Trump and Dump

The only thing crazier than voting for Trump is investing in his new publicly traded company: DJT. I asked a CEO friend at a (real) publicly traded company to give me an overview of the out of whackness of this company’s market value. Total Revenue in 2023 was $4.1M. Twitter had more than $5 billion in Revenue in 2021 – the last full year before Elon Musk acquired the company. So Twitter was roughly 1,200 times bigger than DJT when it was acquired. But at a $44B valuation paid by Musk (which everybody now agrees was too high), Twitter was valued at less than 9X more than DJT right now. On that $4.1M in Revenue, Trump’s co had a net loss of $58M. Par for the course when it comes to Trump’s grifting, this company is leveraged to the max. The company paid $39.4M in interest on loans in 2023. This means that the company paid more than $9 in interest on the debt for every dollar that it generated. But big MAGA investors have backed the company and MAGA mom and pop investors are scooping up shares. None of this should surprise you. This is how Trump does business: Grifting, donations, and loans upon loans upon loans. NYT (Grift Article): How Trump Moved Money to Pay $100 Million in Legal Bills.

+ So should you short the DJT stock since it’s so obviously overvalued? Even that is dangerous because the motivations of the stock’s buyers are not necessarily driven by market strategies. And there seems to be an endless number of big spenders willing to add some more leverage to the leverage. Trump Got His $175 Million Bond From a Billionaire Fan’s Company.

+ House Republicans push to rename Dulles airport after Trump. Dull is as Dull Does.

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