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Most Over-Valued Company is History

The Atheist

The Grammar Tyrant
The Atheist
Joined
Jul 3, 2006
Messages
36,189
There could have been a bit of discussion on this until last week, when Trumpy's Media company shares went up to $60.

Even now they've fallen, they're utterly worthless, with no profits, little usage and shares inflated by morons who think they're helping him.

At a theoretical value of still over $3B, and sales (not profit, total sales!) of $4 million, there has never been another company so far over-valued.

And it's likely to be unable to continue operating...


https://www.theguardian.com/us-news/2024/apr/01/trump-truth-social-stocks
​
 
The Atheist said:
There could have been a bit of discussion on this until last week, when Trumpy's Media company shares went up to $60.

Even now they've fallen, they're utterly worthless, with no profits, little usage and shares inflated by morons who think they're helping him.

At a theoretical value of still over $3B, and sales (not profit, total sales!) of $4 million, there has never been another company so far over-valued.

And it's likely to be unable to continue operating...


https://www.theguardian.com/us-news/2024/apr/01/trump-truth-social-stocks
​
Click to expand...

It may not only have a P/E ratio of NaN (somewhat common) but it also likely has a Price to Book ratio of NaN.

Where NaN means not a number.
 
Hope you never shook his hand at one of his rallies. Probably not, he doesn't really like touching people, unlike Biden. Only himself.
 
Tesla was once, back when they had made a few hundred cars but were the most valuable car maker in the world. I don't think they are anymore, they've actually sold cars and their stock has lost some value.

Trumps media company is a good bet.
 
gabeygoat said:
It really really does. It's amazing that people are still drawn like moths to a flame but there seems to be an endless supply of moths.
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Kind of predicable since you do NOT say anything critical about Trump if you want to get elected in the primary. General is a bit different.

He's not big on endorsements unless they kiss the ring and not be wish-washy about it in purple districts. Will be interesting to see how many of his endorsements win in the general. Gonna have to go either over or under on that. Over?
 
lobosrul5 said:
It may not only have a P/E ratio of NaN (somewhat common) but it also likely has a Price to Book ratio of NaN.

Where NaN means not a number.
Click to expand...

According to Devin Nunes (CEO), they have $200 million in cash and no debt as a result of the "merger", so they should have some equity at this point.

“Closing out the 2023 financials related to the merger, Truth Social today has no debt and over $200 million in the bank, opening numerous possibilities for expanding and enhancing our platform," Nunes said in the release.
Click to expand...

I know, I know, Nunes, but at this point he's gotta be careful because of the SEC. That said, yeah, this is a ridiculous valuation--something like 1200 price to (trailing) sales, which would have to be the all-time record for a company that didn't just discover their first gold mine. It will be interesting to see how hard it will get shorted.
 
Brainster said:
It will be interesting to see how hard it will get shorted.
Click to expand...

I wouldn't short something even if I'm certain that it's grossly overvalued, because shorts can get squeezed anyway. There's a saying I heard: The market can stay irrational longer than you can stay solvent. That seems to go double when there are "true believers" in something who are buying it for ideological reasons and not simply for investment purposes.
 
I suppose a case could be made that Truth Social will become more valuable if Trump gets re-elected. But if he loses then it will probably become almost completely worthless. So this is indirectly a kind of bet on the election outcome.
 
Brainster said:
According to Devin Nunes (CEO), they have $200 million in cash and no debt as a result of the "merger", so they should have some equity at this point.



I know, I know, Nunes, but at this point he's gotta be careful because of the SEC. That said, yeah, this is a ridiculous valuation--something like 1200 price to (trailing) sales, which would have to be the all-time record for a company that didn't just discover their first gold mine. It will be interesting to see how hard it will get shorted.
Click to expand...

I'm truly shocked that it has positive equity.
 
lobosrul5 said:
I'm truly shocked that it has positive equity.
Click to expand...

I'm not shocked. That's the whole point of a SPAC. The SPAC brings the cash, the target brings the upside(usually hype). In no sense does this mean that Truth Social's positive equity came from their own operations. It came from the SPAC investors.

SPACs are usually good for their shareholders that sell after the target merger. But the long term market price is not so good.

Here's wiki on SPACs
https://en.wikipedia.org/wiki/Special-purpose_acquisition_company

For those that find SEC filings fascinating (we are not legion) here's the SPAC's S-1 registration back in 2021:

https://www.sec.gov/Archives/edgar/data/1849635/000110465921071982/tm2117087d1_s1.htm
 
Stylesjl said:
I suppose a case could be made that Truth Social will become more valuable if Trump gets re-elected. But if he loses then it will probably become almost completely worthless. So this is indirectly a kind of bet on the election outcome.
Click to expand...

He’ll of course have no control over his business dealings with the platform and his ownership as he’ll obviously create a blind trust to run his businesses while he is president…
 
Darat said:
He’ll of course have no control over his business dealings with the platform and his ownership as he’ll obviously create a blind trust to run his businesses while he is president…
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Perhaps Rishi Sunak can give him some advice on avoiding any suggestion of using his position for personal gain?
 
The frustrating thing about pets.com is that it was so close to greatness. We order a lot of our pet supplies from chewy.com, which is the exact same business proposition, just ten years later.
 
Puppycow said:
I wouldn't short something even if I'm certain that it's grossly overvalued, because shorts can get squeezed anyway. There's a saying I heard: The market can stay irrational longer than you can stay solvent. That seems to go double when there are "true believers" in something who are buying it for ideological reasons and not simply for investment purposes.
Click to expand...

According to this article on CNBC, Trump's stock is the single-most expensive stock to short. Essentially because everybody wants to do it (supply and demand) but at the same time there is a lot of perceived risk (from Trumpkins keeping the price high).
 
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Brainster said:
According to this article on CNBC, Trump's stock is the single-most expensive stock to short. Essentially because everybody wants to do it (supply and demand) but at the same time there is a lot of perceived risk (from Trumpkins keeping the price high).
Click to expand...

That's the danger - they're not investors, they're morons. Sentiment will beat PE ratios every time.
 
Brainster said:
According to Devin Nunes (CEO), they have $200 million in cash and no debt as a result of the "merger", so they should have some equity at this point.



I know, I know, Nunes, but at this point he's gotta be careful because of the SEC. That said, yeah, this is a ridiculous valuation--something like 1200 price to (trailing) sales, which would have to be the all-time record for a company that didn't just discover their first gold mine. It will be interesting to see how hard it will get shorted.
Click to expand...

That's what trump is suing for.
 
lobosrul5 said:
I mean if you just want to go with ~2000 dot-com busts, pets.com comes to mind as vaaaaaaaaastly more inflated than AAPL ever was. It IPO'd at $11 and about 9 months later shares were liquidated at about 11 cents.
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I made quite a lot of money out of the Palm bubble back in the day.

The current Apple 'adjustment' over their perceived AI failings has possibilities.
 
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dirtywick said:
https://www.bbc.com/news/business-68725771

looks like he's trying to pin it all on his business partners
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Trying to say THEY mismanaged the company? They have been out of the picture for years, apparently - he chased them out. And Trump has been boasting what a success HE made of it. So is he suing HIMSELF now?*

*Would be about the only person left in the world he hasn't sued so far...
 
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Brainster said:
According to this article on CNBC, Trump's stock is the single-most expensive stock to short. Essentially because everybody wants to do it (supply and demand) but at the same time there is a lot of perceived risk (from Trumpkins keeping the price high).
Click to expand...

Investors who wanted to borrow Trump Media shares to sell them short on Wednesday would have had to pay financing costs of between 750% and 900% of the price of the stock annually, said Ihor Dusaniwsky, managing director of predictive analytics at S3 Partners.
Click to expand...

I almost feel like it makes it objectively a good investment. If you then lend out your shares to shorts.
 
Don't forget that Game Stop moment. I had a coworker claim he put his entire savings into game stop based on his information that they were going to move into the on-line space big.......


Where they would be competing with a half dozen already established providers? I've been afraid to ask how that went.
 
Stylesjl said:
I suppose a case could be made that Truth Social will become more valuable if Trump gets re-elected. But if he loses then it will probably become almost completely worthless. So this is indirectly a kind of bet on the election outcome.
Click to expand...

It'll be worthless even if T****y is installed in the White House. Nobody uses it and there's no incentive for anybody to do so. And when T****y's exclusivity deal with the platform expires, there'll be no reason for anybody to even visit the website.
 
Down another 10% today to about 37. In the last 9 days the valuation has dropped in half.
 
Brainster said:
Down another 10% today to about 37. In the last 9 days the valuation has dropped in half.
Click to expand...


Half?!
Shares of Trump Media have erased all their gains since they began trading under the ticker DJT last month.
Trump media stock erases all gains (MSNBC on YouTube, April 9, 2024)
Click to expand...
 
Stylesjl said:
I suppose a case could be made that Truth Social will become more valuable if Trump gets re-elected. But if he loses then it will probably become almost completely worthless. So this is indirectly a kind of bet on the election outcome.
Click to expand...

I think Trump would have to give up running Truth SOcial if he were elected. he can still own it, but he cannot run it.
 
ahhell said:
Don't forget that Game Stop moment. I had a coworker claim he put his entire savings into game stop based on his information that they were going to move into the on-line space big.......


Where they would be competing with a half dozen already established providers? I've been afraid to ask how that went.
Click to expand...

I hate the crappy movie they made about the Game Stop brouhaha, because they tried to portray the idiots who invested in it as some kind of bold , brave rebels against the Wall Street Man,instead of a bunch of fools who threw htie money down the drain.
Hollywood has a real problem in that they try often try to show some relaly stupid stuff as being some brave rebellion against authority.
 
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