|
United States40785 Posts
On March 28 2024 09:30 Acrofales wrote: Is Truth social the easiest short option choice in the history of the stock exchange, or is there something I'm missing here? To short you borrow a share from someone else, sell it, and then buy it back later so that you can return it to the original owner. Ideally you buy it back at a lower price than you sold it at.
Problem is that you need someone who is willing to hold that share for the period between your sell and your buy back. And the holder might also think that it's overvalued which means that they're going to want to be compensated for the risk associated with owning it for that period by interest payments on their loan of a share. And even if they think that it will only go up and that there is no risk there are still only so many shares available to borrow and everyone knows that it is overvalued. That means that you and everyone else are bidding to borrow that same limited pool of shares available to borrow which means extremely high interest that cuts into your short profits. The big traders are going to do the math there and work out exactly how much interest is too much interest to pay for the expected return on the short based on the expected sell and buyback prices. You're probably going to do it less well. That means that if you actually manage to borrow a share for the purpose of short selling it's because you overpaid interest.
Shorting companies like this is different to shorting Microsoft or whatever. There's a huge pool of institutional shareholders of Microsoft (retirement funds, index funds and so forth) that will happily add a little to their returns by loaning them out because they have zero plans to ever trade on them. They don't care about the difference between a share and an IOU for a share, they're institutional holders, it's all the same to them. If you want to short sell those then you can borrow as much or as little stock as you like for a low cost. Shorting Truth Social is a completely different animal.
|
My math might not be perfect on this, because I'm only investing time for the giggles. But on numbers with very little value on the name. I put the stock at 50 cents. This is based on what Reddit was worth and its revenue as well as some others. But that is likely to high because "Truth" is not a new market or product and its revenue is so painfully small and shrinking. It seems criminal that people are able to buy this at what its valued at.
|
|
Even if it was Obama/Biden/etc, I still wouldn't buy it assuming it's "DJT" ticker. Whoever invests in unprofitable company runs this risk. + Show Spoiler +
|
The first bank failure of 2024. Round 2?
|
And it doubled since your post.This is what meme stocks do. A smarter move would be to invest in similar fashion to Pelosi, rather than buy Trump stock.Pelosi stock tracker @Pelositracker_ has over half a million followers on twitter.Great insights not just into Pelosis investments but of other congressmen and senators.
|
Or, you know, you can simply buy XLK or QQM. It's pretty much the same thing, that portfolio seems tech heavy anyway.
|
On May 03 2024 03:36 SC-Shield wrote: Or, you know, you can simply buy XLK or QQM. It's pretty much the same thing, that portfolio seems tech heavy anyway. O Please tell me the name of the company with abbreviation QQM is Crymore Industries.
|
United States40785 Posts
On May 03 2024 05:33 Acrofales wrote:Show nested quote +On May 03 2024 03:36 SC-Shield wrote: Or, you know, you can simply buy XLK or QQM. It's pretty much the same thing, that portfolio seems tech heavy anyway. O Please tell me the name of the company with abbreviation QQM is Crymore Industries. They’re not companies, they’re mutual fund tickers. https://etfdb.com/etf/QQQM/#etf-ticker-profile
|
Thanks for correction, I usually use QQQ for tracking but I mentioned QQQM as it has lower expense ratio (0.15%) compared to 0.2%.
From limited information I found about Pelosi, her family simply invests in heavy tech such as NVIDIA, Apple, Google, Microsoft, etc. There is no need to consider conspiracies or insider information, I believe US government is pretty good against corruption if that was the case.
So simply: S&P 500 - VOO, SPY, these are the largest 500 companies Nasdaq 100 - QQQM and QQQ, these are the largest 100 non-financial companies S&P tech index - XLK, here you may find Apple, NVIDIA and Microsoft but NOT Meta (Facebook), Google and Amazon since their main business is not categorised as "tech" (still confusing to me since I work in the IT field and I think of them as tech).
You usually can't buy these index trackers (ETFs) from Europe, so if you attempt to do so, I suggest you find the equivalent from here: https://www.justetf.com/en/ If you can buy them as a European, it's usually due to gimmicks from broker's part.
|
|
|
|