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.
‘Old and tired and mad’: Trump’s demeanor in court detailed by Rachel Maddow
MSNBC host Rachel Maddow, inside Manhattan’s Criminal Courthouse on Monday, declared that Donald Trump appeared “old and tired and mad” as she delivered observations about the ex-president on trial for 34 counts of falsification of business records in the alleged pursuit of election interference to protect his 2016 presidential run.
Trump “seems considerably older, and he seems annoyed. Resigned, maybe, angry. He seems like a man who’s miserable to be here,” the journalist told MSNBC viewers Monday afternoon.
“I’m no body language expert,” she conceded, “and this is just my observation. He seemed old and tired and mad.”
The New York Times’ Susanne Craig, inside the courthouse Monday morning, reported: “Trump is struggling to stay awake. His eyes were closed for a short period. He was jolted awake when Todd Blanche, his lawyer, nudged him while sliding a note in front of him.”
The Biden campaign was only too happy to pick up and report Craig’s observation, adding “feeble.”
Former Obama senior advisor David Axelrod, pointing to his piece at The Atlantic, wrote of Trump: “He has charmed & conned, schemed & marauded his way through life. He was bred that way. But the weariness & vulnerability captured in courtroom images betray a growing sense in Trump that he could wind up as the thing his old man most reviled:
A loser.”Watch Maddow's video below.
