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THE GRIFT
Truth Social Makes Democrats Richer
This may be the largest voluntary transfer of wealth between political parties in America’s history
The New York Times reports that traders are betting millions that Trump Media’s stock is going to fail. From the article:
Trump Media is the most “shorted” special purpose acquisition vehicle in the country, according to the financial data company S3 Partners.
When stock is sold “short”, it means that investors are banking on the price of the stock to go down. For example, if an investor shorted one share of DJT when it was at $78, they agreed to provide the stock by some future date when they could purchase the share at a lower price. A mere 18 DAYS ago the price was around $78/share. Yesterday (12 April 2024) the stock ended below $33. Investors that sold at $78 and bought at $33 are more than doubling their money for every share sold. Once it gets down to the sub-$20 area, investors could be reaping a quadruple reward. The lower it goes, the greater the reward.
As a conservative investor, I did not invest in this stock when it went public. Before the first bell analysts were clear about the questionable valuation of the stock compared to the company’s performance. When it was later disclosed that the company lost $58 million on $4 million in revenue, the stock started rocketing to the bottom.
Not surprisingly, MAGA faithful have been buying the stock like mad, trusting in the name of Trump to make millionaires. Trump himself is encouraging the faithful to invest in this stock as a way to save America. However, those buying this stock are missing one important detail: Democrats are shorting this stock en masse and pocketing all that MAGA money. The farther the stock sinks to the bottom, the better it is for Democrat investors.
Interestingly, there’s still some distance to the bottom, and it’s not too late to short the stock. Short sell this week at $30 and then buy at $15 in a couple weeks and you’ll double your money. Sell at $30 and buy at $10 and you’ll TRIPLE it. But also keep in mind, if you buy at $30 and then sell at $15, you lost 50% of your investment, while a Democrat made 100% profit.
But don’t take my word for it. There are plenty of objective analyst views available. Everyone agrees the stock is in free-fall and the only question that remains is how long the stock will remain available until it becomes delisted by being worthless.
You won’t want to be holding shares when that happens!
