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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.
Trump is barrelling towards the ‘worst day in his public life’: former prosecutor
During an appearance on MSNBC on Saturday morning, former federal prosecutor Paul Butler bluntly stated that the moment Donald Trump steps into a Manhattan courtroom on Monday, it will commence the "worst day of his life" as he faces 34 felony counts that could lead to four years in jail.
Speaking with fill-in host Charles Coleman Jr., Bultler explained that for the first time in his life, the former president's actions have led to a moment in life where he faces very real consequences that could impact his freedom.
Speaking with the host, he stated, "On Monday, something historical will happen. It will be the first day in Donald Trump's life that he is beginning to be brought to judgment in a criminal case for his own alleged corruption."
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"As you noted, his lawyers have filed nine different motions to delay the trial with Judge Juan Merchan. They're trying to get around the law that they can't appeal until after the trial, that is what the Article 78 motion was about," he explained. " And the reason for that, Charles, is that Trump's defense is delay. But when he is actually brought to judgment, when his cases are heard on the merits, he loses all the time."
RELATED: Trump's trial will 'turn off' Christian voters regardless of verdict: ex-GOP lawmaker
"[New York write] E. Jean Carroll beat himE. Jean Carroll beat him, [New York Attorney General] Letitia James beat him in the civil fraud trial. [Manhattan DA] Alvin Bragg beat him in the criminal conviction of the Trump organization. The New York attorney general took down his fake university and his fake charity," he listed off for the host. "So, Monday, April 15th, 2024, will be the worst day of Trump's public life because it is the first time he is personally being brought to judgment in a criminal court."
Watch below or at the link.
MSNBC 04 13 2024 10 03 54 youtu.be
