121–130 of 286 posts
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If the shares were printed on stock certificates how would you get to 100.01% short interest?
When you short a stock you sell it. Whoever you sold it to can loan it again. There's no limit to that.
That is why the system needs something like a block chain semaphore.
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Not enough to matter. At sufficient price there will be a seller. The company can create stock and sell it if the current holders don't.
Companies cannot issue more shares than they are authorized to issue. They have to do Formal Corporate Things to issue new shares.
Fair warning. Buying stocks with high short interest is, over the long run, a terrible investment strategy. Mountains of academic research has consistently found the most heavily shorted stocks to significantly underperform the market[1] (to the order of 10% per year). Heavily shorted stocks tend to be the companies with the most negative cash flow shocks[2], low quality earnings statements[3], negative earnings revi…
Fair warning. Buying stocks with high short interest is, over the long run, a terrible investment strategy. Mountains of academic research has consistently found the most heavily shorted stocks to significantly underperform the market[1] (to the order of 10% per year). Heavily shorted stocks tend to be the companies with the most negative cash flow shocks[2], low quality earnings statements[3], negative earnings revi…
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Could you explain a little bit more about this? Or point me in a direction where I could find out more? Super curious. Thanks
A dark pool is just a private securities market. They don’t have to disclose much since the general public can’t participate but they can trade all sorts of exotic instruments without a lot of the “public focused” regulations.
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Nokia and Ericsson are not highly shorted. Nokia short ratio is less than 1%. I have no idea why WSB picked them. Also, both companies' market cap is greater than 20B so it's not easy to manipulate the stock price to the GME levels.
They look for cheap calls, that’s about it. It’s standard buy low sell high stuff. That’s why I don’t get why they are being made out to be some kind of evil geniuses/idiots. It’s very standard stuff.
I know there are a lot of Wall st guys here. Can someone explain what's really going to happen here in regards to the short squeeze? Is it really so simple? How will the shorts be able to cover? Also, is this page correct in saying that GameStop is the only stock on all listed US markets that's shorted over 100%?
(Edit: removed mostly wrong info, but here's an article on some stuff that goes on with voting rights and shorts that could potentially be used to vote for a capital raise and break the short squeeze by issuing new shares: https://www.wsj.com/articles/SB116978080268188623 )
It seems crazy to me that we have two bands of people warring over fake money in what could only be equally illegal ways.
Fair warning. Buying stocks with high short interest is, over the long run, a terrible investment strategy. Mountains of academic research has consistently found the most heavily shorted stocks to significantly underperform the market[1] (to the order of 10% per year). Heavily shorted stocks tend to be the companies with the most negative cash flow shocks[2], low quality earnings statements[3], negative earnings revi…
Works until it doesn't. Exhibit TSLA.
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Unless the big guys are convinced that they are right and have the money to not worry about a margin call. In that case they should be shorting more. If GameStop is really worthless then they win when the company finally files bankruptcy.
but with this high a stock price, they could issue new shares can't they? They can survive by diluting existing shares at this price, and work out a new business model with plenty of runway.
This is, unfortunately, going to be a situation where the sophisticated investors win out, and the people they cajoled into buying stocks will be left holding the bag. Gamestop could not reorganize quickly enough to assure investors that they actually have the ability to capitalize on this influx of investment, especially not with a historically terrible business performance.
I know there are a lot of Wall st guys here. Can someone explain what's really going to happen here in regards to the short squeeze? Is it really so simple? How will the shorts be able to cover? Also, is this page correct in saying that GameStop is the only stock on all listed US markets that's shorted over 100%?
(Edit: removed mostly wrong info, but here's an article on some stuff that goes on with voting rights and shorts that could potentially be used to vote for a capital raise and break the short squeeze by issuing new shares: https://www.wsj.com/articles/SB116978080268188623 )
That’s not how it works. Votes don’t magically appear.
The lender gives their voting rights along with the stock to the short seller. The short seller gives it to whoever purchased the shares from them. So only the final purchaser gets to vote, the original lender lost their rights while their stock is lent out.