Economy

2024-04-15 21:25:00

(CNN) –– Shares of Trump Media & Technology Group plummeted once more on Monday following the company announced another possible large influx of shares. The struggling company is losing money rapidly and a new stock offering might help it stay afloat.

But there is a downside to returning to the market with more shares: the 21.5 million additional shares announced for sale this Monday would add more than 15% to those already publicly available from the owner of Truth Social. That would substantially devalue the holdings of existing shareholders, including that of former President Donald Trump. And it means the price of millions of shares would fall.

This new measure seeks to register all actions related to the merger that allowed Trump Media to go public, including those that are linked to guarantees. Warrants give the holder the right to buy shares of a company at a certain price.

“The belief is that they are going to exchange the warrant for a stock and then immediately sell that stock,” said John Rekenthaler, vice president of research at Morningstar.

Matthew Tuttle, chief executive of Tuttle Capital Management, says leadership would be “stupid” not to sell more shares, although the move will upset shareholders.

TMTG shares fell more than 18% Monday followingnoon. The stock price had soared in recent months in anticipation of the merger of a blank-check acquisition company with Trump’s media business. But it has lost more than 60% of its value since its peak on March 26, the day following the merger was completed and it began trading publicly as TMTG.

Still, the stock’s decline from this recent move will likely be temporary, Tuttle says.

“This is going to make some people angry. Other people might see it and try to buy the fund,” he said. “As long as Trump is in the news in some way, this is going to be a meme stock. People are going to trade it.”

Shareholders, including Trump, have already seen the value of their holdings decline since the company went public.

Anyone who bought Trump Media at its closing high of $66.22 on March 27 has lost more than half their money. The sharp declines have taken a toll on Trump’s net worth. The former president’s stake was valued at $5.2 billion at the closing high of Trump Media’s stock price. As of Monday morning, it had plummeted to regarding $2.3 billion. Trump’s net worth fell by regarding $400 million on Monday as stocks plummeted.

The new measure also seeks to register more than 146 million shares held by some shareholders for resale, including Trump’s total of 114.8 million shares: 78.8 million current shares and the potential 36 million shares that might awarded if the price remains above a certain level.

Although they won’t be able to sell those shares immediately, this decision means they are one step closer to being able to do so once the rest of the bans are lifted, including a six-month lockup period, says Michael Ohlrogge, associate professor at the School of Law from New York University.

Why Trump Media Stock Is So Volatile

There are several reasons behind the stock’s surprising volatility. The company is linked to Trump, a polarizing political figure whose association with the stock has drawn scrutiny. Trump Media’s public debut also marked the former president’s return to Wall Street following years of regulatory and legal hurdles.

Experts have warned retail investors to be careful if they decide to trade the stock, especially since the company does not have the fundamentals to support its sky-high valuation. Trump Media lost $58 million in 2023 and made just $4.1 million in revenue.

Trump currently owns more than 57% of the company’s shares. Unless he bought shares in the new public offering, Trump would own just under half of the company’s publicly traded shares following it issues more shares.

But the company needs money. He has said he has substantial doubts regarding his ability to continue operating. The company generates little revenue, is losing millions of dollars, and is also losing many of its users.

Although the stock offering was not directly related to Trump’s criminal trial that began Monday, the company said in a warning to potential investors that Trump’s ongoing legal proceedings pose a risk to the company’s reputation and brand. .

“President Donald J. Trump is the subject of numerous legal proceedings. “An adverse outcome in one or more of the ongoing legal proceedings might adversely affect TMTG,” the company said. “If President Donald J. Trump were unable to devote significant time to Truth Social, TMTG’s business would be negatively affected.”

CNN’s Matt Egan contributed to this report.

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#Trump #shares #plummet #selloff #announcement

2024-04-16 03:28:57

HoonSmart.com>>Tokyo Stock Market this morning and Asian stock markets dropped throughout the region. from the tension situation in the Middle East And from the US stock market that closed negative last night. Regional currencies weakened once morest the dollar.

The Tokyo stock market fell this morning. from the tension situation in the Middle East And from the US stock market that closed negative last night.

In the Prime Market group, the group that led the decrease was Insurance group Oil and Coal Group and Securities Business Group

This morning at 9:00 a.m. Japan time. The dollar was at 153.29-32 yen from 153.22-32 yen in New York and from 153.24-25 yen in Tokyo at 5:00 p.m., in a range of 154 yen early Tuesday in Tokyo. following reaching the highest level in 34 years last night. From US retail sales data that was hotter than expected This has increased expectations that the Federal Reserve will keep interest rates higher for longer than expected.

As of 10:01 a.m. in Thailand

The Nikkei 225 index was at 38,405.58 points, down 827.22 points, -2.11%.

Asian stock markets fell throughout the region. and the region’s currencies weakened once morest the dollar. Meanwhile, China’s economic data also affects confidence.

Investors are following the situation in the Middle East. How Israel will respond following Iran launches attack last weekend This may cause conflicts in the region to widen.

On Tuesday morning, China reported official economic data. During January-March Inflation-adjusted gross domestic product (real GDP) grew 5.3% from the previous quarter. and expanded at an accelerated rate from 5.2% in the previous quarter, despite a long period of decline in the real estate sector and weak demand. This makes it expected that the government will be able to achieve its high growth target for the year. However, China’s retail sales and industrial output were both lower than expected.

China’s industrial output in March rose 4.5% year-on-year. This is lower than Reuters’ forecast of 6% growth.

The country’s retail sales, a measure of consumption, rose 3.1% year-on-year, less than the 4.6% expected. and also slowed from 5.5% of the previous month.

The SSE Chinese stock market index was at 3,017.65 points, down 39.73 points, -1.3%.

The HSI Hong Kong Stock Market Index was at 16,334.83 points, down 265.63 points, -1.6%.

The Kospi Korean stock market index was at 2,603.56 points, down 66.87 points, -2.5%.

The TAIEX index of the Taiwan stock market was at 19,967.81 points, down 481.96 points, -2.36%.

WTI crude oil for May delivery rose $0.71, or 0.83%, to trade at $86.12 a barrel. And the price of North Sea Brent crude oil for June delivery increased 0.68 dollars or 0.75% to trade at 90.78 dollars per barrel.

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#TokyoAsia #Stock #Market #Deleted #morning #United #States #Hoonsmart

2024-04-15 22:05:36

In Madagascar, the large port of Tamatave is changing its face. The extension work launched in 2018 has entered its second and final phase. The project, one of the largest projects ever undertaken on the island at a total cost of $639 million, is co-financed by JICA, the Japanese international cooperation agency, and the Malagasy state. It aims to make the island’s first port an Indian Ocean hub.

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#Madagascar #port #Tamatave #projects #hub #Indian #Ocean