Tag: GameStop Short Squeeze (Page 1 of 2)

GameStop 4-1 Stock Split Makes Buying It More Affordable

GameStop 4-1 Stock Split
Market News: GameStop announces 4-1 stock split

GameStop just approved a 4-1 stock split.

The proposal was on the table for months, but Dow Jones Newswire has officially confirmed it.

Shareholders have been waiting for this fundamental catalyst in hopes of scaring short sellers and finally creating a proper GME short squeeze.

But this is more than just a short squeeze catalyst.

If you’re a true believer of the company and in the innovation and future of where it’s going in the NFT space, now is the perfect time to look into owning a piece of the company.

It’s about to get pretty damn affordable.

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GameStop announces 4-1 stock split

GME 4-1 stock split explained
GME 4-1 stock split explained

GameStop Corp. on Wednesday said its board approved and declared a four-for-one split.

It’s the first time GameStop has split the stock since 2007 making it the second time in history it happened.

GameStop had done a 2-1 stock split thirteen years ago.

So, what does a 4-1 stock split even mean?

It means that current GME shareholders will receive 4 shares of GME stock for every one share they currently hold.

If you’re holding 1 share of GameStop in your stock portfolio, you will receive 4 shares of GME stock.

Shareholders with 1,000 shares of GME stock will receive 4,000 shares.

However, this does not mean GameStop’s share price will quadruple in the process.

On the contrary, GameStop’s current share price will be divided by four.

The stock closed at $117.43 on Wednesday and has jumped more than 8% after hours.

What will GameStop shares be worth after the stock split?

Based on Wednesday’s number figure, GME stock will be worth approximately $29.35 after the split, making the stock much more affordable for the public to invest in.

GameStop stock split date

GameStop 4-1 Stock Split

Investors who purchase GME stock before July 18 will receive the additional shares in GameStop’s 4-1 stock split.

Some investors might wonder, why is GameStop splitting its stock?

Often times when a stock’s share price has reached high levels, a company will issue a stock split to make it more affordable for the public to purchase.

We’ve seen this happen with Tesla (TSLA) and Apple (AAPL) in the past.

Amazon recently had a 20-1 stock split, making it extremely affordable to add AMZN stock to your portfolio.

Stock splits are a common way to attract more investors towards a growing company.

Are you a GME shareholder?

How many shares of GME stock will you own after the stock split?

Or are you a curious investor who is thinking of buying GME after the stock splits at a much more affordable price?

And lastly, will GameStop’s 4-1 stock split be a catalyst to finally squeeze short sellers from their positions?

I’d love to hear your thoughts.

Leave a comment down below.

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Citadel Pushes Back on Possible SEC PFOF Ban

SEC PFOF Ban
Market News: SEC PFOF Ban threatens corrupt institutions

The SEC is addressing the possibility of banning PFOF (payment for order flow).

Citadel and other institutions are speaking out.

Gary Gensler said there may be a conflict of interest for brokers and that too much power is concentrated in a handful of market makers.

The SEC Chairman could be re-routing retail investors into an automated system that would provide a deep pool of liquidity.

If this goes through, it will be historic.

Let’s discuss it.

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SEC Payment For Order Flow ban

SEC PFOF Ban

Gary Gensler will be speaking on Wednesday in regard to best execution for market orders.

The SEC has been under heavy scrutiny by retail investors as the agency has not made any progress to level the playfield.

The government branch that’s supposed to protect retail investors has even gone as far as taunting investors for buying ‘meme stocks’ recently.

But industry participants have quietly been saying that Gensler will likely use a speech at the Piper Sandler Global Exchange Conference on Wednesday to float several proposals.

These may include best execution and payment for order flow according to CNBC.

Last year during the ‘meme stock’ frenzy, Citadel processed retail’s orders through Robinhood.

Citadel paid Robinhood to give them those orders (PFOF).

However, retail investors don’t want their orders going to Citadel since the market maker/hedge fund/dark pool are short on ‘meme stocks’.

90%-95% of retail’s orders are not processed though the lit exchange.

Citadel takes these orders and trades them at a bargain through foreign exchanges.

Although PFOF is an expense to them, they make a lot more money processing the orders.

If the SEC PFOF ban goes through, orders would not be processed by Virtu or Citadel.

Citadel fights back

A spokesperson for Citadel Securities released the following statement to CNBC:

“It is important to recognize that the current market structure has resulted in tighter spreads, greater transparency, and meaningfully reduced costs for retail investors. We look forward to reviewing the proposals and working with the SEC and the industry towards our longstanding objective of further improving competition and transparency.”

“You need to be very deliberate on that approach,” Ken Bentsen, president and CEO of the Securities Industry and Financial Markets Association (SIFMA) said.

“We have been calling for a review of market structure for some time, but let’s be careful not to try to fix things that may not be broken,” he said. “The retail investor is getting a better deal than they ever have.”

Would you pay small trading fee if it meant Citadel and Virtu no longer reroute your orders to benefit their pockets?

Leave a comment below.

The statement alone that retail is getting a better deal than ever before is such a dishonest thing to spew.

These institutions have been taking retail’s money, using it against them, all while taking no accountability for their actions.

It’s not clear yet whether the SEC PFOF ban will go through or not.

It is certainly something worth discussing though, don’t you think?

Leave your thoughts below.

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Is RDBX Stock a Short Squeeze Play?

RDBX Short Squeeze
RDBX Short Squeeze

Redbox (RDBX) stock has been gaining a lot of attention on Reddit recently.

The stock’s short interest data has exploded in only a months’ time.

This article is for educational purposes only and is not considered to be financial advice.

I’m going to break down what’s going on with RDBX stock down below.

Let’s get started.

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RDBX short interest data

RDBX Short Interest
RDBX Short Interest

Redbox stock is heavily shorted.

Like, very heavily shorted.

RDBX stock jumped from a 30% short interest to its current 162.44% in just a little over a month.

The cost to borrow is at 571.05 and utilization is at 100 meaning every share available is out on loan.

Redbox has a small float of 8.83 million, and with an extremely high SI of 162.44% short sellers are overleveraged.

The short interest data is what allowed retail investors to predict GameStop and AMC would have massive runups.

Last year GameStop saw gains upwards of 1,500% while AMC saw gains over 3,000%.

Is RDBX stock a short squeeze play?

Very much, but it’s going to need momentum to squeeze shorts from their positions.

Will RDBX stock squeeze?

RDBX stock will need heavy buying pressure to squeeze short sellers from their positions.

We saw that heavy buying pressure played a very big role in squeezing some shorts from both AMC and GameStop last year.

Redbox stock already has the overleveraged position perfect for a short squeeze, now the short squeeze play needs momentum from retail.

Enough buying pressure (high volume) would drive RDBX stock’s price up which could cause short sellers to panic and close their short positions.

It’s this same strategy that drove AMC and GameStop to all-time highs last year.

And although AMC and GameStop aren’t done running, RDBX stock has enough short interest to initiate the first wave.

How soon will RDBX stock squeeze?

It’s highly likely RDBX stock will squeeze as more retail investors discover its short interest data.

But investors beware.

Last year SPRT stock had an insane short interest as well but merged with Greenidge eliminating the short interest data and leaving investors holding the bag.

Keep a lookout for Redbox news and updates.

If you would like me to touch more on RDBX stock leave a comment below so I know there’s interest in this stock.

I presented AMC’s short interest data for many months prior to its runup to $72 per share, it’s possible we have something going on here.

How high will Redbox stock go?

how high will redbox stock go

It’s difficult to identify how high a Redbox short squeeze will go.

But like any short squeeze, we can expect the price to shoot up thousands in gains.

AMC saw gains over 3,000% last year and GME stock saw gains up to 1,500%.

Plugging in these percentages with Redbox’s current share price would put RDBX stock anywhere between $95.85 to $191.70 per share.

A RDBX short squeeze could be less or higher, but one thing is certain.

Redbox is a short squeeze play due to how high the short interest data is.

I’m curious to know your thoughts on this.

Are you holding RDBX stock?

Leave a comment below.

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Related: Redbox Short Interest Data Updated Daily Here

These Two Signs Will Tell You a Short Squeeze is Over

These two signs will tell you a short squeeze is over
Keep an eye out on these two things.

How will we know when a short squeeze is over?

There’s going to be signs traders will want to keep an eye out for.

In this article, I’m going to be going over them in detail and will be using AMC and GameStop as examples.

Be sure to read to the end so you don’t miss a thing.

Let’s get started.

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#1. Short interest

short interest

The short interest of a stock shows us the percent of a company’s float that is being shorted.

The reason AMC and GameStop were able to see price surges last year is because a small percent of short sellers closed out their positions in these stocks.

AMC’s short interest dropped from 20% to 14% when it had skyrocketed to $72 per share last year.

Today, AMC’s short interest is: 22.05%

GameStop’s current short interest is: 24.99%

You will know a short squeeze is over when there is no more short interest in an underlying stock.

You cannot have a short squeeze play if there is no short interest.

For example, HYMC stock’s short interest had surged prior to AMC’s acquisition.

The stock’s price surged and days later we saw the short interest plummet, and it continues to plummet.

HYMC’s short interest today is: 2.85%

A short squeeze for HYMC seems unlikely at this low of a percentage – there are simply not enough short sellers to squeeze and create a big price runup.

SI goes up and goes down

If HYMC’s SI was to surge, then it increases the possibility to squeeze shorts at a high enough short interest percentage.

However, it’s important to look at how short interest moves.

I update AMC’s, GameStop’s, HYMC’s and many other stocks’ short interest daily here.

If HYMC’s short interest keeps going down, don’t expect a short squeeze from Hycroft any time soon.

Hypothetically speaking, if AMC or GameStop’s short interest drops by 5%, then you know there’s still ‘squeeze’ juice, leaving AMC and GME at 17% and 19%, respectively.

Keep an eye on the short interest, it’s important to identify how many shorts are still in the game as AMC and GME begin to move up again.

#2. Utilization falls

AMC’s and GameStop’s current utilization are both at 100.

The utilization is the number of all outstanding loans available for lending.

You will know a short squeeze is over when AMC’s or GameStop’s utilization falls extremely low, when there are almost no shares available to loan.

For example, Ford (F) has a utilization of 1.14.

Apple (AAPL) has a utilization of 0.06 and Tesla (TSLA) has a utilization of 3.76.

The utilization tells us how much lending is happening in a security to short it.

And as long as AMC and GameStop are being heavily shorted, both are a short squeeze play.

Keep an eye out on the utilization, updated every trading-day here.

I hope this article was easy to digest and the information was straight to the point.

Have any questions, thoughts, or opinions?

Leave a comment below.

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Related: AMC's Shares on Loan Are at An All-Time High

Ken Griffin Attacks: “Pension Plans Destroyed by Retail Investors”

Ken Griffin on Retail Investors
Market News: Ken Griffin on retail investors

Ken Griffin accused the retail community of destroying teacher’s pension plans by taking down Gabe Plotkin’s Melvin Capital.

Melvin Capital is a hedge fund that was short on ‘meme stocks’ holding a large position in GameStop.

The company is scheduled to shut down in June after it had suffered a 50% loss in 2021, and an additional 20.6% in the first quarter of 2022.

Sources say Melvin Capital has already begun to liquidate its positions to pay back investors in cash.

In this Bloomberg exclusive, Ken Griffin plays a role of the victim, defending Mr. Plotkin and the hedge fund whose mission it was to bankrupt GameStop.

Ken Griffin’s Citadel is also short on AMC Entertainment – the hedge fund lost billions last year betting against retail.

Let’s discuss it.

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CNBC mourns the loss of Melvin Capital

CNBC says Melvin was one of the biggest victims from the meme stock frenzy last year due to its large short position in GameStop.

They say Citadel and Point72 had to provide Melvin Capital with a lifeline to stay above the water.

The hedge funds combined provided Gabe Plotkin with $2.75 billion in capital last year.

However, as things went south quick for Melvin, both hedge funds demanded the capital back.

Something Ken Griffin and his affiliates fail to mention.

Mainstream media has also danced around the fact that hedge funds planned to wipe American companies by overleveraging their short positions during the pandemic.

Success in doing so would delist AMC, GameStop, and other meme stocks from the stock market.

Betting against companies with intention to bankrupt them to the ground is no charity work.

It’s un-American and a nefarious practice that has dragged out for too long.

Ken Griffin blames retail investors

In the video below, Ken Griffin gives his thoughts on retail investors and the entire ‘meme stock’ phenomena.

Ken Griffin takes a jab at the retail community saying retail investors who aimed to bankrupt Melvin Capital also wiped-out pension funds from teachers.

But Ken, retail investors don’t get up in the morning and think to themselves, “let’s wipe out a multi-billion-dollar hedge fund.”

Melvin Capital lost because he went against retail – the first time in history the people fight back corruption in the stock market, and win.

Ken Griffin lost billions shorting AMC stock, the retail community is currently his biggest adversary.

AMC shareholders continue to buy and hold the stock until short sellers exit their positions, which will result in a short squeeze.

Today’s retail investors are armed with education, they understand what they hold and what it’s doing to hedge funds.

While Ken Griffin and affiliates might be pumping a narrative as victims, high profiles such as Elon Musk, Jon Stewart, and Ryan Cohen have stood up against short sellers.

For the first time in history, Wall Street is getting their a** kicked, and these hedge fund managers certainly do not like that.

Hedge funds should prepare for bigger losses

Institutions are about to lose a massive amount of collateral due to executive order 14032 in early June.

This presidential order is prohibiting Chinese securities to be used as collateral starting June 2nd, 2022.

It was responsible for initiating margin calls when AMC Entertainment stock rose to $20 per share in January, and $72 per share in June of last year.

With liquidity drying up in global markets, it’s going to be quite difficult for hedge funds to keep up with margin requirements on heavily shorted ‘meme stocks’.

Massive selloffs in the market have proved just how distressed financial institutions are.

We’re seeing for the first-time hedge funds begin to shut down as they take the lead in liquidity burn.

Retail investors have been the majority of buyers in today’s markets according to Bank of America.

Hedge funds are headed towards a larger train-wreck of disaster they cannot get off of.

As they continue to tank the markets, margin requirements go up thanks to DTCC B16845-22.

Hedge funds have lost control.

But I’m curious to know what you think.

Leave your thoughts in the comment section of the blog below.

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Will GME Stock Split Force a Short Squeeze?

GME Stock Split

GameStop announced a GME stock split late March which should have received more attention than it did.

GME stock surged afterhours when the announcement was made public but failed to maintain its momentum as we’ve seen in the weeks since.

What will this split/dividend mean for shareholders and short sellers alike?

Let’s break it down together.

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GameStop announces stock split in form of dividend

GameStop stock split dividend

Let’s discuss what a GME stock split in the form of a dividend would mean for both shareholders and short sellers.

When GameStop first announced the stock split/dividend news, I published an article breaking down how a stock split and dividend essentially work.

You can read the article here for a more in-depth description on the two.

But no matter how you take it, one thing is certain.

The borrower of the stock is responsible for paying any dividends to the lenders.

Here’s what we can see happen before the split/dividend.

1. Continuous shorting in GME stock

I don’t expect short sellers to ease off shorting GME stock prior to a stock split or dividend.

Afterall, we are in a bear market.

So, the market sentiment overall continues to be on a downtrend.

In a recent article titled, “How close are AMC and GameStop to squeezing?“, I explain how a bull market will trigger massive price action in both these stocks.

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.

GameStop and Loopring just launched their beta NFT marketplace last month.

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.

I’d love to hear your thoughts.

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GameStop Announces Stock Split in Form of Dividend

GameStop Dividend
GME Stock Dividend – GME Stock Split – GameStop announces dividend and stock split

GameStop is planning a stock split in the form of a dividend, but shareholders will have to approve this plan at the upcoming 2022 annual meeting.

The game retailer filed a form 8-K with the SEC laying out the plans for this stock split and dividend.

The news has the retail community cheering on the plan but leaves curious investors with a few questions.

Be sure to bookmark this page for updates.

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How will a GameStop Dividend work?

GameStop Dividend
Source

GameStop plans to increase the number of authorized shares of Class A common stock from 300,000,000 to 1,000,000,000 in order to implement a stock split of the Company’s Class A common stock in the form of a stock dividend.

The stock soared more than 14% after hours moments after the announcement.

Several call options within $170-$190 are in the pocket to fuel massive gamma squeeze for Friday’s rally.

To say GME shareholders are excited is an understatement.

But GameStop shareholders aren’t the only ones who are excited.

The entire ‘meme stock’ crowd is happy to hear the news as most upswings have been in synchronicity with both GameStop and AMC.

GME stock is up more than 16% after hours while AMC which also closed red today is up more than 5%.

What type of dividend GameStop unveils is yet unknown, but a dividend usually comes in the form of monthly, quarterly, or annual compensation.

Investors are even speculating an NFT dividend could be underway.

However, this is a developing story so be sure to join the newsletter for immediate updates.

How does a stock dividend work?

GameStop dividend

Stock dividends pay shareholders a percentage from a company’s profits every month, every quarter, or annually, depending on the terms.

Shareholder will have two options when receiving stock dividends.

  1. Cash out the dividend during every payment cycle
  2. Reinvest the dividend back into the stock to accumulate more shares over time

If GameStop offers shareholders a traditional dividend (non-NFT), then shareholders will be able to use one of these two options.

How much investors earn every month, or every quarter will depend on how many shares an investor holds and on GameStop’s dividend yield.

The more shares of a company an investor holds means the more dividend yield is accumulated over a period of time.

A GameStop dividend could provide shareholders with a stream of passive income like most dividend stocks do.

Long terms stockholders tend to reinvest that dividend so that the number of shares they own compound over time, creating a snowball effect of increased value assets.

This is what Warren Buffett refers to as value investing.

So, how does a stock split work?

GameStop Stock Split

A stock split takes a share and splits it into two or more shares, dividing the share price by the number of splits.

For example, Amazon just announced a 20-1 stock split.

This means for every share you own of AMZN stock you will receive 20 more shares when the stock splits.

AMZN stock is worth roughly $3,200 today.

If the stock split today and you only owned 1 share of stock, you will now have 20 shares each worth $160.

Owning 2 shares of AMZN stock would give you 40 shares valued at $160.

Tesla and Apple had stock splits earlier last year too.

GameStop’s stock split ratio is still unknown, but I will cover it as more information from the company is released.

What is the purpose of a stock split?

A stock split allows investors to purchase a company’s stock at much more affordable price.

Especially after a stock’s share price has surged to relatively high numbers.

Going back to Amazon as an example, while $3,200 per share is not feasible for most small investors, $160 per share incentivizes retail investors to buy the stock at a much lower entry point.

A GameStop stock split too could allow retail investors to buy the stock at a much lower price.

GameStop stock split explained

The company wants to increase the number of common stocks in the market from 300,000,000 to 1,000,000,000 to provide that capital to its shareholders in the form of a dividend.

So, it’s possible we don’t even see a traditional stock split (unless announced by GameStop).

The information we have available at the moment points towards this ‘dilution’ so-to-speak as a form of payment to GameStop’s shareholders in the form of a GameStop dividend.

GameStop’s board of directors has approved both stockholder proposals, but the stock dividend will be contingent (subject to change) on the final Board approval.

What does a GME stock dividend mean for short sellers?

The news of a GME stock dividend means retail investors will flood the market to buy GameStop, causing short sellers not only lose a lot of money, but to close their positions.

What happens to a short seller when a company announces a stock dividend?

If the stock is short on the record date, they will owe the dividend to their broker.

At this point a GameStop short squeeze is inevitable.

Shorts will be forced to buy back their shares to pay their brokers the dividend they’re entitled to once this proposal is executed, or they have the chance to close their short positions now before accumulating greater losses in the future.

Either way this plays out, short sellers are not in a good position right now.

Is GameStop a buy right now?

franknez.com

GameStop might be a little pricey at the moment, but investors buying in for a short squeeze have a chance at making a lot of money in the near-term future.

Are you a GME shareholder?

Leave a comment below and don’t forget to join the newsletter for updates.

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AMC Falls After Trading Halt: Was This Illegal?

AMC Falls After Trading Halt: Was This Illegal?
Trading halts cause AMC stock to fall more than 11%

AMC falls more than 8% the day after market makers halted trading, though the SEC has the power to halt trading as well.

The theatre chain stock had risen to more than $34 per share shortly after the market opened.

But a trading halt seized retail momentum causing the stock to plummet.

Coincidentally, GameStop was also halted as the game retailer soared to almost $200 per share.

Was this illegal? And should it be illegal?

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Who can halt trades?

who can halt stock trades
Who can halt stock trades?

Market makers, exchanges, and the SEC can halt trades.

As AMC falls, retail investors continue to ask why this ongoing manipulation in the market continues.

The question is who halted the trade of AMC and GME stock?

Prior to a halt, individual exchanges typically make an announcement alerting investors and keeping them informed.

Shareholders did not receive an alert.

So, did the SEC halt trading or was it market makers?

Most retail investors wouldn’t be surprised if it was both as the SEC Chairman Gary Gensler has not addressed retail’s concern.

The SEC has failed to address retail investors’ issues and has neglected to enforce proper measures against short seller market manipulation.

What is the purpose of halting trades?

The purpose of halting trades is to refrain investors from having a massive selloff, or in ‘meme stocks’ case, to refrain the stock from squeezing shorts from their positions.

Our financial system is in a great state of emergency at the moment.

And retail investors have created a disruption for just about every corrupt player in the game that feeds off of the small investor.

So, what can retail investors do about this manipulation in the market?

Retail investors must persistently raise awareness about the issues the community is facing.

The moment retail stops fighting for a fair market is the moment greed driven politicians and institutions win.

With enough energy and time, more and more people will begin to wake up to the truth.

Related: How do hedge funds manipulate the stock market?

Will these halts have a long-term effect?

AMC’s and GameStop’s trading halt might have slowed down the process of squeezing shorts, but only for a moment.

See, the data hasn’t changed despite the market manipulation.

And it’s true, the longer short sellers drag this momentum play the bigger the event will be.

That’s because the number of shares being loaned have reached an all-time high and they continue to multiply.

This applies to GameStop too.

Eventually they’ll have to buy these borrowed shares back.

How long will that take?

That will depend on how long they can afford to hold their positions since they pay a fee to short both AMC and GME stock.

Be sure to check out this article here for more on what will trigger AMC to squeeze plus data, chart analysis, and patterns.

Days to cover is going down

I want to share this chart with you really quick.

The grey line going up shows short sellers have more shares now to cover than they did back in January and May/June of 2021.

This instantly tells us AMC’s next runup is going to surpass that of May/June’s all-time high.

The purple line shows us the ‘days to cover’.

Every time AMC’s DTC went down, we experienced new ATHs.

We can see in the chart that the days to cover is coming down again.

As Trey says, this is not a dead cat.

Expect AMC’s next runup to be more violent than June’s runup last year.

Will this be MOASS?

You’ll have to keep an eye out on the short interest data to identify how much percentage goes down during the climb.

This will give us a rough estimate of how many short sellers are left in the play.

And as AMC falls today, keep in mind that the entire market is also falling.

Big price moves are coming for AMC, be prepared.

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GameStop Fires Firm Connected to Citadel (BCG)

GameStop BCG
Market News: GameStop fires BCG – GameStop Sued by BCG – GameStop BCG Lawsuit Reddit

GameStop let go of Boston Consulting Group (BCG) and the firm is now suing the retailer for $30 million in ‘unpaid’ fees.

BCG is now part of a scandal in a conflict of interest due to its connection to hedge fund and short seller Citadel.

GameStop said: “We do not believe it is in our stockholders’ best interests to pay the tens of millions of dollars sought by BCG, especially given their seemingly meagre impact on the company’s bottom line. We will fight this suit and are proud that GameStop no longer utilizes the likes of BCG for any services.”

BCG declined to comment.

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Chairman Ryan Cohen takes a jab at BCG

Chewy Founder and GameStop Chairman said on Twitter “the overpriced consultants at BCG are picking a fight with the wrong company.”

He later tweeted the following: “The only ones more useless than overpriced consultants are the ones that hire them”, referring to Citadel’s ex-BCG employees.

That’s right, numerous consultants over at BCG were later hired by Citadel.

Retail investors are flooding @BCG on Twitter for infiltrating GameStop under the old board before Cohen came in.

BCG was hired to bring GameStop out of its ‘slump’ when it was struggling, according to the lawsuit.

The consulting group says it spent “tens of thousands of hours” on the project and “overachieved” by creating more profit improvement opportunities.

“It is confounding that the high-priced consultants at BCG claim to have delivered hundreds of millions in value for GameStop during a period when share price, sales and debt were at perilous levels,” GameStop said in an emailed statement. 

GameStop said it’s “proud” it no longer uses the consulting group’s services. 

Was GameStop infiltrated by BCG?

It’s incredible how these consultants seamlessly ended up at GameStop only to join Citadel afterwards.

For starters, GameStop’s Vice President and head of Corporate Strategy & Analytics Jackson Speake was a consultant and project leader at BCG before joining the game retailer.

He also worked a Bain & Company, a company that would acquire failing businesses such as Toys R Us, and ‘bust them out’.

Except they wouldn’t bust them out, they would buy the companies using the struggling companies own credit.

This scheme is known as a Leveraged Buy Out (LBO).

Once Bain had control of the businesses, they would bring on their own board members and executives.

These executives would then pay themselves large bonuses prior to defaulting the business.

Hedge funds such as Citadel would then drive the company down to zero and keep all the money they made from short selling the stock.

Was this ring of manipulators attempting to take GameStop down?

Let’s dive deeper.

Citadel employees with BCG backgrounds

A few years ago, BCG was retained by the SEC due to concerns relating to organizational chain of command, the effect of high frequency trading, hiring and personnel practices, and oversight and reliance on self-regulatory organizations.

You can read the testimony here.

Retail activists did some research and found a variety of Citadel employees have ties to BCG.

BCG Citadel Connection
GameStop BCG Reddit Citadel Connection

One member even shows to work for both parties.

But GameStop is no longer doing business with BCG.

Retail investors are convinced there was an infiltration to bankrupt GameStop from the inside out.

What do you think?

Or is this all just one massive coincidence?

Leave your thoughts below.

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Official: GameStop and Loopring Launch Beta NFT Marketplace

GameStop Loopring Partnership - GameStop Beta NFT Marketplace
GameStop Loopring partnership – GameStop Beta NFT Marketplace

GameStop and Loopring just launched the beta version of GameStop’s upcoming NFT marketplace.

Loopring’s (LRC) token price jumped up +34% on the announcement to $1.14.

GameStop is currently catching momentum, closing at $140 today.

If you’re a GameStop shareholder, things are about to get a lot more exciting.

Let’s break it down together.

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GameStop’s NFT Marketplace gets powered by Loopring

GameStop Loopring Partnership
GameStop Loopring Partnership

For GameStop to move its services to global digital economies it’s going to need the help of both Immutable X and Loopring.

Immutable X is essentially the foundation to GameStop’s NFT marketplace.

Loopring on the other hand focuses on scalability, application delivery, and secure exchanges of payment.

Combined, GameStop has a powerhouse for the future of blockchain gaming.

Users can now access GameStop’s beta NFT marketplace and begin setting up their online profiles.

The first step towards connecting your account with GameStop’s beta NFT marketplace is to connect your wallet.

GameStop and Loopring are still configuring a browser extension that will allow other popular wallets to connect to the platform.

My guess is this will be available for users once GameStop’s NFT marketplace launches in its complete form.

GameStop surges 14.50%, Loopring 40%

Loopring Coinbase
Buy Loopring (LRC) with Coinbase

Today GameStop (GME) surged 14.50% after a 30% runup on Tuesday.

The price surge on Tuesday caused short sellers to lose almost half a billion dollars!

GME stock has dropped almost 4% afterhours while Loopring is up more than 40% in the last 24 hours.

GameStop and Loopring reach a new milestone as they embark on a new journey in the global digital economy.

As GameStop continues to transform itself into a tech company, we can expect GME’s stock price to rise in the future.

Are you holding GME stock?

How do you feel about its current bullish wave?

I’d love to hear your thoughts in the comment section below.

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