Monkey Business
(If you like this, do read other items on my blog. Its free 😀)
To recall the story till now. Early Sept, DWAC, what is known as a SPAC or blank check company, went public in a $ 300 m offering, with its shares trading at $ 10, which is basically what all monkey business SPACs trade at till they actually have a non-monkey, or real business, which usually takes a year or two. But end Sept, just a month later, it surprisingly announced that it would merge with Trump Media (TMTG),which would be starting their GSMP soon.
That sent DWAC shares from 10 to $ 94 in day (did you ever think crap was worth so much?) prompting me to write it would be good to short the shares. They were very thinly traded, but if you succeeded, congratulations. They now trade at $ 40. And are well on their way back to $ 10, which would still be around 10 times more than they are worth, unless they also buy some real real business, and not an MB like Trump’s TMTG.
Why am I so certain?
First of all, there is overwhelming precedent. Think Trump Casinos, Trump Airline, Trump Steaks, Trump Vodka, Trump Wine, Trump Water, Trump Washington Hotel, Trump Other Hotels, Trump UK Golf Courses, and of course, Trump “University”. You can see all their grave stones just outside Mar-a-Lago. Junior, Eric and Ivanka put fresh flowers on them now and then.
Secondly, as I wrote a month ago, Trump and his beloved admirers clearly have no idea what makes Twitter and Facebook successful. They just need to ask Parler, Gab, GETTR and other “conservative” social sites why they are going nowhere. The rubes want to “own the libs” and when there are no libs to be owned, they lose interest.
Just imagine 1000 real Americans on Truth Social (the name for Trump’s baby).
Real American 1 says “Pelosi is a witch”. (Or a word that rhymes with witch)
Real American 2 says “Yes, Pelosi is a witch”.
Real American 3 says “I agree. Pelosi is a witch”.
Real Americsn 4.......
........
.......
.......
Real American 1000 finally says, “I’m so glad we all agree Pelosi is a witch”
See the problem? This is otherwise called preaching to the choir. Or a meeting of the Chinese Communist Party. How many of the previous 999 would still be around when R A 1000 has his say? Without libs to take outrage, this is no different from reading Nursery Rhymes on Truth Social. (Which would probably vastly improve the intellectual level there, if it ever goes live).
Thirdly, Trump and his other jeniuses say that unlike leftist social media which censors conservative voices, Truth Social is for everybody - nobody will be censored. Well, good luck with that. On Day 1, thousands of Trump critics and haters will sign up and post every existing meme showing Trump as an idiot, a racist, a rapist, and everything else. Would like to see how long that stays up.
You may remember that when the beta site “accidentally” went up for a day, somebody managed to enrol as Trump with a profile picture of a defecating pig. Just shows you the technical jeniuses working on it and their understanding of security. Putin will be thrilled. His hackers are probably already following every move.
Finally, there were 2 announcements yesterday. Rep Devin Nunes, Trump’s former attack dog in Congress, will leave the House and become CEO of TMTG. Nuns is the genius who has sued a Twitter user called Devin Nunes’ Cow for $ 100 million for defamation. Nunes had clearly never heard of the Streisand Syndrome. That lawsuit gave rise to 100s of Devin Nunes accounts including DN’s dog, DN’s cat, DN’s other animals, DN’s Mom, DN’s estranged brother, DN’s all sorts of other relatives, DN’s thumb, DN’s upper left leg, DN’s all sorts of other body parts, including some that a family blog like this cannot even mention.
So this jenius will be the CEO. Our own Kash Patel used to be his Chief of Staff, now under fire by the Jan 6 Committee. If he stays out of prison, expect him to be the COO. At least he may be able to bring in some much needed Indian expertise, so that the site survives longer than the 29 days that Trump’s blog lasted. You can actually bet on whether that will happen with the London bookies.
Finally, the SEC announced yesterday that it is investigating both DWAC and TMTG for misleading investors. Trump misleading investors? What a SHOCK!!! Who would have expected that? Certainly not Murdoch’s Wall Street Journal, that last defender of White Christian Civilization, which first wrote so glowingly about the merger, you would have thought it was the Business Deal of the Century.
Well, it may well turn out to be the Monkey Deal of the Century.
Interestingly, one of the facts that came out yesterday was that the main investor behind DWAC is a Chinese company called ARC Holdings. Does anybody else remember Dotard complaining about unfair Chinese business practices (well, unless they were handing out patents to Ivanka).
So $ 10, here we come.
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