A while back I had heard Truth social was losing money. Had no idea it was worth so much. For some reason in my mind it wasn't that large and mainly used by the fanatic segment of his followers. Wonder what they advertise???
So is a SPAC company waiting to happen...let's start one called Chit Chat Inc. We will sell the potential of software.
A special purpose acquisition company (SPAC) is a company without commercial operations and is formed strictly to raise capital through an initial public offering (IPO) for the purpose of acquiring or merging with an existing company. Also known as blank check companies, SPACs have existed for decades, but their popularity has soared in recent years. In 2020, 247 SPACs were created with $80 billion invested, and in 2021, there were a record 613 SPAC IPOs. By comparison, only 59 SPACs came to market in 2019.
I don't know much about them but if Trump is involved it will probably go the way of his casinos.
Last edited by TysonLPrice; Mar 23rd, 2024 at 04:05 AM.
It brings back memories of @ 2000, when all those internet tech companies had IPO's. Hardly any of them had made a profit but people were buying them up like crazy. Most of them crashed and burned. But the people offering the IPO made fortunes.
I guess this is why i'm poor and always will be poor. This looks like a trainwreck of an investment. Truth Social hasn't done anything but lose money, I don't see much chance for growth that's significant enough for it to compete with X, TikTok or FB. But Reddit did well with it's IPO and it doesn't make a profit either. So what do I know???
Meme stocks tend to be flashy. In this case, the long term viability of the stock is certainly terrible. The stock is solely Trump, otherwise it is below junk status. Therefore, how would one invest? It might rise early as people buy it because of their affinity for Trump, but as an investment, it has such a short window of viability, it is certainly going to crash. With Trump not being able to cash out quickly, it seems likely that this is just a way for people to burn money. They'll have near term paper gains, but since they are bound to evaporate, you'd be wanting to cash out fairly quickly. It's just a matter of guessing when.
Trump's follower's shares will start tanking as soon as they buy in. He could start selling his shares of Truth Social tomorrow to pay off his bond, if the board consisting of his son and allies alter a previous agreement to where he can't sell personal shares for 6 months.
Last edited by Peter Porter; Mar 24th, 2024 at 02:45 PM.
Trump's follower's shares will start tanking as soon as they buy in. He could start selling his shares of Truth Social tomorrow to pay off his bond, if the board consisting of his son and allies alter a previous agreement to where he can't sell personal shares for 6 months.
Not Make America Great Again Trump!!! He wouldn't do that to his followers. lol
Didn't they just get through the hurdles that Google demanded in order to get their app into the Play Store? Before that only Apple users had access as far as I knew.
That might double the number of users or better.
Oops, did some browsing. Looks like that happened two years ago. Sorry.
The active user count still seems to be tiny compared to others. Then again I don't think TS has much appeal outside the US and Canada, and isn't a ripe feeding ground for the international scamming industry. Probably a lot fewer sweatshops running 100 accounts per slave.
It's my guess that anyone who wants to follow TS is already a user. Trump lovers/haters have chosen sides. I don't see where much growth is going to come from.
It's a vehicle for foreign investors, in this case China, to funnel Trump money. They're 'investing' not in the money pit of Truth Social, but in the favors they'll get if he wins the election.
Every accusation is a confession with Republicans; they make stuff up about Biden and China when it's really Trump selling the country out (again).
My understanding is that the majority owner of such a company has to hold for six months. I hadn't heard anything about this being a board decision. I thought it was a rule for SPACs, though I'm not certain about that. I had also heard that the majority owner was only allowed to shed 1% per...month?
My understanding is that these rules were put in place to avoid people doing a pump and dump scheme. If that's the case, it would have nothing to do with Trump.
However, if he did start liquidating his position rapidly, I would expect the stock to tank. Sure, there might be some truth to the idea that foreign investors would want to influence Trump by pumping up the paper value of the stock, but there are two problems with that: 1) If he's selling his shares, then they are getting less and less influence from each purchase, and 2) they are sure to lose their shirts, because their holdings will become worthless. Are there really big investors willing to use such an inefficient vessel to try to buy influence? I would expect them to have easier means, such as giving him a building, or something.
An obscure body in the SK system. The inhabitants call it Earth
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Re: Truth Social
Had no idea it was worth so much.
It's not currently being traded so the value is... whatever Trump (and the other shareholders) say it's worth. Once it becomes publicly traded the value will be whatever people are willing to pay for it. These two numbers may prove to be radically different.
The best argument against democracy is a five minute conversation with the average voter - Winston Churchill
Hadoop actually sounds more like the way they greet each other in Yorkshire - Inferrd
My understanding is that the majority owner of such a company has to hold for six months. I hadn't heard anything about this being a board decision. I thought it was a rule for SPACs, though I'm not certain about that. I had also heard that the majority owner was only allowed to shed 1% per...month?
My understanding is that these rules were put in place to avoid people doing a pump and dump scheme. If that's the case, it would have nothing to do with Trump.
I saw a headline a couple of days ago that said the board could allow him to sale, I didn't read the article.
It's not currently being traded so the value is... whatever Trump (and the other shareholders) say it's worth. Once it becomes publicly traded the value will be whatever people are willing to pay for it. These two numbers may prove to be radically different.
Yeah, but Trump wrote The Art of the Deal so he's an expert on these things. Plus Trump would never lie.
An obscure body in the SK system. The inhabitants call it Earth
Posts
7,918
Re: Truth Social
if he did start liquidating his position rapidly, I would expect the stock to tank
I think it might tank if he starts divesting regardless of the rate he does so. He made a lot of noise about the value of his properties hinging on his brand value and I think most folks would agree he overestimated that... just a tad. But in the context of Truth Social, it really does hinge on it being his social media platform - that's its USP. If he divests that goes away.
The best argument against democracy is a five minute conversation with the average voter - Winston Churchill
Hadoop actually sounds more like the way they greet each other in Yorkshire - Inferrd
I agree. If he can only sell 1% per month, then it will take him a long time to totally divest, since he's starting with a 56% share, reportedly. Still, the appearance of him selling should be enough to tank the stock. It has no value without him.
Truth Social loses money, has very little revenue, and no viable path to profit. Why else would major financial interests want it at such exorbitant valuations other than to get lots of money to Trump in a legal manner?
Don't forget that as soon as he owns the assets he can take out loans against them, even if he can't outright sell them.
I will be interested in the performance of the stock. Initial valuations are usually wrong. Ideally, the value rises, but in this case, the value seems likely to plummet. Guess not, in this case, as it jumped 30% initially. The underlying fundamentals don't support that, though, so I would expect it to decline.
I will be interested in the performance of the stock. Initial valuations are usually wrong. Ideally, the value rises, but in this case, the value seems likely to plummet. Guess not, in this case, as it jumped 30% initially. The underlying fundamentals don't support that, though, so I would expect it to decline.
It would seem like it would have to, the question is when. Stock market is crazy.
How does a company that always loses money stay in business? Strange.
He is also hawking bibles...every little bit helps I guess.
“Happy Holy Week!” Trump’s post said. “Let’s Make America Pray Again. As we lead into Good Friday and Easter, I encourage you to get a copy of the God Bless The USA Bible.”
Just $59.95
Last edited by TysonLPrice; Mar 27th, 2024 at 05:53 AM.
He is also hawking bibles...every little bit helps I guess.
“Happy Holy Week!” Trump’s post said. “Let’s Make America Pray Again. As we lead into Good Friday and Easter, I encourage you to get a copy of the God Bless The USA Bible.”
Just $59.95
I just read that this Bible contains U.S. Constitution, Bill of Rights, Declaration of Independence, Pledge of Allegiance, and the lyrics to the chorus to Greenwood’s “God Bless The USA." Or maybe the first version written by Lee Greenwood had all this in it.
Last edited by Peter Porter; Mar 27th, 2024 at 10:26 AM.
He does love to wrap himself in the flag. People seem to eat it up. I guess trying to overthrow the presidential election was patriotic. Who knew??
The man is completely shameless when it comes to milking people out of money. Sometimes it makes me laugh and shake my head, but that usually doesn't last long, when the thought of him being president enters.
If your stock plummets after a mandatory SEC filing of your social media's company's $58 million loss and total revenue of $4.1 million in 2023, blame bad management by your cofounding reality TV stars of your new media company.
When a business goes public who/what determines the number of shares available??
Typically management. In most situations you'll find that an outside firm has come in to determine the number of stocks along with its price. It then has to go through the SEC for regulatory approval.
Originally Posted by wes4dbt
Can the business use all the money from the stock sales for anything?
There are regulations on what can be done with the money acquired by an IPO, I don't know them all nor do I want to. But most instance I've heard of it is to pay off debts and "strategic planning."
Originally Posted by wes4dbt
Is there some type of protection for the share holders?
This is true no matter if its an IPO or not but the company has to do what is best the shareholder. There have been lawsuits against companies where shareholders claim that the company acted outside the interest of the shareholder (Google's DEI initiative is a more recent one that comes to mind) but I don't know how successful these lawsuits are.
But in a general sense, shareholders vote (though typically through a proxy), the business has to disclose its financial reports, and shareholders can inspect corporate records. However, how often do you hear of shareholders actually doing this?
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In a completely unrelated note, I have some friends that use Truth Social. I just don't see the allure in it. By all accounts its just a way for sycophants to flatter Trump or to rail against the "others". Y'all know me, I think the general state of right/left in the US is just as screwed up as the next guy and could probably agree with some of the railing but it just doesn't seem productive.
I get the general feeling that this is another way for Trump to cash in on normal every day people. And if history says anything, they'll just smile and glorify what Trump did. I genuinely don't get it.
I get the general feeling that this is another way for Trump to cash in on normal every day people. And if history says anything, they'll just smile and glorify what Trump did. I genuinely don't get it.
He's very talented at milking money out of people. And, I genuinely don't get it either.
Typically management. In most situations you'll find that an outside firm has come in to determine the number of stocks along with its price. It then has to go through the SEC for regulatory approval.
There are regulations on what can be done with the money acquired by an IPO, I don't know them all nor do I want to. But most instance I've heard of it is to pay off debts and "strategic planning."
This is true no matter if its an IPO or not but the company has to do what is best the shareholder. There have been lawsuits against companies where shareholders claim that the company acted outside the interest of the shareholder (Google's DEI initiative is a more recent one that comes to mind) but I don't know how successful these lawsuits are.
But in a general sense, shareholders vote (though typically through a proxy), the business has to disclose its financial reports, and shareholders can inspect corporate records. However, how often do you hear of shareholders actually doing this?
---
In a completely unrelated note, I have some friends that use Truth Social. I just don't see the allure in it. By all accounts its just a way for sycophants to flatter Trump or to rail against the "others". Y'all know me, I think the general state of right/left in the US is just as screwed up as the next guy and could probably agree with some of the railing but it just doesn't seem productive.
I get the general feeling that this is another way for Trump to cash in on normal every day people. And if history says anything, they'll just smile and glorify what Trump did. I genuinely don't get it.
I think there is a distinction between an IPO and a SPAC but I don't know if it affects your point:
In the last few years, something called a special purpose acquisition company (SPAC), has become a popular way to raise capital. A SPAC, also known as a blank check company, bears some resemblance to an initial public offering (IPO), which is a more well-known means of raising capital. But there are key differences. In both cases, though, a SPAC and an IPO are ways for investors to get in on the ground floor of promising startups. If you want early stake in an emerging venture, work with a financial advisor so your choices match your goals and risk profile.
I imagine the processes are very similar but not confident enough to say for sure.
Keep in mind too that I let my Series 6 and 7 lapse a few years ago and completely left that world. And obviously none of what I say is financial advice, please consult a financial planner, etc. etc.
I'd say if your investing in TS you are not basing that on solid financial norms. They have always lost money and there's no obvious growth potential or increased revenue potential. You also have the Trump holding 58% of the shares and there is a realistic chance he will be selling off large amounts. But people can convince themself the world is flat. So I guess I shouldn't be surprised.
What happens if someone want to sale a bunch of shares and no one want to buy them???
I'd say if your investing in TS you are not basing that on solid financial norms. They have always lost money and there's no obvious growth potential or increased revenue potential. You also have the Trump holding 58% of the shares and there is a realistic chance he will be selling off large amounts. But people can convince themself the world is flat. So I guess I shouldn't be surprised.
What happens if someone want to sale a bunch of shares and no one want to buy them???
Lowers the value of all shares. If Trump plans to sells too much of his shares in the future, and no ones buys, it becomes almost worthless. But there are alot of people around the world that would love to pull his strings, so they might buy shares at whatever prices he sets it at. That would increase it's value, but only for a short time if Truth Social doesn't improve revenuewise.
.... But there are alot of people around the world that would love to pull his strings, so they might buy shares at whatever prices he sets it at...
I can hear it now: "I am financing my campaign totally out of my own pocket. I won't take a dime of the money I'm paid as president. Sleepy Joe. What has he done? He's taking money from millionaires and billionaires. Not that I couldn't if I wanted to. I can raise so much more money than Sleep Joe can. I would probably have billions. But I don't to. It's just not right. This is coming totally and completely out of my own pocket."
I just checked and TS is down another 17%. It's amazing the trail of destruction and the piles of bodies that guys leaves behind him. But still people join his orbit.
It always leave me confused about how some people process information. But then there has been many many cults through the years so this isn't new. But it makes no sense to me.
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