S3 Partners CEO Bob Sloan said in an interview with Yahoo Finance that if GME stock goes above $30, “you could see something parabolic”.
Yahoo Finance asks the CEO if there is enough short activity or short volume in GameStop’s float to cause something at scale like what we saw in the beginning of 2021.
Bob Sloan says that if you look at GME, there is still one to two billion short on the stock.
He then warns that if the stock goes past $30, it’s very likely we see some massive upside.
$GME is trading 9.56% higher following a statement from @S3Partners CEO Bob Sloan that if the stock goes above $30, ‘you could see something parabolic.' pic.twitter.com/mfzdAHZ1ax
S3 Partners CEO Bob Sloan says there’s a great probability of GME Stock going parabolic if it hits $30 per share due to the massive amount of short activity currently present.
S3 Partners provides data and predictive analytics.
The company also provides accurate and real-time short interest; logging how much is being borrowed or loaned in a float.
The high short interest in GameStop is what caused GME stock to skyrocket in late January of 2021.
Short sellers were forced to close their positions in GME stock when retail investors were able to push the stock price up as a collective.
The short covering further fueled the momentum and GameStop shares flew to nearly $400 per share.
AMC Entertainment had a similar occurrence when shares jumped from $2 per share to $20 per share.
In June, AMC rose again from $14 per share to its current all-time high of $72 per share.
Retail investors holding both stocks have been buying and holding for over a year now, anticipating even larger moves.
Primarily because the market sentiment during this time will be sending share prices upward.
Shorts will have to close to their positions to profit from this bear market, or face riskier bets on the way up.
So, while the GME stock split is bullish in nature, stocks are being kept in line due to the bearish course of the markets in general.
2. Gamma prior to approval of stock split/dividend
GameStop’s stock split/dividend still has to be approved by the board and shareholders.
The game retailer merely announced the move; however, it must undergo the approval process.
You can bet short sellers will be on a ticking time bomb before this process goes into full effect.
You see, the lender is going to want their dividend.
If you short sellers don’t want to pay this dividend to the lender, they’ll have to return the shares they borrowed in the first place.
This is where we can expect to see big gamma occur prior to GME’s stock split becoming official.
What will happen if shorts don’t deliver borrowed shares before stock split?
If GameStop’s price surges, shorts will accrue greater losses and the lender will still require shorts to pay back that dividend.
Any dilution from a stock split won’t necessarily affect short sellers, but if a dividend is approved then shorts will have to pay that dividend to the lender.
The issue of a stock split/dividend has often been seen as bullish.
Shorts betting on this play could be exposing themselves to very big risks.
Will a GME stock split or dividend expose naked shares?
There’s this concept floating around that a GME stock split or dividend yield will expose many more shares are circulating the market than there are in existence.
I can’t speak too much on this, but I would love to know your thoughts on this below.
It’s an interesting concept that would essentially unveil millions to billions of synthetic shares.
The premise behind this concept is to expose the shares and get short sellers to close every single share, resulting in a GameStop MOASS (mother of all short squeezes).
Leave your thoughts in the comment section of the blog.
What will this move mean for shareholders?
GameStop shareholders will be able to vote on this GME stock split/dividend.
A stock split will dilute the float providing shareholders with more GME stock shares at a lower price.
An approved divided will yield quarterly or yearly compensation for holding the stock.
It’s extremely bullish if you’re a shareholder and believe in the company’s long-term vision.
The company is evolving into a tech company with its ecommerce foundation and use of blockchain technology, which we will see more of in the metaverse without a doubt.
GameStop is adapting to the use of new technology for the future of gaming and I’m excited to see this space evolve.
GameStop saw a massive price jump after hours following the news of the company starting an NFT marketplace.
Community members suspect the price jump was due to FTDs that are finally being exercised.
So, what caused GameStop to have these price fluctuations after hours?
Be sure to leave a comment at the end of the article.
Welcome to Franknez.com – GameStop’s bullish news on its new NFT marketplace doesn’t have shareholders content. Retail investors expect larger upswings in the coming weeks.
Let’s get started!
GameStop is investing tens of millions of dollars in crypto-related companies that will allow them to develop games with blockchain technology, via ARS Technica.
It seems GameStop is joining AMC Entertainment getting involved in the crypto space, which in my opinion is a great way to take these two companies to the next level.
As the crypto space continues to puzzle traditional investors, GameStop, along with AMC Entertainment, have a chance at becoming extremely valuable in the long-term process of their growth.
GameStop NFT Marketplace
GameStop NFT Marketplace
The news of GameStop’s NFT marketplace is not new, in fact it’s been mentioned since May of 2021.
However, it was only a teaser per say as the company was looking for engineers at the time to make this project a reality.
GameStop has now brought on 20 new hires to develop the NFT marketplace, where people can sell and trade NFTs and virtual in-game items, via Kotaku.
WAX is an energy-efficient, ultra-low carbon footprint blockchain and the first certified carbon neutral, meaning it’s eco-friendly.
WAX is also the world’s leading blockchain, processing 15 million transactions daily.
AMC CEO, Adam Aron has thrown hints of reaching out to GameStop to see how they could collaborate in the future.
No official news of a collaboration has been published yet but with both companies going into the crypto space, this could be exactly what shareholders have been waiting for.
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And if you can’t tell from my excitement in this video, the news of such collaboration would be bullish for both AMC and GameStop.
Leave your thoughts below.