Donald Trump’s Stock to $500 | 10x with DWAC?

everyone meet kevin here oh my goodness

so there is a new hot stock on the

market and people are going in nuts over

it because it has the political flavor

to keep people highly invested and

potentially even taking a note from wall

street and reddit

diamond hand

a brand new stock going public via a

special purpose acquisition company or

spac the trump media group

is going public under ticker symbol

d-w-a-c

and folks

you don't even want to know what it

looked like today but because you're

watching this video you either know

or you want to know

so i'm going to show you anyway folks

dwac is a spack and when something is a

spack it usually sits around a 10 par

value that's what you have right here 10

this is because people investors in this

digital world acquisition company

believe in the people who put this

company together so much so that they

give them money at a value of ten

dollars per share to go find a company

to purchase they have a certain specific

time frame that they have to purchase a

company by and then once they find a

company and strike a deal they release

an update also known in the wall street

world as an 8k and they say hey look we

entered into an agreement to acquire a

certain company and take it public

through what's known as a reverse merger

you don't really have to know what the

specifics of the deal are but what's

important to know is anything above 10

is really profitable for the initial

investors who are in the deal given that

right now in just one day this is one

day the darn thing is up over 356

to 45 dollars and 50 cents and in the

after hours it's running even more of

26.97

to

57.90

meaning if you invested ten dollars as

one of those private equity investors

through the pipe you'd be up almost six

x on your money today

well folks obviously there's a lot of

attention being drawn to this and that's

what happens take a look at this though

at the same time as we're seeing these

insane numbers on this particular spec

watch this

facebook stock

down

5.08 percent in after hours after going

up just a third of a percent today or

here's another one let's look at some of

the other social media stocks snapchat

down point 69 on the day and down point

23

in after hours

at the time of this recording twitter

down 59 i'm sorry point 59 on the day

and 3.98

in after hours so wait a minute why the

heck are all of the traditional media

stocks going down

and trump media is going to the moon

is it because people are fed up with

social media corporate elitism and the

disaster of communication and censorship

that we have in the united states

well yeah that's definitely one of the

reasons but there are a lot of other

factors that go into this like the fact

that snapchat missed on earnings today

because of changes that apple made

making it harder to make money with

advertising on platforms like snapchat

twitter or even companies like a

facebook or etsy and we're not gonna

make this video political we're gonna

look at this video as a neutral person

here because look i've got qualms on

both sides i actually ran for california

governor that was before my hair was

green and i know that politics is pretty

dang device at divisive and especially

censorship is something that happens

i posted my announcement for my

gubernatorial campaign and i came in

second place of the recall candidates in

california

and my announcement post was deleted by

facebook twitter refused to ever verify

me as a candidate which is something

they always do for elections oh but not

in california they decided nope we're

not going to verify anyone else except

the governor who's running in this

recall election and so a lot of this

sort of frustration that we see our

censorship in the media

spills out over into our discussions

community discussions discussions with

our friendships and now folks we

actually have a place we can put our

money to say we're sick and tired of it

but is dwac

a good investment is it a good idea to

protest media censorship and throw your

money into dwac because it is what is

taking the trump media group public and

truth social public

well that's what this video is about by

the way in the last minute that i've

been talking the stock is now up 30 in

after hours

geez all right folks so here's the thing

first what we're going to do is we're

going to look at what the company is and

then i'm going to give you some reasons

as to why the stock's going up and then

we're going to talk about whether or not

you should invest in this or not so

let's go ahead and go to the

presentation documents for this you can

look up truth social in the apple app

store it's available for pre-order i am

not sponsored by them i don't care if

you sign up or you don't sign up i have

i'm not taking any position on this

whether you do or don't uh this document

was prepared here october 2021 and it's

worth noting that this pdf document here

is uh

it's known as an investor presentation

but what it really is from the pro the

view of a finance professional is a

sales presentation they want you to

invest in this stock and the easiest way

to get people to invest in a stock is

make people feel like there is an us

versus them happening as a reason why

you've gotta buy and hold a stock this

is exactly what happened with gamestop

think about gamestop for a moment what

happened in january sure there was a

higher short squeeze percentage

available for people who were wanting

the stock or expecting the stock to go

down but what happened was you took a

stock that was essentially trading at

the beginning of the year for 18

the stock ran up to 347 dollars intraday

ran up to over 482 dollars

there were rumors that it was going to a

thousand dollars the stock promptly fell

back down to 45 dollars but then now has

eventually settled around 181

this happens very commonly when we have

a large momentum movement around a stock

usually these sorts of peaks or momentum

movements we usually don't see sort of

lasting attention and momentum moving

stocks i'll give you another example or

a few more examples later and they're

going to be a whole lot different from

the gamestop one but i want to start by

saying i believe

this investor presentation is trying to

create a gamestop style movement where

you take a stock that has little to

potentially no fundamental value

and you create so much implied market

value that you can actually create

something great with now the market

value opportunities you have more on

that in just a moment but let's go

through this so remember what you're

looking for is to be sold on this i

could tell you out of the gate probably

not a lot of democrats going to be sold

on this one because take a look at this

the trump media group the

tmtg the acronym aspires to be or create

a media powerhouse to rival the liberal

media consortium and fight back against

the big tech companies of silicon valley

who have used their unilateral or

one-sided power to silence opposing

voices in america notably facebook

twitter and others

donald trump obviously and the trump

media group make the argument here that

there is liberal bias that this is a

dangerous exercise of monopoly tech

censorship

and that essentially by competing with

them by creating another opportunity the

trump media group has the real chance of

creating a platform that caters more

towards potentially a more conservative

agenda or in their opinion a more uh

free agenda okay now let's see some of

the other things here so we've got

headlines here twitter bans trump amazon

will suspend hosting for pro-trump

social network parlor because we know

that trump was banned from twitter then

his apps were removed from the apple

store the android store parlor was taken

down we remember some of these things

back in january twitter bans the us

president but the taliban still has a

twitter account are our freedoms under

attack right this is supposed to get us

to feel upset and to want to invest in

this company remember this is a sales

pitch document market opportunity

nothing screams selling a stock

like the letters t-a-m or total

addressable market and even though

they're not trying to sell you products

through the trump media group they're

comparing themselves to apple

uh and amazon amazon's the one i circled

first apple's the one circle second uh

netflix google and facebook i think a

fair comparison is obviously twitter and

facebook some of these are a little bit

of a stretch to compare to

but the trump media group then also goes

on to compare themselves not just to

social networks but also traditional

networks like disney i heart radio media

or obviously left-leaning uh platforms

like cnn but what they're really doing

is they're saying hey if we grow in the

future we might be able to get into web

services like what amazon does cloud

computing like the web services that

google provides payment processing got a

lot of

hopium i like to call it where they're

selling you something

with the impression that this is gonna

be big and the best way to make you

believe that it will absolutely be big

is by making you feel like they can do

absolutely everything and that's really

what we're getting here is they're

trying to sell you on the idea of

joining a quote

non-cancelable global community and they

want to attack everything netflix

twitter iheartradio to whatever

instagram you name it you can also go

over to

truthsocial.com and join the waiting

list to get into the app early to get an

account now truth social has already had

either an instance of i don't think it

was necessarily hacking it was more like

name squatting somebody stole uh donald

trump's username in it and i i believe

this has all been corrected at this

point so that was just sort of like a

side story in in this whole drama here

the big story obviously is what's

happening to the stock and again not

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up or not

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you to learn

and save money all right take a look at

this trump media and technology group

this is the 8k that was released by dwac

today october 20th that is this was last

night is when this was released and

they've entered into a definitive merger

agreement the company is being valued at

875 million dollars plus the opportunity

as long as the stock performs to create

or generate an additional 825 million

this creates a combined valuation of

about 1.7 billion

dollars

for this spec

so now usually usually usually with with

spax it's worth noting that you're only

going to have access to about 10 of the

shares of this company so it's

relatively small in terms of how much of

the company actually ends up going

public but they are still seeking to

raise somewhere around 1.7 billion

dollars

so far what we really have is a company

that has wireframes and a register

website it'll be interesting to see what

kind of platform ends up getting

developed donald trump has been talking

about building a platform since january

so he's obviously had plenty of time to

be able to build something with

developers and programmers or whatever

worth noting that donald trump here says

i created truth social and the trump

media technology group to stand up to

the tyranny of big tech we live in a

world where the taliban have a huge

presence on twitter yet your favorite

american president has been silenced uh

dwac currently has 293

million dollars oops that's supposed to

be the highlighter 293 million dollars

in trust and assuming minimal

redemptions this is when people would

want their money back

uh who invested in the pipe

and this money is designed to fuel

tmtg's scale up including providing

world-class technology services to build

strong secure social networks so they're

kind of even saying in here that they

don't really have everything built out

yet and that additional information is

to come

including uh further information like

their s4 which they intend to file along

with other information that is coming

out in the future this is really just

announcing that the partnership has been

made and now all of a sudden we're

seeing the stock again dwac that is a

spac do extremely well so should you

invest in dwac and why is it going up so

much well first there are few reasons

why the stock is going up so much and

i'm going to keep this as simple as

possible since there's a chance you

might not be super familiar with stocks

when you have a company so let's say

this this right here is a company this

little house right here

when you sell a company and shares what

you're doing is you're selling little

slivers of that company right and let's

say there are 100 million of those

slivers

usually with a spac you're only going to

sell about 10 to 11 million

so you're really only going to sell a

little portion of this property the rest

or company right the rest continues to

be controlled by

presumably donald trump and some of the

people who are working with him on

developing this application

this is normal this is very very normal

but in the spac process it tends to do

something known as it creates a low

float

and the problem with the low flow

is it's just basically a way of saying

there aren't that many shares available

for people to buy and hold on to let me

give you an example

let's say that there are 1 million

shares available for something but

immediately

nine let's say 9 000 people come in

and each of them say you know what we're

going to buy a hundred shares well if

nine thousand people buy a hundred

shares each then we're going to all of a

sudden be in a place where we have nine

hundred thousand shares tied up and so

if these people are holding on to the

shares

now you actually only have a hundred

thousand shares to trade with

and this these are just example numbers

right the actual number's probably a lot

larger

but if there are a lot of people holding

on to the shares you have a very small

percentage of on already small

percentage of the company that's freely

trading and when there's or less shares

available the price can usually go up

quicker because there are fewer sellers

so the way that might work is somebody

might say hey i'm going to buy it at 15

i'll be willing to sell it for 25. well

if there's nobody in between here and

somebody else says hey i'm willing to

buy it for 25 the stock will immediately

go to 25

and this is a lot of what we saw today

in uh in the stock market here

for dwac this is actually the warrant

set so let me go to dwac i'll explain

warrants in just a moment so you go to

dwac this thing started

uh kind of look where uh where my mouse

is right here and you'll kind of see the

pricing here the closing for that minute

so the stock really started about 14

then it ran up to about 17 19 20 25 went

to 30

i went to a high 40s here went to 51 for

a moment and now in the after hours it's

going up to 59

and uh if you could see every single

minute about 1.2 million shares traded

hands so kind of the example there on

the sheet that i just showed you would

be accurate of a representation for

maybe uh about a minute or about 10

times that since a million shares are

trading right so the actual number's

probably 10 times that uh per minute but

the actual number doesn't matter so much

the point is they're going to probably

be a lot of people buying this and

holding it not a lot of people selling

it now usually that isn't a problem

because if a stock gets too rich and all

of a sudden something's selling for 25

and the market thinks that's too

expensive that's where people can come

in and they can do something known as

shorting a stock this is where they

borrow the stock from somebody and then

they sell it

so let's say you're holding on to the

stock i could borrow the shares from you

and sell it now i'm providing liquidity

at a lower price and that helps keep the

price in check but there are some

problems here in addition to having a

low float

you have like i mentioned in my opinion

an army of folks who are going to

politically want to hold on to this

stock we call that huddle hold on for

dear life huddle that stock but on top

of that you cannot short this stock yet

it is not available for borrowing so you

can't short the stock which means you

the market can't accurately price this

stock right now there's no counter

balancing force so you have very few

shares a lot of people of the shares who

that are outstanding holding on to it

and you can't short the stock

the company also has a uh is or is going

to be the recipient especially today of

massive massive media attention which

remember the sec actually tells us that

mass media attention is one of the ways

that we can actually get a stock to be

extremely valuable extremely quickly now

that doesn't last forever but

the sec just put together a report on

why gamestop went to 482

and i wrote down what the sec says

something that creates a lot of momentum

in a stock the price going up is the

price going up so when the price goes up

more people want to buy it because of

the fear of missing out large volume

changes lots of people buying it and

selling it all of a sudden and that

these are volume bars so when you've got

a lot of changes here and prices going

up that meets two of the criteria a

large short interest which according to

ortex the short interest in this

particular spec is over 20 percent which

probably comes out of the fact that a

lot of specs have been shorted

since well uh their highs around

february of this year remember this is a

spec and so a lot of folks just went out

of their way and just started shorting

all specs kind of sucks for them at this

point especially if that short interest

is over 20

but that short interest of over 20

percent according to ortex could give

more momentum for that for the stock to

essentially keep going because that is

because if the short interest is high

then short sellers when they start

losing lots of money might have to buy

the stock back to stop their losses

leading the stock to go up even more and

then of course the sec mentions frequent

reddit mentions youtube mentions or

significant coverage in social media

worth noting as well the short interest

according to the s3 partners app in the

bloomberg terminal is

16.22

there's also another ticker symbol and

that is

dwac

those are to buy warrants for the

company those are basically option

contracts and if you're not familiar

with those i would just recommend

staying away from those those can go up

more or down more

faster with movements than the

underlying stock that now begs the

question is the stock running to the

moon essentially because of fundamental

reasons

no absolutely not is the stock running

because of social

movements social inspiration social

frustration

partisan politically partisan

investments into this stock to make a

point and is this running because it is

something that has

low float

there are lots of haulers reiterating

the low flow you can't short it there's

a lot of mass media attention the short

interest is up the price is up and it

has jumps in pricing and the volume is

up well folks the answer to all of this

is obviously yes so no this is not going

up because it's a really good company

quite frankly this company doesn't even

have to exist all that we know that

exists right now

is a sign up website

some wireframes which is just basically

pictures of an app that somebody could

mock up in an app store

and this spac we have no earnings we

have no revenues

we have no operating costs no

advertising costs we don't have anything

that's because the company is basically

a brand new company now they're not

lying to you saying they have a big

company or that isn't new they're being

very transparent about it but because of

all the factors that i mentioned this

stock is very likely to pull a very big

quantum scape style run up and crash

now that is not me being negative about

the company i'm not taking a position

either way but if i type in qs or

quantumscape the spac battery company or

battery company that's spacked look what

happened folks it went from ten dollars

in a very excited manner went up went up

went all the way up to

thirty 132 dollars

and look how quickly it came down and

this is a warning for you

thirty nine percent on the last day of

its run over here

down three percent then it was up a half

percent

then it was up 2.38

then it was down 10.8 percent

then down three percent

10.8 percent

40

0.2 percent

and then we kind of stabilized again up

a little bit down a little bit and then

you get this slow bleed out where the

stock that used to be at ten dollars

ran all the way to 132 dollars

quickly sold off and then bled out the

rest of the way all the way to where it

sits now at 24.91 now does this mean

that the trump media group is going to

go back to 10 or 15 or 24

not necessarily in fact this is a pretty

unique stock where quite frankly this

could just stay high uh not maybe not

necessarily as high as it is now but

because of political intentions or wills

of people to want to hold on to this

for political purposes for

wanting to be a part of the movement

purposes right but when this starts

rotating down and attention starts going

away from this my guess is within the

next week to three weeks i expect this

stock to come down substantially i would

not make a long run investment in this

now this is not financial advice but if

i were looking at playing around with

this stock if i was interested in buying

i might potentially buy the stock

but then i would be prepared to sell i

would set a limit order to sell the darn

thing i would set a trailing limit as

another option if i wanted to stop loss

you could do a whole host of things to

make sure you sell if this price starts

going down

or get into it day trade it swing trade

it and get out of this but once options

start trading once we can start shorting

it once the mass media stops talking

about it once uh once the mass media or

in the reverse starts talking about how

much it's fallen

then it's probably off to the races in

terms of this going down for now though

we might not have hit peak media yet i

still think there are a lot of people

who haven't even heard about this which

means there's a good chance this could

continue to soar so congratulations for

those of you making money on it i wish

you the best on making money i encourage

you to take profits liberally on this

one often and continue to try to make

money playing the stock but it's not

something that i would fundamentally

hold until i get financials in like a

year or two when the company actually

operates something or even we have a

chance to use the social media platform

but again if you want to make some

short-term money you could consider

swing trading in this just be aware

there's a risk of loss

and if you want more of my insights

check out my programs on building your

wealth link down below thank you for

watching share this video if you found

this helpful and we'll see you in the

next one

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