairman, the subprime loan shark Don Hankey. 
Not at all a stock expert, but one of the most basic tools used by technical analysts is establishing “floor” and “ceiling” levels by analyzing a stock’s historical performance. A floor is a price low enough that it historically triggers stock traders to start buying; a ceiling is a price high enough that it triggers profit-taking. Of course stock prices can and do break through floors and ceilings but it’s generally a good indicator that there will be pressure on the stock price to bounce back from these points, at least in the short term.
DJT has not been around long enough to establish these historical patterns; it’s purely speculative junk with poor fundamentals and an effective floor of zero.
The Mob is probably taking notes in case they need crooked accounting firms or disreputable lawyers who’ll do anything for a buck.
I am in no way a stock market player (*), but I know enough to be dangerous, and this makes sense. DJT has no track record, but I’m sure that MAGAs have bought it, in order to support Trump. I’m equally sure that many of them have no idea how to play the stock market, and when their shares crater, as I’m sure they will, they will wonder why. “But it’s Trump! He’s a bazillionaire!”
(*) I’m a horseplayer. As such, like a stock investor with the Wall Street Journal, I study the facts and figures in the Daily Racing Form, and just like a stock investor, I always have to remember that “past performance is no indication of future performance.” And sometimes, as a famous movie computer told us, “The only way to win is not to play.”
If it seems like a scam, walks like a scam, smells like a scam, quacks like a scam, and ducks like a scam… well, seems legit? (/s)
Very true. But it’s also worth pointing out that what I said about price floors and ceilings is often a good predictor in the short term. These limits are more properly called support and resistance levels, respectively, because they put pressure on a stock to bounce back and act like a sort of sticky molasses if the stock price tries to break through. The reason this works is trivially because it’s a self-fulfilling prophecy: if a stock falls to a historically established support level, many technical analysts (“stock chart watchers”) will be issuing “buy” recommendations and automatic trading systems will be buying.
But all it takes is for some respected fundamental analysts to announce that the financials show that the stock is damn near worthless for the support level to vanish and for the stock price to plummet right through it down into the basement. That’s what would happen to DJT if it had a support price, but it doesn’t even have that; unless a miracle happens, it’s basically worthless junk, like everything else that Trump has ever been involved with.
My WAG is that the only reason it hasn’t happened yet is because Trump’s idiot acolytes are indeed expecting a miracle to happen and don’t understand financials (in much the same way, I suspect, that they don’t understand anything). And the Orange Conman is actively promising them a miracle. In two weeks.
[slight hijack]
You’re about a century out of date!
Back in the day, Australian wines could be described – using some of the fancy technical terms that we wine lovers like to throw around – as “rotgut”, “swill”, and “kangaroo piss”.
But that was a long time ago. Today Australian cabernets and its distinctive shiraz rival some of the best wines in the world. Compared to traditional wine-growing regions like Bordeaux, the better modern Australian wines share with the better California wines the ability to deliver big robust depth and character at affordable prices.
[/slight hijack]
I really thought that this said “idjit” not “djt” on first glance.
So, any such lender(s) would essentially be “gifting” him money without transferring funds directly?
I’ll leave that to you. You know what you’re doing.
I’m looking at Mystik Dan in the Kentucky Derby. He was closing at 1 1/8 miles in the Arkansas Derby, ended up showing; let him stretch out to 1 1/4 miles under scale weight, and I think we’ve got a horse race. He’s 30-1 on futures, but I’m not buying in at that because that was last week with 50 entries (only 20 can run), and he will for sure be in the race and shorten by race day. Not that I like the shortening, but it’s a better indicator than odds dreamed up a month before the race, in order to attract play.
Like I implied: you play the market, I’ll play the horses.
[End hijack.]
Can you name anything with Donald Trump’s name attached that wasn’t, at least in part, a scam?
Yeah, that’s what I meant by not getting the full share price. They would only loan what they thought it was worth to them. The only difference is if Trump starts selling, the price would crater before he finished. A healthy financial company could sell slowly and wring more out of it.
Maybe it’s a moot point because I think he’d have to report that he took a loan against his shares which could tank the price anyway.
Currently down another 8% today.
Rene Descartes was a drunken fart, “I drink, therefore I am.”
I see it the other way around. I am, therefore I drink.
I’m afraid you haven’t quite parsed the original Latin correctly. It’s actually “I drunk, therefore… I am?”
Good, with that inclination you should be able to avoid violating Rule 4: I don’t want to catch anyone not drinking in their room after lights out.
For the short term, I go by one of the simplest models of the stock market, the random walk model. My forecast for tomorrow’s price is… today’s price. Go out further, and I figure things will revert to fundamentals - in 2 years the stock will be below $11. Ditto maybe in 2 months - who knows?
One lesser-known stock market trait is while the price level can’t be forecasted on the basis of past prices (to a first approximation), stock market volatility does follow a pattern. It’s serially correlated: IOW a big move today makes a big move tomorrow more likely. Could be up, could be down, but it’s bigger. That’s useful intel: options trade on the basis of volatility, and options traders use volatility models to earn their living.
Humans are very good at pattern recognition, to the point where they can perceive patterns that are not really there. Technical analysis has its fans, but it also has a lot of detractors. I’m extremely skeptical of technical analysis unless it is backed by high quality statistical analysis (it generally isn’t, and usually isn’t backed by even low quality statistical analysis).
Why do you choose $11 (granted or below) as fundamentals?
By fundamentals is it worth … anything? It would only be worth that if there was some reasonable possibility that it had a path to sustainable growth and profitability.
I’d have thought that by fundamentals, barring evidence of being on that path developing, it would be a penny stock?
Of course in the meanwhile a stock is worth what someone is willing to pay for it. I suspect the psychology behind meme stock behaviors is no better understood now then when tulips were the meme. So yeah, who knows? That said, if the platform cannot attract a following and advertisers during this election season then it will clear that it never will.
How many ads for overpriced gold coins and fake ED medication can there be? There has to be a practical limit there.
For election advertising - why would the R’s advertise there, when the entire platform is populated by dedicated MAGAts who are going to vote R no matter what? There is no point in advertising to them.