Tag: GME Short Squeeze

GameStop Price Jump: NFT Marketplace or FTDs?

GameStop NFT Marketplace

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.

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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.

This is extremely similar to what SHIB is doing with Shiba Inu Games.

Related: Here’s why you shouldn’t sleep on Shiba Inu Coin

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
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.

When will GameStop launch its NFT Marketplace?

GameStop is launching its NFT marketplace in late 2022.

One of GameStop’s direct competitors will be OpenSea, the NFT marketplace that now has a $13.3 billion valuation.

The companies’ approach towards the NFT and crypto space seems to be rather fitting.

What are your thoughts?

Leave a comment at the bottom of the article.

Could we see a collaboration between AMC and GameStop?

AMC and GameStop collaboration

AMC Entertainment is currently using WAX, or the Worldwide Asset Exchange to distribute its NFTs.

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.

What do you think?

“Millions of Dollars Were Stuck in Limbo” (FTDs)

GameStop FTDs

According to Business Insider, Bloomberg reported that $359 million worth of GME stock were stuck in limbo earlier last year.

More than 1 million GameStop shares were publicly deemed ‘failure-to-deliver’.

FTDs have been a massive problem for retail investors holding both AMC and GameStop shares.

Failure-to-delivers occur when sellers don’t have the shares to settle trades.

So, if there aren’t enough shares to settle, where are short sellers borrowing so many shares from to short GME stock?

The answer may lie in naked shorting and OTC trading.

Shareholders suspect GameStop’s price moves after hours were based on some FTDs settling from December’s batch.

What are your thoughts?

Was GameStop’s price moves based on FTDs settling, or on the bullish news confirming more movement in the NFT Marketplace?

Leave a comment below.

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Year May End in Short Squeeze Cyclical Rallies Says Analyst

Short Squeeze News Marko Kolanovic
Short Squeeze News – Marko Kolanovic

JP Morgan Chief Global Analyst, Marko Kolanovic, is predicting we will transition into the new year with short squeeze cyclical rallies.

He indicates that short sellers will get squeezed soon due to aggressive shorting and resilient retail investors.

“Large short positions will likely need to be closed before January”, via Business Insider.

This news comes after the retail investor community in AMC and GameStop have been advising about overleveraged hedge funds all year.

GameStop is up 800% and AMC is up more than 1300% year-to-date.

While both stocks have recently come down, they are still heavily shorted with lots of room for growth with a short squeeze.

The ape community has been speaking of a ‘third phase’ where the next runup of both these stocks will reach new ATHs.

But some apes are skeptic.

Will this be a proper short squeeze?

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Welcome to Franknez.com – if you’ve been reading the blog since early 2021 then you’ve probably made a ton of money. And if you’ve diamond handed AMC stock all year, it’s about to get a whole lot better.

Let’s get started!

Massive Moves Are on the Horizon

rocket ship

Mainstream media claimed the runup to $72 per share was AMC’s short squeeze.

Only it wasn’t a proper runup.

AMC has always had more potential due to how overleveraged short sellers are on the company.

The Ape community has held through losses and gains and bought every dip.

This resilience is why AMC stock is setup for another massive runup.

Only this runup will be much larger than the first and second.

TA (Technical Analysis) charts have shown AMC’s next runup could very well reach hundreds of dollars per share.

I’ve predicted AMC’s third runup will easily reach $200-$300 while other analysts in the community are predicting $400-$600 per share.

How high AMC’s price will go will depend on how much short covering actually occurs.

Even then, with millions of synthetics circulating the markets, there’s no question why retail investors are deeming the next runup a ‘fake short squeeze’.

What we do know however is that massive moves are coming up regardless of the label.

Can This Next Runup Trigger MOASS?

While it’s certainly possible the next runup could trigger MOASS, the feds are still investigating hedge funds.

And what’s a proper MOASS if synthetics aren’t fully taken accountability for and covered?

In this video I discuss my thoughts on the topic.

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The next runup will mean that every ape invested in AMC will be profitable.

That I’m certain of.

MOASS will occur when these phantom, synthetic shares have been closed.

While the community can put the information out there, it will ultimately be up to regulators to force financial institutions to cover these too.

Retail investors will have to continue fighting for proper market structure if a MOASS is to occur.

In the meantime, the community should keep an eye out on the short interest data.

While Ortex data is self-reported and could very well be higher, it’s the only tool retail investors currently have to measure some ‘squeeze potential’.

Get Excited for Big Moves

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Regardless of if the media refers to these coming moves as a short squeeze, the community is going to be very profitable on paper.

What lies after these price runups will become clearer as this play continues to unfold.

Massive moves seem to be up ahead, know what you hold.

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Read: Anchorage Capital closes after betting against AMC stock

Topic Discussion on YouTube with FrankNez

Here’s Why Citadel’s Customers Are About to Lose Everything

Citadel Customers, Citadel News

Citadel’s customers are in for a massive shakeup entering 2022.

The hedge fund just updated their liquidity terms for all investors and the institution continues to lose money on bets they’re not willing to close.

They are limiting quarterly withdrawals to 6.25%, meaning it would take 16 quarters, or four years to fully pull out unless the client is willing to pay a fee.

Unless Citadel Securities closes their heavily shorted positions in both AMC and GME, clients are in for more losses leading into 2022.

Should clients pull out?

It’s definitely worth considering.

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Welcome to Franknez.com – hedge fund Citadel Securities has just made a desperate attempt to keep their clients’ money. Desperate times call for desperate measures.

Let’s get started!

Community, this is massive.

Aside from setting tighter restrictions on withdrawals, Citadel Securities is also giving their clients an ultimatum.

Citadel Gives Desperate Ultimatum to Customers

Citadel’s funds are currently closed to new investors, so if someone quits, they might not be allowed back in the future.

The hedge fund has given this desperate ultimatum to its customers in efforts to hedge against losing bets.

Citadel Securities has lost billions of dollars all year betting against AMC and GameStop.

Retail investors have been fighting this adversary from trying to bankrupt two of America’s favorite companies.

The hedge fund has been notoriously shorting AMC stock despite all talks of bankruptcy officially off the table since early 2021.

Citadel is not stopping despite billions in losses.

And it’s costing their clients a lot of money.

Now, Citadel Securities is making it tougher for their clients to withdrawal their investments.

Citadel will eat every single one of its clients’ dollars to fight retail investors.

Will Citadel Keep Losing Money?

The entire stock market has been volatile in general.

However, Citadel Securities has amounted billions of dollars in losses due to overleveraging short positions in AMC stock.

Retail investors continue to buy and hold the stock until this hedge fund closes the millions of borrowed shares they have open.

And until they do, customers will continue to face significant losses entering 2022.

Clients can expect to see the same pattern from 2021 if Citadel Securities does not cut their losses.

AMC is not the only stock incurring losses to the hedge fund.

Citadel Securities’ business model is built on shorting stock to earn money on the downside.

And that’s the problem, they’re betting on losers instead of winners.

Should Clients Pull Their Money Out?

should I pull my money out from Citadel

Citadel Securities is one of the largest hedge funds in the world.

They’ve created massive systemic risk for the entire U.S. economy.

Hedge funds such as Millennium, Susquehanna, and 638 are also at risk.

This list of hedge funds shorting AMC stock are playing with their customers money.

Clients have a better chance at yielding returns by opening a brokerage account and investing in an index fund every month.

More of the general public is learning how to invest in stocks.

They’re not looking for hedge funds to play with their money.

They are taking accountability and researching where their money can grow both short-term and long-term.

Analyst Says ‘Buy GME and AMC’ Before Evergrande Crash

evergrande amc citadel

A veteran credit analyst is encouraging buying GME and AMC shares to hedge against a market crash.

In this article I discuss why the possibility of AMC and GME experiencing a MOASS is very likely due to an Evergrande crash.

Now, Dr. Marco Metzler, an advisory board member of the German Market Screen Agency says crypto and ‘meme stocks’ can yield a massive opportunity for investors.

Retail investors in the AMC and GME community have been right all year.

Overleveraged positions, dark pool trading, naked shorting, negative beta, all of it.

AMC and GME stock are going to experience massive short squeezes and hedge funds betting against these two stocks are about to cause severe losses for their clients.

Read: 10 myths about the AMC apes the media has wrong

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Topic Discussion with FrankNez

GME Stock: Why It Can Still Skyrocket Past $1,000 Per Share

GME Stock
GameStop Stock

A while back I wrote an article debating which stock you should invest in, AMC or GME stock? The premise of that article was to identify which stock was more convenient for the new retail investor.

See, both are great momentum stocks to hodl, but GME stock is a lot more expensive for the newcomer to buy. And although AMC has now become the more popular stock, I have a good feeling those hodling GME stock can still see massive gains. Here’s why.

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Welcome to Franknez.com – today I want to talk about GameStop stock, ticker symbol GME. Lets look at the data that states this stock is not done climbing up.

Lets get started!

If you’re like me, you probably didn’t get a chance to get in on GameStop before it began to create a ruckus in the financial world.

Or perhaps you were lucky enough to get a few shares.

I’m a strong AMC shareholder and will not buy GME stock only because I rather increase my position in AMC.

AMC’s short interest is higher, utilization is higher, and so are the shares on loan.

It’s also more affordable.

But don’t get me wrong, the reason I’m publishing this post today is because GME stock has enough data that proves it has more juice to squeeze.

So, if you’re holding GME stock, this article should help you armor up your conviction towards your stock.

GameStop Short Interest

GameStop’s short interest is still rather high. GME’s current short interest is sitting at 8.49% via. Ortex.

Just to compare, AMC’s is at 16.65% which a short interest of 20% or higher is considered extremely high.

GME’s short interest data is updated daily here for free.

Why Does Short Interest Matter?

Short interest the number or percentage of short shares that have yet to be covered. For stocks with high short interest this means it is possible to squeeze shorts out of their positions.

GameStop stock is considered to have high short interest therefore it has slack to keep moving up. Not all shorts have covered their positions!

If you hold GameStop stock, keep holding it. The longer you hold it, the more money short sellers lose on paper. Once they can’t afford to hold GME stock they’ll be forced to cover.

Remember, it costs you nothing to hold.

GME Utilization Rate

GME stock utilization rate is currently 31.68%. This more than a quarter of the available shares in the market are loaned.

APPL for example, may have less than 1% because there’s not a large demand for shorting the stock.

A high demand for shorting GME stock means there’s a play to squeeze shorts out of their positions.

GME shareholders still have a chance to make a ton of money.

Short sellers have not backed off from shorting GameStop and continue to play with fire.

Will Utilization Go Up Again?

If more short sellers open short positions then GameStop’s utilization will certainly go up.

At the moment, it seems that there’s only 31% of the stock that’s being borrowed.

I personally don’t think shorts will try to go up against GameStop again.

Those that are still shorting it have been holding on for quite some time.

However, it’s only a matter of time before they too close their positions and GME stock surges again.

GME Stock: Shares On Loan

GME’s shares on loan refers to the number of shares that are being borrowed.

GME stock has approximately 6.28 million shares on loan.

We essentially convert the utilization percentage into the actual number of shares that are being borrowed.

That’s a lot of shares that still need to be covered by short sellers borrowing the stock.

GME stockholders could take advantage of the fact that the stock has been on discount recently.

Especially if you’re still looking to increase your positions in GameStop stock.

Otherwise, GME stock is a hold play right now where patience will bear some sweet fruit very soon.

Charles Schwab Raises Margin Requirements

Charles Schwab just raised margin requirements for short sellers shorting both AMC and GME stock.

This puts short sellers under tough conditions since they’ll need to keep more cash at hand to continue borrowing AMC and GME stock.

And although we’ve seen a little bit of institutional selloff, Charles Schwab continues to hold GME stock.

An institution that has not sold GameStop is Vanguard.

Vanguard is one of AMC’s biggest institutional holder who continues to buy the stock to-date.

So if there’s something GameStop shareholders can take from this is that institutions are still holding GME stock, and there are still enough short sellers to squeeze out of their positions.

How High Will GME Stock Go?

So, can GME stock reach $1,000 per share. It’s certainly a possibility given that GameStop’s dark pool trading percentage is rather high, according to Stonk-O-Tracker data.

Dark pool trading in GameStop has ranged between 30%-50%. This means 30%-50% of short selling has occurred behind closed doors.

Short sellers are able to keep their short borrow fee down with this loophole as well as conjure up naked shares to swap with one another.

However, they’ll eventually have to close every synthetic share they’ve ‘borrowed’ to short the stock.

This is massive for GameStop just as it is for AMC.

Is It Too Late To Buy GME Stock?

I would say that you will no longer be able to buy GME stock below 3-figures.

If this figure is too expensive for you to build your portfolio then it absolutely is too late.

However, if you’re looking to diversify your momentum stock portfolio, GME stock could be a good stock to hold.

Otherwise, you’re better off buying the heavier shorted stock that is significantly more affordable at the moment, AMC.

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Are you holding GME stock? Let me know in the comment section below how high you think the stock can go.

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Read: List of momentum stocks: short interest data


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