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High Short Interest Stocks

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Re: High Short Interest Stocks

#201

Post by Mauricebranagh »

PragmaticPulp wrote: post #159
thrwn_frthr_awy wrote: post #135

Earlier quoted context omitted.

It turns out an online community can stay irrational longer than a hedge can solvent.

These situations tend to blow Up both sides, more or less. A few lucky Redditors will get out with profits. Most of the late entries are going to take steep losses. Those losing Redditors will be paying the winning Redditors. The narrative that this is hedge funds losing to Redditors isn’t fully accurate.

As some one else said the WSB concert party has all the signs of a boiler room scam.

I bet there are some much more experienced reditors behind this and a lot of the useful idiots will lose $$

Re: High Short Interest Stocks

#202

Post by marvin »

mike00632 wrote: post #128
optimiz3 wrote: post #123

Earlier quoted context omitted.

Works until it doesn't. Exhibit TSLA.

Give it a few years. I'm still skeptical that Tesla should be worth more than all the other auto companies combined.

Regardless, it should definitely be worth more than the $8 per share that it was in 2013, or the $45 per share that it was in 2014. Short sellers were clamoring very loudly then too. Lots of people preached "the market can stay irrational longer than you can stay solvent".

Eventually, of course, if a security keeps only going up, this mantra will become true. The point is that sometimes, a bet that seems like a sure thing will blow up spectacularly. And that not everyone who takes such a bet is obviously wrong.

Re: High Short Interest Stocks

#203

Post by blackrock »

blondie9x wrote: post #140

Why the hell would iRobot have 40% short interest? I love my iRobot. I swear to you if they make these things talk or take commands like Siri iRobot will be the ultimate consumer electronic item.

Maybe, but I still can’t seem to justify spending $800+ on a high tech vacuum cleaner that does a mediocre job of vacuuming.

And it only works on one floor. And a wet Swiffer, once a week, does a better job at picking up the dust.

Re: High Short Interest Stocks

#204

Post by marvin »

Triv888 wrote: post #167
thatguy0900 wrote: post #161

Earlier quoted context omitted.

Shorts are a little unique in that the risk is technically infinite. Stocks you own can only lose whatever value you bought them for. Stocks youve promised to buy later from someone else, though, can lose you however much money they decide to charge you when you have to buy. They could have thousands of profitable positions and lose 2 billion off one very unlucky short call because of a meme.

Good point. Maybe they will learn something?

Not a chance. The human mind generally isn't built to correctly assess the impact of unlikely, catastrophic events. Maybe they'll steer clear of excessive short selling for a while, but you can be sure they'll forget it eventually. In the meantime, they'll find some other pitfall to step in.

Re: High Short Interest Stocks

#205

Post by blackrock »

jeffbee wrote: post #17
xwdv wrote: post #10

I’m surprised this sort of attack has never be carried out before. Is it just because no one ever thought there’d be a crazy army of retail investors that could be so coordinated and so irrational and large enough to matter?

There have been many attempted short squeezes, notoriously the attempt by the founder of Piggly Wiggly to squeeze shorts 100 years ago. He ended up broke, of course, because cornering the market on shares that you pumped to a ridiculous price is never a great idea. More recently there was a cartel that tried to squeeze Volkswagen shorts in 2008.

I’ve never heard of Piggly Wiggly before.

Re: High Short Interest Stocks

#206

Post by PartiallyTyped »

optimiz3 wrote: post #123
dcolkitt wrote: post #108

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.

'Fundamentals' and all that is a bs excuse used to scapegoat driving stocks they or their friends don't like to the ground.

Let me ask this.

How in the world can an 'analyst' know more about tech than the people that work all their lives in bleeding edge research and technology?

They don't. They don't know more than Jim Keller whose primary task was development of Zen architecture at AMD - which traded at $5 before he joined and until after he was done.

Why do I mention Jim Keller? Because a certain class of people can not only turn around a company, but whole industries even if only due to being famous and drawing unknown talents.

In the case of TSLA; Andrej Karpathy leads the AI division.

My argument is that 'analysts' know nothing of tech and they are in no position to act as the judges.

Re: High Short Interest Stocks

#207

Post by DSingularity »

hardwaresofton wrote: post #174
xwdv wrote: post #10

I’m surprised this sort of attack has never be carried out before. Is it just because no one ever thought there’d be a crazy army of retail investors that could be so coordinated and so irrational and large enough to matter?

Be careful not to fall into the narrative the mainstream US media is selling, though it shifted drastically yesterday -- this is not a coordinated attack. WSB is full of people shilling all types of tickers for all types of reasons, but there is a large amount of people there who understand (or at least pretend to) the dynamics of a gamma + short squeeze, and are in it for that reason. The person who posted one of th…

> Here's an example -- a bunch of stocks that were essentially left for dead (heavily shorted) popped yesterday and the rationalization was retail jumping in.

Which ones? The AMC, EXPR and so on?

Re: High Short Interest Stocks

#208

Post by varispeed »

habosa wrote: post #197

Anyone seeing this list as a list of investment opportunities should think twice. This is the list of companies that Big Money is betting heavily against. In 99% of cases you don't want to take the other side of the bet against these big funds. They could be right and the company is actually a loser, or they could just have way more money than you and the market will never reflect anything but their perspective. GME…

and if enough people take the other side of the bet, these whales will fix the game to their favour. We pay taxes and yet the law enforcement we pay for works against us. Where are the arrests?

Re: High Short Interest Stocks

#209

Post by robinei »

andi999 wrote: post #187
edgyquant wrote: post #183

Earlier quoted context omitted.

They’re bleeding because others are holding, no? There are premiums at play.

That would be virtual bleeding (which could be the case though), but if you bleed real money then somebody else has to receive it. If you hold a stock money doesn't come to you (except as annual profit distribution but that is a different issue). I read the fees for borrowing a stock for shorting are coupled to the market price (not sure). So if you fund lost a few billion real money (so they have to sell other asset…

The stocks they are borrowing for their shorts have really high interest now. They are bleeding money just paying interest. And now that goes for a couple of hundred percent of the stock float.

Re: High Short Interest Stocks

#210

Post by kgwgk »

PartiallyTyped wrote: post #206
optimiz3 wrote: post #123

Earlier quoted context omitted.

Works until it doesn't. Exhibit TSLA.

'Fundamentals' and all that is a bs excuse used to scapegoat driving stocks they or their friends don't like to the ground. Let me ask this. How in the world can an 'analyst' know more about tech than the people that work all their lives in bleeding edge research and technology? They don't. They don't know more than Jim Keller whose primary task was development of Zen architecture at AMD - which traded at $5 before h…

“Our goal is, and I feel pretty good about this goal, that we’ll be able to do a demonstration drive of full autonomy all the way from LA to New York, from home in LA to let’s say dropping you off in Time Square in New York, and then having the car go park itself, by the end of next year,” [Musk] said on a press call [in October 2016]. “Without the need for a single touch, including the charger.”

How much did you need to know about tech to realize that wasn't going to happen?

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