Legal AF by MeidasTouch - Trump’s OWN Accountants SOUND ALARM Over Failing Company

Episode Date: April 2, 2024

As featured in the movie, “dumb money,” the 15 million active users of Reddit’s “wall street’s bets” subreddit WON’T come to Trump’s stock’s rescue, as even Trump’s OWN ACCOUNTANTS... HAD TO DISCLOSE that Truth Social is ON THE VERGE OF BANKRUPTCY. Michael Popok uses his Wall Street experience to explain why a couple of million of Trump loyal followers CANNOT MOVE THE NEEDLE on the stock price and Save Trump’s backside, so it’s back to sneakers and bible sales from the back of a van, for the Former. Cancel unwanted subscriptions – and manage your expenses the easy way – by going to Visit for more! Join us on Patreon: Remember to subscribe to ALL the MeidasTouch Network Podcasts: MeidasTouch: Legal AF: The PoliticsGirl Podcast: The Influence Continuum: Mea Culpa with Michael Cohen: The Weekend Show: Burn the Boats: Majority 54: Political Beatdown: Lights On with Jessica Denson: On Democracy with FP Wellman: Uncovered: Learn more about your ad choices. Visit

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Starting point is 00:02:17 This is Michael Popak, Legal AF. I wanna talk about dumb money. I wanna talk about meme stocks and cult stocks and what we're watching now with the fall and the tumble into the abyss of Donald Trump's public stock offering now trading under his initials. DJT, you want to own a presidential candidate in America?
Starting point is 00:02:41 You can buy him on the stock market, literally, foreign or domestic, he's up for sale and being auctioned. Now, at the beginning, we stood back in horror as we watched the stock price on the first day of trading go crazy and on paper make Donald Trump a six billionaire. Well, now it's coming back to Earth. It's fallen on at least one day of trading by 20%. I'm going to talk to you now from somebody that's practiced law on Wall Street for a long, long time and give you a little bit of insider knowledge. The thing that was propping up the stock was primarily those people on
Starting point is 00:03:18 his own Truth Social Media platform, which is an all tech niche platform that only has about five million daily active users, which by compare, just to give you a bit of a comparison, Facebook, three billion active daily users, TikTok, three billion daily active users, and we have Donald Trump down at five million. Now, the reason I started with dumb money, some people have seen the movie or read the book, back in the COVID period, Reddit primarily, now ironically going public itself, as going public itself, Reddit had a,
Starting point is 00:03:58 which has 73.1 daily active users compared to five million for Donald Trump. You see where I'm going with this? Had a group within it of about 15 million people on a subreddit called WallStreetBets. And WallStreetBets and those 15 million people and the power of those people reaching out to other people was able to prop up the stock of places like GameStop in the mall where you picked up rented games and bought games and also AMC movies when it was on the balls of its ass during COVID when nobody was going to watch a movie. And they wanted to go after the short sellers,
Starting point is 00:04:39 the ones that were selling the stock short literally, betting against the stock, hoping that it would go dramatically down and they would make the difference. They punished the short sellers because they had enough in number. Donald Trump's group isn't large enough to continue to prop up the stock and he can't attract normal, traditional institutional investors, not when you only make $4 million against $53 million. And you had to include in your recent Securities Exchange Commission filing, which is called the 8K, you had to include a note from an accountant for the company that read as follows. From the Colorado-based BF Borgers CPA PC. No, I've never heard of them either.
Starting point is 00:05:29 They had a warning in the 8K that said, Trump Media's operating losses raise substantial doubt about its ability to continue as a going concern. When you have an accountant who declares as part of your securities filing to all the investing world that this company is this close to closing its doors and is not a viable going concern, not when it's lost $53 million and $4 million of revenue, not when it's competing against more established social media platforms, not when it's tied to the fortunes of somebody
Starting point is 00:06:00 who's facing 91 felony indictments and starts a criminal trial in two weeks. So here's my thought experiment. Follow me. And this is why GameStop and AMC went to make paper profits in the billions of dollars, including making a lot of millionaires on paper, and then it crashed. Because there, 15 million people who participated actively in the sub-Reddit WallStreetBets, bet and drove up the price and bought the shares of GameStop and AMC and the rest. And by contrast, they're even playing a little bit of games with the Reddit public offering itself in the stock price there. I'll talk about that in a minute. But they are large enough, muscular enough, robust enough as 15 million users and 73 million
Starting point is 00:06:56 daily active users for Reddit to do those types of things, to move the market. Donald Trump's measly 5 million daily active users who aren't joined together in any type of subreddit or subplatform where they can communicate. I mean, DMs is not going to do it to coordinate a buying strategy. So in the beginning, it was a lot of feverish buying by a couple of million people who existed on Trump social and wanted to support their guy by buying in at whatever amounts, but that ends. That helium leaks out of the balloon very quickly.
Starting point is 00:07:37 We just watched it. It's now down in paper 20%. I am sure it will go down lower. As we get closer to Donald Trump dumping a large portion of his 73 million shares representing over 56% of the company, as he's able to sell that in about six months, he will crush the small investor. The price will drop dramatically. Anybody who bought anywhere well above the $10 original offering price will be crushed. I'm not blowing smoke or sunshine. I'm just telling you what's happening. Think of the math. What is the buying power of a couple of million people, which is nothing,
Starting point is 00:08:17 that's like a drop of rain in the ocean of the Wall Street market. You can't affect the equilibrium, the buy-sell, or the trading volumes at that small amount to matter. And so you have to rely on institutional investors, but institutional investors take a look at the AK with all of the caveats and all of the mandatory disclosures and all of the things, the lawsuits that are against the company, including by its investors down in Delaware and injunctions that are potentially against the company and the people that are on the board like Cash Patel and Don Jr. who just got found to have committed persistent fraud in the state of New York, nowhere to be found in the AK in the description of Don Jr. When you look at that, when you look at an independent, allegedly independent accounting firm that declares that the operating losses of
Starting point is 00:09:10 $53 million against $4 million in revenue raise substantial doubt about the company's ability to continue as a going concern. In other words, it is on the road to bankruptcy and it just went public last week. With a grown family, I've been trying to save even more money, but it seemed like my bank account was stuck. Thankfully, I heard about Rocket Money and gave it a try. It turns out I had a number of subscriptions
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Starting point is 00:11:00 It's not the Reddit situation. Some people might be thinking, this is like Reddit. I'll buy in now. I'll buy $43 a share for Donald Trump or $36, and it'll run up to $1,000 a share and I'll be rich beyond my wildest dreams. It is a dream. It's a fever dream.
Starting point is 00:11:17 It's a pipe dream. It's not gonna happen. There aren't enough people who are yoked together to support Donald Trump, who are in the market in a coordinated effort the way they were in Reddit for that to happen. Instead, the regular investor, the institutional investor that is necessary for the long-term value proposition of investing in that company is not going to come to Donald Trump's rescue, has not and will not come to their rescue.
Starting point is 00:11:46 I mean, just to give you an example, this is what Reddit, which is a healthy company with 73 million users and actually has turned to profit. This is what they're worried about. And this is from Bloomberg. Reddit will want to avoid the kind of whipsaw suffered by Robinhood markets. Remember Robinhood, That financial services app,
Starting point is 00:12:07 which was crushed by Reddit because they have the power and the muscle to do it. There, the Wall Street bets group subreddit sold shares to the retail traders who had pumped up the stock of GameStop. So they flipped it on its head and they went after Robinhood, right? To do the opposite, not save Robinhood, but tank it. And so Robinhood shares soared as much as 124% in the days after its debut. Does this sound familiar? Sounds exactly like Donald Trump and his stock
Starting point is 00:12:42 before spiraling 70% from the offer price six months later. That's what's going to happen here. Within six months or less, especially right before he's about to sell all of his stock, this thing is going to tank by at least 60 or 70%. Instacart, which does business as Maple Bear Inc., popped as much as 43% on its debut before dropping below its offer price a week later. Thousands of members, this is from the Bloomberg article about Reddit, and I'm showing you the contrast between that and the very small, infinitesimally small group on Trump Social. Thousands of members of the Wall Street Bets Forum, which boasts around 15 million users and help send the share prices of companies like GameStop to eye-popping heights
Starting point is 00:13:31 during the pandemic, voted to boost a forum post about shorting Reddit stock. This is where they live, Reddit. They're going to short the stock when it begins trading. Their reasons varied from the company's lack of profitability to competitive concerns. If anybody can take a stock, it's the Reddit Wall Street Bets Group. They've so far ignored the Trump stock, meaning it's just this small little island
Starting point is 00:13:57 of fervent cult followers of Donald Trump who don't have enough money to move the needle on the market. And institutional investors who are now faced with a outside accounting firm saying this company is about to put gone fishing signs and out of business and bankrupt signs. And of course, Donald Trump has had to disclose in prior filings, they're required by the Securities and Exchange Commission, that he himself had gone bankrupt four times. In fact, if you look at the list of failed businesses
Starting point is 00:14:26 that Donald Trump had to invest, there's nobody in their right mind that would ever put $1 embedded on Donald Trump. He just has left a trail of broken hearts and tears behind him of contractors and subcontractors and tradesmen who he hasn't paid in all of his projects. Projects that have gone bankrupt, businesses that have been put out of business
Starting point is 00:14:53 because Donald Trump didn't pay them. Four different major companies, including a casino. Side note, how do you go bankrupt running a casino? He's the only person in the world that couldn't figure out a way to turn a substantial, amazing profit running a casino? He's the only person in the world that couldn't figure out a way to turn a substantial amazing profit running a casino where the odds are and always in the favor of the house.
Starting point is 00:15:12 And yet people think he's an amazing business person and he should be back in the White House. That's the end of this hot take. The takeaway for you, I hope, is what happened with the dumb money crowd. And I mean that in a complimentary fashion. They tried to punish the short sellers and do a short sale squeeze back in 2020, 2021 to pump up the meme stocks of GameStop. That was a mouthful. And AMC will not bail Donald Trump out here and look for his stock to tumble the way Instacart did,
Starting point is 00:15:48 the way Reddit probably will, and the rest from its dizzying heights of $6 billion paper profit for Donald Trump or value down to something potentially below its original offering price and well down below $30 a share. We'll continue to follow it right here. It's either going to be me or Ben Mycelis or one of the other legal commentators on the Midas Touch Network and on Legal AF. If you want to know what Legal AF stands for in our
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Starting point is 00:16:40 And then if you really like the law, and learning about the law in this way, where we don't blow smoke or sunshine and we kind of bring it down to a language that you can understand and appreciate, we don't dumb it down. We just kind of teach it in a way that we paint primary colors so you can understand it and enjoy it. Even if you're not a lawyer, if you are a lawyer, welcome. We have a new Patreon. It's called
Starting point is 00:17:06 slash legal AF. And for the cost of about a cup and a half of coffee, you can get exclusive content that only the only place on the entire YouTube universe like what we're giving this sort of a teachable moment or the love child between a Ted talk at a law school, whatever you want to call it, only on slash legal AF. So until my next hot take, until my next legal AF, until my next Patreon instructional video, this is Michael Popak reporting. Heary, heary, Legal AF Law Breakdown is now in session. Go beyond the headlines and get a deep dive into the important legal concepts you need to know and we discuss every day on Legal AF. Exclusive content you won't find anywhere else, all for the price of a couple of cups
Starting point is 00:17:55 of coffee. Join us at slash Legal AF. That's slash Legal AF.

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