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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.
‘He did say one thing that is accurate’: CNN host undercuts Trump courthouse rant
CNN host Kaitlan Collins handed Donald Trump a backhanded and snarky compliment on Monday morning after the former president launched into a one-minute-long rant about the unfairness of his being tried in the Manhattan hush-money case.
Flanked by a phalanx of attorneys and security, the former president addressed the press and claimed he's facing a case that never should have been brought — and then tried to pin it on President Joe Biden.
'Nothing like this has ever happened before, there's never been anything like it," he insisted. "Every legal scholar has said, this case is nonsense. It should never have been brought."
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He later added, "It's an assault on America and that's why I'm proud to be here. This is an assault that our country and it is a country that is failing, it's a country that's run by an incompetent man who is very much involved in this case."
After turning on his heel and ignoring shouted questions, CNN's Collins told viewers, "There is Donald Trump, he did say one thing that is accurate: this is a historic case, one like we have not seen in our country's history, a former president facing criminal charges and about to go to into that courtroom."
She later added, "He said several things that are not true that he has been saying repeatedly about this case. You've likely heard the fact checks of them before that this is a case that is politically motivated and being led by his opponent here, President Joe Biden.
"That is not the case. this was a case that was brought by the Manhattan district attorney, a jury indicted him in this case and agreed to that and signed off on it. That is why we are here where we are today."
CNN 04 15 2024 09 30 17 youtu.be
