No. of Recommendations: 8
The BODs has unanimously agreed to amend the lock up provision on Mr Trumps shares in the company. As a result 20 million of Mr Trumps shares will now be eligible to be used as collateral for loans or the shares can be sold in the public market free of restriction, immediately. Mr Trump has represented to the Board that at this time, he has no plans to request additional changes to his lock up agreement. That's what the company should do at the close of business today. The stock has traded heavy volume and the additional Trump shares added to the float would help to make the stock more liquid and trade in a more orderly fashion. If Trump sells 10 million shares next week he would net a cool 500 million round numbers.
That's certainly a possibility....but I don't think it's an especially likely one.
Trump benefits enormously from a high DJT stock price. Estimates of his personal wealth are much higher, based on his ownership of about 60% of the DJT shares.
But his total stake is about 80 million shares. Ending the lockup on a quarter of those shares - and actually selling more than 10% of his shares - is pretty likely to tank the share price. Almost all of the value of DJT is based on Trump's active and continued involvement with the service, and if he starts cashing out early it's going to be a huge damper on enthusiasm for the stock.
At this point, Trump benefits enormously from the perception that his stake in DJT is exceedingly valuable. In reality, while the paper value of his stake is very high, he can't really sell it - it's only valuable as long as he actually owns it. Which reduces the likelihood that he'll sell it in the near term.
