logo
Trump-linked small stocks pull back after rallying on family ties

Trump-linked small stocks pull back after rallying on family ties

Reuters13-03-2025

March 13 (Reuters) - U.S. President Donald Trump's re-election prompted a run-up in the broad stock market that has since receded. The same has happened in a number of tiny companies linked to the president's two eldest sons.
In the last few months, Donald Trump Jr and Eric Trump have announced their involvement in several smaller companies ranging from the e-commerce, drone manufacturing and financial advisory industries.
The announcements sparked a frenzy of buying in those stocks - generally thinly traded names with tiny market valuations and minimal revenue - only to give back most of those gains.
Donald Jr and Eric Trump currently run the Trump Organization, the president's real estate company. Their association with smaller, publicly listed companies since the election indicates their interest in leveraging that win in the business world.
On February 24, the duo disclosed a combined 13.4% stake in biotech firm-turned-financial advisory Dominari Holdings (DOMH.O), opens new tab, which is headquartered at the Trump Tower in New York. They were appointed to Dominari's board of advisers on February 11.
Shares doubled after the announcement, but are now down about 6% since their appointment. More than 23 million shares in the stock traded a day before the announcement, LSEG data showed. By contrast, average volume in 2024 was just 13,000 shares a day, according to Reuters calculations.
The Trump Organization and Dominari Holdings did not respond to requests for comment.
Drone maker Unusual Machines (UMAC.A), opens new tab in November added Don Jr to its advisory board, who noted in a statement the need for America to "stop buying Chinese drones and parts." The company, however, said in a filing last year that it was heavily dependent on Chinese imports for products and operations.
Allan Evans, CEO of Unusual Machines, told Reuters the company was making progress on shifting its supply chain to domestic production, estimating that Chinese imports would account for less than 50% of the supply chain by year-end.
Shares jumped 260% on the news of Donald Jr's appointment, but have since fallen back. They are still up about 14% since the announcement for a market value of about $93 million.
Dominari and Unusual share another link. Dominari was an underwriter in Unusual's IPO in 2024 and was its placement agent when it raised about $2 million in October in a private fundraising. Evans said Donald Jr joined the company as an investor in that private placement. He owned 331,580 shares of Unusual as of December, according to regulatory filings.
Dominari reported revenue of $11.6 million in the first nine months of 2024, while Unusual posted about $3.6 million.
James Wood, CEO of short-selling researcher Differentiated Analytics, said the companies were benefiting from the name recognition. The firm has a short position in PSQ Holdings (PSQH.N), opens new tab, which added Donald Jr to its board of directors in December.
"The apparent purpose of these appointments is to drum up investor hype. I thus expect the bump in the share price to be ephemeral," Wood said.
Michael Seifert, CEO of PSQ, which owns online shopping website PublicSquare, said Donald Jr's appointment was not due to hype, but a natural progression in his involvement with the company since first investing in it before it went public in July 2023.
The company bills itself as "anti-woke," with a goal of connecting shoppers to brands aligned with the conservative movement, opens new tab. Upon Donald Jr's appointment, PSQ stock rose as much as 270%, but has since given back most of those gains; it is up 22% since the announcement and is worth about $87 million.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Rising Asia temperatures bode well for US LNG export prospects
Rising Asia temperatures bode well for US LNG export prospects

Reuters

time2 hours ago

  • Reuters

Rising Asia temperatures bode well for US LNG export prospects

LITTLETON, Colorado, June 11 (Reuters) - U.S. exports of LNG are already at record highs so far in 2025, but forecasts for above-average temperatures across key Asian import markets could lift them even higher this summer. Average temperatures for Japan, South Korea and China are all forecast to hold above normal through the end of August, likely boosting use of power-hungry air conditioners. That higher demand load will in turn spur utilities to lift generation from all available sources, including from natural gas plants fed mainly by imported liquefied natural gas (LNG). That upbeat demand outlook is good news for U.S. LNG exporters, who are riding a wave of strong demand from Europe but face a potential slowdown in European buying this summer. Temperatures across East Asia are already hovering above long-term averages, and are expected to continue trending higher over the next two months. Average temperatures in Japan - the second largest LNG importer after China in 2024 - are expected to register around 6% above the long-term average from now through the end of August, data from LSEG shows. South Korea, Taiwan, Hong Kong and several cities in China are forecast to register similar readings. As the northern hemisphere summer coincides with the rainy season across much of Asia, the forecasted hot temperatures are likely to be mixed with high humidity levels. That in turn will likely spur heavy use of air conditioning systems, which can push power demand levels sharply higher during heatwaves and strain regional power grids. Asia's electricity producers are used to the summer climb in electricity demand and adjust output levels accordingly. In 2024, average electricity demand during June, July and August - the hottest months of the year - was around 9% above the monthly average for the year as a whole. To accommodate that higher load, utilities lifted output from all power sources, but especially from fossil fuel plants which supply power that can be dispatched on command when output from renewable sources drops off. Both gas-fired and coal-fired generation across Asia during June, July and August last year averaged around 5% more than the 2024 monthly average, Ember data shows. To feed the higher demand for power anticipated during June, July and August, Asian LNG importers tend to book higher LNG volumes during May, June and July than during other months. Between 2021 and 2024, U.S. LNG exports to Asia during May, June and July averaged around 7.8 million metric tons a month, according to data from commodity intelligence firm Kpler. That compares to an average of 2.23 million tons a month to Asia overall for the 2021 to 2024 period, and underscores how important LNG is as a power fuel during the Asian summer. A key driver of potential Asian purchases will be the price of LNG, which needs to compete with coal in power generation and has recently proved too dear for many Asian consumers. U.S. LNG export prices have averaged around $8.54 per thousand cubic feet so far in 2025, up 35% from the 2024 average, according to data from LSEG. That said, any rise in Asian LNG purchases would likely come just as LNG orders by Europe tend to retreat to their annual lows, which could apply downward pressure to prices. Over the first half of 2025, European markets accounted for 70% of all U.S. LNG exports, Kpler data shows, while Asian markets accounted for just under 20%. Average monthly volumes of U.S. LNG dispatched to Europe during January to June were around 6 million tons, compared to around 1.6 million tons a month to Asia. A key caveat that will govern Europe's LNG appetite going forward is how quickly gas storage operators there want to replenish inventories, which were depleted over the past winter and must be restocked ahead of next winter. Currently, Europe's gas stockpiles are around half full, which compares to around 70% full at this time of year in 2023 and 2024, according to LSEG. If gas storage operators opt to restock as quickly as possible, then Europe's imports of LNG could remain quite strong over the coming months. But if Europe's storage firms opt instead to wait until the autumn to replenish stocks, or refill tanks from pipelined supplies, then Europe's LNG purchase volumes could drop sharply. Such a sudden wilt in European orders would likely trigger an aggressive markdown in prices, however, and in turn lure fresh buying interest in Asia where power firms are already primed to boost output. That suggests that overall U.S. LNG export volumes should remain fairly robust for the near term at least, regardless of where the buyers reside. The opinions expressed here are those of the author, a columnist for Reuters. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, opens new tab and X, opens new tab.

Thousands attend candle-lit vigil for Austrian school shooting victims in Graz
Thousands attend candle-lit vigil for Austrian school shooting victims in Graz

Metro

time2 hours ago

  • Metro

Thousands attend candle-lit vigil for Austrian school shooting victims in Graz

To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Austrians held a candlelight vigil to mourn the country's deadliest mass shooting, which left eleven people dead. The country is reeling after yesterday, a former student of Borg Dreirschutzengasse Secondary School in Graz opened fire as students were taking exams. Eleven people have died so far from the shooting, with seven females and three males confirmed among the dead – the shooter killed himself in the bathroom. Yesterday evening, residents of Austria's second-largest city gathered in sombre silence to reflect. Thousands cried, prayed and stood watch over dozens of lit candles in the main town square. Attendee Felix Platzer told Reuters: 'When you hear about it, you have so much sympathy for the people, maybe you could have known someone. 'This is an example of solidarity, and you grieve together. Together it is easier to cope.' In a press conference after the shooting, Austrian Chancellor Christian Stocker said the country would enter three days of mourning, with the flag flown at half mast. 'That such a safe space was hit by such a violent act leaves us speechless,' he said. ''Today is about empathy. It's about cohesion, that we are there together for each other in a difficult hour.' Mario Kunasek, governor of Styria, said: 'Styria is mourning today, the green heart is crying. This is an unimaginable tragedy that happened this morning. 'This is so unfathomable. The lives of so many have changed dramatically today.' The shooter has been named as a 21-year-old man from Graz. Initial investigations have found he owned the guns legally. The suspect has not yet been named. More Trending Investigators found a farewell letter at the home of the suspected gunman, Austrian newspaper Krone has reported. Police reportedly raided his property yesterday afternoon and found the note, the contents of which are unknown. The suspect was a former student at the school and didn't finish his education there. He killed himself after committing the mass shooting. Get in touch with our news team by emailing us at webnews@ For more stories like this, check our news page. MORE: Three gunmen on the loose in Philadelphia after two shot dead in mass shooting MORE: At least 11 injured after gunman opens fire during boat party MORE: Eurovision winner JJ leads calls for Israel to be banned from song contest

In China, fears grow of an EV financial crisis amid pricing war
In China, fears grow of an EV financial crisis amid pricing war

NBC News

time3 hours ago

  • NBC News

In China, fears grow of an EV financial crisis amid pricing war

At a used car market in Beijing, salesman Ma Hui said he fears China's electric vehicle industry is in a race to the bottom. EV makers, led by the country's market leader BYD, have been engaged in a bruising price war, depressing profits for the brands, as well as sellers such as Ma. 'All of us were losing money last year,' Ma said about his fellow used car sellers in the market. 'There are too many companies making too many new energy cars.' China's trading partners have often accused the country of flooding the global market with cheap Chinese EVs. These days, similar accusations are flying within China, raising concerns about financial stress in the industry. The official Communist Party paper, the People's Daily, for example, published a commentary on Monday, titled 'The 'Price War' in the Automotive Industry Leads Nowhere and Has No Future.' 'Disorderly 'price wars' squeeze profits across the chain, impacting the entire ecosystem and risking income declines for workers,' the paper warned. 'Long-term, this 'race to the bottom' competition is unsustainable.' BYD is drawing the most fire after it announced price cuts in late May for many of its models. Some of the discounts are as steep as 34%. Its cheapest car, the Seagull mini hatchback, now costs only about $7,700, down from about $10,000. The intense price war has led high-profile auto executives to sound the alarm — with the head of Great Wall Motor calling the industry 'unhealthy.' In an interview with Chinese news outlet Sina Finance on May 23, Great Wall Motor Chairman Wei Jianjun drew parallels to China's moribund property sector and its now defunct poster child, developer Evergrande. 'An 'Evergrande-like' crisis already exists in the automotive industry,' he said. 'It just hasn't erupted yet.' A government-backed industry group has also called on companies not to 'dump' vehicles below the cost of production. In a statement, the China Association of Automobile Manufacturers took a veiled swipe at BYD. 'A certain automaker has taken the lead in launching significant price cuts and many companies have followed suit, triggering a new round of 'price war' panic,' the group said. BYD dismissed Wei's comment as alarmist and said it believes in fair competition in response to CAAM's criticism. In a sign of further strain, sellers at the Beijing used car market told CNBC about a phenomenon known as 'zero mileage used cars,' which is meant to help auto manufacturers and dealers inflate sales volumes. This happens when cars are registered and plated and then marked as sold, but haven't ever been driven. Ma said he is worried about where the fierce competition leads. He told CNBC he sees the impact of the intense competition on consumers who are already shy about spending in the down economy. 'With the price dropping like this, a lot of buyers might wait,' he said.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store