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#4 | Posted by LampLighter at 2025-07-18 07:59 PM
t aside, why might have the IPO stock price plunge by almost 50%?
1. WS axiom: "Buy on the rumor (hype), sell on the news."
SPACs usually trade around initial $10, until they find a "reverse merger" target. PEW has run up to $21.40 once they learned that merger will happen, on nothing more than Trump Jr being on the board of merger target.
2. It dropped back only to "initial" $10 by Friday (and another 8% this morning) so not really a huge flop, considering that company has no sales, weird financials (even for a SPAC), and no real business or potential competitive advantage relative to other, established online-only or mixed BaM firearm sellers.
Essentially they will be burning money they raised (just like Trump Media / DJT) and may eventually go the "Bitcoin/crypto treasury" model route (just like DJT recently did) which has become a popular way to boost the stock for companies whose business dried up or has never been there, i.e., scams. That usually causes the spike in stock price, just like during dot-com bubble adding ".com" to name of companies temporarily boosted the price... until people figured out that it was the sign of failed business and prices of many newly minted .com's started to fall rapidly.
Some of the "investors" may be waiting for this or similar event to exit on a spike, leaving new buyers with losses.
Most "blank check" speculators know that most SPACs eventually go bust, but keep playing the game hoping for "greater fools" to sell to.
3. In any case, Don Jr has 300K of free stock, which may be time-restricted, but still nothing to sneeze at for lending a no-business company a brand name. If he can sell any of them before the bust, it's pure profit.
If anything, the lackluster "reception" of PEW may mean that people are on to the grift, that "TRUMP" sheen is starting to fade, and their grift will have fewer opportunities like this, to scam the "investors" in the brand.
Like father, like sons.
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