In a column for Forbes, a financial analyst recommends that investors who have jumped on Trump Media & Technology Group stock beat the crowd and sell their shares before the panic selling begins.
The stock, which has been battered since the release of a report showing that Truth Social’s parent company was bleeding money, briefly stabilized at just over $40 after a high of $79.28, has had more than its share of ups and downs, and according to John S. Tobey, now may be the time to exit after the recent uptick in value.
As he explained: “On April 15, Trump Media filed SEC Form S-1 to register all shares of the newly combined company for sale. This started the countdown for approval of the SEC, followed by a potentially significant sale.”
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Knowing that some investors have launched at the $20 level, nervousness about the long-term value of the stock could “open the floodgates” to profit-taking.
“Of course, one should not draw a trend line based on the stock’s 8-day rise. Many shareholders acquired their shares at a low price. After waiting for the ups and downs, they may prefer to realize their profits and move on,” he suggested. “Then there is the classic psychological trend reversal effect. While the DJT hit $70 a month ago, and is now around $40, from $20, any weakening could encourage selling based on the ‘concern. (Especially if last week’s increase beyond 35 dollars the barrier does not hold.)”
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With that in mind, he advised “not waiting” for a potential wave of sellers to start dumping their shares.
“Investing successfully means taking cover when the floodgates open. Waiting to see if the floodwaters actually come means getting swept downstream,” he warned, adding: “Wall Street is full of successful investors who “sold too soon.” After all, you can always buy back if the waters recede or, more likely, you just go in another direction where the sun shines on dry land.
You can read more of his analysis here.
News Source : www.rawstory.com
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