Fat Stacks for the DWAC SPAC

October 25, 2021 Fat Stacks for the DWAC SPAC Good morning traders, Welcome back to The Daily Setup. Markets were mixed riding into the weekend. Here's what's on the docket today: - Phunware and DWAC get big #gains - Jack Dorsey predicts hyperinflation in the future - Credit Suisse goes fishing So have a cup of coffee, read through the newsletter, and let's start this work week right. Jeff Chart of the Day – Phunware Shares of Phunware rose from $1.50 on Thursday's close to $18.35 Friday morning, before leveling off to its $8.74 close. Its meteoric rise is somewhat tied to the wild success of DWAC following their merger with Trump Media, which Phunware has no direct part in. So what's going on? Well... Phunware, Apple, and DWAC BIGGEST MOVER Girls Just Wanna Have Phun [Girls Night Out GIF by India - Find & Share on GIPHY]( Phunware, Inc., a small advertising startup based out of Austin, TX, saw shares blow up [more than 1,000%]( in price during intra-day trading Friday following news of DWAC's merger with Trump Media. Phunware grew briefly famous, but not in a great way, after working for Donny Deal's 2020 reelection campaign. - The company hasn't been profitable for years, and was nearly delisted from the NASDAQ after trading for under $1/share for 30 days straight. They've managed to stay afloat this long by applying for and accepting a $2.9M loan from the Paycheck Protection Program... granted those loans were reserved for small businesses, not public companies, but hey, who's counting? - Their record gets spottier. Earlier this year, PHUN had to pay $4.5M to Uber (ever heard of 'em?) in a settlement over claims of fraudulent advertising, and has recently stopped disclosing the names of its top customers after the 2020 Trump campaign. - All this goes to support the unconfirmed suspicion that Phunware will be responsible for the launch and maintenance of TRUTH media, which would explain why their stock price more than 10x'd during intra-day trading on Friday. All the aspects of Phunware that make it a sensible or predictable candidate for a Trump Media collaborator also make them a really shady business partner. Ethics issues aside, a company that doesn't disclose its top customers and has [had a history of fraud]( in its operations isn't the most trustworthy investment. Odds are, this run of theirs won't continue for the foreseeable future, so invest at your own risk. Fat Stacks for the DWAC SPAC [Golden Globes GIF - Find & Share on GIPHY]( Shares of the SPAC Digital World Acquisition (DWAC) went stratospheric on Thursday after announcing their merger with Trump Media & Technology Group. The company continued their win streak all through Friday, closing [107%]( above Thursday's value at $94.20/share. The transaction values Trump Media [at roughly $875M.](. - Trump Media plans to roll out Trump-backed social media network, TRUTH social, early next year, with "select guests" given access in late 2021. - The social network's stated goal is to "[stand up to the tyranny of Big Tech](." TRUTH will also feature TMTG+, an [on-demand streaming service]( focused on providing "non-woke" media. Somewhere, Ben Shapiro is like a kid in a candy store. Shares of DWAC have already enjoyed the price surge of meme-mania, so it would only make sense to invest in the company if one had faith it would do well in the long term. Regardless of your opinion on the Donald, it's probably not a great sign that Trump's site hasn't even gone public and pranksters have already posted a pic of [a pig taking a sh*t](. [And now for something completely different](… F*ck You Apple! Shares of SNAP closed Friday's trading session [down 26.59%](. Not exactly how you want to start the weekend. The company reported earnings after the bell Thursday, of $0.17/share vs. estimates of $0.08/share on revenue of $1.067B vs. estimates of $1.07B-$1.085B. But these mixed results hardly explain the stock's plunge. SNAP's Q4 guidance is projected to be in the $1.165B-$1.205B range, which is well below the Street's consensus estimate of $1.36B. Like any upstanding company in 2021, SNAP didn't take all the blame for its mixed earnings and lower guidance, rather attributing part of the miss to changes in [Apple's advertising tracking practices.]( - In April, Apple started requiring all apps on its IOS 15 platform to get users' permission to be stalked tracked for advertising purposes. - The changes make it harder for advertisers to track consumer behavior across apps and websites. In other words, Bath and Body Works will have a harder time following you around the internet. Don't you judge me… the Black Cherry Merlot candles are wonderful. - SNAP also pointed to global supply chain disruptions which have reduced advertisers’ appetite for spending. SNAP is the first of the major social media companies to report their earnings this quarter. [Facebook (FB)](, [Alphabet (GOOGL)](, [Twitter (TWTR)](, and [Pinterest (PINS)]( were all down between 3%-5.4% in response to SNAP's earnings. Apple's new tracking practices for advertisers may affect these companies as well. Keep an eye out for these companies' earnings which come out today through Wednesday. Something Smells Fishy Buy the Rumor In what can only be described as the best name ever for a scandal, Credit Suisse (the Deutsche Bank of Switzerland), was [fined $475M]( for bribery and fraud charges by UK, US, and Swiss regulators for their role in the *drumroll please* Mozambique Tuna Scandal. - The bank helped arrange nearly $1B in bonds plus a syndicated loan between 2013-2016, supposedly to fund a tuna fishing project in the African country. - A Mozambique contractor was said to have provided “significant kickbacks, estimated at over $50M, to members of Credit Suisse’s deal team.” - Credit Suisse will write off $200M of debt "tainted by corruption" that was owed by Mozambique. How generous of them. - The plan to resolve the scandal gave investors some clarity on the situation and as a result, shares of CS rose nearly 1% on Friday. DJ D Sol and fishing with Credit Suisse Other News Tye-Dye Wearing Weirdo Declares the End is Nigh A hippie street preacher was in the news this weekend for making predictions about [impending hyperinflation coming to the U.S](. Nevermind, it was just Jack Dorsey, CEO of Twitter and Square. Despite looking like a Jonestown refugee, he may be on to something since consumer price inflation is nearing a three-decade high. - Last week Fed Chairman and Chief Money Printer Jerome Powell admitted that inflation is likely to last a while despite the "transitory" line the Fed has been peddling, to which everyone with a functioning brain thought "No sh*t." - Dorsey, of course, took to Twitter to predict that "Hyperinflation is going to change everything. It's happening." - As a possible hedge, Dorsey has recently made comments about Square possibly getting into Bitcoin mining via an open source solution for individuals and enterprises. Shut up and take this money If it's a war for talent, shouldn't there be some casualties? Goldman Sachs Group (GS) is trying to ensure leadership continuity by awarding CEO David Solomon and President John Waldron massive stock bonuses worth about $30M and $20M respectively. The bonuses are designed to keep the execs at the helm of the [S.S. Vampire Squid]( for the foreseeable future. This begs the question, is there another firm trying to lure them away for $29M and $19M? - GS had previously reduced pay packages for the executives following the firm's involvement with a corrupt fund with the government of Malaysia known as 1MDB. Who do they think they are, Credit Suisse? - If GS hits incentive targets, the bonus awards [could be worth]( up to $50M and $35M for Solomon and Waldron respectively. - The back-office people and administrative assistants at GS are no doubt waiting with anticipation for their retention bonus packages as well. Hopefully it's not just [the jelly of the month club.]( [Image] RagingBull, LLC 62 Calef Hwy. #233, Lee, NH 03861 [Unsubscribe from all RagingBull emails]( Questions or concerns about our products? Call or text us on your mobile: 1.800.123.4567 © Copyright 2020, [RagingBull]( - [Refund Policy]( - [Privacy Policy]( - [Terms & Conditions]( DISCLAIMER: To more fully understand any Ragingbull.com, LLC ("RagingBull") subscription, website, application or other service ("Services"), please review our full disclaimer located at [(. FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. 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