“If you can afford to hold the stock, you hold. I don’t own it, but that’s what I would do.
Why? because when RH and the other online brokers open it back up to buyers, then we will see what WSB is really made of. That is when you get to make it all work.
I have no doubt that there are funds and big players that have shorted this stock again thinking they are smarter than everyone on WSB.
I know you are going to hate to hear this, but the lower it goes, the more powerful WSB can be stepping up to buy the stock again. The only question is what broker do you use. Do you stay with RH, who is going to have the same liquidity problems over and over again, or do you as a group find a broker with a far, far, far better balance sheet that won’t cut you off and then go ham on Wall Street.”
Now, although Yahoo Finance listed both AMC and GameStop tied to Mark Cuban’s stock portfolio, he said in the AMA that he does not own them.
Mark Cuban and Elon Musk have been two billionaires that have blatantly spoken out against the SEC.
Since its inception, the SEC has sworn to protect retail investors but has only proven to be complicit to market injustices.
An out of touch Gary Gensler has made it rather clear that keeping his job is more important than actually enforcing the law.
Here’s what Mark Cuban had to say about the SEC:
“The SEC is a mess. I wouldn’t trust them to do the right thing ever. It’s an agency built by and for lawyers to be lawyers and win cases rather than do the right thing
If the SEC gave a shit about ANYONE other than Wall Street you would be able to go there right now and read bright line guidelines about insider trading, shorting, what is a pump and dump, what are the rules for cutting off the purchase of stocks like happened with GME et al
But they won’t. They would rather litigate to regulate, which means they love to sue people in order to create new legal precedents.
All you need to know about the SEC and how badly they want to fuck the little guy is that they have the option of using JUDGES THAT WORK FOR THE SEC when they sue you rather than you have the option to have jury of your peers in front of a judge that is independent. Thats how bad the SEC is. If you want fair markets that doesn’t benefit Wall Street call your local politician and show them this.”
Stock Market News: Carl Icahn is short on GameStop shares.
Billionaire investor Carl Icahn began shorting GameStop during the height of the ‘meme stock’ frenzy around January of 2021.
Carl Icahn still holds a large short position in GME stock, according to people familiar with the matter.
Icahn started building the short position when GameStop was trading near its peak of $483 per share and still holds a large bet against the retailer’s shares, said people, asking not to be named due to the matter being private.
The billionaire investor who has added to his position from time to time is betting that GameStop’s stock isn’t trading on its fundamentals and will continue to fall, insiders said.
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Ryan Cohen Posts Picture with Carl Icahn
GameStop chairman Ryan Cohen posted a picture with Carl Icahn in October which many shareholders anticipated as bullish future news.
People began to speculate Carl Icahn was going to buy GameStop shares.
Little did shareholders know that the multi-billionaire investor has been betting against GameStop since the beginning of the ‘meme stock’ frenzy, per Bloomberg.
At the time of the photo, neither individual confirmed that Icahn would take a stake in the retailer.
GameStop was halted twice on Monday after the market opened and has slowly trended downward since.
The stock was forced to lose its momentum despite the heavy trading volume seen early in the trading day.
GameStop’s volume surged nearly 5 times its average trading volume on Monday but was prohibited from surging.
GME Stock Halt October 31, 2022.
Retail investors are calling S3 Partner’s announcement a setup, or trap to burn shareholders.
But Wall Street can easily create a big sell order in the market despite of heavy volume from retail, the question here is why not go long with them?
Last year, GameStop and AMC shareholders were able to inflict hedge funds who were betting against the two companies with billions of dollars in losses.
Are retail and hedge funds at war with one another?
It certainly seems so.
Is a GameStop Short Squeeze Likely?
Despite the market advantages financial institutions have over retail investors, large continuous volume over a period of weeks could trigger bigger price action for GME stock.
One-day rallies of heavy buying volume isn’t enough to combat market makers.
Like last year, it’s going to take continuous buying pressure to compound the momentum that will likely result in a GME short squeeze.
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.
Market News: Bed Bath & Beyond’s CFO Gustavo Arnal has died after insider trading claims.
Bed Bath & Beyond’s CFO Gustavo Arnal died shortly after facing lawsuit claims of insider trading with GameStop’s Ryan Cohen.
His death occurred days after the company had announced it would be closing 150 stores and cutting 20% of its corporate staff.
The incident occurred less than two weeks after the executive, 52, was named in a federal class-action lawsuit on allegations of federal securities fraud, insider trading, and breach of fiduciary duty, according to court documents, per Business Insider.
The Chief Financial Officer was found dead on Friday after falling from the 18th floor of a New York City apartment building.
Arnal was cited in the suit along with activist investor and GameStop chairman Ryan Cohen, who the lawsuit claims collaborated with the CFO in a “fraudulent scheme to artificially inflate the price of Bed Bath & Beyond’s publicly traded stock.”
The lawsuit claims Cohen — who is also the co-founder of Chewy and chairman of GameStop — approached the CFO about his “pump and dump” scheme in March 2022, and “convinced Gustavo that their plan would be a mutually beneficial one.”
BBBY CFO & GameStop Chairman allegedly collude in pump and dump scheme
Ryan Cohen BBBY insider trading lawsuit claims.
“Under this arrangement, defendants would profit handsomely from the rise in price and could coordinate their selling of shares to optimize their returns,” the lawsuit states.
Arnal allegedly worked with JPMorgan, which is listed as a defendant in the suit on claims the bank “aided and abetted” the plan by “enabling Cohen to use JPM’s accounts to effectuate such transactions and otherwise launder the proceeds of their criminal conduct.”
Ryan Cohen made a profit of $68.1 million from his stake in Bed Bath & Beyond.
Bed Bath & Beyond was one of the so called ‘meme stocks’ that was halted last year alongside AMC Entertainment stock and GameStop after retail investors had aimed to squeeze short sellers from their positions.
Investors and shareholders are still figuring out how to process this tragic death.
Leave your thoughts down below.
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So, will GameStop see a massive short squeeze again?
Here’s what we know.
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And if you’re not investing in the stock market and would like to learn how to buy GameStop stock or know where to buy GameStop stock, read my beginners guide on how to start here.
GME stock
GameStop closed at $40.53 on Wednesday, August 17th.
Trading volume is currently sitting at 9.3 million with 12.6 million now being GameStop’s average volume.
Understanding the short-seller
GameStop has taken the entire internet and finance world by a storm. What is happening nowadays.
Retail investors over at r/wallstreetbets have opened Pandora’s Box on short-sellers and hedge fund institutions.
Short-sellers are investors who short the stock.
Shorting a stock is the process by which sellers essentially bet on the stock price to drop.
They borrow stocks at a higher cost and sell the stock low, profiting the difference.
How short selling works
We’ve seen GameStop drop down and consolidate at $40 after its gamma squeeze peaked close to $500 per share back in January.
The stock has made a massive climb after some serious consolidation. It looks like GameStop is prepping itself for another gamma squeeze.
Could we finally see that GME squeeze everyone’s been waiting for?! I think its time.
See, GameStop’s short interest is still rather high and not all short sellers closed their positions back in January.
This means the stock still has loads of room to go bonkers.
What is a short-ladder attack?
A short-ladder attack is a strategy performed by short-sellers where they bid on the stock at a significantly lower sell price and purchase it from one another.
Thus, driving the share price lower.
How do you spot a short-ladder attack?
When the stock knows nothing but gains, but something keeps pushing it down until over and over again, that’s when you’ll know.
Why GameStop has potential for a second short squeeze
Short-sellers didn’t learn their lesson from the first time. GameStop stock is still being heavily shorted.
With GameStop becoming a technology company, its value has not only significantly gone up but it now has even more potential to keep driving its momentum.
Retail investors have a strong conviction towards GameStop investment. This means they’re not willing to sell the stock which in turn creates a supply and demand scenario with short-sellers who have to close their positions.
GameStop NFT Marketplace News
Short Share Availability and Short Borrow Fee Rate
You can see GameStop’s short share availability and short borrow fee rate using this link (via. Short interest data)
This number of course changes every day and can be expected to rise as hedge funds continue to short GameStop stock.
However, the short borrow fee rate isn’t a catalyst for GME to squeeze.
I’m excited for my subcommunity that holds both GME and AMC stock because both are about to skyrocket past Pluto.
GME Stock Analysis
Roensch Capital goes over the data for trending stocks.
The information is very easy to understand and gives you insight in the market from an analysts perspective.
Be sure to check out recent videos as they’re being uploaded to stay updated with any changes that occur in the market with GameStop.
Important Advisory
It is important to note that I am not a licensed financial advisor.
Like many traders and self taught investors, all speculation is based on educated estimations based on highly reliable analysis, patterns, and documented news charts.
Volume is key to a second GameStop short squeeze
Just like AMC, GameStop will need to see a continuous runup in share volume.
When retail investors continue to buy and hold GameStop stock, short-sellers shorting the stock eventually have to buy back the stock.
This demand and supply scenario results in various gamma squeezes.
The gains we’ve seen with GameStop have been a series of gamma squeezes, or incremental gains.
Usually what follows after gamma squeezes is a short squeeze if it has enough volume.
The volume of shares depends on how much retail investors are purchasing GameStop stock or selling it.
This chart is only reference and is not GameStop’s current price – GameStop Squeezable
How Soon Will A Second GameStop Short Squeeze Happen?
There is so much volatility occurring in the stock market at the moment.
Such volatility is usually a sign of an upcoming short squeeze as we saw back in January.
Not only are retail investors experiencing a lot of volatility, but GameStop stock seems to be in bullish territory which is great for volume.
FOMO (fear of missing out) continues to bring in new retail investors which is a great driving factor to the stocks volume.
GameStop announces fourth quarter earnings for 2020 (ARCHIVE)
is GameStop squeezable? – GameStop Short Squeeze
Saving GameStop
Retail investors now have the power to save any company they wish to save.
Now it’s only a matter of time for GameStop to step up and raise capital so that they can innovate and provide more value back.
GameStop is currently looking for ways to operate more efficiently.
While the Reddit community was able to keep them from going bankrupt, the company as a whole will need to continue kicking butt.
Here’s what’s been going on with GameStop recently.
Current GameStop news
is GameStop still squeezable? – GameStop Short Squeeze
GameStop introduces Matt Furlong as the new CEO of the company.
GME shares are still up nearly 1100% this year-to-date with the company’s valuation at $15 billion.
Bullish GameStop options are still currently being heavily traded
Prior to GameStop, Matt Furlong worked at Amazon in Australia overseeing the growth of operations.
He also worked in brand and marketing for Procter & Gamble years before.
The skills to grow operations and to properly brand and market will benefit GameStop immensely.
What can retail investors do to tackle shorting?
If retail investors want to counter GameStop’s stock price from plummeting, they’ll have to continue to hold and buy the stock.
This short squeeze play will require patience.
Important advisory
If you hold a position in GameStop, it’s important that you ask yourself what your reason for holding is.
Does your DD provide you with the confidence to stick to it longer if need be?
If so, stick to your convictions and trust the process.
Unfortunately, I didn’t get in on GameStop before it gamma squeezed so I took a position in AMC instead.
Taking this position has been one of the best financial decisions I’ve ever made.
I would take a position in GameStop if it was more affordable.
Regardless, I like the stock and I love the community even more.
Will GameStop finally short squeeze?
I think GameStop is preparing itself to put short sellers out of their misery.
The stock has been havoc to hedge funds and we can tell they’re giving out primarily due to this massive breakthrough we’re seeing now.
And although I personally don’t hold GME stock, I have a lot of awesome memories at GameStop which I would actually like to share with you at the end of this article.
Now let’s talk about a little justice.
A major hedge fund that was attacking GameStop has now been reported to lose a significant amount of money.
A gamma squeeze are momentum gains. These usually occur from call options closing in the pocket resulting in heavy buys or purchases in the market.
A short squeeze is vigorous and can spike with no warning. This is where you see 100% gains in a matter of seconds and minutes. A short squeeze can even reach 1000% and 10,000% gains.
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GameStop outperforms the S&P 500
The market has been down all year, but GameStop has managed to outperform the S&P 500 index.
The SPY is down more than -17% this year while GME stock has managed to hover at -12.70% this year-to-date.
Looking at the 6-month chart and we’ll find GameStop outperforms the S&P 500 by a long shot.
On the 6-month chart, GameStop is up +42% and SPY is down -8%.
The one-month charts are fairly similar with both up about +2% in July.
And with GameStop’s stock split making the stock more affordable, it’s fair to say more investors will be jumping in on it.
It’s very possible GameStop short sellers end up getting caught at the wrong end of the trade again as the third quarter ends and we transition towards Q4 in October.
According to a report published by S3 Partners on July 21, GameStop has been among the top 10 most unprofitable stocks for short sellers during July 2022.
Other companies on that list include:
Tesla
Apple
Amazon
Nvidia
Visa
Coinbase
Lucid
Meta
Microstrategy
Most unprofitable shorts July 2022
The loss of -$443,463,550 is equivalent to a net loss of -24.22%.
Tesla, Apple, and Amazon had the most unprofitable shorts for the month of July, netting billions in losses.
The retail sentiment in GameStop is still rather strong and bullish.
And because GameStop’s reported short interest is still quite high at 23.86%, it’s very possible big momentum is able to squeeze the remaining short sellers from their positions.
Another short squeeze is still very possible for GME stock.
Are you a shareholder?
Leave your story in the comment section of the blog down below.
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
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
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?
Market News: Citadel Securities Dark Pools exposed
The Chicago Tribune just published a piece explaining exactly what retail investors have been warning the SEC about.
Citadel Securities’ dark pool dominates a big part of the financial world, accounting for as much as half of U.S. stock market activity.
The Chicago Tribune says this prominent dark pool is run by Chicago Billionaire Ken Griffin’s Citadel Securities and has been targeting small scale retail investors.
And they’re not wrong.
Dark pools are typically involved in payment for order flow (PFOF), where they pay broker firms to receive retail order flow.
Brokers such as Robinhood and TD Ameritrade accept payment for order flow.
But retail investors have now brought these nefarious practices in the market to light.
Let’s discuss it.
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Taking down Citadel’s dark pool
Citadel Securities Dark Pool.
The Chicago Tribune has acknowledged investors’ orders almost never make it to the New York Stock Exchange (NYSE) or NASDAQ.
The editorial team say they get redirected to electronic platforms run by private market makers who match buyers with sellers at a price they determine, behind closed doors.
Citadel Securities’ dark pool is able to make money on the difference between bid and ask prices when trades are matched.
This creates major conflict of interest as the orders they fill are not competing against one another; therefore, the price is open for manipulation.
SEC Chairman Gary Gensler said himself 90% to 95% or retail’s orders do not get processed through the lit exchange.
And although light is shining on this very real problem, nothing is being done about it by our regulators yet.
“The U.S. Securities and Exchange Commission is responsible for revising its rules to keep up with technology and, here’s a surprise, the regulators have fallen behind.” – The Chicago Tribune.
But the editor says the problem is the SEC has too much on their hands and are spreading themselves thin.
They’re focused on crypto regulation, SPACs, and climate control.
It’s rather clear dark pools are not the SEC’s main priority.
Citadel Scandal
Ken Griffin – Citadel Scandal
Citadel has been heavily scrutinized by retail investors for not only heavily shorting ‘meme stocks’, but for suppressing the price driven by retail demand with its dark pool.
#KenGriffinLied began trending on Twitter earlier this year and again this month when the U.S. House Committee on Financial Services released a report confirming Robinhood and Citadel did indeed have blunt negotiations prior to trading restrictions on January 28th of 2021.
The “GameStopped” report documents in detail the events that lead to the halting of ‘meme stocks’.
Ken Griffin swore under oath that Citadel and Robinhood had no communication the day prior to the restrictions, but proof has now surfaced.
The question now is, will the case dismissed by Judge Cecilia Altonaga late last year get reopened?
The Miami district court judge admitted the Citadel and Robinhood transcripts were suspicious.
However, the federal court has dismissed the case due to a lack of evidence.
According to Business Insider, the court said that the evidence between Citadel Securities and Robinhood was not sufficient.
The retail community found Judge Cecilia Altonaga had ties to the defendant in the Robinhood and Citadel case, creating a major conflict of interest.
But mainstream media isn’t covering this.
What can be done about this corruption in the market?
If you’ve been one of my day-ones, you know I’ve always preached raising awareness.
Raising awareness is what gets people to learn, dive deep, and stand against market injustices.
People want to fight for a cause, people want to fight for freedom.
Instead of focusing on the things that are out of our control (SEC, market manipulation, etc.), we must focus on the things that are in our control.
And that is raising awareness to educate the population.
I truly believe this is the way to creating real change.
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NSCC-2022-003 SFT clearing service
NSCC-2022-003 would implement the SFT clearing service (securities financing transactions).
This means the NSCC would act as a third party to clear FTDs (failure-to-delivers) from various institutions.
The NSCC would also collect margin from both the lender and borrower to mitigate any risk.
Here the NSCC essentially acts as a referee, preventing overleveraging, naked shorting, and FTDs in the market.
Predatorial short selling strategies could potentially be eliminated due to this filter.
The NSCC believes it can reduce market disruption from fire sales by liquidating positions in small batches.
I’ve stated in recent articles and on my channel that a squeeze in AMC and GameStop will likely occur in sequences.
A ‘controlled squeeze’ so to speak to avoid systemic risk in the market.
It’s very possible NSCC-2022-003 was created to unwind this mess in a manner that would prevent the stock market from collapsing.
Does the rule help hedge funds?
Yes, but it also helps retail investors.
While NSCC-2022-003 provides a safety net for overleveraged institutions, it will also create more balance in the market for retail investors.
The NSCC is requiring all SFT members to provide a $250,000 margin minimum amount.
And with DTCC B16845 already raising margin requirements, I think it’s fair to say hedge funds are being put on a leash.
Investors have been asking me, what happens if a hedge fund defaults?
Will they be held accountable for their short positions?
Assuming a hedge fund becomes an SFT member, under NSCC-2022-003, the NSCC would take all responsibility and be obligated to meet all settlements.
Although the proposal requires a $250,000 margin minimum, the NSCC is requiring members to hold sufficient liquidity to cover the largest settlement obligation.
In other words, every short position will be obligated to get closed.
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Heavy buy IMO