Tag: GME Short Squeeze (Page 1 of 5)

GameStop Short Sellers Now Down A Whopping $1 Billion

GameStop short sellers are now down a whopping $1 billion in May according to new data from S3 Partners analysts.

Shares of the gaming company soared more than 66% on Monday, hitting nearly $37 from a previous close of $17.39.

GME stock is currently up more than 183% in the past month alone.

Media speculates GameStop shares rose due to the return of iconic investor, Keith Gill, AKA Roaring Kitty.

Shares of AMC Entertainment stock also rose by more than 50% on Monday, hitting $4.44 from its previous close of $2.95.

The movie theatre stock is currently up 79% in the past month alone.

According to financial analytics firm, S3 Partners, GameStop short sellers have accumulated approximately $1 billion in paper losses.

“GameStop shorts are down in estimated $1 billion in May paper losses with todays +50% pop in early trading,” said Matthew Unterman on X.

“@S3Partners multi-factor squeeze risk score has been registering a max of 100 every day since May 3rd.”

S3’s Squeeze Score overlays the significant components for a squeeze, higher financing costs and unrealized losses, to their Crowded Score to identify shorted stocks with higher short-side volatility and identifies stocks that have the necessary conditions to be “squeezed”.

Squeeze Scores of 70-100 identify squeezable stocks, and scores over 90 have a significantly higher risk of a squeeze and the potential for the resulting buy-to-covers to pushing stock prices even higher, according to the companies website.

With Roaring Kitty back, does this mean meme stocks are about to blow up again based on hype and momentum again?

I’d love to hear your thoughts on this. Leave a comment down below.

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Also Read: South Korea Now Finds Banks Pursued Illegal Shorting Scheme

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Market News Today - GameStop Short Sellers Now Down A Whopping $1 Billion.
Market News Today – GameStop Short Sellers Now Down A Whopping $1 Billion.

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Analyst: AMC and GME Have Highest Squeeze Potential

Market News Daily - Analyst say AMC and GME Have Highest Squeeze Potential.
Market News Daily – Analyst says AMC and GME Have Highest Squeeze Potential.

S3 analyst says AMC Entertainment (NYSE:AMC) and GameStop (NYSE:GME) stock have the highest squeeze potential in the market.

“As the broader stock market has been on a tear for about a month, things are looking grim for investors with big short positions in stocks like AMC Entertainment Holdings Inc. and GameStop.”

AMC’s and GME’s short interest data is what ignited the massive rallies in 2021.

Today, both AMC and GME have a high short interest of 26.69% (AMC) and 20.73% (GME).

AMC’s short interest was only 25% when it surged to its all-time high of $72 per share in June of 2021.

Short interest dropped to 14% as short sellers closed positions only to pick right back up throughout 2022 and 2023.

Both AMC and GameStop shares have been suppressed from rising through heavy dark pool trading and suspiciously through naked short selling, evident in high FTDs (fails-to-deliver).

Two years later and GameStop is finally a profitable company.

AMC Entertainment, the largest movie theatre chain in the world, continues to innovate and creatively raise cash with a mission to erase its debt accumulated during the pandemic.

Hedge Funds Face Big Risks

Ihor Dusaniwsky, head of predictive analytics at financial technology and analytics firm S3 Partners, compiled a list of those most vulnerable stocks, headed by such names as AMC (AMC), GameStop Inc. (GME), Coinbase Global Inc. (COIN) and CarMax Inc. (KMX).

“One factor that is also killing profits for short sellers is the borrowing costs on stocks that no one is willing to part with, and the stock that figures highest on that list is AMC.”

AMC’s cost to borrow recently skyrocketed to more than 1,000% with its cost to borrow average currently being reported at 928%.

“Short sellers want to short the stock, but they are not able to get a stock borrow locate and therefore cannot execute their short on the street,” Dusaniwsky told MarketWatch in an interview.

“But, when any stock borrows become available — lenders, brokers know they can charge inflated fees as there is huge demand for the name.”

“In this case there is an AMC–[preferred stock] APE arbitrage trade that will be profitable if the conversion occurs soon because the high financing costs are eating into those expected profits every day, including weekends,” Dusaniwsky said.

But the S3 analyst isn’t the only one stating there is big squeeze potential in AMC and GameStop.

Related: “The Game is Rigged” Says Ex-Citadel Data Scientist

Strategist Says Mother of All Short Squeezes is Here

Market News Today - Analyst: AMC and GME Have Highest Squeeze Potential.
Market News Today – Analyst: AMC and GME Have Highest Squeeze Potential.

Interactive Brokers Chief Strategist Steve Sosnick says there’s big demand to short AMC Entertainment stock.

He says the biggest reason aside from the company’s fundamentals is its new merge with its equity (NYSE:APE).

“It’s very hard to keep the momentum in these things because economic reality does take hold.

Bed Bath & Beyond, at one point was the best performing stock on the board until reality set in and they began defaulting, averted bankruptcy, but using a deal that is so dilutive that it’s unavoidable.”

Sosnick says AMC is in a very special situation because of the proposal to merge APE with AMC common shares.

“Right now we’re seeing such a demand to short AMC partly because of its difficulties but partly because of the special situation.

This really is what they were looking for in some ways as the mother of all short squeezes.

The borrow rate, it costs you 700% to borrow the shares overnight — if you can find them,” said the Interactive Brokers Chief Strategist on Yahoo Finance.

Market News Published Daily

Market News Today - Is Amazon buying AMC Entertainment?
Market News Today – Analyst: AMC and GME Have Highest Squeeze Potential.

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Will DRS Trigger a GameStop Stock Short Squeeze?

Will DRS Trigger a GameStop Stock Short Squeeze?
Stock Market News: GameStop shareholders are onto something.

The topic of DRS’ing shares (direct registration system) to trigger a GameStop short squeeze has been heavily discussed amongst the retail community.

DRS enables investors to register their shares through a system such as ‘computershare’ in book form entry directly with the issuer.

The premise is to starve lenders from allowing shares to be lent to short sellers.

No shares to short = organic price increase from retail demand.

Today, it seems more and more GameStop shareholders are jumping in on the bandwagon to secure their shares.

Some retail investors argue that DRS has not proved to create a positive impact on the stock.

GME stock ended 2022 down nearly -50%, shares are currently trading around $16.23 per share, respectively.

According to GameStop, shareholders registered 71.8 million shares via the transfer agent.

The question is, if more shareholders DSR their GameStop stock, will it create a short squeeze?

Let’s discuss it below.

How Many GME Shares are DRS?

According to GameStop, approximately 30% of GME’s float is registered with the Direct Registration System (DRS).

This equates to 71.3 million retail shares.

How much of GME’s float is owned by retail investors?

Nearly 70% of the float is owned by individual shareholders according to Vickers Stock Research.

GameStop retail ownership
GameStop’s Ownership Structure – Vickers Stock Research.

This means nearly 40% of retail investors have not registered their GameStop shares through DRS.

It’s quite impressive to see the teamwork currently being demonstrated.

But will DRS trigger a GameStop stock short squeeze?

In the end, the goal shareholders are trying to achieve is to create massive price action here.

The debate also surfaced amongst AMC shareholders when CEO Adam announced during Q3 earnings that DRS will prevent the company stock from being shorted.

Majority of shareholders argued selling shares would be a slow process and that it hasn’t quite worked out for GameStop shareholders.

While DRS certainly prevents the company from being shorted, it’s only one piece of the puzzle for a GameStop short squeeze.

Shareholders will need to create massive buying pressure next.

GameStop Short Interest Today

GameStop short interest

Yahoo Finance is reporting 304.58m shares outstanding and a float of 258.65m shares, see the difference here.

GameStop’s short interest is currently being reported at 20.44% (float) and 17.96% of shares outstanding as of December.

GME’s short interest is considered high and is one of the key components to a successful short squeeze.

The short interest allows us to identify the percentage of investors betting against the stock.

A high short interest means any spike in price may trigger short sellers to close out their positions before accumulating losses.

When share prices rise and get out of hand in favor of the bulls, short sellers are incentivized to buy back their shares at a loss, breakeven, or potential profit (depending on when the position was opened).

This heavy buy-back of shares builds buying pressure which may result in a ‘short squeeze’.

Brief GameStop Short Squeeze History

GameStop short squeeze history
GME short squeeze history – Franknez.com.

On January 28th, 2021, GME shareholders were able to take GameStop’s share price to an all-time high of $483 per share before Robinhood halted further trading activity, particularly in buying the stock.

At the time, AMC surged from $2.50 to $22 per share and then five months later reached its all-time high of $72 per share.

However, GameStop’s short squeeze was well on its way to reach larger and unprecedented number figures prior to the halt.

This event sparked one of the most prominent events in the history of our financial markets.

It opened a door to a series of investigations.

Wall Street fraud, stock market manipulation, short and distort, and various conflicts of interest became the center of attention after the ‘meme stock’ frenzy.

Shareholders retaliated and spurred up a culture unlike anything that has ever been seen before.

Now, GME shareholders are doing whatever they can to keep their shares out of short sellers’ hands by direct registering their shares with Computershare.

Related: GameStop Stock – Big Year in 2023?

GME Shareholders Are Onto Something

Will DRS trigger a GameStop stock short squeeze?

The registration of 71.3 million GameStop shares is impressive.

But GME shares keep dropping.

Ultimately, it will be heavy buying pressure from retail investors that will trigger massive price movement in the company stock.

How soon will we begin to feel that Roaring Kitty sense of relief again?

Only time will tell, but I’m curious to hear your thoughts.

Leave a comment down below.

GameStop Stock Short Squeeze – Roaring Kitty.

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Yahoo Lists AMC and GameStop in Mark Cuban’s Portfolio

Mark Cuban AMC and GameStop
Market News: Does Mark Cuban own AMC or GameStop shares?

Yahoo Finance just published 10 stocks to buy now tied to Mark Cuban’s portfolio.

AMC and GameStop are two retail favorites listed on Yahoo’s list (below).

Mark Cuban jumped on WallStreetBets to do an AMA last year after the ‘meme stock’ frenzy first occurred in late January of 2021.

“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.

He mentioned to CNBC later that his son did trade AMC and Blackberry.

Mark Cuban on the SEC

Mark Cuban on the SEC

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.”

You can view Yahoo Finance’s list here.

Related: AMC’s Short Interest Rises to 21.64%

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