Sean CastenOK, Trump got his ass kicked by Harris this week. That’s great but it’s time to move on. Specifically, to the huge national security / malign actor interference risk that Donald John presents as early as a week from tomorrow. Thread:
1. A man who owes lots of money to lawyers and adjudicated civil fines could soon be able to start selling some or all of his 114M shares in a company that is a trainwreck as a stock but still massively overvalued. https://www.forbes.com/sites/dereksaul/2024/09/06/when-can-donald-trump-sell-djt-stock-heres-what-to-know-as-truth-social-hits-new-lows/
2. What would you pay for a company with $3.4M in revenue, is blowing through $33M of cash per year & has negative earnings? If you said “zero” you’ll agree that #DJT is overvalued. The current $3B market cap is why it is MASSIVELY overvalued. https://finance.yahoo.com/quote/DJT/key-statistics/
Rufus J. Cooter@SeanCasten What I don't understand is: the hell are they spending $33M/y on? Coders? It's a Masto fork! Moderators? Hosting? Nunes' salary?
Log 🪵@RufusJCooter @SeanCasten More closely held companies sell it overpriced services, to convert liquid shareholder investment cash into obligations that will be worthless to creditors.
@log @SeanCasten Ah.
So, fraud?
Because what you're describing here sounds an awful lot like "fraud" to my lay-person's ears...
@RufusJCooter @SeanCasten It's only fraud if the accountant tries to hide it, I think. There are a lot of ways to legally loot a company. Looting a publicly traded company just requires more paperwork. Which someone might read and then start squealing about, but that's the risk inherent in having a wider, deeper pool of marks^Winvestors.
@log @SeanCasten "It's only fraud if the accountant tries to hide it, I think."
Not the area of law that I specialize in, and IANAL, but as I understand it: depends on where you're incorporated!
"There are a lot of ways to legally loot a company. Looting a publicly traded company just requires more paperwork."
Again, outside of my bailiwick, and IANAL, but as I understand it, this may be true, in some jurisdictions, but in others, it is decidedly not. So, where the acts took place matters!