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Mar-a-Lago Profits Quadruple Since Donald Trump’s Presidency, Could Money-Making Property Keep Him From Selling DJT Stake?

Former President Donald Trump will be free to sell his stake in Trump Media & Technology Group Corp (NASDAQ:DJT) soon, but he might not have to thanks to the success of his Mar-a-Lago club.

What Happened: Trump’s Mar-a-Lago club and residence has made headlines for years and was one of the many talking points during a civil fraud case against the former president.

Trump purchased the 1100 S. Ocean Boulevard property in Palm Beach, Florida for a reported $7 million to $8 million back in 1985.

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Mar-a-Lago was valued at $18 million to $27 million by an assessor and valued at $24.15 million by Zillow. An expert who spoke on behalf of Trump’s team during the civil trial said the property could be sold for $1 billion to the likes of Bill Gates or Elon Musk as it is a one-of-a-kind property.

While the $1 billion price tag is high, a new report sheds light on how much money Trump’s famous property is making.

A Forbes report said profits at Mar-a-Lago have quadrupled since Trump left the White House in 2021. Among the ways the club makes money are rising membership dues, political fundraisers and other hosted events like weddings.

In 2023, the club took in around $40 million, which is double what the club made in 2019 before the COVID-19 pandemic put a damper on events. The figure is also triple what Mar-a-Lago made in 2014 before Trump started his political career.

The report says Mar-a-Lago brought in $90 million in the four years Trump was serving as the president of the United States. The three years after Trump left the White House have brought in $105 million in business.

Along the growing revenue, the annual costs to run Mar-a-Lago have mostly stayed in the $12 million to $16 million range. The profit margin went from 9% in 2011 to 60% in 2023 according to the report, with $22 million in 2023 profit.

“It is actually the best year we’ve ever had at Mar-a-Lago,” a manager told Forbes.

The club currently caps members at 500, who pay annual dues estimated at $15,000. Initiation fees are $700,000 and could rise to $1 million soon, with Forbes said the club has started a waiting list with all 500 spots filled.

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Why It’s Important: Trump’s political rise and past history as a president has helped boost the notoriety of the club and also the demand for memberships and to host events at the Florida property.

With Trump owning 100% of the club, the rising profits could help the former president with his mounting legal costs and 2024 election campaign. This could be potential good news for shareholders of Trump Media & Technology Group.

Trump owns 114,750,000 shares of the media company he co-founded, representing 64.9% of the company. By the end of September, Trump will be able to sell his stake in the company and maintain control, as Benzinga previously reported.

The decision of whether or not he will sell a portion or his entire stake comes as the social media stock, which owns the Truth Social network Trump frequently posts on, has hit new lows since completing a SPAC merger in March 2024.

The sale of the shares could lead to a further decline in the share price of Trump Media & Technology Group shares, while also freeing up additional capital for Trump to use in his election battle against Kamala Harris.

Trump’s stake is worth around $2.2 billion based on a price of $19.51 at the time of writing.

Trump Media & Technology Group shares opened for trading at $70.90 on March 26 when its long-awaited SPAC merger with Digital World Acquisition was completed.

While the company had a market capitalization of $8 billion and Trump’s net worth soared to $6.4 billion, the stock quickly fell after the public debut and has fallen in recent weeks after Trump was found guilty of 34 counts of falsifying business records.

Trump faces a $355 million fine from a previous ruling in a New York court, and has spent hundreds of millions on legal fees related to several court cases.

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This article Mar-a-Lago Profits Quadruple Since Donald Trump’s Presidency, Could Money-Making Property Keep Him From Selling DJT Stake? originally appeared on Benzinga.com

Move over, artificial intelligence (AI)! Wall Street has a new hot trend, and its name is stock-split euphoria.

A stock split allows publicly traded companies the ability to adjust their share price and outstanding share count by the same magnitude. However, these changes are purely superficial and don’t impact a company’s market cap or its operating performance.

Since 2024 began, 13 outstanding companies have announced and/or completed a stock split, including (all are forward-stock splits, unless otherwise noted):

• Walmart (NYSE: WMT): 3-for-1 stock split

• Nvidia (NASDAQ: NVDA): 10-for-1

• Amphenol (NYSE: APH): 2-for-1

• Chipotle Mexican Grill (NYSE: CMG): 50-for-1

• Mitsui (OTC: MITSY)(OTC: MITSF): 2-for-1

• Williams-Sonoma (NYSE: WSM): 2-for-1

• Broadcom (NASDAQ: AVGO): 10-for-1

• MicroStrategy (NASDAQ: MSTR): 10-for-1

• Sirius XM Holdings (NASDAQ: SIRI): 1-for-10 reverse split

• Cintas (NASDAQ: CTAS): 4-for-1

• Super Micro Computer (NASDAQ: SMCI): 10-for-1

• Lam Research (NASDAQ: LRCX): 10-for-1

• Sony Group (NYSE: SONY): 5-for-1

Among these top-notch stock-split stocks are two magnificent, inexpensive companies that are begging to be bought in September, as well as two highfliers that are priced for perfection and worth avoiding.

Stock-split stock No. 1 that can be bought hand over fist in September: Sirius XM Holdings

The first phenomenal stock-split stock you can scoop up with confidence in September is the only company of the 13 listed above that’s set to conduct a reverse-stock split: satellite-radio operator Sirius XM Holdings.

Whereas most companies completing reverse splits are doing so from a position of operating weakness, this isn’t the case with Sirius XM. Its roughly 3.85 billion outstanding shares have held its stock in the mid-single-digits for a decade, which might be a deterrent for some institutional investors who deem its low share price too risky. This reverse split will take place following the merger of Sirius XM with Liberty Media’s Sirius XM tracking stock, Liberty Sirius XM Group in a little over week, and likely make shares more attractive to big-money investors.

What investors get with Sirius XM is easily identifiable competitive advantages. For example, it’s the only licensed satellite-radio operator in the country, which affords it substantial subscription pricing power.

Sirius XM also generates its revenue differently than terrestrial and online radio providers. Instead of relying almost exclusively on advertising, as traditional radio companies do, Sirius XM has generated 77% of its net sales from subscriptions through the first-half of 2024. People are much less likely to cancel their service during periods of economic turbulence than businesses are to pare back to marketing budgets at the first sign(s) of trouble. In other words, Sirius XM is better positioned to navigate uncertain economic climates.

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A forward price-to-earnings (P/E) ratio of less than 10, coupled with a dividend yield of 3.4%, makes Sirius XM stock quite the bargain for opportunistic long-term investors.

Stock-split stock No. 2 to purchase with confidence in September: Sony Group

The other magnificent stock-split stock that’s begging to be bought in September is none other than Japan-based electronics goliath Sony Group. Sony’s American Depositary Receipts (ADRs) are set to undergo a 5-for-1 split on Oct. 8.

Even though we’re coming up on four years since Sony introduced the PlayStation 5, and it’s perfectly normal to see gaming console sales taper off late in the cycle, Sony has found a couple of ways to boost one of its top revenue channels.

For instance, it’s increasing the price of PlayStation 5 by about 19% in Japan to counter challenging economic conditions. It’s also seeing strong subscription sales growth from PlayStation Plus, which allows subscribers to play games with their friends and store gaming data in the cloud.

Though it’s best-known for gaming, Sony Group is a diverse company. It’s one of the primary suppliers of image sensors used in smartphones. With telecom companies upgrading their wireless networks to support faster download speeds, consumers and businesses have been steadily trading in their old devices for new ones that are 5G-capable. The 5G revolution is providing a healthy boost to Sony’s Imaging and Sensing Solutions segment.

A forward P/E of 16 is a fair (if not inexpensive) price to pay for a wonderful company that’ll likely be introducing a new gaming console in about two years’ time.

The first stock-split stock to avoid in September: Nvidia

However, not every stock-split stock is worth buying. Even though Nvidia has been the hottest megacap stock on the planet since the start of 2023, and its H100 graphics processing unit (GPU) is the preferred choice in AI-accelerated data centers, there are too many potential red flags to ignore.

A point I’ve been trying to drive home for months is that there hasn’t been a next-big-thing innovation, technology, or trend that’s escaped an early stage bubble-bursting event in 30 years. This is a nice way of saying that investors always overestimate how quickly new innovations/technologies are adopted by consumers and businesses.

The simple fact that most businesses lack a defined game plan for their AI data center investments strongly suggests that we’re witnessing the next in a long line of bubbles with AI. If and when the AI bubble bursts, I’d expect Nvidia’s stock to be clobbered.

Competitive pressures can also no longer be ignored. Advanced Micro Devices is ramping up production of its MI300X AI-GPU, which is substantially cheaper than the H100, and doesn’t face the same supply chain constraints as Nvidia’s chips.

Beyond external competition, Nvidia may lose out on valuable data center space from its top customers. The four members of the “Magnificent Seven” that account for around 40% of Nvidia’s net sales are developing AI chips of their own. Even with Nvidia’s H100 and Blackwell chips almost certainly hanging onto their computing advantage, we’re witnessing a concerted effort by America’s most-influential businesses to reduce their reliance on Nvidia’s hardware.

Nvidia’s sequentially declining adjusted gross margin suggests we’ve witnessed the peak of the latest hot trend on Wall Street.

The second stock-split stock to shy away from in September: MicroStrategy

The other stock-split stock of the 13 that’s worth avoiding in September is AI-inspired enterprise analytics software company MicroStrategy.

Although MicroStrategy is, technically, a software company, almost the entirety of its $27.2 billion market cap (as of this writing on Aug. 27) is derived from the Bitcoin (CRYPTO: BTC) it holds. As of July 31, MicroStrategy held 226,500 Bitcoins, which is more than 1% of the entire supply that’ll ever be mined. It also makes MicroStrategy the top corporate holder of the world’s largest cryptocurrency.

There are lot of ways to wager on Bitcoin if you’re a crypto optimist. However, buying MicroStrategy stock is, arguably, the worst possible way to do it. With Bitcoin trading at $59,338 per token, as of this writing, MicroStrategy’s Bitcoin portfolio is worth $13.44 billion. Yet, its market cap of $27.2 billion (placing a fair value estimate on the software segment of around $1 billion), implies a value of roughly $115,650 per token. Investors are paying a 95% premium for its Bitcoin assets, which makes no sense.

Another reason to shy away from MicroStrategy has to do with how the company is financing its Bitcoin purchases. With minimal positive operating cash flow generated from its software segment, CEO Michael Saylor has overseen a number of convertible-debt offerings to fund its acquisition of Bitcoin. If Bitcoin were to enter a steep bear market, as it’s done a couple of times over the last decade, MicroStrategy could struggle to meet its debt obligations.

Lastly, I’m not convinced that Bitcoin is in any way superior in the crypto arena. Its scarcity is based on lines of computer code that could, in theory, be altered with community consensus. Most importantly, Bitcoin’s payment network isn’t anywhere close to the fastest or the cheapest. It’s a first-mover network that’s been outdone by third-generation blockchain networks. MicroStrategy tethering its future to Bitcoin looks like a mistake I’d suggest avoiding.

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Sean Williams has positions in Sirius XM. The Motley Fool has positions in and recommends Advanced Micro Devices, Bitcoin, Chipotle Mexican Grill, Lam Research, Nvidia, Walmart, and Williams-Sonoma. The Motley Fool recommends Broadcom and Cintas and recommends the following options: short September 2024 $52 puts on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.

2 Magnificent Stock-Split Stocks to Buy Hand Over Fist in September, and 2 That Are Priced for Perfection and Worth Avoiding was originally published by The Motley Fool

If you need more $4.99 rotisserie chickens or 72-pound Parmigiano Reggiano cheese wheels in your life, it helps to live near a Costco. But what if you don’t have the convenience of a nearby warehouse? Fortunately, Costco plans to add four new locations in the U.S. through the end of 2024.

Where are the new Costco locations?

As of August 2024, Costco had 884 locations worldwide, with 611 in the U.S. and Puerto Rico, and another 108 in Canada. The warehouse giant plans to add the following new warehouses in the U.S. through the end of the year:

• Bend, Oregon (October 2024)

• Napa, California (October 2024)

• Pleasanton, California (October 2024)

• Madison, Alabama (November 2024)

In August 2024, Costco opened the following new U.S. locations:

• Covington, Louisiana

• Ridgefield, Washington

• Tomball, Texas

Costco has also recently opened or will soon open new warehouses in South Korea, Japan, Spain, and Mexico.

What to know about shopping at Costco

If you’re a Costco novice, you need to know a few facts before you dash over to your nearest warehouse club:

• You’ll need to pay for a membership. Costco raised the price of an annual membership on Sept. 1, 2024, to $65 for Gold Star and Business memberships and $130 for Executive memberships.

• Don’t count on sharing your membership card. Costco is cracking down on membership sharing by installing card scanners at each entrance. You’re allowed to bring up to two guests, but only members can make purchases.

• You can’t pay with just any credit card. Costco only accepts Visa credit cards for payment, though you can also pay with most PIN-based ATM and debit cards, cash, check, or Costco Shop Cards (Costco’s version of its own gift card).

• You don’t need a membership for some purchases. You can use Costco without a membership if you’re getting a prescription filled at the pharmacy, getting an eye exam, or buying booze in several states. However, most purchases require a membership.

Should you rush to join Costco?

If you’re on the fence about whether to join Costco, consider these questions before you shell out for a membership:

• Is the location close enough that you’d actually shop there? If you’d spend an hour driving each way to shop at Costco, make sure the savings are enough to offset the time and transportation costs.

• Will you save money buying in bulk? If you live alone or have limited storage space, buying giant quantities from Costco or another warehouse club may not be worth it.

• Are you prone to impulse buying? You can buy everything from groceries to clothing, saunas, remote-controlled toilets, and more at your local Costco. If you tend to make impulse purchases, think twice before becoming a Costco member.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Robin Hartill has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale, JPMorgan Chase, and Visa. The Motley Fool has a disclosure policy.

Costco Is Opening New Stores in 2024. Here’s What You Should Do Next was originally published by The Motley Fool

Thinking back on the first Social Security assignment of my career tends to make me laugh. Back then, which was about a decade ago, I found the idea of reporting on the topic daunting.

After all, I knew little about Social Security other than it being a program that pays benefits to people when they’re older. I had no idea when benefits started or what the rules for claiming them entailed.

These days, I could bore you with hours of conversation about Social Security’s numerous rules and nuances. And with a catalog of more than 1,000 articles on the matter, I can probably answer any question you have about how or when to claim benefits.

But with all of that Social Security knowledge floating around in my brain, there’s one piece of advice I’m eager to share more so than any other. And it’s something I feel strongly that every single person should know about Social Security ahead of retirement.

You can’t rely too heavily on those benefits

A lot of the Social Security content I’ve written through the years focuses on when to claim benefits. And that’s an important decision.

Your Social Security filing age plays a big role in determining what monthly benefit you get. You’re allowed to sign up for Social Security as early as age 62. But you’re not entitled to your complete monthly benefit based on your personal income history until several years later, or when your full retirement age arrives. Full retirement age is 67 for those born in 1960 or later.

There’s also the option to delay your Social Security claim past full retirement age. Each year you hold off boosts your monthly benefit by 8%, up until you turn 70. At that point, there’s no sense in delaying Social Security, since you can’t grow your benefits any longer.

But as important as it is to land on the right Social Security filing age, what’s even more important is to understand the role those benefits should play in your retirement finances.

Many people are shocked to learn that Social Security will only replace about 40% of the typical wage-earner’s pre-retirement income. And if that sounds like a small percentage to you, well, it is.

It’s common for retirees to need 70% to 80% of their former income once their job-related paychecks disappear. This puts seniors who don’t save independently and rely on Social Security alone in a very tight spot.

So if there’s one piece of Social Security advice I’d give everyone, it’s to not plan to live off of those benefits alone in retirement, and instead, save as well as possible.

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This doesn’t mean you have to sacrifice every bit of extra spending during you working years to retire with millions of dollars. But it does mean you should try to contribute to a retirement plan consistently, and invest your savings through the years for additional growth.

It pays to be informed

Reading about Social Security may be interesting to me, but I get that it’s not a top activity on most people’s lists. However, those benefits will likely play an essential role in your retirement finances one way or another. So it’s a good idea to get reasonably educated on Social Security while you’re still earning a paycheck from a job.

This doesn’t mean you have to research Social Security endlessly like I do. But try to set yourself up with a basic understanding. And also, get an estimate of your future Social Security so you know what number to expect to some degree. It’ll only put you in a stronger position to approach retirement with confidence.

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I’ve Been Writing About Social Security for Almost 10 Years. This Is the Best Advice I Can Give You was originally published by The Motley Fool

A recall of roughly 90,700 Ford and Lincoln vehicles is underway.

The Michigan-based automaker said in a National Highway Traffic Safety Administration (NHTSA) recall report that the recall was prompted by the risk that the engines in the affected 2021-2022 Ford Bronco, Ford Edge, Ford Explorer, Ford F-150, Lincoln Aviator and Lincoln Nautilus vehicles “may contain intake valves that have a propensity to crack and break.”

All the 90,700 recalled SUVs and pickup trucks feature a 2.7-liter or 3-liter Nano EcoBoost Engine, according to the recall report.

Ford notified NHTSA of the recall on Aug. 23.

FORD CANCELS PLANS FOR ELECTRIC THREE-ROW SUV

“An engine intake valve that fails may lead to catastrophic engine damage resulting in a loss of motive power,” Ford said in the recall report. “A loss of motive power can increase the risk of a crash.”

READ ON THE FOX BUSINESS APP

The problem with the engine intake valve is most likely to appear early in the vehicle’s life if the component is susceptible to cracking, Ford told FOX Business.

The issue has not caused any accidents or injuries to date, according to documents Ford filed with the NHTSA.

“Our goal is to prevent quality issues from happening in the first place,” Ford said in a statement to FOX Business. “When they do occur, our focus is on responding quickly with a recall or service action to prevent our customers from experiencing issues with the least inconvenience possible. We are proud that our launch quality has reached best-in-class levels, and our long-term quality is showing improvement.”

Dealers will install a new engine in recalled vehicles that do not pass an engine cycle test for free. When getting their vehicles fixed, impacted customers will have access to Ford’s pick-up, delivery and rental services, according to the company.

The automaker will tell owners of affected Ford and Lincoln vehicles about the recall in early October using letters, according to the NHTSA recall report.

FORD, MAZDA ISSUE ‘DO NOT DRIVE’ ADVISORY FOR 457,000 VEHICLES

“Owners who have paid to have these repairs completed at their own expense may be eligible for reimbursement, in accordance with the recall reimbursement plan on file with the NHTSA,” Ford said.

Meanwhile, notification of dealers is slated for the end of this month.

FORD RECALLS MORE THAN 30K MUSTANGS DUE TO STEERING ISSUE

Ford said the Ford and Lincoln vehicles subject to the recall were built in 2021.

The automaker sells several million vehicles across its Ford and Lincoln brands each year. It notched 4.4 million global wholesale sales last year, according to the company.

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Original article source: Ford recalls over 90K vehicles in response to risk of engine intake valve breaking