Looking at DJT price last week, my first thought was that the stock could go one of two ways, break the $23 floor that was set in April or rise to around $30-35. This had nothing to do with the underlying value of the stock, the stock right now is an expensive option. Right now the company's business has no value, it generates losses and revenues are down in the last quarter. However, the company is spending a lot of money ($100 million) on some kind of secret project. At this rate, the entire amount of free cash will be gone by the end of the year.
Chart followers who care about this stuff, know there's a hard floor on the stock of $22.85, volume over the past three weeks has fallen as the short positions are liquidated (covered or otherwise). The bottom line is, that low volume does present an opportunity for chart follows (they have all kinds of strategies...). So Monday the stock price rose by about 20%, with 10x the volume of last week.
The only announcement was that DJT exercises for about $60 million in new warrants which will raise its cash reserves from $200 million to $260 million.
Does it mean anything? No, it means nothing about the company. The one surprise is the issue of warrants, considering that the price of the stock is rather low. However, it is what it is.
NOTE: This is not a recommendation to actively buy or sell shares of the company. This is still a very volatile stock. There are about 180 million shares outstanding, and 130 million are restricted, so there are about 40-50 million shares that can be traded, and Monday 22 million shares were traded, last week the daily average was 10 million (average of 2.3 million for the two months prior). That means that the current hold period (yesterday) for DJT is down to 2 days from 5 days last week. This is a pro-market. Not for the faint of heart!
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