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Any truth that the OS is actually much higher??????
LOL. New post from him this morning.
Whitney Tilson ( Empire Financial)
More from Empire Financial
There are only two possible outcomes here: the deal goes through, or it doesn't.
I think there's a 75% chance that the SEC blocks the deal, in which case the stock will immediately collapse to roughly $10, the amount of cash DWAC has in trust.
In the 25% chance that the deal goes through, the share count will increase by more than 5 times overnight, PIPE investors will sell every share they bought as fast as they can, and, as the stock starts to crash, retail investors will panic and add to the selling.
It's going to be a bloodbath either way...
P.S. Here's another article from a few weeks ago outlining what's going to happen: How to Lose Money: Buy Digital World Acquisition Corp
Anyone here see this yet? Just came into my email......
________________________________________
1) I appeared on Bloomberg TV on Friday afternoon, talking about why I liked Meta Platforms (FB) and was avoiding Digital World Acquisition (DWAC), GameStop (GME), and AMC Entertainment (AMC). You can watch the five-minute video here.
2) Speaking of DWAC, this morning it spiked to nearly $95, up more than 12%, on no news. The higher it goes, the further it will fall...
The single biggest mistake investors (I use that term loosely here) are making is that they have the share count wrong – by a lot!
As I write this, with the stock around $95, Yahoo Finance and other sites show that the company has a $3.5 billion market cap, based on 37.2 million shares outstanding.
But that's just the DWAC shares. To this figure, one must add the shares from the business the SPAC is combining with, Trump Media and Technology Group ("TMTG"), plus the shares that will be issued via the $1 billion PIPE. Here's the math, as posted by someone on ValueInvestorsClub:
Tons of people in the stock (i.e. the retail people) still think that its outstanding share is only about 37M (see Reddit and Twitter comments). That's DWAC's outstanding shares. Then, there's TMTG's outstanding shares which is about 88M. Then, there's PIPE investors' (ARC Global Investments II and affiliates) 100M shares (refer to https://www.bamsec.com/filing/119312521348598?cik=1849635).
The total pro-forma share count I've seen in two places is 193.4 million – more than 5 times higher than what investors think!
Thus, at a price of $95, that gives DWAC a market cap of $18.2 billion. For perspective, Twitter (TWTR), which has been around for 16 years and
Thank you for that. Good stuff
Thank you for that. Good stuff
Good find...did you know that on 12/22 or just find it?
Wow. Big time volatility continues.......all over the markets
What makes you ask that question?
Can we hold this and pass $90 this time? ;)
Another solid day here. Lookin good!!!! GLTA
Typical Friday trading......
DWAC strong like bull....LOL
CFV just took a huge jump. Fox biz broadcast......
Love the slow, steady progression here. Good stuff. GLTA
Good stuff.
33% gain and strong close on a Friday is very telling !!
43.8% short interest !!!! SQUEEEEEZE em'.
Fryin' some shorties !!! LOLOL
Making beer money. They could wait and have cognac.
Too good to last. Too many short sighted grubbers.
Study the history here. I don't normally make these types of statements but I know a lot of people got hurt with INND. It was ugly and I doubt that they have changed their ways.
Dilution machine, owners are scammers. Beware
Not showing on breakout board. ??????
Lets hope. I'm holding too.
No idea but this went on a huge run during covid lockdowns.
I mean how is any retailer supposed to accurately project future sales when merchandise is not reaching the stores? Common sense question.
Empty shelves in their stores too....perhaps?
Just got in. Whats the news?
Hmmmm....Now what?
There's got to be more to it than that. ?????
What the hell is going on here?
Good Stuff. Lets go !!!!
Can anyone explain why the preferred shares have gained more than these shares?
Can anyone explain why the preferred shares have gained more than these shares?
Nice action for a Friday on the OTC !!!
Glad to see you here Dino. .60 to .70 would be wonderful!!!
Crap!!! Damned shorts.
Agreed! Great post jimbo.