2Squirrels1Nut
Footballguy
Plummeting another 20% on no particular news
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*****Official "Truth Social" Thread***** (Trump's social media platform) (1 Viewer)
- Thread starter squistion
- Start date
Bogart
Footballguy
DWAC - 28.85/share - Market Cap - 1.07B
Every single person that bought a share any time after the announcement is losing money right now, as this beat the new low of 35.71/share. It's pure panic on TS right now, except the people blaming Soros, the Deep State and Trump himself.
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Blaming George Soros makes sense. I believe that he personally sets stock prices the same way that Joe Biden personally sets gas prices.
Bogart
Footballguy
My new favorite is the guy demanding: "I want the names of every fund that sold stock the last two days? #DWAC How to catch a thief."
They are all going to lose money, and it's someone on the Left's fault.
cosjobs
Footballguy
The government has expanded its inquiry into the proposed merger of Donald Trump’s Truth Social and the SPAC planning to bring it public.
Digital World Acquisition Corp. (DWAC), in a filing with the Securities and Exchange Commission, said securities regulators are seeking additional documents and information about the proposed merger. Specifically, authorities are interested in “communications regarding and due diligence of potential targets other than [Trump’s company].”
The investigation into the merger was previously announced, but this is the latest sign that authorities are stepping up their examination. The focus of the review seems to be on whether the two sides negotiated before DWAC went public, which would be illegal.
DWAC shares surged last October when news broke that the special purpose acquisition company would be bringing Truth Social into public markets, gaining more than 400% in one day. DWAC began trading in September.
“Any resolution of the investigation could result in the imposition of significant penalties, injunctions, prohibitions on the conduct of Digital World’s business, damage to its reputation, and other sanctions against Digital World,” the company said in the filing.
Trump’s deal with DWAC gives him virtually unlimited power at the company. A previous filing noted that no personal or political conduct could be considered terms of a breach of the agreement, even if it was “dishonest, illegal, immoral, or unethical.”. Trump will also have the power to elect who sits on the board of directors and can potentially block matters that would normally require stockholder approval, including the acquisition of the company.
Trump currently has 3.25 million followers on the Twitter-like site.
This story was originally featured on Fortune.com
Digital World Acquisition Corp. (DWAC), in a filing with the Securities and Exchange Commission, said securities regulators are seeking additional documents and information about the proposed merger. Specifically, authorities are interested in “communications regarding and due diligence of potential targets other than [Trump’s company].”
The investigation into the merger was previously announced, but this is the latest sign that authorities are stepping up their examination. The focus of the review seems to be on whether the two sides negotiated before DWAC went public, which would be illegal.
DWAC shares surged last October when news broke that the special purpose acquisition company would be bringing Truth Social into public markets, gaining more than 400% in one day. DWAC began trading in September.
“Any resolution of the investigation could result in the imposition of significant penalties, injunctions, prohibitions on the conduct of Digital World’s business, damage to its reputation, and other sanctions against Digital World,” the company said in the filing.
Trump’s deal with DWAC gives him virtually unlimited power at the company. A previous filing noted that no personal or political conduct could be considered terms of a breach of the agreement, even if it was “dishonest, illegal, immoral, or unethical.”. Trump will also have the power to elect who sits on the board of directors and can potentially block matters that would normally require stockholder approval, including the acquisition of the company.
Trump currently has 3.25 million followers on the Twitter-like site.
This story was originally featured on Fortune.com
Bogart
Footballguy
When the day started, little things I was reading, I thought it might dip below the 35.71 lowest price number. Did not expect it to close at 27.30. There was a lot of talk about people buying shares in the 40s to get their average cost in the mid 50s. What do you do if you are those people?
cosjobs
Footballguy
I had a hunch the proceedings would get around to DWAC, so I shorted 2,000 shares yesterday
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The Z Machine
Footballguy
BladeRunner
Footballguy
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Bogart
Footballguy
Dead cat bounce? Shares are back up over $30 today and seem to be stable. Those on TS are far from stable. Calling the 10% increase a massive explosion, "to the moon" and drinking liberal tears.
A lot of them have gotten hold of the slide from the TMTG powerpoint where it shows TMTG going after Netflix, Hulu and Disney+ all at the same time. One of the more prolific posters is using this slide to claim that DWAC(TMTG) stock will reach $4000 or more before it's all said and done.
2Squirrels1Nut
Footballguy
This is my honest answer but that old Simpson's reference was too perfect to describe the life cycle of the DWAC. 
massraider
Footballguy
I imagine if you have never seen a pitch deck before, or heard of PowerPoint, something like that can be really impressive.
Bogart
Footballguy
It would be just as likely for FBG to run arrows to ESPN, DraftKings and the NFL and say they were going to take on all three at the same time.
2Squirrels1Nut
Footballguy
You still can't put a straight short order in on DWAC.
From TDAmeritrade
From TDAmeritrade
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The Z Machine
Footballguy
Bogart
Footballguy
Agreed. Which I think there are already a lot of fake/dead accounts. Trump is sitting at 3.27M followers (that number growing has slowed to a trickle), yet, giving them a full 24 hours after posted, most aren't cracking 30,000 engagements.
I think realistically you have, maybe, 100,000 daily users, 15-30% who are just there to see the place burn.
2Squirrels1Nut
Footballguy
SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Digital World Acquisition Corp. - DWAC; DWACW
4:10 pm ET June 15, 2022 (Globe Newswire) Print
EQNX::TICKER_START (NasdaqGM
WAC),(NasdaqGMWACW), EQNX::TICKER_END Pomerantz LLP is investigating claims on behalf of investors of Digital World Acquisition Corp. ("Digital World" or the "Company") (NASDAQ: DWAC; DWACW). Such investors are advised to contact Robert S. Willoughby at newaction@pomlaw.com or 888-476-6529, ext. 7980.
The investigation concerns whether Digital World and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices
On October 29, 2021, The New York Times published an article entitled "Trump's $300 Million SPAC Deal May Have Skirted Securities Laws." The article reported that Donald J. Trump's efforts to take Trump Media & Technology Group ("TMTG") public via a merger with Digital World, a special purpose acquisition company ("SPAC"), involved discussions of a merger with Digital World's founder before Digital World itself went public. These discussions may have violated federal securities laws, which prohibit SPACs from planning mergers before conducting their initial public offerings.
On this news, Digital World's stock fell $6.93 per share, or 10.23%, to close at $60.82 per share on November 1, 2021.
Then, on June 13, 2022, Digital World stated in a filing with the U.S. Securities and Exchange Commission that "[a]s previously disclosed in Digital World's quarterly report on Form 10-Q for the period ended March 31, 2022 and other filings with the SEC, Digital World received a document request and subpoena from the SEC seeking various documents and information regarding, among other things, meetings of Digital World board of directors; communications with and the evaluation of potential targets, including TMTG; communications relating to TMTG; agreements with and payments made to certain advisors; investors, including investor meetings and agreements; the appointment of certain of Digital World's officers anddirectors; policies and procedures relating to trading; and documents sufficient to identify banking, telephone, and email addresses. The SEC also recently issued an order of examination pursuant to Section 8(e) of the Securities Act, with respect to the Registration Statement relating to the Business Combination, and a further subpoena in support thereof."
On this news, Digital World's stock price fell $10.71 per share, or 28.18%, to close at $27.30 per share on June 14, 2022.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
888-476-6529 ext. 7980
https://ml.globenewswire.com/media/OGYyMzc0MTAtZjM5OC00YjhhLTlhZmMtNmIwOGIxYzRkN2RhLTEwMjkyMTc=/tiny/Pomerantz-LLP.png
4:10 pm ET June 15, 2022 (Globe Newswire) Print
EQNX::TICKER_START (NasdaqGM
WAC),(NasdaqGMWACW), EQNX::TICKER_END Pomerantz LLP is investigating claims on behalf of investors of Digital World Acquisition Corp. ("Digital World" or the "Company") (NASDAQ: DWAC; DWACW). Such investors are advised to contact Robert S. Willoughby at newaction@pomlaw.com or 888-476-6529, ext. 7980.The investigation concerns whether Digital World and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices
On October 29, 2021, The New York Times published an article entitled "Trump's $300 Million SPAC Deal May Have Skirted Securities Laws." The article reported that Donald J. Trump's efforts to take Trump Media & Technology Group ("TMTG") public via a merger with Digital World, a special purpose acquisition company ("SPAC"), involved discussions of a merger with Digital World's founder before Digital World itself went public. These discussions may have violated federal securities laws, which prohibit SPACs from planning mergers before conducting their initial public offerings.
On this news, Digital World's stock fell $6.93 per share, or 10.23%, to close at $60.82 per share on November 1, 2021.
Then, on June 13, 2022, Digital World stated in a filing with the U.S. Securities and Exchange Commission that "[a]s previously disclosed in Digital World's quarterly report on Form 10-Q for the period ended March 31, 2022 and other filings with the SEC, Digital World received a document request and subpoena from the SEC seeking various documents and information regarding, among other things, meetings of Digital World board of directors; communications with and the evaluation of potential targets, including TMTG; communications relating to TMTG; agreements with and payments made to certain advisors; investors, including investor meetings and agreements; the appointment of certain of Digital World's officers anddirectors; policies and procedures relating to trading; and documents sufficient to identify banking, telephone, and email addresses. The SEC also recently issued an order of examination pursuant to Section 8(e) of the Securities Act, with respect to the Registration Statement relating to the Business Combination, and a further subpoena in support thereof."
On this news, Digital World's stock price fell $10.71 per share, or 28.18%, to close at $27.30 per share on June 14, 2022.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
888-476-6529 ext. 7980
https://ml.globenewswire.com/media/OGYyMzc0MTAtZjM5OC00YjhhLTlhZmMtNmIwOGIxYzRkN2RhLTEwMjkyMTc=/tiny/Pomerantz-LLP.png
Bogart
Footballguy
The main DWAC cheerleader just blocked me on Truth Social because I called him out on him going crazy on a 13 cent increase for DWACW today. And all I said was "if we are getting excited about 13 cents when both #DWAC and #DWACW have been bleeding red for months, that's a bad sign." Also mentioned that TS isn't free speech, it's just the speech they want, and that didn't go over well.
Bogart
Footballguy
So there is a guy that posts Trump's follower number everytime it crosses another 10,000. Nice guy, we have chatted. Anyway, based on his scientific posting, Trump is gaining just under 10,000 new followers per day. I'm going to make the assumption that if you are on TS, you are following Trump. So simple math, carry the 9, add the 5, TS will reach it's 16 million user promise by the end of the year.
2026.
dkp993
Footballguy
How long before he’s banned?….
https://thehill.com/policy/technology/3526926-newsom-joins-trumps-truth-social-to-call-out-republican-lies/
https://thehill.com/policy/technology/3526926-newsom-joins-trumps-truth-social-to-call-out-republican-lies/
Bogart
Footballguy
He's only posted a single video, calling out gun violence. Not really sure what his strategy is, the post is getting all the negative attention you would expect. Only 1600 likes, but 17,000 comments. Maybe he lost a bet or something.
2Squirrels1Nut
Footballguy
roadkill1292
Footballguy
Is Don prohibited from talking about the January 6 hearings? Or is he the exception to the rule?
2Squirrels1Nut
Footballguy
It went from $45 to the current level of $28 in a few days and holding. I'm not sure where the support is coming from but it's there.
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Bogart
Footballguy
Digital World Acquisition: Headed For Failure
Good article that goes into some of the meat and math of DWAC and it being priced too high. Would love to get some real usage numbers for TS, but the guestimates are pretty accurate I would say.
While the new Trump media empire offered a lot of promise shortly after his Presidency, the deal with Digital World Acquisition (NASDAQ
Took Too Long
The Trump Media & Technology Group, or TMTG, officially launched the Truth Social App on the App Store back at the end of February. The website wasn't available on a web browser until May 18.
The problem here is that President Trump has been out of the White House since the inauguration of Joe Biden in February 2021. Trump was banned by Twitter and other social media platforms back around January 8, 2021.
Trump has had a very low profile for the last 17+ months with the lack of media coverage and social media access. The former President was a top 10 account on Twitter, so he definitely would garner a ton of followers and usage on any social media platform, but Trump no longer has a political position with which to attract anyone outside the hardcore supporters.
TMTG promised the ability to create a media empire to compete for the digital audiences far beyond Twitter to include the 120 million people listening to podcasts and the large Netflix (NFLX) user base topping 200 million subscribers. After the launch of the web version, Forbes contributor John Brandon claims Truth Social is nothing more than a basic copy of Twitter:
Truth Social looks exactly like something a developer would make if they were asked to build an app that does only the Twitter basics and nothing more.
Most of the data continues to suggest the social app has ~500K daily active users (DAUs), but the data is mostly outdated numbers from April. According to Time, Truth Social only had 2.6 million lifetime downloads in the U.S. with Trump having 3.27 million users now.
The S-4 filing suggests Truth Social only has a 6-hour exclusive window for Trump posts. The former President is free to post on other websites eliminating the main reason to join the platform, if one just wants to see the posts of Trump:
President Trump is generally obligated to make any social media post on Truth Social and may not make the same post on another social media site for 6 hours. Thereafter, he is free to post on any site to which he has access...In addition, he may make a post from a personal account related to political messaging, political fundraising or get-out-the-vote efforts on any social media site at any time.
If Musk closes the acquisition to buy Twitter and makes the site a harbinger of free speech, Truth Social will be dead on arrival. The platform has over 242 million DAUs and most users wouldn't need the limited user base of Trump's media platform.
Even worse, Truth Social has the SEC all over their case regarding whether Digital World and TMTG negotiated terms before the SPAC officially went public. The company just finally submitted the S-4 with the agreement to merge with the Digital World SPAC over 8 months ago.
At this point, Trump just doesn't have the reach or influence to move the needle unless the former President makes another run for the White House. Remember, Twitter had long claimed President Trump didn't even move the needle the traffic on the social media platform while Monness Crespi Hardt estimated the former President was worth $2 billion to the social media platform. Considering the stock is actually worth more now without him banned than this estimate back in 2017 when Twitter was worth only $12 billion, one quickly gets the view of the limited value of Trump despite his popularity.
SPAC Priced For Perfection
The transaction valued TMTG at an EV of $875 million with the potential for an earnest of $825 million for a total value of $1.7 billion. The trust has $293 million in cash and a $1 billion PIPE lined up to provide TMTG with a cash balance of $1.25 billion (after expenses) to build the potential media empire.
The company filed the S-1 on May 27 and unlike other SPACs, TMTG hasn't issues any financial projections. The Q1'22 numbers of Rumble (CFVI) highlight why financials wouldn't be impressive and the limited data provided by TMTG suggest the company only spent a paltry $8 million on operating expenses in the quarter highlighting how far Truth Social is from being a media juggernaut.
The big confusing aspect is the outstanding shares. Digital World hasn't provided a good summary of the share balances and this basic table in the S-1 excludes any warrants, earnout shares worth up to $825 million and converts the PIPE shares at current prices.
Even if TMTG only goes public with 158 million shares outstanding, the stock has a market cap of $4.4 billion with an EV of $3.2 billion. Truth Social just launched and the company will take years to generate the hundreds of million in revenues warranting the current stock valuation. Not to mention, the business isn't even guaranteed to succeed.
At lower stock prices, the $1 billion PIPE investors could end up being issued up to 100 million of shares at $10 each while the filing uses ~30 million shares for the PIPE investors. Either way, the share count is likely to differ once the deal is done due to potential redemptions of the public shares, exercise of warrants and adjustments for the PIPE investment.
Takeaway
The key investor takeaway is that Digital World is too expensive considering the business combination has failed to generate any meaningful user base. The stock market is too excited about the potential for a Trump media empire considering the former President isn't in any position to influence policy anymore.
Investors should unload shares of Digital World up near $30.
Good article that goes into some of the meat and math of DWAC and it being priced too high. Would love to get some real usage numbers for TS, but the guestimates are pretty accurate I would say.
Bogart
Footballguy
DWAC investors have started an investigation into DWAC. Things are going just fine.
Digital World Acquisition Corp. Investor Alert: Kaplan Fox Investigates Potential Securities Fraud at DWAC
Investigation announced for Investors in shares of Digital World Acquisition Corp. (NASDAQ: DWAC) over possible Violations of Securities Laws
Digital World Acquisition Corp. Investor Alert: Kaplan Fox Investigates Potential Securities Fraud at DWAC
@Stealthycat you getting in on any of the fun?
Digital World Acquisition Corp. Investor Alert: Kaplan Fox Investigates Potential Securities Fraud at DWAC
Investigation announced for Investors in shares of Digital World Acquisition Corp. (NASDAQ: DWAC) over possible Violations of Securities Laws
Digital World Acquisition Corp. Investor Alert: Kaplan Fox Investigates Potential Securities Fraud at DWAC
@Stealthycat you getting in on any of the fun?
2Squirrels1Nut
Footballguy
Cramer lit up all SPACs on CNBC last night. Paraphrasing but he stated the only reason companies go the SPAC route instead of a regular IPO is to avoid SEC scrutiny and they are ALL scams.
As I wrote in the stock thread, hard to argue with this conclusion. Out of the hundreds of companies that went public via the SPAC route I can't think of a single one doing well.
Stealthycat
Footballguy
no, but I wish I'd have sold/shorted at $75 a share and made $$$$$$$
a lot of people did too - money made !!
Bogart
Footballguy
A lot of people on TS are still buying shares as the price continues to drop. One user posted they were down $53,000 and had nothing left to invest. Another user chimed in that they WISH they were only down $53K.
Money being made, yes. But a ton of money also being lost.
For every share that was sold at $75, there was also a share that was bought at $75.
Who was buying at that price? Probably Trump supporters, more times than not.
Bogart
Footballguy
During the "good days" of 75 - 90 dollars a share, everyone was claiming it was going to be a 1000 - 4000 dollar share, because Trump and buying twitter and buying Netflix and buying Facebook. His supporters were eating it up daily.
Kash Patel posted something to the effect of TS being half as big as Twitter by the end of the summer. Math is Hard, but I don't see that adding up.
Stealthycat
Footballguy
I lost a lot on CGC stock
Stocks are losses and gains, I don't care if its tied to Pelosi, Schumer, Hillary or Trump
Bogart
Footballguy
DWAC is down 10% to start the day, coming in at an even $25/share. I guess the following is probably bad:
Shares Of Trump’s Truth Social SPAC Tumble After Federal Grand Jury Issues Subpoenas
Digital World board members get subpoena over Trump's social media deal
Going to be an interesting day to watch.
Shares Of Trump’s Truth Social SPAC Tumble After Federal Grand Jury Issues Subpoenas
Digital World board members get subpoena over Trump's social media deal
Going to be an interesting day to watch.
2Squirrels1Nut
Footballguy
Trump and anybody he likes could ignore subpoenas when he was POTUS. I don't see any agency hauling them in for refusing to comply. It will be explained away the same as always, fake news, witch hunt, etc.
dozer
Footballguy
"If the merger is not completed, Digital World will have to return the nearly $300 million raised in the I.P.O. to shareholders. The $1 billion that dozens of hedge funds have said they would invest in a completed deal would be canceled."
2Squirrels1Nut
Footballguy
The Director also quit:
Simultaneously Monday, Digital World said Rocket One Chief Strategy Officer Bruce Garelick resigned from the Digital World board effective June 22. He said his resignation "was not the result of any disagreement with Digital World's operations, policies or practices," Digital World said.
Rocket One didn't immediately return a request for comment and its website, which could be accessed earlier Monday, was changed to maintenance mode.
McBokonon
Footballguy
Bogart
Footballguy
Continuing to "hire only the best people".
Meanwhile on TS, the DWAC warriors are trying to see if they can file a Class Action suit against those that are "strategically shorting" the stock. One guy specifically keeps demanding that he personally gets the names and information of everyone selling the stock.
2Squirrels1Nut
Footballguy
I would too because I've tried to straight short it at least a dozen times and haven't been able to. Wondering who is fortunate enough to be given shares to short.
ETA
Given who is involved it wouldn't shock me to find out it's Trump's inner circle that has been shorting the stock. After all, they have the most control of the shares. Huge spike on the hype and sell all the way down knowing it's going to be worthless anyhow.
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2Squirrels1Nut
Footballguy
General Malaise
Footballguy
There hasn't been a borrow available in this thing since I don't know when, but unless it's naked shorting, there's nada in the float.
Roy L Fewks
Footballguy
I hate the fact that their app is only available for Apple products. How about some love for people who don't support pro-China woke companies???
massraider
Footballguy
Bogart
Footballguy
The software they borrowed and are using had the app for Apple only, which was important as that's the platform that Trump uses. They have yet to put out an Android app because they don't know how to make one. Google has come out multiple times to say that TS hasn't even applied for an app to be submitted yet.
They have a web version so you can join on any device now. Not that it has been helping their numbers any. "Half the number of Twitter by end of summer" is struggling.
massraider
Footballguy
They need to step up their bot game.
Seriously. You KNOW Trump is embarrassed by the numbers, and his follower numbers. He's not really the 'let's grow this organically' type. He's a front-runner.
He needs another 15 million followers if they want him on board
Bogart
Footballguy
Exactly this. He made a claim this morning that "Friday was, we believe, the biggest day yet for signups on TRUTH. Amazing numbers are happening, and quickly!" I feel like he could have hard data in front of him at any moment if he asked and take out the "we believe" part.
He's still gaining followers at about 8-10k per day. His post engagements are trickling down to average about 15k per post. Still the occasional 50k when he posts a meme or something you don't have to read. But yeah, inside this is killing him.
DWAC's market cap dropped below a billion yesterday. Hate to see that. Devin's days are numbered if I had to guess. And Don Jr. comes in for the rescue.
