The SEC released Credit Suisse’s 6-K filing where the bank warns investors of potential losses due to naked short covering, more on that below.
Credit Suisse (CS) took a massive hit of $4.09 billion in Q3 and hints at occurring losses in an upturn in markets.
The bank recently called out AMC Entertainment predicting shares to fall to $0.95 despite the bank’s shares trading below the movie theatre chain company.
Now Credit Suisse is hiring 20 banks for a $4 billion injection in effort to pivot from Q3’s disaster.
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Related: Credit Suisse Clients Are Withdrawing Billions of Dollars (2023)
Credit Suisse Naked Short Covering
In this 6-K filing, Credit Suisse warns investors of potential losses due to the high possibility of naked short covering.
In a statement, the bank says, “Conversely, to the extent that we have sold assets that we do not own, or have net short positions, in any of those markets, an upturn in those markets could expose us to potentially significant losses as we attempt to cover our net short positions by acquiring assets in a rising market.“
“Market fluctuations, downturns and volatility can adversely affect the fair value of our positions and our results of operations.
Adverse market or economic conditions or trends have caused, and in the future may cause, a significant decline in our net revenues and profitability.”
The closing of naked shorts would send affected securities soaring as buying momentum compounds.
Heavily shorted stocks may squeeze in the process, but the results would be disastrous to short sellers.
I’m curious to know your thoughts.
Leave a comment down below.
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Read: Credit Suisse Shares Are Now Worth Less Than AMC
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Looking better for us longs today Friday, Nov 11.Looking good for Monday. Be ready for a SS or MOASS following sooner or later. JMHO. Yes Im still buying more AMC and APE.
They are about to have their come to Jesus moment! F..em!!
To me it looks like CS is giving its investors the heads up for what’s to come. MOASS
I think you have to be careful here …are they telling us their goal is to drive AMC to $0.95 in order for them to start covering at that price ? Is that possible? Thoughts?
I wish that would happen.Sounds to me that the Governing bodies care more about saving Hedge funds and they don’t care if we retail get screwed over. Somehow we need to fight back. I don’t know enough to know how to fight back. Just wrong what they allow
Hedge funds are fukkkkeeddd!!!! MOASS
Credit Suisse should have been shut down by SEC/DOJ (along with other firms selling fake shares – naked shorting) a long time ago for multiple crimes such as fraud. They have a sell rating on BA despite a very positive investors day at Boeing. It appears BA is another stock they are naked shorting – and now losing their shirt on the short.
The way I read the article it appears that they are not concerned with screwing retail , just a slong as the shorts don’t get wiped out.
Pretty screwed up to me.
So , APE or AMC SQUEEZE first in your opinion Frank?
Document dated 27th march 2020 lol
Updates are from 2022
It seems they will “have” to cover soon and this will start the feeding frenzy between all hedge funds that are short AMC and our shares will soar!
🚀🚀🚀
Let’s start a discussion! Leave your thoughts below.
That’s the risk the shorts took.to bad for them .lol