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 gon na make this video political, we're gon na 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 got ta, 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 gon na, 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 sponsored. Doesn't matter me if you sign up or not the only thing i sponsor are the programs on building your wealth down below. So if you want perspective on investing in stocks or real estate, or you want to build wealth, not so much with a lottery ticket but get rich for sure through strong sound, investing principles, then check out the programs linked down below on building your wealth stocks.

On psychology of money, you get all my buy, sell alerts, real estate programs. We do real estate analysis, amazing things for 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.

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