Sports
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.
‘Must be a world record’: Legal expert stunned by mass dismissal of potential Trump jurors
Donald Trump's legal team was expecting around just 40 percent of jurors to be dismissed from his New York hush money criminal case over the question of whether they can be impartial, but more than half of the 96 jurors were dismissed en masse due to their admitted inability to be unbiased.
While at least 50 of the potential jurors were let go over their inability to be impartial, others bowed out over potential conflicts.
Also read: Trump 'glares' at NYT's Maggie Haberman in courtroom after she reports he was sleeping
Speaking on CNN Monday, network legal analyst Elie Honig said that it's "remarkable" how many jurors have so far been excused.
"... More than half the people said right off the bat, knowing one paragraph of information about this case, 'I cannot be [unbiased],' and walked out the door — that's gotta be a world record," Honig said during a panel discussion.
"And I think it speaks to just how polarizing Donald Trump is," Honig continued, adding that the juror exits could also be due to "how scared people are."
"Will this qualify legally as a fair trial or fair jury? Yes, in all likelihood. But let's also be real about what we're talking about here — Manhattanites overwhelmingly dislike Trump politically and personally," Honig said, pointing out that things would be much different in a county where the population overwhelmingly supports Trump.
"So let's be real, it's a very tough jury pool for Donald Trump, but sometimes that's how it goes."
Watch the video below or at this link.
Eli Honig on CNN 4/15/24 youtu.be
