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Rooting For Trump To Fail Has Made His Stock Shorters Millions

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AP - VOR News Image

The following information is from an article published by the Associated Press: Rarely has there been such a lucrative opportunity as betting on Donald Trump’s failure.

Despite significant buying activity from Trump supporters and volatile fluctuations that frequently coincide with the candidate’s current polling results, legal proceedings, and public statements on Truth Social, a tenacious group of primarily non-professional Wall Street investors have successfully earned millions of dollars in recent weeks by speculating that the stock price of Trump’s social media company, Truth Social, will continue to decline.

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AP – VOR News Image

Rooting For Trump To Fail Has Made His Stock Shorters Millions

Many of the interviewed investors, as reported by The Associated Press, claim that their pessimistic investments using “put” options and other trading instruments are motivated not by their personal opinions of the former president (most of whom do not hold a favorable view), but rather by their confidence in the dismal financial performance of a company that earned less money last year than the average Wendy’s hamburger franchise.

“This company is not profitable. … “It is illogical,” stated Elle Stange, an advertising executive from Boise, Idaho, who approximates that she has earned $1,300 by wagering against Trump Media & Technology shares. “He overestimates his abilities as a businessman.” Many of his ventures fail rapidly.

Jeff Cheung, an IT security professional in Seattle, is certain that this will eventually reach a value of zero.

By Friday morning, exactly one month after Trump Media’s IPO caused its stock to soar to $66.22, it had sharply declined to $38.49. According to an investigation by AP using data from research firms FactSet and S3 Partners, investors who use puts and engage in “short selling” have currently accumulated paper profits of at least $200 million. This figure does not consider the fees associated with puts, which can vary from one deal to another.

However, novice traders, who often only risk a few thousand dollars each, believe that the stock’s volatility makes it premature to claim success. Currently, they are capitalizing on their investments, allowing other bets to remain active, and discreetly observing the most recent fluctuations in stock prices in various locations such as their office cubicle, kitchen table, or even while using the toilet.

Other alarming occurrences have occurred, such as last week, when the stock ticker for the former president, DJT, suddenly increased by around 40% within a span of two days.

“I am uncertain about the future movement of the stock,” states Richard Persaud, a day trader from Schenectady, N.Y., as he checks his iPhone during the sudden increase in stock prices. “The current valuation is excessively inflated.”

Those who spoke with the AP perceived it as an additional political advantage to be aware that their bets resulted in a 50% decline in the value of Trump’s 65% investment. If any of their forecasts prove accurate, they may eventually reduce it to zero, rendering it difficult for him to utilize it to pay his substantial legal expenses or fund his Republican presidential campaign.

They still have a considerable distance to cover. The value of Trump’s interest remains at $4 billion.

Typically, investors anticipating a decline in a stock’s value, particularly a bold group of hedge fund traders known as “short sellers,” will conduct extensive research. They will thoroughly examine financial accounts, acquire specialized knowledge in a particular business, engage in discussions with competitors, and may even seek assistance from “forensic accountants” to uncover concealed vulnerabilities in financial records.

There is no requirement for Trump Media’s case. The corporation’s comprehensive 100-page financial report, which is situated in Sarasota, Florida, contains all the necessary information. The company incurred significant losses of $58 million in the previous year despite generating only $4 million in income from advertising and other sources.

According to the auditor’s assessment, the losses incurred by Trump Media are significant and cast doubt on its capacity to continue operating.

Is this a dream scenario for a short seller? Or is it a terrifying dream?

Manny Marotta, an inexperienced trader, has two computer screens at his house. One screen is used for business, while the other displays the movements of DJT stock, allowing him to assess his gains or losses.

trump

AP – VOR News Image

Rooting For Trump To Fail Has Made His Stock Shorters Millions

The situation appeared unfavorable early this week.

The legal writer from suburban Cleveland had earned a profit of approximately $4,000 on the purchase of “put” options made in the previous weeks. However, the television display that morning depicted investors, likely affluent individuals, purchasing substantial quantities of DJT shares, causing the stock to rise once more.

“The value of my options is decreasing with each passing minute,” remarks Marotta, further stating that DJT is being manipulated. “It’s absurd.”

Anticipating a decrease in stock value is particularly agonizing for “short sellers,” who incur a fee to borrow shares from other individuals. The concept is to promptly sell the items based on intuition and thereafter repurchase the same quantity at a significantly lower price prior to returning them to the lender. Short sellers are able to keep the profit they make from the difference after deducting a small fee.

In the instance of DJT, the charge is far from being modest.

At one point early this month, the annual cost reached 565%, which implies that short sellers would have only two months before any potential profits would be completely offset by fees, even if the company became worthless. According to data from Boston University’s Karl Diether and Wharton’s Itamar Drechsler, who have researched short selling over the past twenty years, just three other equities in recent memory have surpassed this exceptionally high rate.

If there is a significant increase in purchasing by Trump supporters who view it as a means of endorsing their candidate, the potential losses might rapidly escalate.

“It is alarming,” states Drechsler, who compares purchasers of Trump’s stock to steadfast sports enthusiasts. “It embodies all the characteristics that one would typically hope the stock market does not possess.”

According to Shannon Devine, a spokesperson for Trump Media, the company now possesses a substantial amount of $200 million in cash and has no outstanding debts. Devine also criticized the Associated Press (AP) for allegedly favoring those who openly oppose Donald Trump.

Seattle trader Cheung views DJT’s unusual traits as a motive to place a bet against the company rather than avoiding it. Once the lock-up period expires, the ex-president is expected to sell his shares, causing a significant decline in the market and price decline. Furthermore, suppose he chooses not to do so. In that case, other individuals with insider information whose lock-up periods are ending will be apprehensive that he would take action, prompting them to swiftly take advantage of the opportunity to sell at a favorable price before it declines.

trump

AP – VOR News Image

Rooting For Trump To Fail Has Made His Stock Shorters Millions

“The individual who sells out first will make the most profit,” Cheung asserts. “All individuals will engage in selling.”

However, he is taking measures to mitigate any financial losses by hedging some of his “put” wagers with the acquisition of “calls.” The latter are likewise financial instruments derived from an underlying asset, but they have an inverse relationship with the stock price, resulting in profits when the stock price increases. Cheung anticipates that regardless of whether the puts or the calls generate profits, he will earn sufficient returns from one to compensate for the loss incurred by the other.

If this appears excessively intricate, a more straightforward approach exists to generate profits by placing bets against Trump.

Offshore betting firms, which have designated President Joe Biden as the frontrunner for the 2024 election, are accepting 2024 election wagers.

SOURCE – (AP)

Kiara Grace is a staff writer at VORNews, a reputable online publication. Her writing focuses on technology trends, particularly in the realm of consumer electronics and software. With a keen eye for detail and a knack for breaking down complex topics, Kiara delivers insightful analyses that resonate with tech enthusiasts and casual readers alike. Her articles strike a balance between in-depth coverage and accessibility, making them a go-to resource for anyone seeking to stay informed about the latest innovations shaping our digital world.

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Canada Fisheries Officers Seize Elvers Worth $500K at Toronto Airport

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Canada Fisheries Officers Seize Elvers
The seized elvers are worth between $400,000 and $500,000: CTV News

Fisheries and Oceans Canada (DFO) officers and Canada Border Services Agency (CBSA) officers seized roughly 109 kg of unlawful elvers at Toronto Pearson International Airport. The elvers were scheduled to be transferred overseas.

The seized elvers are worth between $400,000 and $500,000.

An investigation into this matter for violations of the Fisheries Act is currently underway.

“The magnitude of this elver seizure is an important development,” said Diane Lebouthillier, Minister of Fisheries, Oceans, and the Canadian Coast Guard, in a statement. “It reflects not only the work of Fisheries and Oceans Canada, but also the collaborative efforts of many other government agencies and departments.

“Once again, our message is crystal clear: do not travel to Nova Scotia to illegally fish or export elvers this year, enforcement officers will be waiting for you.”

This seizure was the product of a coordinated operation combining officials from the DFO’s Conservation & Protection Directorate and the National Fisheries Intelligence Service, as well as the CBSA Commercial Operations District and intelligence teams.

The federal government banned the lucrative elver fishery on March 11 following violence and intimidation during last year’s fishing season in Nova Scotia and New Brunswick.

Elvers are often flown to Asia and grown to maturity before being sold for food, with mature eels utilized in unagi dishes at sushi restaurants.

The baby eels are valued approximately $5,000 per kilogram, more than lobsters, scallops, or salmon, making them the most valuable fish by weight in Canada.

The DFO announced in March that no elver fishing would take place this year due to safety and conservation concerns. So far, cops have made 149 arrests and seized around 207.7 kg of elvers.

According to federal data, 149 people have been arrested for elver-related crimes this year, with approximately 208 kilos recovered.

Elvers, the fascinating baby eels

Elvers, the fascinating baby eels

Elvers are tiny, transparent young eels that migrate from the ocean into freshwater rivers and streams. These little snake-like organisms make an astonishing journey, swimming thousands of miles to their destination. Elvers perform an important role in the life cycle of eels, eventually maturing into the adult eels we know.

Their migration is a spectacular natural spectacle. Elvers crawl in large groups upstream, overcoming barriers such as waterfalls and dams. Once in freshwater, they will mature for years before returning to the sea to breed and repeat the cycle. Elvers face numerous dangers, including habitat loss and over fishing, making conservation efforts critical for these extraordinary migratory.

 

 

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CNN Pay Tribute to Alice Stewart: A Very Special Woman Dead at 58

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Alice Stewart

Alice Stewart, a longtime political strategist and CNN political pundit who worked on multiple Republican presidential campaigns, has died. She was 58. CNN anchor Wolf Blitzer joins Jessica Dean to reflect on Stewart as a friend and coworker.

According to law enforcement officials, Stewart’s body was discovered outside in the Belle View community of northern Virginia early Saturday morning. There is no indication of foul play, and officers assume a medical emergency occurred.

“Alice was a very dear friend and colleague to all of us at CNN,” CNN’s CEO Mark Thompson wrote in an email to employees Saturday. “A political veteran and Emmy Award-winning journalist who brought an exceptional spark to CNN’s coverage, known throughout our bureaus not only for her political acumen, but also for her unfailing kindness. Our emotions are heavy as we lament such a great loss.”

Alice Stewart was born March 11, 1966, in Atlanta.

Stewart began her career as a local reporter and producer in Georgia before relocating to Little Rock, Arkansas, to become a news anchor, she told Harvard International Review. She went on to work as the communications director for then-Arkansas Gov. Mike Huckabee before taking on a similar role for his presidential campaign in 2008.

She previously worked as the communications director for former Minnesota Rep. Michele Bachmann’s 2012 Republican presidential campaign, as well as former Pennsylvania Sen. Rick Santorum, a former CNN analyst. Stewart most recently served as the communications director for Texas Sen. Ted Cruz’s 2016 GOP campaign.

“Alice was wonderful, talented, and a dear friend,” Cruz wrote in a post on X. “She lived every day to the fullest, and she will be deeply missed.”

CNN hired Stewart as a political pundit ahead of the 2016 election, and she appeared on “The Situation Room with Wolf Blitzer” as recently as Friday to provide insight on the day’s political headlines.

“We always invited her to come on my show because we knew we would be a little bit smarter at the end of that conversation,” Blitzer stated to Jessica Dean on “CNN Newsroom.” “She helped our viewers better appreciate what was going on and that’s why we will miss her so much.”

Alice Stewart: A Very Special Woman Dead at 58

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Diddy Won’t Be Prosecuted Over Cassie Ventura Hotel Video

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Diddy Won’t Be Prosecuted Over Cassie Ventura Hotel Video
Sean “Diddy” Combs won’t be prosecuted over a 2016 video: Image Fox News

According to the Los Angeles County District Attorney’s Office, Sean “Diddy” Combs will not face charges in connection with a 2016 video that appears to show him abusing then-girlfriend Cassie Ventura in a hotel.

“We find the images extremely disturbing and difficult to watch,” the office of Los Angeles District Attorney George Gascón posted on Instagram Friday (May 17). “If the conduct depicted occurred in 2016, unfortunately we would be unable to charge as the conduct would have occurred beyond the timeline where a crime of assault can be prosecuted.”

Combs appears to push Ventura to the ground near an elevator bank, kick her multiple times while she is on the ground, and pull her down a hallway in the footage, which CNN received on March 5, 2016.

According to the statement, law enforcement has not presented the Los Angeles County District Attorney’s office with “a case related to the attack depicted in the video against Mr. Combs, but we encourage anyone who has been a victim or witness to a crime to report it to law enforcement or reach out to our office for support from our Bureau of Victims Services.”

The video’s contents resemble an assault complaint Ventura made in a now-settled lawsuit against Diddy in November, in which she also claimed one incidence of rape and another of Combs forcing her to have sex with male sex workers while he masturbated.

“The gut-wrenching video has only confirmed Mr. Combs’ disturbing and predatory behavior,” said Ventura’s attorney, Douglas Wigdor, in a statement to Billboard. “Words cannot express the courage and fortitude that Ms. Ventura has shown in coming forward to bring this to light.”

Ventura and Combs had an on-and-off romance for 11 years until splitting in 2018. In the lawsuit, she claimed she met Combs in 2005, when she was 19 and he was 37. After signing with his Bad Boy Records company, Ventura alleged that Combs “lured” her into a sexual relationship in which he “asserted complete control” over her life.

Combs has faced four further sexual misconduct complaints after Ventura filed hers late last year. The entrepreneur resigned as chairman of his digital media business Revolt in November, and he reportedly sold his interest in the company in March. Also in March, federal officials raided Combs’ houses in Los Angeles and Miami “in connection” with a federal sex trafficking probe, CNN reported.

Combs has flatly denied all allegations of sexual assault leveled against him. “Let me be absolutely clear: I did not do any of the awful things being alleged,” he declared in a statement shared on social media on December 6. “I will fight for my name, my family and for the truth.”

Diddy

Sean “Diddy” Combs

Sean “Diddy” Combs is a multi-talented mogul who has made his mark in music, fashion, and business. Born in Harlem, he began his career as a talent director at Uptown Records. Combs later created his own label, Bad Boy Records, which launched the careers of musicians such as The Notorious B.I.G. and Mary J. Blige.

His debut album, “No Way Out,” achieved multi-platinum success, cementing his reputation as a rapper and producer. Diddy expanded his business interests, launching the apparel line Sean John and investing in beverage businesses such as Ciroc and DeLeon. With an estimated net worth of $900 million, he is one of hip-hop’s wealthiest individuals.

Combs is a presence in Hollywood, appearing in films and television series while also influencing music and society. His commercial savvy, paired with his musical talents, have elevated him to the status of rap icon.

Source: Billboard

 

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