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These are currently targets because they are very highly shorted. Meaning, many firms bet that they would go down, and those bets are coming due soon. They have to buy shares to close out their bets, and every time they buy, it drives the price up higher.
You’re thinking of Persing Capital’s Bill Ackman’s short call on Herbalife in 2014/2015 that he held unto for 5 years before closing out his position in 2019 at a $1b loss.
Yes buy buy buy
Enthusiast
I second this !
GME specifically started off as an undervalued stock, so people who invest in value (long/hoping the stock goes up) bought in. These users posted on WSB for fun since that is what WSB was for. WSB noticed this stock was the most shorted stock in history, worst than the VW short in 2008.
Shorting stocks is special flower - it let's big hedge funds borrow the money up front from the brokers, with a guarantee that they will give back the stocks when their contract on the short expires - hopefully hitting their strike point which is lower than how they borrowed it.
In comes WSB crowd, they noticed this and it became a little political. The stock was shorted more than the number of shares issued, which means shorters need to technically buy the shares more times than there are shares. So, WSB bought, and bought, and bought because when the contracts expire the shorters will have to buy.
Come today, a lot bought in high and sold out of fear as the stoke plummeted. But that wasn't enough volume - a lot of people have a few shares but we are talking millions of shares being shorted. Most WSB is still holding, maybe out of stupidity. The difficulty in a "short squeeze" is you need the buying power up front in order to drive the price up and hold that stock until the shorters keep putting up higher and higher Call (buy) prices. This worked for VW short squeeze because you had a LARGE single party doing it - Porsche.
Few issues with this situation: 1) we are talking about everyday folks who do not trade and got scared of the stock dropping and 2) the stock dropped because of corruption, market manipulation and more.
I'll stop here since I can type a lot more lol. If you buy into GME do it with money you know is going to zero. Because it probably won't have it's "squeeze" or at least not to the point of what people expected.
I suggest not going after shorted stocks, go after a company whose value you like and buy and hold long term. This is safer, less stress for non-day traders. Good investments right now are Weed stocks, Water stocks and even Airline stocks as the world slowly recovers.
Hopefully at least some of this helped.
Pump and dump
It’s not a pump and dump so we good. Fill her up!
Buy NOK and GME. Bring down the greedy fuckin bankers (and your 401k as they are forced to sell longs and suffocate the broader market but don’t think too hard son)
Chief
NAKD is killing me!!!
FYI don’t use Robinhood if you can avoid it - Fidelity has been good to us so far so I suggest them.
WSB is private now?
The discord was just banned
Buy buy buy
No it’s not a good idea.
Just bought NOK 🚀🚀🚀
Fly me to the mooon!
https://twitter.com/morningbrew/status/1354138766307336192?s=21
Pro
$AAL is the next target 🚀🚀🚀🚀🚀
Pro
Right now. Better pick future candidate targets. This ain’t a one and done thing.
https://www.instagram.com/p/CKrSQHRHNZj/?igshid=1ev0jmft78mwj
Shorting tomorrow. Big time!
If everyone just holds the stock and there is no further demand ( coz the short sellers closed their position) ... wouldnt the stock price start to tank..?? Price go up only coz of demand .
False, if everyone held their stocks and the shorters' contracts expire, they OWE those shares now and NEED to buy them. Do the Call limits will increase until eventually people holding sell.
But this only works if people are in sync and hold.
Short sellers haven't closed, or at least not all of their positions. You can see how crazy market manipulation is since the volume is nothing and the only shares being traded (outside of Monday when a lot of people with very few shares sold) are automated trades back and forth at fractions of a penny price change.
It's funny how GME and AMC, both heavily shorter stocks, in industries that don't touch, have the exact same daily trends... For the past week and a half.
https://youtu.be/POgO3ys1CJ0
SLV
SLV is actually just a solid investment to hold for a few months since it's cheap. It shouldn't be in the GME/AMC conversation.
These are the stonks to focus