DJT company could buys assets and then use that as collateralToo bad he's not allowed to sell covered calls against that 180 lock-up. He could $10 for the June $100's.
I suggest buying CNN
DWAC, the Trump Social-Media SPAC, Surges: What to Know
- Thread starter kmiklas
- Start date
I suggest buying CNN
John Ruiz was worth $20 billion when his SPAC started trading (LIFW). Its since lost 99.9% of its value and volume has dried up. The biggest chunk of loss was in the weeks right after it started trading.
Nobody is gonna take that paper.
What investors overlook is as DWAC, it is an acquisition company like the Sharks on Shark Tank or Warren Buffet who bought whole companies like See's Candies, GEICO and that railroad company. All sound businesses providing cash flow and earnings. DJT can do the same thing with the monies it has raised and even part of the shares can be used to buy other smaller companies. Carl Icahn used to buy distressed companies, rehabilitate them then, sell them for top dollar? TikTok could probably, be a good acquisition because it would change ownership from the Chinese to US and its problems could be ended. Most of the young people use TikTok. So, saying it does not have earnings is meaningless. AMZN when it launched its IPO had no revenues yet, where is AMZN now? NFLX too. Even just buying a good chunk of a good company will guaranteed it will have earnings coming in with capital appreciation on top of it.
No I read the sec stuff... as it stands, he's not allowed to pledge those shares for anything...(and obviously that includes covered calls too)
That could be amended by the bod, but even though he holds the majority of votes, there would be huge litigation as he is considered a (I forget the legal term for it) but it would require a majority vote of the other board members. Basically if he voted his shares, all hell would break lose on the litigation front. Of course that's nothing new lol... but the stock would plummet before he could even strike a deal to pledge them.
Here... From Forbes:
“To lift the restrictions in the certificate of incorporation would require both the board’s consent and a stockholder vote,” Kowalski says. “In a situation where a majority stockholder has a clear conflict of interest (and Trump voting his own shares on the question of whether his lock-up should be lifted is very clearly a conflict), a board would almost always insist on getting a majority vote from shareholders who are not conflicted. Otherwise, they are very vulnerable to a shareholder suit alleging that they violated their fiduciary duty as directors.”
I knew there was something like that. One of those dot-com stocks tried it back in the day lol... I forget which one, i played so many.
“To lift the restrictions in the certificate of incorporation would require both the board’s consent and a stockholder vote,” Kowalski says. “In a situation where a majority stockholder has a clear conflict of interest (and Trump voting his own shares on the question of whether his lock-up should be lifted is very clearly a conflict), a board would almost always insist on getting a majority vote from shareholders who are not conflicted. Otherwise, they are very vulnerable to a shareholder suit alleging that they violated their fiduciary duty as directors.”
I knew there was something like that. One of those dot-com stocks tried it back in the day lol... I forget which one, i played so many.
Reminder, We all respect comments from this forums number one racist
What limits does this new company DJT having in spending money. Can it buy other companies or it cant spend any money for 6 months