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#4 | Posted by jpw at 2024-05-03 04:45 PM |
Let me guess, another witch hunt because he's being persecuted?
Strangely enough, he is most likely to keep his mouth shut on this - this is to his advantage at this time, in a couple of ways:
1. He, as usual, can blame things on the auditors, just like he blames everything on his [former] lawyers, accountants, fixers, employees - "I knew nothing about this! I am a businessman/builder/creator, not an accountant..." etc.,
and much more importantly, it delays the quarterly financials disclosure which is an absolute disaster (something those who "invest" in this meme stock should already know) and would receive bad coverage all over the news :
2. "Investors waiting for an update of how Donald Trump's media startup is faring will have to wait a bit longer -- months by some accounts -- before getting a look at financial results.
What the SEC should really look into is the real massive fraud which happened on first day of DWAC SPAC merger with Trump Media becoming essentially DJT - and that is addition of more than 3x original 30.02M DWAC shares, at the valuation of just about $2B, and became immediately "worth" / valued at about $9B at the same price, i.e., there was no dilution reflected in price to adjust for number of shares prior to "merger"/ IPO of essentially the same entity.
This is basically "printing money" / new stock shares at no cost, without prior "full dilution" disclosure... and few days ago company issued another 53M shares (almost 40% of existing shares) and he was assigned another "earnout" bonus shares worth on paper additional $1.8B at that day's market price - again, "printing" massive amounts of new stock without price adjustment.
Company valuation shouldn't change just because there is a split, reverse split or new shares are issued, so dilution means the share price needs to be adjusted down to reflect new shares - this has not been done here, they just keep issuing new shares, massively diluting existing shareholders and ridiculously overstating "market value" (whatever value there actually is) without share price adjustments. Any other stock doing this (except maybe Tesla / TSLA ??) would be designated a fraud by the SEC and principals sued in a jiffy.
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"Joe is actively throwing the election by printing money we don't have"
Remember when Trump passed a tax code based on $2.3 Trillion of new borrowing, and you threw a fit?
NO ONE ELSE DOES, EITHER.