I didn’t watch the debate last night. I do enough reading of political stuff. I did catch Colbert’s monologue from last night, today, so I do get the impression that Trump didn’t do as well as he could have wished.
But this may be more indicative:
Yes, his stock’s market cap declined by 10+%.
What does it mean? It means investors, the hard-headed sort, watched the debate or the summaries and came to the conclusion that Mr Trump is unlikely to win the general election.
There is an element of the investing community who is there to share in the dreams of Mr. Trump, but they, it turns out, are unable – or even unwilling – to buy in sufficient numbers to prop up what I perceive to be a trash stock. A stock with no interesting technology, small revenues with little prospect of increasing them, and a star attraction who appears to be losing his facilities, it’s not obvious what makes this an attractive buy.
What happens from here? There will be ups and downs, but I suspect that we may be seeing the stock cut in half while we’re still in Trump’s lock-up period (i.e., can’t sell his 60% holdings). After that, Mr Trump may walk away, leaving his investors holding quite a holey bag.
But I do not recommend going short. Stocks that are targets of manipulation, and this is one of them, do tend to bob up and down in the most alarming way.
