tmaster schreef op 26 januari 2021 22:59:
The stock was heavily shorted because their brick and mortar business model was pretty much going extinct and they were in debt. The short sellers, however, ignored some fundamental catalysts like the new console cycle and that ps5 and xbox one would work with game disks (correct me if I'm wrong here).
They also ignored the fact that GME's online sales had gone up quite significantly. All of this led some redditors early in the game to believe that this was a company that would not go bankrupt. They then had a deal with Microsoft which pumped the stock higher.
Enter Ryan Cohen. The founder of Chewy ($CHWY) saw the potential in GME and wrote an angry letter imploring them to find better ways of leveraging their popularity and shifting their business online. He has since upped his investment and has more comrades on board.
All of the above meant that GME was priced very low and was actually a value investment because of the good things coming up for this company. Institutions and retail investors started buying this stock and it kept going up.
There is evidence that the short sellers kept increasing their position hoping for a reversal that never came. Now their brokers are restricting short selling for GME and as the stock pumps higher, they are closer and closer to getting margin called.
When that happens, they will be forced to close their positions and buy shares. Creating a short squeeze. The catch here is that there are not enough shares available to buy and close their positions. Essentially, they would have to buy it from insiders or institutions who will most probably not be willing to sell their stake.
The above would create an infinite short squeeze which would make us all very rich if we could time our exit.
Dit kan dus nog wel even door gaan. Als het waar is dat shorters naked geshort hebben zijn er dus nooit genoeg aandelen beschikbaar om terug te kopen. Het is particulier vs grote institutionele hegde en beleggingfunds. Zij die over eindeloos veell kapitaal bezitten ( en dus niet met “eigen” geld beleggen) worden nu even fijn uitgeknepen. Heerlijk dat eindeloze gemanipuleer moet maar eens afgelopen zijn,