Trump Media is Just Graft on an Immense Scale

[NWRatCon]

The latest example is shown in a Pro-Publica article,

Trump Media Quietly Enters Deal With a Republican Donor Who Could Benefit From a Second Trump Administration​

Since that's just an exemplar, I didn't want to focus exclusively on that, but there's important information there. "[Trump's] stake in Trump Media... makes up more than half of his estimated net worth. Ethics experts have warned that advertisers, vendors or investors who have political agendas could try to use Trump Media to curry favor." And if there's one kind of curry Trump likes, it's favor.

It has been thoroughly documented that Trump - not nearly as rich or successful as he wants to have everyone believe - is all about leveraging circumstances for personal gain. He used his official position to get the government and foreign interests to pay him to stay at his hotels. "Before his first term, Trump rejected calls to divest from his business. Trump’s years in the White House were marred by controversy as political groups and foreign governments spent millions of dollars at his properties."

Every rational investor knows that Trump Media (Nasdaq, djt) is a worthless "meme" stock outrageously overvalued. (Trump Media is ‘a scam’ and people buying its stock are ‘dopes,’ Barry Diller says. CNBC) So, what's propping it up? Deals like this. Shakers who want to insinuate themselves into Trump's lizard brain to gain favors.

"The acquisition will put Trump’s company in a business relationship with someone with numerous interests before the federal government. Davison, for example, owns a major stake in Genesis Energy, a large oil pipeline and mining firm. A trade group representing Genesis and other publicly traded pipeline firms previously lobbied the Trump administration and lawmakers for a tax break and on environmental issues. Davison’s family also has a stake in a regional bank and owns a small defense contractor. And Davison could benefit if the 2017 Trump tax cut provisions, which expire after next year, are extended."

The United States has never experienced someone as venal as Trump in its entire existence. These are the kinds of deals that manage to corrupt government and destroy markets at the same time. I see new investigations and prosecutions in Trump's future - unless he can hoodwink enough voters to stand them off indefinitely.

 

[Peacenik]

Donald never saw a legitimate business model he didn't want to corrupt.

 

[bongsaway]

I want to hear the story about how trump is for the working man when he's not asking oil execs to give him a billion.

 

[NWRatCon]

Donald never saw a legitimate business model he didn't want to corrupt.

He's particularly proud of the fact that he is referenced specifically in so many dictionary entries: Scoundrel; scumbag; con man; traitor; narcissist; criminal; felon....

 

[Peacenik]

He's particularly proud of the fact that he is referenced specifically in so many dictionary entries: Scoundrel; scumbag; con man; traitor; narcissist; criminal; felon....

It's so obvious he's messed up in the head. His schemes are often rather intricate, which indicates that if he simply decided to try to compete on a level basis for business, that he would do fine. But there's something wrong in his mind that won't let him do that. He doesn't seem to believe in himself enough to even consider competing on a fair basis. He always wants things rigged in his favor. The "art of the deal" to him is about how to screw others and get away with it.

There is no 'art' to deal making. You agree with another person to exchange something which is of mutual benefit to both parties. That's it. There doesn't need to be any sneaking around, hidden gotchas, or subterfuge. A mutually beneficial deal is good for both parties and contributes to the GDP. It's part of being an American and participating in good clean capitalism.

People who try to screw others are why we have to have regulation.

People like Donald, always bouncing off the guardrails, testing the limits of the law. What a jerk!

 

[NWRatCon]

Trump Media’s Financials Are Practically Irrelevant Now (INVESTOR PLACE)​

"This won’t always be the case, but for the foreseeable future, Trump Media’s financials will be largely irrelevant to Trump Media stock. It’s important to be aware of Trump Media’s financials, but don’t assume that they’ll move the share price.

Just so you know, Trump Media reported a first-quarter 2024 operating loss of $12.1 million. The company only generated $770,500 in revenue during the quarter.

Trump Media “believes it has sufficient working capital to fund operations for the foreseeable future,” so Chapter 11 probably isn’t on the near-term horizon.

Now, take those facts and store them in the back of your mind somewhere. For now, Trump Media stock will move up and down based on Trump’s political-career prospects. This will be true at least until Election Day, which is Nov. 5."
_______

Trump Media has plunged this week to $25.72, after hitting its most recent peak of $40.58/share on July 15. As Trump has been eclipsed by Harris in the headlines, the stock has fallen steadily. It has not set a date for its 2nd quarter earnings report release, and must do so by August 19.
_______

The September selloff could be large (Forbes)​

"No matter how you slice the data, Trump Media stock is extremely overvalued. It sells at over 7,000 times sales, and management's touted cash holdings work out to a miniscule $1.44 per share.

The inability for shareholders to sell many shares has provided a misleading view of the stock's strength. Just as happens when a hot IPO's restricted shares become unrestricted, selling can come in waves, driving the price sharply down. There is good reason that the end of lock-ups will cause a hit on Trump Media's stock price. Therefore, management needs to provide a positive, understandable reason for holding and buying.

Note: There are two reasons to see the selling start before that date.

First, the lock-up removal can occur a few days early if the stock closes at $12 or higher for twenty trading days beginning August 22. If it did so from the beginning, the lock-up would expire on Friday, September 20. Monday and Tuesday, September 23 and 24, are available if there is one or two days of too-low closes. Otherwise, Wednesday, September 25 is the day." (Italics original).
______

Notwithstanding the company's announcement of the start of its "streaming platform" offerings, the stock price has continued to drop. Although it seems doubtful that it will drop below $12 before August 22, that is not beyond the realm of possibility. At this juncture, though, there is little room left for shorters to make a profit. Trump's 60+% stake will become sellable in about 6 weeks, at which point he makes an unearned profit, and investors will lose their shirts.

 

[Fearandloathing]

It's so obvious he's messed up in the head. His schemes are often rather intricate, which indicates that if he simply decided to try to compete on a level basis for business, that he would do fine. But there's something wrong in his mind that won't let him do that. He doesn't seem to believe in himself enough to even consider competing on a fair basis. He always wants things rigged in his favor. The "art of the deal" to him is about how to screw others and get away with it.

There is no 'art' to deal making. You agree with another person to exchange something which is of mutual benefit to both parties. That's it. There doesn't need to be any sneaking around, hidden gotchas, or subterfuge. A mutually beneficial deal is good for both parties and contributes to the GDP. It's part of being an American and participating in good clean capitalism.

People who try to screw others are why we have to have regulation.

People like Donald, always bouncing off the guardrails, testing the limits of the law. What a jerk!

His own brand of exceptionalism.

He's an exception to every rule, because he's Donald Trump. From what I have read of his early years, he was a spoiled little lord Fontleroy who whined and weedled to get what he wanted.

And he wanted everything! But mostly fame!

Let's remember he used to call radio phone-in shows and pretend he was someone else praising Donald Trump! This is weird behavior even for a spoiled brat

But it tells you all you need to know. Donald Trump will never be satisfied. He can 'win' every golf tournament available and he would still lie about his game!

we are dealing with one very sick and ****ed up guy!

 

[Peacenik]

His own brand of exceptionalism.

He's an exception to every rule, because he's Donald Trump. From what I have read of his early years, he was a spoiled little lord Fontleroy who whined and weedled to get what he wanted.

And he wanted everything! But mostly fame!

Let's remember he used to call radio phone-in shows and pretend he was someone else praising Donald Trump! This is weird behavior even for a spoiled brat

But it tells you all you need to know. Donald Trump will never be satisfied. He can 'win' every golf tournament available and he would still lie about his game!

we are dealing with one very sick and ****ed up guy!

Oh, yeah. That's right. He used to call in and call himself John Barron, right?

Very messed up in the head.

It's disturbing to see so many people falling for his con.

 

[NWRatCon]

Trump Media reports $16.4 million quarterly loss (WaPo)

https://wapo.st/46OdsxZ

Former president Donald Trump’s social media company Trump Media reported a $16.4 million loss and less than $1 million of quarterly revenue, showing that the business’s financials remain tentative following a public debut earlier this year.
Trump Media and Technology Group, which owns the social media platform Truth Social, said Friday the company earned $837,000 in revenue for the second quarter, while shelling out millions of dollars of legal expenses associated with its stock market listing.
Trump has relied heavily on Truth Social in his presidential campaign, where he posts frequently to his 7.5 million followers. He began using the platform after his Twitter account was suspended in 2021.
The poor financial results, laid out in a filing to the Securities and Exchange Commission, don’t come as a surprise. In April, Trump Media said it lost more than $58 million last year, sending its stock plunging more than 21 percent in one day. The company flagged then that more losses might be ahead as it sought to expand its user base.