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If DJT gets to $1.38 ...

back up the truck, Morningstar (Q) says.

Morningstar (Q) staunchly maintains a $49 / share fair price for the abandoned mansion that is DJT. (As I write, it's trading at $23 and change.) It reaches a five-star price at $1.38 / share.

Morningstar doesn't report the total number of funds holding the stock (the top 20 are all index funds where the DJT holding doesn't even reach the "rounding error" threshold) but there is a New York hedge fund, ATW SPAC Management, that has 14% of its portfolio in DJT. Kerry Propper, who appears describable as "investor and humanitarian," is ATW's founder so I'm guessing (??) it's a short position.

Comments

  • a2z
    edited August 15
    no wonder morningstar is agog about AI...their quant score has had hallucinations since inception.

    this particular issue is representative of the massive compensation:competence ratio for morningstar's layers of upper management. not only can they not assign an analyst to take over when obviously wrong, but they can not even bother to label it 'not rated'.

    so i'll help them here with a 10sec analysis :
    DJT has about $2 in cash for each share. however, minority shareholders will never seen any cash temporarily on the balance sheet. throw in a negative IRR on any cash spent and decreasing metrics on everything relevant, the imminent NPV is $0. so my 5star price is negative : -$2...someone needs to be paid in order to waste time holding it.
  • I had the opportunity to snag a M* subscription at a discount a few months ago, and I must say I've been less than enthused witih their current offerings and content. Too many clickbait headlines and FAR FAR too much anonymous quantitative AI-based 'analysis' included in stock reports. So it's not surprising to see this kind of tripe that David is reporting...
  • At $1.00 above its lowest close ever ($22.84 on 16 April), Morningstar rates DJT as a three-star stock. You're getting pretty okay value for your money, the computer thinks. Of course, "fair value" in March was $95/share. In April, $72 then 70, 43, 36 and (now) 49.
  • Sounds like a typical Trump operation, doesn't it?
  • Old_Joe said:

    Sounds like a typical Trump operation, doesn't it?

    "People are saying nobody knows 'fair value' like I do....believe me." [accordion hands]

  • That man has no concept of "value". Only "want".
  • edited August 15
    I learned the hard way that those “fair value” ratings are worthless.

    Bought 2 very depressed small-cap stocks more or less on intuition + personal knowledge of the companies June 26. (Posted in the B/S thread.) I later checked the ratings at M*, WSJ and Barron’s. All 3 said the stocks were already above fair value when I bought them and that neither warranted higher than an a 3 out of 5 as investment prospects.

    A week or two later the Russell blasted off, carrying those 2 holdings along for the ride. I sold in only 10 days time after both had jumped about 8-10% because I trusted those 3 publications over my own instincts. Had I hung on they would have jumped at least another 10% by now. Likely even more.

    Be very leery of those FV ratings on stocks offered up by different sources. My own experience says they don’t know what they’re talking about. I believe in this case they were stuck in some kind of ”time warp”. Because small caps has suffered for many years compared to the S&P they must have allowed that to influence their own perception of value.

  • @hank Be very leery of those FV ratings on stocks offered up by different sources. My own experience says they don’t know what they’re talking about. I believe in this case they were stuck in some kind of ”time warp”. Because small caps has suffered for many years compared to the S&P they must have allowed that to influence their own perception of value.

    Yup. I depend on stats from Stock Rover a lot, as well as checking Morningstar. Seems to me the Stock Rover site offers more, and more conveniently. At your fingertips. Fair Value at S.R. is distinguished from 12-month Target Price. Good to keep in mind. Still, Mr. Market has been known to be unpredictable. I also like to check out the Barron's webpage to investigate specific items, ratings, P/E and P/B and P/S. Short volume, Short percent of float. (Don't like a lotta Shorts in my soup.)
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