Trump becomes multi-billionaire (again) via ownership of worthless stock
By If you can read the title to this post without feeling any particular mental strain, you have what is known as a legal mind.
Shareholders voted to approve Trump Media’s merger with a blank-check company, following years of legal and regulatory obstacles. Trump will own a dominant stake in a public company, with shares worth more than $3 billion at current market prices. . .
The bad news for Trump is that this stake is not as liquid as it sounds. Those paper gains would be very difficult for Trump to translate to actual cash.
In fact, Trump’s shares in this company are in many ways even less liquid than his real estate holdings, according to Charles Whitehead, a law professor at Cornell Law School.
First, experts say the market is drastically overvaluing Trump Media based on the company’s fundamentals.
That means Trump would have a hard time dumping the stock or even pledging it as collateral.
“The stock price is clearly a bubble,” Yale law professor Jonathan Macey told CNN. “No rational investor would take the stock at face value, especially if they had to hold it for any length of time.”
SEC filings indicate Trump Media’s revenue amounted to just $1.1 million during the third quarter. The company posted a loss of $26 million that quarter.
Operating losses exceeding revenues by 2,264% sounds like a less than tempting investment opportunity, but I probably don’t understand capitalism, because of all the Trans Gay Cultural Marxism in our universities, not to mention the Cartesian dualism.
The practical significance of this is that it creates an opportunity for Trump to make a frivolous argument to the New York appeals court that he’ll soon be able to pay his $454 billion bond obligation, via the acquisition of Media Wealth Uncountable, so it would be Unfair to start seizing his properties.