General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsOh, Look! It's A MAGAmerican Who Put All Of His Savings Into Trump's Shitty Media Stock - He Wants To Buy More
Jerry Dean McLain first bet on former president Donald Trumps Truth Social two years ago, buying into the Trump companys planned merger partner, Digital World Acquisition, at $90 a share. Over time, as the price changed, he kept buying, amassing hundreds of shares for $25,000 pretty much his whole nest egg, he said.
That nest egg has lost about half its value in the past two weeks as Trump Media & Technology Groups share price dropped from $66 after its public debut last month to $32 on Friday. But McLain, 71, who owns a tree-removal service outside Oklahoma City, said hes not worried. If anything, he wants to buy more. I know good and well its in Trumps hands, and hes got plans, he said. I have no doubt its going to explode sometime.
For shareholders like McLain, investing in Truth Social is less a business calculation than a statement of faith in the former president and the business traded under his initials, DJT. Even the companys plunging stock price and the chance their investments could get mostly wiped out doesnt seem to have shaken that faith. The company has lost $3.5 billion in value since its public debut last month.
EDIT
But there are also flickers of uncertainty and disenchantment, with some saying they faced thousands of dollars in losses or had risked [literally] everything. One user who had posted Tired of WINNING yet? earlier this year when the stock spiked posted that this weeks losses were painful to stomach. Come on DJT, every time I buy more, the price drops more, the user @bill7718 wrote. When will it be the BOTTOM!! (He posted a chart Thursday showing the stock rising slightly alongside the caption, moving!! The price has since gone back down.) The user @manofpeace123, who said they bought shares at $65 and that 71 percent of their portfolio was DJT stock, said on Wednesday that investing was a way of telling Trump, I believe in you and I stand with you through good times and bad. But a day later, the user added: cant help but feel sad.
feel like Im trying to catch a falling knife.
EDIT
https://www.washingtonpost.com/technology/2024/04/14/truth-social-investors-faith-trump/
https://wapo.st/4ayuwJl
Mysterian
(4,659 posts)I feel no sympathy for willfully ignorant people.
smb
(3,508 posts)Experience keeps a dear school, but fools will learn in no other.
--Benjamin Franklin
lame54
(35,493 posts)COL Mustard
(6,140 posts)To the bank!! These are the suckers and losers that TSF loves so much. At least until they run out of money.
Marthe48
(17,459 posts)If I feel like I want to show support, I send a donation to their political campaign. I don't want to drink a beer with them, don't want to support them like the failed relative. If I have money put away, I must have enough sense to avoid wasteful endeavors. I have no sympathy for people who, in spite of seeing the track record traitor has of one failed business after another, throw good money after bad.
dalton99a
(82,121 posts)It is a beautiful and perfect investment
durablend
(7,530 posts)Empty your bank accounts. Mortgage EVERYTHING. Anything of value in the house? SELL IT.
Chainfire
(17,757 posts)These people will have to learn the hard way, and then it is not certain that they will come away with the right lesson. When the stock bottoms out, they will be blaming it on Biden.
PatSeg
(48,434 posts)And he runs a business? Did he use this logic in his own business?
It is mindboggling that these people have been able to function for decades without facing ruin and bankruptcy.
By the way, I agree. They'll blame Biden when they lose their shirts, because in their eyes Trump can do no wrong.
pandr32
(11,735 posts)People like this business owner are so indoctrinated they will lose everything and then blame the Democrats, as well as the 'Deep State', for their persecution of TSF, thereby causing his business to fail.
Hopefully, some of these MAGAts will wake up and turn their lives around. There are bound to be at least a few. Fingers crossed.
PatSeg
(48,434 posts)Though they're probably not likely to be advertising their previous gullibility. Who wants to admit they were taken in by an obvious con artist? Many of them are likely to keep a very low profile. It is too embarrassing to admit you were a huge chump.
smb
(3,508 posts)Maybe he got hit with overwhelming expenses that made it impossible to save adequately, but I suspect that investing in "Truth Social" isn't the first time he got taken to the cleaners...
PatSeg
(48,434 posts)How many hairbrained schemes has he fallen for in the past? Meanwhile, he claims he hasn't told his family yet about his "investments", though I'm sure they know now that he is featured in a Washington Post article.
The stock keeps going down and in response McLain doubles-down.
This isnt just another stock to me.
I feel like it was God Almighty that put it in my lap, he said. Ive just got to hold on and let them do their job. If you go on emotion, youll get out of this thing the first time it goes down.
I almost feel sorry for the guy, but if after watching Trump for the past eight years, he is still willing to throw his money away for the guy, I guess he'll just have to learn the hard way, if he learns at all.
smb
(3,508 posts)Well, looks like he's about to lose it again...
PatSeg
(48,434 posts)Chainfire
(17,757 posts)Of course, if he hangs on to the stock, I am sure that the Bigly Big Businessman, D.J. will turn it all around and they will all be coming up roses. Trump is looking out for his little people, that is why they love him. In fact, it would be my advice is for all of Trump's supporters get on board and run the price of the stock way up, for surely, goodness and mercy will follow them all the days of their lives, and they shall dwell in house of Mar-A-Loco forever. Amen.
I have zero empathy for the silly bastards.
PatSeg
(48,434 posts)Nice paraphrase of the 23rd Psalm and that's probably how they believe it will play out.
calguy
(5,388 posts)This current scam, DJT, will also become worthless. Its just a matter of time before 'investors' who stick with trump eventually lose it all.
modrepub
(3,523 posts)It's my understanding that people shorting stocks are "renting" shares to offset their shorts of DJT. Careful investors have access to the stocks they short in case their position becomes untenable because the price of their bet has gone south. "Renting" shares to people who short the stock seems to have become quite lucrative. Don't know if this person is savvy enough to do this.
[link:https://www.msn.com/en-us/money/topstocks/why-shorting-trump-s-djt-stock-could-cost-you-a-500-fee/ar-BB1l1vlp|
Hugin
(33,426 posts)There seems to be an algorithm at play in most of the trades. Something like a rental would be half of the current share price. Demand is so low that even if a rental is lucky enough to sell their short at a profit. (which happens often when a large enough number of shares move) They only walk away with pennies/share. Its really not worth the time compared to other legitimate trades on the markets.
modrepub
(3,523 posts)Personally, I love it when the market punishes people who trade on their emotions, especially when they think they've outsmarted everyone else.
PatSeg
(48,434 posts)Kindred souls I suppose.
Bernardo de La Paz
(49,326 posts)Putting your shares on margin or putting a sell limit far above the current price keeps the out of the hands of short sellers (for which way and details see your stock broker), and some holders are doing that.
There is a lack of shares available for shorting in that stock now, and holders can get about 5 times the usual rate. Holding shares away from shorters benefits those who make shares available for shorting who can then charge more.
Regardless, only suckers and those locked in own/hold DJT shares now.
There were two episodes of strong buying in DJT on Friday, and it might indicate Saudis and multi-billionaires favourable to tRump moving money in strategically to prop up the stock for political favours.
PatSeg
(48,434 posts)People who can afford to take some losses if necessary, looking for preferential treatment down the road.
Joinfortmill
(14,804 posts)TwilightZone
(25,685 posts)At least we know he wasn't involved in insider trading. It was under $10/share a few months before McLain bought it (before the initial announcement).
Jerry2144
(2,183 posts)Shares of DJT stock will trade at a negative price. People will have to pay others to take those shares
maxrandb
(15,552 posts)"at some point, it's going to explode"
Hugin
(33,426 posts)On the difference between explode and implode.
Arthur_Frain
(1,883 posts)Penny stocks were the big thing then. If you picked the right vehicle you were on easy street, all it took was hitting the right stock once and getting out, but precious few hit the right stock, and fewer still moved out once theyd made a pile.
I never invested then, but I watched my buddies, and I kept an eye on some of the stocks they told me I was a fool for not buying. 99 out 100 either folded or languished, but I did see one (just one) guy actually hit his stock.
I think it should be obvious what and who this stock was intended to enrich, and there might be a few other people lucky enough to make a little change. In my entire life I dont think Ive seen a stock so susceptible to manipulation. I dont think theres enough money in the world to make it explode the way theyre talking about.
There was a subreddit a few years back titled Herman Cain is calling. Theyd post the anti vax pages these idiots dying of Covid had been pasting onto their fb pages, then add the gofundme pleas for the same people once they contracted Covid, and then the obituary when the inevitable came. It got a little out of hand with the grave dancing and the subreddit was pulled. Id love for someone to start a new subreddit with all these magat investors in the run up to their bankruptcy filings. Schadenfreude city, and you can put me on a train.
TexasBushwhacker
(20,361 posts)It's /HermanCainAward . It seems that antivaxxers also buy into other conspiracies, the latest being that eclipse glasses weren't just unnecessary, but harmful. You can't make this shit up!
PatSeg
(48,434 posts)I worked for several brokerage firms and I saw certain investors make the same mistakes over and over again. It was unbelievable. They'd lose a lot of money and come back and buy another stock guaranteed to fail.
They should have just taken their money to Vegas. At least they'd have some fun and free drinks while they lost their shirts.
Hugin
(33,426 posts)Day trader I was associated with at one point. It was so painful to watch, I finally said that every time they got the impulse to invest they should lay the money on my desk and come pick it up at the end of the day.
For the first time in three years, they ended the year in the black.
PatSeg
(48,434 posts)I swear, some of these people were programmed to fail. Even when their brokers would give them good, solid advice, they were sure they knew best and pick yet another loser.
Hugin
(33,426 posts)They followed through on the program.
PatSeg
(48,434 posts)COL Mustard
(6,140 posts)Set a loss limit and a gain limit for your investment, and above all dont trade on emotions.
Of course all my investments are in funds, not direct stocks.
Hugin
(33,426 posts)FOMO (Fear Of Missing Out) reigns supreme, though. As always. Thats the specific emotion at play.
If something is a good investment today, itll be a good investment tomorrow. (Unless, TSF touches it in the meantime. )
ShazzieB
(16,989 posts)More like implode!
Note: one definition of implode is "To undergo a catastrophic failure."
dchill
(38,739 posts)ProfessorGAC
(66,135 posts)Doesn't matter to these marks. The syllable "-plode" is in there are that's good enough for them
Dopes!
smb
(3,508 posts)Rebl2
(13,795 posts)Trump touchesyou know the rest.
Ocelot II
(116,611 posts)Lately it seems like The Onion has been writing all the political news because it's hard to believe any of it is real. But this really is a special kind of stupid.
shrike3
(4,098 posts)No, it's just you Jethro."
Johonny
(21,198 posts)There's nothing but speculation holding the price up.
LonePirate
(13,499 posts)durablend
(7,530 posts)That's unless they're also in on it, in which case, fuck them too.
catbyte
(34,709 posts)I'd feel sorry for these morons if they weren't so vile.
...there goes his nest egg.
COL Mustard
(6,140 posts)Oh wait probably wants to privatize that too!
Aviation Pro
(12,417 posts)Fucks
NoMoreRepugs
(9,668 posts)Hopefully large money goes or has gone short DJT and drives it into the ground.
erodriguez
(674 posts)WarGamer
(12,861 posts)However, if Trump wins in November... I can see it hitting record highs as global powers seek Trumps approval.
Trump loses, it's worthless.
FakeNoose
(33,438 posts)... they might have an understanding how the short squeeze is going to benefit a few small investors. A lot of Wall Street guys are shorting this stock too, so it could happen. But most people who aren't Wall Streeters won't know when to sell, and they'll get stuck.
samsingh
(17,624 posts)this moron will lose all his investment this year
skypilot
(8,866 posts)...this is or will be a "pump and dump" or short-selling free-for-all.
tanyev
(42,942 posts)and if Donny got four more years, good chance hed also lose Social Security and Medicare.
Midnight Writer
(22,120 posts)A lot of people signed up, including some good friends of mine. They thought the scammers had to be honest because they were going through their church, calling themselves a "Christian Investment Group".
Of course, those that gave them money lost that money, All of it. Finally, the scammers got busted, this turned out to be a big deal, they stole tens of millions and got national news coverage.
20 years later, the scammers are out of jail, and I'll be damned if they didn't go to the same churches with a new "investment" scheme and scam more money out of the same people they screwed the first time around.
Faith-based investing. It's not just for grandma and grandpa anymore.
ashredux
(2,621 posts)Its an affliction that many have, holding on to a losing stock, as well as holding on to a losing politician. Its all the same. It never ends well, despite being told time and time again they are making a very large mistake.
calimary
(81,999 posts)Youre a charter member of the Just Another Sucker Club. A member in very good standing.
Im sure it warms his heart (assuming he even had one) to see your endless loyalty and your faith in him.
Just call him the resurrection of P. T. Barnum. All he really ever wanted was your money.
progressoid
(50,133 posts)keep_left
(1,864 posts)...from a few years ago.
https://www.democraticunderground.com/100218736439#post62
https://www.democraticunderground.com/100217949403#post20 (see also post #2)
The Chapo Trap House podcast satirized the fools who fell for the scam, and they did not hold back their customary venom in doing so.
Kid Berwyn
(15,610 posts)keithbvadu2
(37,578 posts)But Vlad did not buy into Trump enterprises like stock.
Vlad put the money into Trump directly.
keithbvadu2
(37,578 posts)Shorting a stock to make money from the downside.
When Valujet hit the swamp, so many people shorted the stock that it went up in price because so many people had to cover and there was now a shortage of stock available to cover.
They had to buy so much stock that it was a seller's market for a short while.
https://www.nytimes.com/1996/07/05/business/market-place-valujet-stock-short-sellers-nightmare.html
struggle4progress
(118,566 posts)Traurigkeit
(943 posts)Happening since before written history
LetMyPeopleVote
(147,389 posts)Meme stocks rely on the greater fool theory. I was amused to see that DWAC/Trump Media is classified as a meme stock where the value is due to personality and not due to the real value of issuer of the meme stock. This article is a good discussion of the meme nature of DWAC/TMT.
https://www.vanityfair.com/news/donald-trump-truth-social-media-merger
Truth Social is a bad imitation of Twitter, where Trump was an unavoidable presence long before he ran for president. Its chock full of stale red-pilled memes, MAGA conspiracy theories, and of course, Trump. Thats the main draw. Truth Social is the only place the former president now regularly posts his unfettered thoughts......
DWAC is best thought of as a meme stock. You may remember the meme stock fad from when retail investors on Reddit successfully coordinated a short squeeze with GameStop stock, before glomming onto a series of other millennial nostalgia brands like AMC Entertainment, BlackBerry, and Bed Bath & Beyond. Meme stocks are often publicly traded companies that attract an inordinate percentage of individual investors and their stock performance fluctuates in a way thats significantly divorced from the reality of their underlying business. Combine those two trends and youll start to see why Trumps media company could be valued at roughly $9 billion if it merges with DWAC.
Jay Ritter, a finance professor at the University of Florida, says meme stocks often depend on the greater fool theory of investing, meaning rational investors might buy in expecting the stock price to rise and betting that they can sell their shares to a greater fool willing to buy them at a higher price. In this case, however, Ritter speculates there is an inordinate number of individual retail investors compared to institutional investors, such as hedge funds, that normally own SPAC shares prior to a merger. Here youve got ideology involved [too]as far as I can tell, the vast majority of DWAC investors are Trump political investors, and theyre to some degree putting their money where their mouth is My suspicion is most of them have bought the stock as a show of political support. In this way, Trump is conducting yet another public fundraising from his supportersthis time through the public markets.
Idiots who purchase meme stocks are betting that they can get out before the other idiots figure out that the stock is worthless
Bundbuster
(3,454 posts)LetMyPeopleVote
(147,389 posts)Only an idiot would invest in this company.
Takket
(21,910 posts)Traitors deserve no aid or comfort. Even if that is just investment money.