Skip to content

Trump stock set to lose value yet again

Donald Trump might be stuck in court for the next few weeks, but that doesn't mean there's no good news on the horizon. On Tuesday, after the closing bell on Wall Street, he will qualify to receive another 36 million shares of his social media company. Hooray!

Here's the thing to watch. All those additional shares dilute the stock: there will be 172 million shares outstanding instead of 136 million. Under normal circumstances, this would mechanically reduce the share price by 21%. But will it? Or will the poor suckers who own the stock just merrily ignore this and keep the share price where it is?

Who knows? This whole billion-dollar scam is already so far into bizarro land that it's impossible to know what will happen next. It's unfathomable that somehow the whole thing is legal.

37 thoughts on “Trump stock set to lose value yet again

  1. kenalovell

    Trump is on the horns of an exquisite dilemma. The only thing which gives his stock perceived value is the fact that he owns it. The moment word gets out that he's selling it, the perceived value will evaporate and the share price will drop like a rock.

        1. DianaBryan

          US Dollar 2,000 in a Single Online Day Due to its position, the United States offers a plethora of opportunities for those seeking employment. With so many options accessible, it might be difficult to know where to start. You may choose the ideal online housekeeping strategy with the help vz-07 of this post.

          Begin here>>>>>>>>>>>>>> https://lifeimproveds01.blogspot.com/

      1. kenalovell

        On my understanding, because of the size of his holding, he's required to tell the stock exchange if he intends to unload it.

  2. J. Frank Parnell

    Wondered if anyone else remembered the bizarro world, and how much it resembles modern MAGA land.

    Donald can’t help himself, diluting his own investment driven by pure greed unbound by thought or judgement.

    When Truth Social announced the warrants that would increase the number of shares by twenty odd percent, the stock price plunged by the same amount, so yes, someone must be paying attention.

  3. D_Ohrk_E1

    Eh. I'm waiting for his auditor to be investigated for conspiracy to commit fraud and false claims and if they talk to investigators about said conspiracy with DJT corporate.

    1. peterlorre

      It really feels much more like a money laundering/bribery scheme than a classic “soak the losers” Trump play.

  4. Joseph Harbin

    "It's unfathomable that somehow the whole thing is legal."

    Indeed. Where is the SEC, the watchdog whose mission is supposed to be to protect investors (even MAGAites)?

    Everything Trump does is a fraud. Shut it down.

    1. cld

      Unless they charge him with everything they can charge him with his permanently corrupt purpose and sociopathy will never be appreciated by conservatives in general, now or in the future.

      It's necessary to indict him for every infraction they possibly can indict him for, it's wrong not to.

  5. SRDIblacksea

    This seems to me to be a way to provide campaign/legal funds to Trump - a money-laundering scheme minus the illegal source. If he sells shares there has to be a buyer. The only buyers would be those who want the capital loss to offset their capital gains from elsewhere and can roll over the loss to the next year. This, of course, does not apply to the MAGA minions spending a thousand or two from their savings who don't have a clue about capital gains/losses. This has to be big money. Trump gets the cash and can use it however he wants. In addition, is the sale lock applicable to newly issued shares or just the initial offering?

    1. golack

      I think the sale lock is applied to the principals of the organization.

      I'm not sure if the warrants issued are new or were part of the original deal, i.e. if the stock hits a certain price, you'll get more stock, that was known to the public.

      Any way, shared plummeted one day then bounced back the next before sliding back down. Dead fish bounce?

      Look, we're going to be the Next Twitter....the Next Facebook....the Next TicTok...the .....

  6. ronp

    Just a crazy grift. I agree the SEC should act but that is not the nature of "free market regulation."

    I mean Devin Nunes is in control of it all. That tells you all you need to know.

    1. iamr4man

      I think this tells you all you need to know:
      “Donald Trump announced the official launch of Trump Mortgage LLC on April 5, 2006, during an event at Trump Tower in New York. That month, Trump appeared on CNBC and said, "I think it's a great time to start a mortgage company [...] the real estate market is going to be very strong for a long time to come.”
      https://en.wikipedia.org/wiki/Trump_Mortgage

  7. KJK

    I feel no sympathy for anyone who invests and looses a pile of money on this or any other bull shit scheme that Orange con man comes up with. In this case you have the founder of the enterprise who doesn't give a shit about anyone but him self, and will burn it down if he can profit from it. There are also the professional investors and short sellers, who will do the same.

  8. Doctor Jay

    I seem to recall that additional grant of shares to Trump was contingent on the stock price staying above a certain level for a period of time. If I'm right and the period of time ends today, then last Thursday and Friday were very interesting.

    On Thursday, Trump told his followers how to keep their stock from being loaned for the purpose of short-selling. Also, some buyers stepped in and the stock went up quite a bit after a very hard slide on Monday and Tuesday. It's been declining a bit more slowly this week.

    I suspect shenanigans.

    However, I'm not all that worried. I have a bit of cash riding on the decline of NASDAQ:DJT and so far I'm in the black still. Even after the big push last week.

    So, I just smile and nod.

      1. memyselfandi

        You've lost money if you shorted it and didn't dump at $22. At 74.5% per month in interest, it's going to be hard to make money shorting it.

        1. Doctor Jay

          You are assuming the price won't go down any further. You are also assuming that I shorted at the current price. In fact, you're making lots of guesses, most of which are wrong.

  9. Dana Decker

    One week ago (Apr 16) the stock traded as low as $22.84, which made sense as that's where you go on your way to zero. But, inexplicably (to me) it rose and reached $36.38 by the end of the week. Today it's down to $32, but that's still in the 30s.

    For a company worth basically nothing (except for a cash reserve that increases book) it's astonishing that anyone is buying it, but in manias (even small manias confined to one security) nothing is guaranteed or predictable - as we see with Trump's stock.

    1. Doctor Jay

      It's completely explicable. Trump Media posted information on "how to keep your stock from being loaned for short selling". I think probably some big money stepped in and did some buying.

      This makes even more sense if the deadline today for Trump getting more shares is contingent upon the stock price staying above a certain level, as I seem to recall it does.

      1. golack

        I was wondering if it was short sellers buying on the dip to lock in (some) of their gains. But outsiders kicking in money to help Trump get his bonus...that kind of reeks of market manipulation. The recent wide swings makes it seem like the stock is thinly traded, and with the principals locked in, that might really be the case..

        1. Doctor Jay

          That's pretty much my take. In fact, the "help" could easily have hedged their buys over the last few days so that they have a lot of downside protection, so it's not really costing them that much.

  10. QuakerInBasement

    "Or will the poor suckers who own the stock just merrily ignore this and keep the share price where it is?"

    Not how this works. Folks who own stock don't determine the price. Buyers and sellers do.

    1. Lounsbury

      Indeed the level of miscomprehension on the operation of how bourse pricing occurs seems extensive.

      Although one can charitably interpret "own the stock and keep the share price where it is" adding "by not selling it themselves"

      1. golack

        That's why they need to selling the shares as paper copies suitable for framing, and for just a little extra, the deluxe package with the share framed and signed by the Donald himself.

  11. memyselfandi

    Since everyone should have known these shares wee coming, they should already be priced into the value of the shares.

Comments are closed.