Legal AF by MeidasTouch - Trump Face SUDDEN FINANCIAL DISASTER and He CAN’T HIDE

Episode Date: September 10, 2024

Trump is angling for a Wall Street bailout, as he has to decide by 9/19 how to sell some of his 115 million shares in his own publicly traded media company WHILE ITS STOCK PRICE IS IN FREEFALL, shaving off 4 billion in his net-worth in just 4 months, as his criminal case and electoral loses pile up. Michael Popok using his Wall Street experience as an analytic tool, explains the different paths Trump is likely to take, ALL OF WHICH WILL CRUSH THE MAGA MOM AND POP INVESTOR. FUM: Head to https://TryFum.com/legalaf or scan the QR code on screen and get a FREE GIFT with the JOURNEY PACK today when you use code LEGALAF Visit https://meidastouch.com for more! Join the Legal AF Patreon: https://Patreon.com/LegalAF Remember to subscribe to ALL the MeidasTouch Network Podcasts: MeidasTouch: https://www.meidastouch.com/tag/meidastouch-podcast Legal AF: https://www.meidastouch.com/tag/legal-af MissTrial: https://meidasnews.com/tag/miss-trial The PoliticsGirl Podcast: https://www.meidastouch.com/tag/the-politicsgirl-podcast The Influence Continuum: https://www.meidastouch.com/tag/the-influence-continuum-with-dr-steven-hassan Mea Culpa with Michael Cohen: https://www.meidastouch.com/tag/mea-culpa-with-michael-cohen The Weekend Show: https://www.meidastouch.com/tag/the-weekend-show Burn the Boats: https://www.meidastouch.com/tag/burn-the-boats Majority 54: https://www.meidastouch.com/tag/majority-54 Political Beatdown: https://www.meidastouch.com/tag/political-beatdown Lights On with Jessica Denson: https://www.meidastouch.com/tag/lights-on-with-jessica-denson On Democracy with FP Wellman: https://www.meidastouch.com/tag/on-democracy-with-fpwellman Uncovered: https://www.meidastouch.com/tag/maga-uncovered Coalition of the Sane: https://meidasnews.com/tag/coalition-of-the-sane Learn more about your ad choices. Visit megaphone.fm/adchoices

I'm going back to university for $0 delivery fee, up to 5% off orders and 5% Uber cash back on rides. Not whatever you think university is for. Get Uber One for students. With deals this good, everyone wants to be a student. Join for just $4.99 a month. Savings May 3. Eligibility and member terms apply. This is Michael Popak, Legal AF. It's time for me to put my Wall Street thinking cap back on and talk about a day looming on the calendar for Donald Trump and small retail investors on Wall Street alike, that's the 19th of September. That's when Donald Trump and over 100 early investors

in his truth social Trump media company have the right to start selling their shares. There was a six month, what we call lockup period, which ensures that founders and people like Donald Trump don't immediately, after getting shares in a company they didn't really earn, they were just given them for no money, that they don't crush immediately the investing public by selling into the wind, driving down the share price. But now Donald Trump is on the horns of a dilemma because maybe four or five months ago, back in March, when the stock was trading

at an all-time high of $62 and $63 a share, having started at $10 a share, he was sitting there salivating and rubbing his hands like Scrooge McDuck or the Monopoly guy saying, oh, I'm worth $6 billion. I can't wait to get to September. We talked about it here on Legal AF and on the Midas Touch Network that he had so much, Donald Trump, so much financial pressure on him, such a financial house of cards, looking at a half a billion dollar New York civil fraud judgment against him, $100 billion that he now owes to E. Jean Carroll alone, the convictions that have been rolling in at a regular pace against him,

that was, and a financial monitor sitting over all of his financial affairs, making it almost impossible for him to make new money unless he's selling sneakers out of a van or suits off his back or trading cards or books or Bibles. You fill in the blank, we're running out of things for him to do. Is this like a, is this a flea market? Or is this a presidential candidate that's allegedly some sort of business brain trust? Well, now he's on the horns of a dilemma because the stock is no longer at 62 and $64. He's no longer worth $6 billion on paper. He's now down to $2 billion on paper because the stock is plummeting.

It is falling like a rock and even faster. It is now below $20 a share. It's below $18 a share. It's heading towards $15. Forget that. It's heading back to $10 a share, meaning his worth even on paper is down to just $2 billion. I say $2 billion because he lost $4 billion,

poof, in six months because why? Because that company is ephemeral. It is in the ether. It has no business model. It's not that it has a burn rate of expenses that it'll eventually be able to overcome like Amazon. Amazon lost money for years until it became the behemoth that it is,

and a multi-trillion dollar company. But that's not this. Not when you have less than 4 million people that even pay attention on a monthly basis to your platform, which is nothing, which is nothing at all. It's one tenth the size of legal AF, if you can believe it, on a monthly basis.

Not when you have no other business fundamentals, not when your only asset is Donald Trump, an asset that they've already disclosed on all of their SEC securities and exchange filings as being if anything happens to the boss, our company has no other asset, and he's busy selling himself everywhere but on Truth Social. Bibles, trading cards, books, suits off his back, sneakers.

That has nothing to do with Truth Social. He's making all this money off book. And now he's returned to X and embraced in a bromance, Elon Musk, his new future head of government efficiency or whatever the heck that's supposed to be. So he's trading away from his core business and competing, if you will, with the revenue of his own business. They should sign him up to a non-compete.

That's what I would do if it was my only asset. I would have an exclusivity contract and a non-compete to make sure he only makes money for the public company that's supported by the retail investing community. And now, as I said, five months ago, the small band of happy warriors who are MAGA, who are trying to use their stock purchases to prop up a failing Donald Trump and his campaign, are being overwhelmed by normal investors, short sellers and others who look at the business fundamentals and say there's no fundamentals here. There's no economics here. There's no sales here. There's no ad dollars. Nobody wants to advertise on truth social. I mean, some people get upset

sometimes in the Midas Touch Network because we have pro-democracy sponsors that advertise on our network and our podcast and our content like, oh, there's so many ads. There's no, you want no ads, go over to Truth Social. You'll find no content, but you'll find no ads as well. That's not a business model. That's not sustainable. And now Donald Trump, here's the horns of a dilemma. Here's the crossroads moment. He sell if he has one of three or four things to do, and he's going to have to disclose it this week in a filing with the Securities and Exchange Commission. We call it a form for filing.

He's got to tell the investing world what is he doing with his shares. He can't leave it to whim. The investing market and community and mom and pop who are investing have to know what he's doing with his stock. So he has to disclose it. Again, as I said earlier on Legal AF, Donald Trump will rue the day he went public because now he's fully regulated by the Securities and Exchange Commission

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Does, if he sells any portion or any of the other hundred insiders, sell any portion, large portion of the shares, the stock is, they're going to be trading into a loss as the shares continue to drop from $18 or $17 a share and crash to 10. I mean, if he dumped the whole of his 115 million shares representing 57% of the company all over a course of a week or a month or three months or six months, he crashed that

stock in a heartbeat. He'd make money because even at $10 a share, he has 115 million shares. Do the math, it's over a billion dollars. But you and me get crushed. Well, not me because I wouldn't invest in that company, but others, others that support MAGA are going to get crushed. Does he want to do that? So one, how much does he sell off? How much do the others sell off? They're not restricted anymore. They're not restrained. There's no lockup period. There's no limit on their ability to sell their shares, and some of them are gonna either ride it or not ride it.

I assure you, there are conversations going on right now. I'm not privy to them, but I, having worked in this world before, I tell you, there are conversations going on right now with Donald Trump, his investment bankers, brokers, investors, his investors, all the top line about what to do with Donald Trump, his investment bankers, brokers, investors, his investors, all the top line about what to do with Donald Trump shares. How much of them to sell and how to sell it.

So one is how much to sell, he's gonna sell part of it. Two, he can take a loan out against it. He can get some sucker to lend him money who thinks that's a good bet. I'm sure at an exorbitant interest rate, given Donald Trump's past history of financial failings, I don't know what that interest rate would be, 8, 9, 10, 15, 18 percent. He could take a loan out so he gets money because he needs money. Have I said that before on my hot ticks? He's pulling out his pockets. He's going to be left wearing a

barrel and suspenders soon. He doesn't have any money. How many trading cards can he sell? How many Bibles can a person actually sell in a year? It's not like Apple coming out with a new iPhone and a new battery and a new plug to make more money and accessories. It's Donald Trump. He's 80 years old. He can barely put a sentence together.

Okay. So, you know, his last book that he sold that he made, I don't know, $7 million on, he didn't even write it. I mean, he didn't write, he doesn't write any of his own books. But the last book was literally people's letters to Donald Trump. It was other people writing letters.

He slapped it together in a book and sold it. Not sustainable. So he can take out a loan. He can sell shares. What else he can do? He can try to limit the downward pressure on the stock price by selling a block of shares, a large block of shares to one buyer. Usually the one buyer is a fund of some sort,

an institutional investor or counterparty on the other side. You know, you can name the if I swung my swung something here, a necklace here, I would hit or boomerang in my neighborhood, I would hit all the players in that world, I won't name them. You can think who they are. Blackstone. There's a number of other ones, you know, fortress, thereress. There's a bunch of funds that are also lean Republican, as most of Wall Street does, that could step in and bail out.

It would be a Donald Trump bailout. It would be the bailout he didn't want to do or wasn't in favor of for the auto workers, the bailout he wasn't in favor of for the American people after COVID. He'll get a bailout. Somebody will buy, oh, I don't know, $500 million, let's say, worth of his stock. Let's just pick a round number. And they will buy that, put that money in his pocket,

and the stock price will take a hit, but not as big as if he sold $500 million free-floating units out into the marketplace so he could find a buyer. And he's tied into Wall Street. I won't go over the details, but you can look up who's the head of his transition committee, who's very tied into Wall Street, and you could sort of figure out in three nanoseconds who could broker such a deal. Okay, that could happen. A buyer could buy it. A lender could

lend on it. Or he sells it in the open market, or he just holds the stock. I don't see a world in which Donald Trump doesn't try to sell, loan, borrow against, and or sell a block of his shares. I just don't see it. He needs the money too badly. I've said in prior hot takes and on legal AF, he is not making any new dollars. The Trump machine of making money has ground to a halt. He's living off of old deals, old real estate investments, old licensing deals, everything old. Nobody in the States wants his name on any project. He hasn't built a new building

since we started Legal F four years ago. He's just living off of royalties and license fees and revenue from his golf courses. I mean, that's nice. I mean, it's not like I fault him necessarily for having revenue. It's just that his expenses are so much larger than that. And look at all the families he's feeding,

Don Jr. and Eric and the Guilfoyle person and Ivanka and Kushner and Kushner and himself. I mean, it's a lot of Mao's and Melania. I mean, her wardrobe budget alone, I'm sure is astronomical. And then you've got the attorney's fees. When he's not busy grifting, right now, he can't grift as much for his attorney's fees.

He's trying to raise money to win the presidency and he's getting beat four to one by Kamala Harris. So what I'm trying to say is he needs the money. He's going to sell it. But if he sells too much, he crashes the stock and then we're off and running. And now he's got to make a decision just two days after the debate about what he's going to do. Kamala Harris is smart, we'll watch her closely. She's going to raise the issue during the debate. Be smart too. It's part of a topic that I think she should raise about him being fiscally irresponsible, both at his own personal life. He's a business fraud. He's a terrible steward of the economy, of the US economy, let alone his own checkbook. And that's

something people should consider. So they don't think that 2016 was such a great period of time in American economic history when it was not. The debt through the roof, the economy on the skids, the only thing, I get it, the price of things that matter to people at the gas pump and the supermarket are higher now than then. I get that, but they are trending down in the right direction and most of it is post-COVID. So we're going to continue to follow what happens with truth social and Trump media, why do they don't have an exclusivity agreement? Why they don't have a non-compete agreement for Donald Trump, their only asset.

Why they let them do all these deals on the side that don't bring in revenue to the company that has public investors and public shareholders and who on Wall Street is going to bail out Donald Trump, brokering a deal for either a block sale of that stock alone or to sell off his shares over time to try to not drive a stake or a silver bullet into this entity whose stock price is in freefall. That has been his cash cow. That is what he's been banking on since day one that would bail him out ultimately. He's watching that puff go up and smoke. We'll continue to follow it on Legal AF

and on the Midas Touch Network. Follow me, Michael Popak on all things social media. And my hot take videos you can find right here on the Midas Touch Network, slide over to playlists on the Midas Touch Network. Look for Michael Popak and you'll see 14, 1500 of my hot takes right there. Find out every Wednesday and Saturday,

find out what 40 million people a month already know that Legal AF is the home of law and politics and analysis and commentary on the YouTube dial. Wednesdays and Saturdays, and then on audio podcast platforms of your choice. So until my next hot take, until my next Legal AF, this is Michael Popak reporting. Heary, heary, Legal AF Law Breakdown Michael Popak reporting.