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High Short Interest Stocks

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Re: High Short Interest Stocks

#271

Post by splistud »

germinalphrase wrote: post #268
pjc50 wrote: post #264

Earlier quoted context omitted.

Yes, I'm aware of that. Do we actually want to rerun 2008 again, though? Are people expecting it to have a different, better outcome and not a different, worse outcome or just the bailout again? The hedge funds aren't structurally important. Brokerages start to be. Retail banks definitely are.

They probably don’t understand. If they do understand, they don’t seem to care. There are a lot of people under the age of forty who don’t feel like they are benefiting from our current system. When the Boomers hit age 35, they owned approx. 21 percent of the nation’s wealth. Gen X plummeted down to 9 percent. Millennials are on track to own about 3-4 percent. This is according to the Fed. They make less, own less, d…

Well said. And these people under forty (to reduce everything to simple terms) divide themselves into roughly equal camps. Some see the problems as fatcats/gov not doing enough to help the poor. The other side sees the fatcats/gov not doing enough to help citizens as opposed to certain elites and all here because of illegal entry.

Both are right to a large extent, and both are slandered as evil/racist/etc. by the other side.

Re: High Short Interest Stocks

#272

Post by splistud »

Mauricebranagh wrote: post #201
PragmaticPulp wrote: post #159

Earlier quoted context omitted.

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 $$

It's far simpler than that. There was no scam, just a long steady accretion around those that pointed out the fundamental mispricing of gme, and the explosive nature of any expected correction given it's extremely high short ratio. The rest is just piling on, and even less understandable than most reddit piling-on given the volume and technical nature of the issue.

Re: High Short Interest Stocks

#273

Post by splistud »

gerikson wrote: post #238
lexapro wrote: post #230

Earlier quoted context omitted.

There might even be some overlap, wall street using wallstreetbets to manipulate.

That's the future defense against this kind of short squeeze. Funds will engage these subs (or hire people) and deflect interest from the stocks they're shorting and maybe steer it towards competitor's.

I doubt any defense will be needed. Capital for this kind of risk will never be available again.

Re: High Short Interest Stocks

#274

Post by splistud »

andi999 wrote: post #220
robinei wrote: post #209

Earlier quoted context omitted.

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.

Who specifically get this interest now? Maybe it is not know, but maybe somebody knows here?

Depends on the broker. They publish their fees and the amount of those fees they share with the stock owner. Not all have loan fee share programs mind you.

Re: High Short Interest Stocks

#275

Post by splistud »

IG_Semmelweiss wrote: post #239
blackrock wrote: post #198

Earlier quoted context omitted.

Good one. They also call themselves Autists and Retards. I read a suggestion that it’s not the price of the stock that scared the hedge fund. But the borrowing costs, where the interest rates might have gone as high as 80%! That’s quite an expensive credit card there to be shorting stocks with.

Its important to note for the sake of comparison, that average borrowing costs in a stock , to understand how out of whack 80% really is. I believe in normal circunstances it tends to be less than 1%

I've received upwards of 30 for short periods in hard to borrow issues (we're talking american certificates of canadian mining stocks, etc). I've never heard of 80.

Re: High Short Interest Stocks

#276

Post by splistud »

mike00632 wrote: post #260
worker767424 wrote: post #178

Earlier quoted context omitted.

Depends if they can have profit margins a lot higher than other auto companies. They probably can't, but higher profit margins are one way to justify a valuation. Really, it's priced higher because people like the brand, even if it's run by someone easily distracted who used shareholder money to bail out his cousin's solar business who goes around making 420 tweets, and that's when he's not calling people pedophiles.…

I suspect the profit margin for a $50k gas guzzling truck is pretty high.

And yet the car companies make very little

Re: High Short Interest Stocks

#277

Post by splistud »

konjin wrote: post #83
apaprocki wrote: post #63

Earlier quoted context omitted.

Re: 100%, yes for companies with a reasonable minimum market cap. The one thing not really being explained enough is that short interest as reported through the exchanges is reported bi-monthly. You can imagine that with current events that is an eternity to wait for the next update.

Also worth noting is that these are the official channels, there are plenty of dark pools where there are no rules but all sorts of exotic instruments are being traded in volumes that boggle the mind. I worked at one quite some years back.

There are different rules, but there are rules and regulations there as well

Re: High Short Interest Stocks

#278

Post by splistud »

bo1024 wrote: post #96
faizshah wrote: post #66

Earlier quoted context omitted.

There’s also this list where they correct for “synthetic longs” and show that some of these have dramatically lower short int %: https://mobile.twitter.com/S3Partners/status/135485118653339... I won’t pretend to fully understand this but the analyst answered a lot of FAQs on this data on his Twitter: https://mobile.twitter.com/ihors3 What differs in this data: “S3 data is shares shorted, our competition's data is bro…

I'm no analyst, but this still looks really bad to me. If you buy a random share, there's a 55% chance that share is currently loaned out and a short-seller has to buy it and give it back. There's a 55% chance that share the short-seller buys is currently loaned out... A single share purchase cascades into 2.2 purchases on average. If any sizable fraction of shares held are committed not to sell, that math gets way w…

and then there's intraday lol

Re: High Short Interest Stocks

#279

Post by splistud »

hardwaresofton wrote: post #168
tinyhouse wrote: post #75

Earlier quoted context omitted.

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.

It's more likely that WSB did not pick NOK, they have been battling infiltration and spamming from hedge funds since last week -- the hedge funds have been trying to shift the focus of the subreddit to any other ticker that they could. The original suggested tickers are: BB, AMC, and NOK. I won't get into it too much but the first 2 (BB and AMC) have had some material good news lately (AMC got 900M in funding togethe…

and of course WSB is not a cabal, just a message board

Re: High Short Interest Stocks

#280

Post by chewz »

germinalphrase wrote: post #268
pjc50 wrote: post #264

Earlier quoted context omitted.

Yes, I'm aware of that. Do we actually want to rerun 2008 again, though? Are people expecting it to have a different, better outcome and not a different, worse outcome or just the bailout again? The hedge funds aren't structurally important. Brokerages start to be. Retail banks definitely are.

They probably don’t understand. If they do understand, they don’t seem to care. There are a lot of people under the age of forty who don’t feel like they are benefiting from our current system. When the Boomers hit age 35, they owned approx. 21 percent of the nation’s wealth. Gen X plummeted down to 9 percent. Millennials are on track to own about 3-4 percent. This is according to the Fed. They make less, own less, d…

> When you got nothing, you got nothing to lose!
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