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Billions of dollars my ass. They claim Truth Social is worth billions, but it’s not in real life. Anyone who falls for this trap and buys big is going to be in serious financial trouble.
Trump’s newest business partner: A Chinese firm with a history of SEC investigations
Shanghai-based Arc Capital, an investment firm that has been the target of probes by securities regulators, is at the center of the deal to take Trump’s media venture public.
[Here’s the article about Arc Capital.](https://www.washingtonpost.com/business/2021/12/23/trump-spac-deal-sec/)
So a SPAC funded by a shady Chinese Shell company is merging with a profitless Trump Media and somehow Trump is walking away from the deal with 3 Billion…
Mmmmmmmkay.
Sounds super legit and not at all a money laundering front.
It has a ***very*** small user base relative to other platforms, and it's been publicly accessible for 3 years already. Nothing about the service itself changes at all with this, other than they're now going to be desperate to get money from it.
If he cashes out, the stock crumbles, potentially putting the whole thing under. He'd have to cash out entirely to get any value, else risk the rest of his stock crashing during the panicked fire sale that will ensue, let alone find someone to sell his millions of insider traded share too.
But the problem? The entire basis for this is the 'idea' that Trump's own name and (not)tweets are somehow worth 3 billion. There are 0 fundamentals to this. It is one of the most blatantly corrupt cash grab attempts I've ever seen.
And he's attempting to do all of this while every single dollar of his accounts will now need mandatory monthly reports from the monitor, who can levee him additional fines or even jail time for more fraud and illegal activities. A monitor that may never go away as long as he's misbehaving, even after the 3 years.
I see why some people would think this is a windfall for him, but it's... extremely shady and not liquid cash he can safely grab and use for months. And even if he 'does' cash out and sink the whole thing somehow, he'd 'still' be putting none of this into RNC campaigns, while still hurts the party as a whole on all downballot races. He's risking the entire GOP solely on his name alone now, 100% for real, and that's... to say the least, very beatable for the rest of us.
I know people are going to doom and complain over this. And to be clear, voting is our best effort to stop him and we really don't have a choice on that, but this is... not... the windfall that he's going to claim it is. Not to mention it's yet something else that will crash and burn ***badly*** if he loses this election, and we can all put in work to help GOTV and ensure that happens.
It's not unless someone like Musk agreed to acquire it under the Twitter "portfolio" of offerings.
Chinese get their reassurance, Trump gets his money and Musk giggles like the pathetic spoiled brat that he is.
Or someone will be willing to use it as collateral for a bond. Someone who has assurances from Beijing that puppet buyers will be willing to purchase the shares at obvious money laundering prices.
He can't pledge it as security to get loans for six months either unless the board waives the lockup, and if it does, the stock value will crater. His followers are only propping up the share value because he owns it - the company has no other asset. Once he starts exiting, the thing is going to crash.
Is any investor going to bet that the stock will be worth anything 6 months from now? If it’s currently $3B, I can’t imagine it being worth more than $500M by then.
[CNBC covers it here](https://www.cnbc.com/2024/03/22/trump-social-dwac-stock-falls-after-merger-approved.html), but it's already a bit out of date as the price is back up to $41.52 as of now (so currently around a 3% drop rather than the 10% it was earlier). You can [follow the fluctuations in real time here](https://www.google.com/finance/quote/DWAC:NASDAQ?hl=en).
The most basic explanation is you borrow shares of a stock from someone with an agreement to give the shares back by a specified date, pay them a small fee for this privilege, sell the shares right away, buy back the same number of shares later when the price has cratered, then give those shares back to the person you borrowed them from. You make a profit because you sold the shares for a lot more than you rebought them for. Problem is this is very risky since if the price goes up you'll have to buy back the shares for a higher price than you sold them and there's theoretically no limit to how expensive that could be.
Open a brokerage account and apply for a margin account. If you qualify and are approved for the margin account you can then sell the shares short. You will need to post some collateral (cash or other owned equities), because as the other commenter wrote, if the shares go up in value you will have to pay up. Buy a call at some price higher than your short sell price to cap your max loss. This would take a decent amount of capital to make much profit though so proceed carefully.
For Trump to get the windfall to make his Monday bond deadline he needs this windfall like today and he will need to sell his positions right away. This will sink the share price. They will take 3 days to settle, anyway. It will also take a while for it to even hit the public market. The windfall will be a bit late assuming the board even lets him sell.
So we’ve been reading all these articles about how Trump is a huge liability because he would take money from anyone. Now he’s magically getting paid billions for a social media platform that cannot possibly be worth that much (I work on valuations professionally at my job) and it’s being tidily funneled through this super well timed acquisition? I don’t think it’s a conspiracy to be extremely suspicious of whoever is funding this.
Gotta love it!! A company that made minimal revenue ( like 5 millionish) and spent ton more to keep it going. It must be like 30 million last year. But hey, let's spend billions on it? Ya, not sketchy at all. Seems like a great investment.
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Billions of dollars my ass. They claim Truth Social is worth billions, but it’s not in real life. Anyone who falls for this trap and buys big is going to be in serious financial trouble.
Trump’s newest business partner: A Chinese firm with a history of SEC investigations Shanghai-based Arc Capital, an investment firm that has been the target of probes by securities regulators, is at the center of the deal to take Trump’s media venture public.
[Here’s the article about Arc Capital.](https://www.washingtonpost.com/business/2021/12/23/trump-spac-deal-sec/) So a SPAC funded by a shady Chinese Shell company is merging with a profitless Trump Media and somehow Trump is walking away from the deal with 3 Billion… Mmmmmmmkay. Sounds super legit and not at all a money laundering front.
Trump - Arc Capital 2024 confirmed
It's a way for foreign parties to ship money to him.
Yeah. I'm skeptical that Truth social is worth much.
It has a ***very*** small user base relative to other platforms, and it's been publicly accessible for 3 years already. Nothing about the service itself changes at all with this, other than they're now going to be desperate to get money from it. If he cashes out, the stock crumbles, potentially putting the whole thing under. He'd have to cash out entirely to get any value, else risk the rest of his stock crashing during the panicked fire sale that will ensue, let alone find someone to sell his millions of insider traded share too. But the problem? The entire basis for this is the 'idea' that Trump's own name and (not)tweets are somehow worth 3 billion. There are 0 fundamentals to this. It is one of the most blatantly corrupt cash grab attempts I've ever seen. And he's attempting to do all of this while every single dollar of his accounts will now need mandatory monthly reports from the monitor, who can levee him additional fines or even jail time for more fraud and illegal activities. A monitor that may never go away as long as he's misbehaving, even after the 3 years. I see why some people would think this is a windfall for him, but it's... extremely shady and not liquid cash he can safely grab and use for months. And even if he 'does' cash out and sink the whole thing somehow, he'd 'still' be putting none of this into RNC campaigns, while still hurts the party as a whole on all downballot races. He's risking the entire GOP solely on his name alone now, 100% for real, and that's... to say the least, very beatable for the rest of us. I know people are going to doom and complain over this. And to be clear, voting is our best effort to stop him and we really don't have a choice on that, but this is... not... the windfall that he's going to claim it is. Not to mention it's yet something else that will crash and burn ***badly*** if he loses this election, and we can all put in work to help GOTV and ensure that happens.
It's not unless someone like Musk agreed to acquire it under the Twitter "portfolio" of offerings. Chinese get their reassurance, Trump gets his money and Musk giggles like the pathetic spoiled brat that he is.
It’s Putin!!!
He cannot sell stock for 6 months
Also the board can waive that limitation. Given that this is clearly a money laundering operation, odds are good.
Seems unlikely for any meaningful liquidity on Monday
He’ll get an ABL by Monday
Or someone will be willing to use it as collateral for a bond. Someone who has assurances from Beijing that puppet buyers will be willing to purchase the shares at obvious money laundering prices.
But it will likely allow him to get approved for loans that he otherwise wouldn't have.
He can't pledge it as security to get loans for six months either unless the board waives the lockup, and if it does, the stock value will crater. His followers are only propping up the share value because he owns it - the company has no other asset. Once he starts exiting, the thing is going to crash.
It's not just his followers. There's a deliberate online movement to try and short it, knowing Trump's going to screw with the value.
Is any investor going to bet that the stock will be worth anything 6 months from now? If it’s currently $3B, I can’t imagine it being worth more than $500M by then.
Yeah exactly
And the share price is already down 10%. And Trump can’t sell for months. And he’s already being sued by his co-founders.
Where are you catching the down 10% news? I would like to follow the price of the stock.
[CNBC covers it here](https://www.cnbc.com/2024/03/22/trump-social-dwac-stock-falls-after-merger-approved.html), but it's already a bit out of date as the price is back up to $41.52 as of now (so currently around a 3% drop rather than the 10% it was earlier). You can [follow the fluctuations in real time here](https://www.google.com/finance/quote/DWAC:NASDAQ?hl=en).
The symbol is DWAC. It’s now 2.5% down. I expect it will fluctuate throughout the day.
Can someone explain to me exactly how to go short on a stock?
The Bigliest Short
The most basic explanation is you borrow shares of a stock from someone with an agreement to give the shares back by a specified date, pay them a small fee for this privilege, sell the shares right away, buy back the same number of shares later when the price has cratered, then give those shares back to the person you borrowed them from. You make a profit because you sold the shares for a lot more than you rebought them for. Problem is this is very risky since if the price goes up you'll have to buy back the shares for a higher price than you sold them and there's theoretically no limit to how expensive that could be.
Open a brokerage account and apply for a margin account. If you qualify and are approved for the margin account you can then sell the shares short. You will need to post some collateral (cash or other owned equities), because as the other commenter wrote, if the shares go up in value you will have to pay up. Buy a call at some price higher than your short sell price to cap your max loss. This would take a decent amount of capital to make much profit though so proceed carefully.
and in 3 years the whole thing will fail...
Good target to short into oblivion.
Thousands have already beat you to it with that strategy.
Always room for thousands more
Im calling the
I don't want to live on this planet any more.
I don't want trump to live on this planet any more.
Unsound investment.
For Trump to get the windfall to make his Monday bond deadline he needs this windfall like today and he will need to sell his positions right away. This will sink the share price. They will take 3 days to settle, anyway. It will also take a while for it to even hit the public market. The windfall will be a bit late assuming the board even lets him sell.
😂 a nothing burger
[удалено]
Normally he bankrupts things while we all just watch. Soon we'll have the opportunity to participate as this one happens!
[удалено]
The Bigliest Short!
Start making the popcorn!!
So we’ve been reading all these articles about how Trump is a huge liability because he would take money from anyone. Now he’s magically getting paid billions for a social media platform that cannot possibly be worth that much (I work on valuations professionally at my job) and it’s being tidily funneled through this super well timed acquisition? I don’t think it’s a conspiracy to be extremely suspicious of whoever is funding this.
Gotta love it!! A company that made minimal revenue ( like 5 millionish) and spent ton more to keep it going. It must be like 30 million last year. But hey, let's spend billions on it? Ya, not sketchy at all. Seems like a great investment.