This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.
Trump Media and Technology Group, the parent company of the Truth Social platform, is doggedly holding on to its original thesis that its stock is being artificially manipulated by certain market players. While the company has taken a number of unusual steps to attract the attention of the regulators, going so far as to write separate letters to several Congressional committee chairs, it has little to show for these efforts as yet.
Today, Trump Media and Technology Group has gone a step further in its crusade by publicly calling on the attorney general of Florida, Ashley Moody, to take action. After reiterating previous gripes, including its stock's persistent inclusion in the threshold list, which includes stocks with an aberrantly high number of Failures to Deliver (FTDs) and can be potentially indicative of illegal naked short-selling, Trump Media's latest letter goes on to level a startling allegation:
"While DJT has consistently been among the most expensive stocks to borrow legally, TMTG assesses that some sellers have been paying a drastically reduced rate to obtain so-called “locates” for seemingly illegitimate “naked” short sales. The anomalies surrounding the trading of DJT suggest the possibility of unlawful collusion among multiple market counterparties ..."
Trump Media and Technology Group's crusade of sorts against the alleged manipulation of its stock began on the 17th of April when it published a comprehensive list of FAQs, advising investors to contact their respective brokers to restrict their shares from being loaned out for short positions. Next, on the 19th of April, Trump Media penned a letter to urge the Nasdaq exchange to probe the "naked" short-selling of its shares as well as its inclusion in the so-called threshold list. This then prompted Citadel, a titan among market makers, to issue a scathing rebuke of the company's tactics.
On the 23rd of April, Trump Media published a 3-step plan for its investors to combat rampant short-selling, recommending, among other things, that investors hold their DJT shares in a cash account at their brokerage firm instead of a margin account. Finally, on the 02nd of May, Trump Media and Technology Group wrote letters to the US House of Representative's Committee on the Judiciary, Committee on Financial Services, Committee on Ways and Means, and Committee on Oversight and Reform into this brewing controversy, urging them to investigate the stock's persistent inclusion in the so-called threshold list.
Do note that Trump Media and Technology Group's relentless focus on the alleged manipulation of its stock price is having a noticeable impact, with its shares recording gains of nearly 20 percent in the past five trading days alone.
