DWACU - Trump Media & Technology Group: If You Believe The Meme Then Buy The Warrants And Sell The Stock Part 2
2024-04-03 12:00:35 ET
Summary
- The warrants of Trump Media & Technology Group Corp. (DJTWW) allow investors to buy DJT at $11.50 once they are exercisable approximately a month from now.
- The warrants trade at $27.40, effectively allowing investors to pay $38.90 for the stock instead of the market price of $61.96.
- The warrants have a higher potential return and limited risk compared to the stock in all possible scenarios, making them a superior risk management option.
- I don't recommend going long on DJT or the warrants, but if one is insistent on buying a position and holding, the warrants are unambiguously better at these current relative prices.
Two and a half years ago I wrote the article " DWAC: If You Believe In The Trump Meme Then Buy The Warrants And Sell The Stock " explaining why the warrants were unambiguously better to buy and hold than the stock. It took quite a while for the merger of Truth Social to be complete, but now the stock and warrants trade under their new symbols Trump Media & Technology Group Corp. ( DJT ) and ( DJTWW ), respectively. With the merger complete, DJT has been on a wild ride so I thought it would be a good time to reiterate my position with a much more definitive timeline....
Trump Media & Technology Group: If You Believe The Meme Then Buy The Warrants And Sell The Stock Part 2