Category: Ken Griffin (Page 1 of 7)

GameStop Short Sellers Now Down A Whopping $1 Billion

GameStop short sellers are now down a whopping $1 billion in May according to new data from S3 Partners analysts.

Shares of the gaming company soared more than 66% on Monday, hitting nearly $37 from a previous close of $17.39.

GME stock is currently up more than 183% in the past month alone.

Media speculates GameStop shares rose due to the return of iconic investor, Keith Gill, AKA Roaring Kitty.

Shares of AMC Entertainment stock also rose by more than 50% on Monday, hitting $4.44 from its previous close of $2.95.

The movie theatre stock is currently up 79% in the past month alone.

According to financial analytics firm, S3 Partners, GameStop short sellers have accumulated approximately $1 billion in paper losses.

“GameStop shorts are down in estimated $1 billion in May paper losses with todays +50% pop in early trading,” said Matthew Unterman on X.

“@S3Partners multi-factor squeeze risk score has been registering a max of 100 every day since May 3rd.”

S3’s Squeeze Score overlays the significant components for a squeeze, higher financing costs and unrealized losses, to their Crowded Score to identify shorted stocks with higher short-side volatility and identifies stocks that have the necessary conditions to be “squeezed”.

Squeeze Scores of 70-100 identify squeezable stocks, and scores over 90 have a significantly higher risk of a squeeze and the potential for the resulting buy-to-covers to pushing stock prices even higher, according to the companies website.

With Roaring Kitty back, does this mean meme stocks are about to blow up again based on hype and momentum again?

I’d love to hear your thoughts on this. Leave a comment down below.

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Also Read: South Korea Now Finds Banks Pursued Illegal Shorting Scheme

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Market News Today - GameStop Short Sellers Now Down A Whopping $1 Billion.
Market News Today – GameStop Short Sellers Now Down A Whopping $1 Billion.

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Scroll below to view my stock purchases this month!

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Frank Nez’s Stock Portfolio

Wondering which stocks Frank Nez is holding? Which stocks is Frank Nez buying?

Frank Nez is now sharing his exclusive and personal stock portfolio with readers, only on the Patreon.

11/16/2023 – Today I invested $1,000 in two different stocks for a brand new stock dividend portfolio I am creating for 2024.



South Korea Now Finds Banks Pursued Illegal Shorting Scheme

South Korea now finds banks pursued an illegal shorting scheme, uncovering a whopping $211.2 billion won ($156m), in manipulative trades.

South Korea’s financial watchdog said it has so far uncovered 211.2 billion won ($156 million) worth of illegal short trades by nine global investment banks, providing its latest formal update on a probe that began late last year, per Bloomberg.

The nine banks, whose names weren’t disclosed, violated mostly procedural rules while collectively shorting 164 stocks, according to a briefing given by the Financial Supervisory Service.

It is continuing to probe five other banks in the matter.

Two of the nine banks are already facing penalties imposed by the financial authorities and have been referred to prosecutors for further investigation for allegedly violating the nation’s capital markets law, Hahm Yong-il, senior deputy governor at the FSS, told reporters Friday.

The watchdog plans to review penalties on the other seven banks.

Activities of global banks and hedge funds have come under increased scrutiny in recent months in South Korea, as authorities boost steps to weed out naked short selling — a practice of selling shares without even borrowing them first.

While short selling remains legal in many markets, it is a contentious political issue in the emerging Asian nation, with its powerful retail investors often blaming it for stock declines, reports Bloomberg.

“The FSS found that the violation rate exceeded 20% in some cases, which suggests that illegal transactions have a big impact on a certain stock,” the financial regulator said in a statement earlier this year.

“It’s necessary to consider the impact of illegal short sales on an individual stock as such trades hinder fair pricing and increase short-term volatility,” it said.

Bloomberg reports the South Korea’s financial watchdogs derived the 20% figure by dividing the amount of violated orders on a certain stock by its daily trading value.

The FSS did not identify the equities that saw illegal trades and declined to say how frequently the trades exceeded that ratio.

In November, South Korea imposed a ban on short selling through mid-2024, a decision that drew big celebration from retail investors in the country.

Investors in the AMCMULNGTIIFNGR, and MMTLP communities are just a few of many who have been raising awareness of the malpractice happening in the U.S stock market via X.

Market News Today – South Korea Now Finds Banks Pursued Illegal Shorting Scheme.

Also Read: SEC Commissioner Now Says Securities Lending Facilitates Illegal Trading

Market News Published Daily 📰

Market News Today - South Korea Now Finds Banks Pursued Illegal Shorting Scheme.
Market News Today – South Korea Now Finds Banks Pursued Illegal Shorting Scheme.

Don’t forget to opt-in for push notifications so you don’t miss a single article!

Also, thank you to all of our blog sponsors.

This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.

Scroll below to view my stock purchases this month!

You can also follow me on X (Twitter)InstagramFacebook, or LinkedIn for daily news and updates on your favorite stories.


Frank Nez’s Stock Portfolio

Wondering which stocks Frank Nez is holding? Which stocks is Frank Nez buying?

Frank Nez is now sharing his exclusive and personal stock portfolio with readers, only on the Patreon.

11/16/2023 – Today I invested $1,000 in two different stocks for a brand new stock dividend portfolio I am creating for 2024.



Citi, Goldman, Extend AMC’s Covenant Waiver to 2024: What it Means

CEO Adam Aron said Citi, Goldman Sachs, and Credit Suisse have extended AMC’s covenant waiver to March 31st of 2024.

“This is a reflection of AMC’s recovery being well under way… a vote of confidence in AMC by our banks that we much welcome. Thank you Citi, Goldman, and Credit Suisse”, said AMC Entertainment (NYSE:AMC) CEO Adam Aron in January of 2023.

So, what exactly is a covenant waiver extension and what does this mean for AMC Entertainment?

What is a Covenant Waiver?

A covenant waiver is when a lender temporarily forgives a borrower’s breach of a loan covenant.

In AMC’s case, the lenders are Citi, Goldman Sachs, and Credit Suisse.

Debt covenants are restrictions that lenders (creditors, debt holders, investors) put on lending agreements to limit the actions of the borrower (debtor), AMC Entertainment.

In other words, debt covenants are agreements between a company (AMC) and its lenders (Citi, Goldman, Credit Suisse) that the company will operate within certain rules set by the lenders.

Should a borrower violate a covenant, such as not maintaining a certain interest coverage ratio or engaging in unpermitted business activities, it may constitute a loan default, per The Balance.

Financial Covenants Explained

Covenant requirements are conditions the borrower must regularly meet throughout the term to demonstrate their creditworthiness to the lender.

Lenders frequently use certain financial tests that serve as indicators of the borrower’s repayment ability.

Failure to meet these tests violates the covenant and constitutes loan default.

In AMC Entertainment’s case, lenders have waived, or forgiven AMC’s breach of contract, per their loan covenant and extended it to March 31st 2024.

What Does This Mean for AMC Entertainment?

AMC News Today.
AMC News today.

For AMC Entertainment, a covenant waiver will allow the business to run operations under its debt contracts with Citi, Goldman Sachs, and Credit Suisse until 2024.

If the company fails to meet its debt obligations, or financial covenant requirements, then the loans are subject to default.

This puts AMC Entertainment in a tricky position in terms of what they can and cannot do or say.

Which also explains why the CEO cannot raise awareness of the manipulative shorting of the company stock.

It’s very likely that speaking out on such topics may violate these covenant agreements.

Some retail investors have scrutinized Adam Aron for not speaking out on naked shorts like other CEO’s are doing today.

But this news may provide shareholders with more perspective on why that is.

Is AMC Entertainment Being Held Hostage by Lenders?

Citigroup currently holds call options representing 0 of underlying shares valued at $0 USD and put options representing 55,000 of underlying shares valued at $383,000 USD.

Source: Fintel.

The bank has been selling shares while playing put options in order to profit from the drops they’re triggering in the market.

On November 7th, 2022, Citigroup dropped AMC’s price target from $3.13 per share to $1.20 per share and used the media to promote the price target.

Just a month prior to Citi’s price hit, Credit Suisse said in October AMC shares are worth less than $1.

The banks are making their money which means it’s going to be up to the company and shareholders to prove the Wall Street short thesis wrong.

But I’m interested in hearing your thoughts.

Leave a comment down below.

Market News Published Daily

Market News Today - FrankNez News, Business News + more.
Market News Today – FrankNez News, Business News + more.

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Massive Banks Are Now Getting Fined For Illegal Short Selling

Two massive banks are now getting fined for illegal short selling (naked short selling), according to a new Bloomberg report.

South Korea regulators are seeking $7.67 million each from HSBC and BNP Bank for naked short selling, people familiar with the matter told media outlets.

The five-member commission led by Financial Services Commission (FSC) Vice Chairman Kim So-young discussed the fines during a meeting on Wednesday but could not reach a conclusion, the report said, adding that the final amount may change during discussions later.

Naked short-selling of stocks – in which an investor short sells shares without first borrowing them or determining they can be borrowed – unlike in the United States, is banned by the Capital Markets Act in South Korea.

“We are investigating financial companies involved in naked short-selling, but we cannot comment whether fines have been finalized,” an FSC official said.

Last month, South Korea reimposed a full ban on short-selling until the end of June 2024 to create a “level playing field” for retail and institutional investors.

In the United States, several petitions have been shared online in efforts to ban short selling as well.

Unfortunately, naked short selling in the U.S. continues to be a big problem.

In September, Citadel Securities was charged for illegal short selling violations by the SEC.

According to the SEC’s order, for a five-year period, it is estimated that Citadel Securities incorrectly marked millions of orders, inaccurately denoting that certain short sales were long sales and vice versa.

“Compliance with the order marking requirements of Reg SHO is a key component of regulatory efforts to curtail abusive market practices, including ‘naked’ short selling,” said Mark Cave, Associate Director of the SEC’s Division of Enforcement.

Share this article on X.

Also Read: “The Game is Rigged”, Says Ex-Citadel Data Scientist

Other Market News Today

Market News Today - Massive Banks Are Now Getting Fined For Illegal Short Selling.
Market News Today – Massive Banks Are Now Getting Fined For Illegal Short Selling.

A new company now seems to be targeted by naked shorts, at least that’s what a CEO and former AMEX Vice President are alleging.

Collective Audience (CAUD) stock has had a rather steady share price since 2021.

Shares of the advertising company rose to more than $27 per share on Wednesday, October 25th before getting halted and crashing to its current $1.20 levels.

CEO Brent Suen has since purchased 190,000 shares of CAUD stock but claims there seems to be a high probability of fraud at play here.

“NASDAQ halted trading on October 25 due to a non-qualified float below 500,000 shares.

However, on Nov 3 and 6 the float was still 61,000 shares and the price had fallen from $27 to $5.31 down 80%.

NASDAQ did not halt the stock during that time,” Suen told Frank Nez.

Collective Audiences’ partners are now on the radar as suspects, though an official investigation has yet to be announced by the company.

One scenario states that CAUD’s partners may have sold company shares at the top and began shorting the company as prices began to plunge, causing further devaluation.

The second scenario sheds light on the possibility of naked short selling.

The CEO has a strong concern that hedge funds may have collectively shorted the company ‘naked’ after the surge on October 25th.

Tony Forte, former Vice President of the Trading Analysis Division at AMEX reached out to Frank Nez to confirm irregularities in the trading of Collective Audience stock.

“Over the last few years I have closely followed the trading activity in LGIQ, prior to and after the spinoff of DataLogiq into the Arbi SPAC.

I strongly believe at least two thirds of the floating supply is held by shareholders who have no intention of selling any of their shares until CAUD is trading at much higher prices. That conclusion would reduce the current floating supply to under 1.2 million shares.

The substantial and continuous selling in CAUD appears to be the result of computerized trading based on sell side algorithms accompanied by short selling, most likely naked, by marketmakers and large investors,” Forte shared with Frank Nez.

“The computerized trading was particularly evident on December 7th:  At 10:10 am, the last sale in CAUD was 2.10.

From 10:10 through 10:15 the stock decline to 1.82, down 28 cents, on trading volume of 113,995 shares. During that five minute time span there were 576 trades.

Although the short activity, reported by FINRA, during the October 25 through December 11th period was only between 25-30% it would still indicate that 11-12 million shares were sold short.

In order for the algorithm computerized trading to show a profit in CAUD, which has a very small  float, there would have to be at least 4-5 firms utilizing that strategy. That raises the question of “working in concert”.”

CAUD stock is currently down more than -88% this year-to-date.

This is a developing story — for more updates on CAUD and other stocks, follow me on X: https://twitter.com/FNez_Blogger.

Also Read: MULN Stock: 5 Billion Shares in Illegal Scheme Now Confirmed

Market News Published Daily 📰

Market News Today - Massive Banks Are Now Getting Fined For Illegal Short Selling.
Market News Today – Massive Banks Are Now Getting Fined For Illegal Short Selling.

Don’t forget to opt-in for push notifications so you don’t miss a single article!

Also, thank you to all of our blog sponsors.

This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.

Scroll below to view my stock purchases this month!

You can also follow me on X (Twitter)InstagramFacebook, or LinkedIn for daily news and updates on your favorite stories.


Frank Nez’s Stock Portfolio

Wondering which stocks Frank Nez is holding? Which stocks is Frank Nez buying?

Frank Nez is now sharing his exclusive and personal stock portfolio with readers, only on the Patreon.

11/16/2023 – Today I invested $1,000 in two different stocks for a brand new stock dividend portfolio I am creating for 2024.



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