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In the market, nothing is self-evident: this week's charts
This is the "Chart of the Week" from today's Morning Briefing, and you can existRegistration And then in the inbox every morning.in "this week Chart":
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Daily Chart
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What are we looking at?
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What we're reading
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Economic Data Distribution and Benefits
One of my former editors once taught me that there are a lot of great stories embedded in the business "risk factors" that companies must disclose in the legalese-laden SEC filings.
This section is a compilation of all the nightmares that keep Goguans up at night. It's a Kafkaesque mix of absurdity, creativity and bureaucracy that could steal the headlines.
Especially if one of your key players is the former President of the United States of America.
This week, shares of Trump Media & Technology Group (TMTG, trading as DJT) fell 21% on Monday after investors received a filing from the U.S. Securities and Exchange Commission filled with two compelling risk factors: disclosure of significant operating losses and Donald Trump's widespread reputation.
As our Chart of the Week shows, this document hits the company very hard.
"TMTG expects to continue to incur operating losses and negative cash flows from operations for the foreseeable future," the document reads.
The company also "may be at greater risk than the average social media platform due to the focus of its products and Trump's mass appeal," noting that "if Trump's mass appeal is tarnished, its brand may be weakened."
Trump Media's stock plummeted after the filing, a reminder to investors that it's important to speak up and speak out. Will Trump Media hurt Trump's reputation? You didn't say.
But when the company says it, the market notices.(modal particle intensifying preceding clause)!
In the Risk Factor Hall of Fame, you may find SeaWorld reminding investors that its animals have killed people before and may do so again in the future. The same is true of Virgin Galactic's version that its spaceships have killed people and may do so again.
The weirder and more complicated the company, the wilder the risk factors, such as Uber's warning that "criminals may use our app."
Like many of the contents of the numerous documents filed by Bubbles' SEC, these disclosures are likely to be boilerplate, replete with language designed to avoid litigation, comply with securities laws, and help Kouguan and the Board of Directors to cover their own "self-knowledge."
However, in the marketplace, nothing is ever "self-evident", no matter how obvious it may be.
Ethan Wolff-Mann She is a senior editor at Yahoo Finance and is responsible for newsletters. Please. On Twitter @ewolffmann Concerned about him. The