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Trump Media scrambles to stop short sellers from tanking share prices
Trump Media and Technology Group, the parent company of Truth Social, is scrambling to stop short sellers from tanking its share values.
NBC News reports that Trump Media this week sent around suggestions to shareholders to prevent their shares in the company from winding up in the hands of short sellers who are essentially betting on the company's failure to make money.
According to NBC, the "tips include holding DJT shares in a cash account at a brokerage firm as opposed to a margin account, 'opting out of any securities lending program,' moving Trump Media shares to the company’s designated transfer agent, and transferring shares to a bank and 'holding them in your retirement account.'"
Short sellers essentially pay brokerage firms fees to borrow shares on a temporary basis on the belief that the shares will sink in price.
READ MORE: From 'really rich' to begging: Inside Trump's U-turn on one of his first campaign lies
After borrowing the shares, the short sellers proceed to sell them on the open market and then by them back by a specific date when they have to be returned to their owners.
If the share price in that time has indeed gone down, then the short sellers pocket the difference they made between the original sale and the repurchase.
If the share price increases, however, the short sellers lose money because they'll be buying back the shares at a higher price than the original sale.
Short sellers have swarmed to Trump Media shares for weeks now, as its price has plummeted from a high of $66.22 on March 27th to a low of $22.84 on Tuesday, although its price has recovered some of that lost value in the last day-and-a-half of trading.
The longer-term threat to Trump Media's value likely isn't short sellers, however, but simply a lack of profitability. The selloff in shares started earlier this month when the company released an earnings report showing that it lost $58 million in the last fiscal year while generating just $4 million in revenues.
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Chaos Breaks Out In Georgia’s Parliament After Party Leader Clocked In The Head While Addressing Lawmakers
Chaos broke out in Georgia's parliament after the leader of the ruling party was punched in the head as he addressed lawmakers about a controversial law.
The post Chaos Breaks Out In Georgia’s Parliament After Party Leader Clocked In The Head While Addressing Lawmakers first appeared on Mediaite.Former Trump lawyer fears legal tactic poses ‘huge danger’ to hush money defense
Former President Donald Trump's biggest risk in the Manhattan hush money trial could be what he himself says if he takes the witness stand, former Trump administration White House lawyer Jim Schultz argued on CNN Monday.
This came as the trial's first day opened with the jury selection process, with Trump sitting at the defense table and some experts remarking that he appeared diminished.
"Does today matter?" asked anchor Phil Mattingly. "Does what they see from these potential jurors matter in that kind of strategy process?"
"Look, I think all of it's going to matter, right?" said Schultz, a longtime defender of the former president who has nevertheless admitted the recent string of civil and criminal trials has been rough for him.
"How he interacts, how they interact with him, how they feel — how the lawyers feel that the jurors are, how much appeal there is from the jurors as to whether they're going to put him on the stand. But I think at this — at this stage in the game, I think they're probably leaning towards putting him on the stand."
Anchor Erin Burnett then chimed in. "And what would you do?" she asked. "You know him. You've worked with him. You think that's a gamble you'd take, to put him on the stand?"
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Schultz replied, "I think again ... in this particular case, hearing from him is likely going to matter. I think he'd want to testify in this case. I think he's going to push his lawyers to testify in this case. And quite frankly, the problem with putting Donald Trump on the stand is that you never know what Donald Trump's gonna say, whether he could say something that's completely irrelevant to the case, he could say something that damages the case just by making a flippant remark.
"So there is a huge danger of putting him on the stand, but I think he's going to be pressing to do it."
Watch the video below or at the link here.
Jim Schultz says Trump is a "huge danger" to himself on the stand www.youtube.com