There is a Trump stock that could make you an absolute fortune. And in a moment, I’ll show you why.
But first, we must discuss the relationship between politics and finance. A relationship, that in all fairness, should not even exist in an honest free market. But the idea that we live in such an environment is one based on illusion.
The reality is that we really don’t enjoy all the spoils of free market capitalism because real free market capitalism doesn’t exist in the U.S. Which is why politics and finance make such comfortable bedfellows — despite how revolting it is to watch.
That being said, I don’t make the rules, I just profit from them. And such is the case with the Trump stock, Trump Media & Technology Group (NASDAQ: DJT).
If you’re a regular reader of these pages, you know I’ve been quite critical of DJT stock since before DJT was even a thing. It goes back to when Digital World Acquisition Corp. (NASDAQ: DWAC), a technology and financial services SPAC, announced it was taking Trump’s planned social media platform public. On that announcement alone, the stock gained more than 120%.
That was in October, 2021, when I noted that Trump’s history of taking companies public has never been a good one..
I also shared a segment from a piece penned by Forbes writer Dan Alexander, who wrote about DJT when that stock peddled Trump Hotels and Casino Resorts. It’s worth sharing again…
Trump Hotels and Casino Resorts started with just one Atlantic City casino, but Trump personally held another two outside of the firm. Less than a year after taking the company public, he used it to buy one of his two other casinos, the debt-burdened Taj Mahal, in a deal that valued his stake at $40.5 million. The transaction improved Trump’s personal balance sheet, but the company suddenly had a disastrous amount of debt.
As part of the agreement, Trump also collected $51 million of cash and $11 million of stock, in exchange for land that he had previously rented to the company for about 5% of that price annually. A couple of months later, Trump Hotels and Casino Resorts announced that it was going to pony up roughly another $500 million for Trump’s third Atlantic City casino. At the time, one analyst estimated that the property was worth more like $400 million, suggesting Trump was essentially robbing the public company of $100 million. Investors smelled a rotten deal, and shares plummeted 37% within days.
In 1998, Trump treated himself to two personal loans from the company, taking out $11 million in one instance and $13.5 million in another. Trump Hotels and Casino Resorts racked up an estimated $13 million of expenses for things like entertaining at other Trump properties, using Trump’s personal planes and leasing space inside Trump Tower. Trump also collected lots of fees. He had one agreement that paid him based on the performance of a particular casino, but according to the deal, Trump had to “promptly” pay back the money if things went south. Things did go south, but Trump kept the $1.3 million. The publicly traded company eventually ended up crediting the missing funds against later earnings. In a different example, a separate Trump company collected $1.3 million as part of a “services agreement.” According to a document filed with the Securities and Exchange Commission, however, Trump’s separate company was “not required to devote any prescribed time to the performance of its duties” in order to collect the money. Such nickel-and-dime machinations added up. From 1995 to 2004, Trump personally received an estimated $50 million in fees, salaries, rents and so forth. Over that same stretch, the company lost $647 million. In 2004, it declared bankruptcy.
Now I’ve never shied away from my bearish stance on DJT. Bottom line: the only reason DJT did well out of the gate was because of Trump’s celebrity status amongst his most loyal followers. These are people that, despite all of Trump’s previous business failures, still lined up to buy shares of this thing. They completely ignored the former president’s dismal track record of starting successful companies, such as…
- Trump University / Trump Entrepreneur Initiative
- Trump Airlines
- Trump Beverages
- Trump Steaks
- Trump Game
- Trump Mortgage
- Trump Magazine
- Trumpnet
- Trump Tower Tampa
- Trump Fragrances
- Trump Mattresses
- Trump Vodka
But will this Trump Stock be Different?
Well, it’s possible. But not because DJT is some raging success. It’s actually one of the least successful social media companies in the world.
Did you know that last year, DJT did $4 million in revenues with about 40% of those revenues equating to what the company pays to its executives? It was around $1.7 million. And this is at a company that in 2023 posted a net loss of $58.2 million. How one justifies paying nearly $2 million in executive compensation for a company that generates $4 million in revenue while losing nearly $60 million is beyond me.
Then consider that two of the initial investors in DJT who pleaded guilty to insider trading, and two of the company’s early investors quickly challenging the six-month lock-up. These guys were a bit too eager to dump their shares, and it’s likely because they knew it was insanely overvalued.
And let’s just be honest about user growth, which is extremely limited. For the most part, it’s just Trump loyalists that spend time on Truth Social. And while they are a loyal bunch, there are only so many of them willing to spend time on the site and help the company generate revenue. With little to no possibility of steady increases in new users, Truth Social really has no justifiable long-term potential.
The only way DJT is of any value to investors is if Trump becomes president again. Which is why I’m bringing this up now.
There’s no way in hell I’d ever pay a single penny for shares of this dog — unless Trump wins. And as we get closer to the election, if we see that Trump could take this thing, then rest assured — DJT will be off to the races. Don’t get me wrong. It’ll still be a crap company. But that won’t matter if Trump becomes president again. That’s all the stock will need to get a giant shot of steroids.
So pay close attention over the next four to six weeks. If it looks like Trump is going to take this thing, then I’m a buyer.
That being said, basing your investment decisions on an election is not something you can do every day. This would definitely be a one-shot deal. And quite frankly, if the stars were to align for Trump, and he wins, I’d be in and out pretty fast. And most likely with a quick double.
The unfortunate thing about all this is that despite grabbing a quick score off this next election, overall, the U.S. economy is still in grave danger. And the potential collapse of the U.S. economy will not only affect your ability to create wealth, it’ll also directly affect your basic basic freedoms…
- The ability to travel freely throughout the country.
- The right to exercise your first and second amendment rights.
- The capacity to save cash, store gold, and even conduct the most basic business transactions without constant monitoring. Not just by the U.S. government, but by a global conglomerate led by the likes of Bill Gates, George Soros, and some of the biggest corporations in the world. And if you don’t believe me, just look at the evidence for yourself.
Understand, I’m not trying to scare you or make you uncomfortable. I’m merely trying to help you protect your wealth. Not to mention, your ability to live free in absence of government overreach and violence. Which is why I implore you to read our latest investigative report which exposes this very real threat.
It’ll take you only a few minutes to read this report, but it could actually save your life. To a new way of life and a new generation of wealth… Jeff Siegel
@JeffSiegel on Twitter
Check us out on YouTube!Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor’s page.
Want to hear more from Jeff? Sign up to receive emails directly from him ranging from market commentaries to opportunities that he has his eye on.
To a new way of life and a new generation of wealth…
Jeff Siegel
To a new way of life and a new generation of wealth… Jeff Siegel
@JeffSiegel on Twitter
Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor’s page.
Want to hear more from Jeff? Sign up to receive emails directly from him ranging from market commentaries to opportunities that he has his eye on.
Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor’s page.
Want to hear more from Jeff? Sign up to receive emails directly from him ranging from market commentaries to opportunities that he has his eye on.
To a new way of life and a new generation of wealth… Jeff Siegel
@JeffSiegel on Twitter
Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor’s page.
Want to hear more from Jeff? Sign up to receive emails directly from him ranging from market commentaries to opportunities that he has his eye on.
