A telling little clip from Mediate, where TV financial pundit Jim Cramer is basically urging Trump to cash in his chips, relinquish control or at least partial control and get a big fat payday. In theory, that sounds like sound advice. One small problem with that is what he's advocating is not technically legal. Trump would have to get special permission to do that as lock-up restrictions for six months prevent him from selling or borrowing against his shareholding.

How a company that brought in just $4.6mil in revenue over the last year can get a starting valuation of $6 billion (and is currently over $9 billion) is one of life's mysteries. Meme stock, indeed.

Source: Mediate

CNBC host Jim Cramer was stunned by the rise in Trump Media stock and said former President Donald Trump should ask the company to allow him to sell some shares despite a lockup provision preventing him from doing so.

The newly-merged Trump Media and Technology (DJT) company began trading on the NASDAQ stock exchange, and immediately shot up in initial trading. But Trump is prevented from selling until six months after the stock began trading due to his contract.

On Tuesday morning’s edition of CNBC’s Squawk Box, Cramer was blown away by the stock’s performance in the opening minutes of trading:

A partial transcript.

JIM CRAMER: No, that DJT — I mean if I were Donald Trump, I mean now it’s 8 million shares. This is the moment where you say that, you have an obligation to release more shares. And I’ve got shares that I’d like to release and that’s —

The board can do that. The board can say no, but the board, I think if — I’m not sure where Mr. Trump’s head is — but this is a moment where, where he could very easily say, “look, the stock’s up 286%. No one would mind if I sold stock. So please let me do it.”

Now, he may say I don’t need to, because he’s prideful, but I don’t know. I think that anybody — no one would begrudge him if you went to the board and say, “look, I’d like to have some stock released.”

CARL QUINTANILLA: Well, there was a nice piece in the FT this yesterday about the ratio of insider selling to buying. I mean, it’s fairly bearish, you could argue, but that hasn’t stopped some of these names from powering higher. Meta is a good example.

JIM CRAMER: Well, I just think if you had your own stock, one of these mega caps and you’re not selling that, it’s almost like from the point of view of of estate planning, you’re being very foolish. I — any one of these people should be selling.

But when I look at — they all have such faith. I mean, they just have faith in their companies, but they should be selling some, because the movement in the mega caps versus everything else is so extraordinary that it’s a good time to be able to raise some money. People aren’t going to — you know, you raise money when you can, when you can sell, when the stocks are really screaming, don’t raise money when the stocks are going down.

By Wednesday morning, however, even Cramer couldn't pretend it was other than what it is, obscenely overvalued.

And calling it for what it is, a scam. Albeit, "a brilliant way for a rich person to run for president."