DJT Media offers no value for shareholders, and likely never will

Donald Trump’s media stock, DJT, has been a topic of much discussion and debate. Despite the hype surrounding it, a closer examination reveals numerous issues that question its value and legitimacy. From over-valuation to dubious financial practices, DJT seems to be a stock that investors should approach with extreme caution.

From a technical perspective, looking at the monthly chart below, there is absolutely no value in this stock. Price continues to head lower as shareholders are realising that there is no future in the company or it's concepts. 



Questionable Over-Valuation
One of the most glaring issues with DJT (NASDAQ:DJT) is its over-valuation. The stock has seen inflated prices that do not correspond with its actual market performance or potential. Analysts have pointed out that the market capitalisation is based more on the celebrity status of its namesake than on any real financial metrics or business performance. This speculative bubble is concerning for any serious investor. For example, the initial surge in stock price was driven by excitement rather than tangible results, leading to a valuation far exceeding its actual worth.

Dubious Accounting and Finances
Adding to the concern is the questionable accounting practices associated with DJT. Reports have surfaced about inconsistencies in financial reporting and a lack of transparency in their financial statements. These dubious practices have not gone unnoticed by the Securities and Exchange Commission (SEC), which has raised several concerns. The SEC’s scrutiny further adds to the uncertainty surrounding the stock, as does the opaque financial documentation that makes it difficult for investors to gauge the true financial health of the company.

Poor Brand Value
Brand value plays a critical role in the success of any media venture. However, DJT’s brand is marred by controversy and polarising opinions. This bad brand value undermines its potential for growth and stability in the market. A brand that fails to resonate positively with a broad audience is unlikely to sustain long-term success. The Trump brand, associated with political divisiveness and multiple scandals, fails to inspire confidence among a wide range of consumers and investors.

Lack of Proprietary Technology
In today’s tech-driven world, having proprietary technology can be a significant competitive advantage. Unfortunately, DJT lacks in this area. The platform is built using open-source code, which raises questions about its uniqueness and innovation. Without proprietary technology, DJT struggles to differentiate itself from competitors in a crowded market. This reliance on readily available technology suggests a lack of innovation and a potentially vulnerable position in the competitive landscape.

Questionable Board Members
The composition of DJT’s board of directors adds another layer of concern. Several board members have questionable backgrounds and lack relevant experience in the media and technology sectors. This lack of expertise raises doubts about the strategic direction and governance of the company. For example, some board members have been involved in previous business failures or lack significant achievements in the media industry, casting doubt on their ability to guide DJT to success.

A History of Business Failures
Trump's history in business is littered with failures and bankruptcies. From the collapse of Trump Airlines and Trump University to the multiple bankruptcies of his casino ventures, Trump's business acumen has often been called into question. These failures are not just isolated incidents but a pattern that suggests a lack of sustainable business strategy and management skills.
For instance, Trump Airlines ceased operations in 1992 after financial struggles. Trump University was shut down amid lawsuits alleging fraud. Trump Vodka, launched with much fanfare, was discontinued due to poor sales. The numerous bankruptcies of Trump’s Atlantic City casinos, such as Trump Taj Mahal and Trump Plaza, further illustrate a history of over-leveraging and financial mismanagement.

Dubious Presidential Record
Trump’s tenure as President of the United States was marked by controversy and division. Historians and political analysts have frequently cited his administration as one of the most chaotic and ineffective in modern history. His handling of key issues, including the COVID-19 pandemic and racial tensions, received widespread criticism. This questionable performance does not inspire confidence in his ability to lead a successful media venture.

Legal and Ethical Concerns
President Trump is involved in numerous lawsuits and other matters that could damage his reputation, cause him to be distracted from the business, or could force him to resign from TMTG’s board of directors. For example, he has been found liable for sexual abuse and defamation in the case brought by E. Jean Carroll. He is also facing charges of fraud related to his business practices and allegations of election interference.
Additionally, Trump is under investigation for his role in the January 6 Capitol riot, alleged interference in the 2020 presidential election, and potential financial misconduct by the Trump Organization. These ongoing legal battles add to the risk for investors and highlight the volatility surrounding DJT.

Additional Concerns
Beyond these points, there are other factors that do not add up. The business model of DJT lacks clarity, and its revenue streams are not well-defined. There is also a noticeable absence of strategic partnerships and collaborations, which are crucial for the growth of any media company. These missing elements contribute to the overall scepticism about the stock’s viability.

Donald Trump’s media stock, DJT, presents numerous red flags for investors. From its questionable over-valuation and dubious financial practices to its poor brand value and lack of proprietary technology, there is little redeeming value in this stock. The involvement of questionable board members, a history of business failures, and a dubious presidential record only add to the concerns. Investors would be wise to approach DJT with caution and scepticism, recognising that the hype may not translate into sustainable value.
Stay far away from this one folks, and anyone who tells you otherwise is just selling you something.