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.
Momentum Stocks: AMC Short Interest Information | Ortex AMC
Community, I’m going to be updating this list of momentum stock and their short interest and utilization daily (AMC short interest).
Be sure to bookmark this page for daily AMC short interest updates. This information is being taken straight from Ortex. I understand not everyone has insight to this information so I will be making it all public for you.
Other metrics being updated daily will include the cost to borrow and the shares on loan.
If there are other heavily shorted stocks you’d like me to update daily, please leave a comment below and I’ll be sure to look into them before adding them to the list!
Here’s the latest on the channel.
Short interest updates are currently on hold
@ORTEX has decided to suspend my account for sharing their information publicly on my website $AMC$APE – but YouTubers are allowed to display it for their audiences without consequence. pic.twitter.com/OnSSx8fDpd
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Volume rises by more than 5,500%
HKD stock’s volume rose by more than 5,500% its daily average volume of 377K when it reached 1.5 million on Wednesday.
AMTD Digital Inc. grew nearly $27 billion in market value.
The company has approximately 187.44 million shares outstanding, significantly less than that of GameStop’s (304m) and AMC Entertainment’s (516m).
Interestingly enough, pre-IPO shareholders, directors and executive officers are subject to a lockup agreement that prevents them from selling shares until January, according to the July 15 prospectus.
AMTD Digital’s shares were also among the most actively traded stocks on the Fidelity platform on Wednesday.
Will the stock keep rising?
I’d love to hear your thoughts down below.
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So, will GameStop see a massive short squeeze again?
Here’s what we know.
Welcome to Franknez.com – the blog where you can digest content on stocks, crypto, entrepreneurship, and trending investing topics.
Lets get started!
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.
As long as the stock continues to be shorted and held, GameStop can expect a series of gamma squeezes to continue pushing the stock up.
This will inevitably lead to the ultimate short squeeze.
Fundamentals can also drive GameStop’s stock price up.
The company will have to run efficiently by being able to meet projected goals.
Although this is not a fundamental play, mainstream media still has some influence over this.
Short sellers continue to face devastating losses from shorting GameStop.
Hedge funds are about to burn their second hand after playing with fire again.
FAQs
Gamma squeeze vs Short squeeze
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.
When will shorts close their short positions in AMC? When will shorts cover AMC?
Every retail investor holding a position in AMC wants to know, when will shorts cover their positions? And I don’t blame you.
This one is a little tricky. See, it’s like saying, “when will retail investors sell their positions?”
Welcome to Franknez.com – the blog that fights for you, the retail investor. Today I want to discuss short covering.
Let’s get started!
Retail investors have been waiting patiently for AMC Entertainment stock to rip.
You’ve been holding through the ups and downs and even buying the dips.
So, why aren’t shorts covering their positions yet? What do retail investors need to do to squeeze hedge funds out of their money?
Are shorts obligated to close their positions?
Let’s start with the fundamental question. Are shorts obligated to close their positions?
Now, there are currently no rules regarding how long a short can hold before closing out their position.
However, lenders do have the right to demand the seller closes their position with minimal notice.
This is rare and only occurs if the the seller isn’t paying the interest fee, or the interest fee is ridiculously high.
“A short position may be maintained as long as the investor is able to honor the margin requirements and pay the required interest and the broker lending the shares allows them to be borrowed.” – Investopedia
When an interest fee is extremely high, it makes a stock difficult to borrow which obligates the short seller to close their positions.
AMC’s short borrow fee rate as of 7/23 is: 7.60% according to Stonk-O-Tracker.
Keep an eye on this interest as it will determine just how much shorts are bleeding.
Hedge funds currently shorting the stock are losing money every day. And regrettably for them it’s getting worse the longer they hold.
Why does the short borrow fee matter?
The short borrow fee is an interest that shorts must pay for borrowing AMC shares.
And although the fee has gone down, shorts are still paying a price for going long.
They will hold in hopes to drive AMC’s share price right back down to the floor.
However, AMC is trending upwards now and has absolutely no intention of going back down.
Analysts data and AI predictions all point towards a high possibility of a short squeeze.
Even Fintel’s short squeeze score has been as high as 80-90% in recent weeks.
This short borrow fee is going to continue to go up as AMC stock becomes harder to borrow.
For short sellers, a low short borrow fee is in their favor.
They would much rather pay the fee and stubbornly continue to hold their positions against retail investors.
But, if the short borrow fee is high enough to hurt the borrower, they will be more inclined to close their positions before losing an excruciating amount of money.
The short sellers conviction is strong, even though they’ve already lost.
It’s only a matter of time before they have no other option than to forfeit.
How can retail investors help drive the short borrow fee up?
Retail investors can help drive the short borrow fee up simply by holding their positions.
When AMC squeezes, retail investors will have to continue to hold their position on the way up.
Not every short will close their positions immediately.
If we begin to see AMC’s price action rise monumentally, it is important to understand that there’s more potential because not every short seller has closed their position.
We might see AMC drop a little after it peaks.
However, if retail investors continue to hold, it’s only going to continue squeezing more shorts resulting in further perpetual gains.
Melvin Capital suffered 49% loss 1st quarter
Melvin Capital – Short position AMC – AMC short position
Community, this is massive. Melvin Capital is a hedge fund that has been shorting both AMC and GME stock. These are the people trying to drive the stock to the ground.
Melvin Capital suffered a 49% loss its first quarter of 2021, via. Markets Insider.
Retail investors are hodling to the moon.
They are not waiting for $100 price action anymore, and some are certainly not waiting for $500+ share price anymore.
The Reddit community is set new standards for the AMC’s stock price.
Here’s why this matters:
Not only are shorts losing money every day but huge hedge funds are bleeding billions of dollars due to retail investors holding
This is a huge win for retail investors – our favorite companies have been saved
Unless shorts close their positions, hedge funds will continue to suffer
Interest rates will continue to skyrocket for short sellers, enabling them to close their positions sooner than later
An AMC short squeeze might be closer than we think
Here’s what retail investors can do:
Continue to hold your positions, it’s free
Buy the dips to counter any short attacks
Share articles on social platforms that can provide value to the community and keep everyone informed
Keep a close eye on the stocks performance so you do not miss the squeeze
Hedge funds are not going to be able to recover from this.
Yes, they can possibly receive help from huge banks, but this too will be at a cost.
Furthermore, borrowing money from banks won’t change the fact that shorts still have to cover their positions.
Retail investors are buying AMC stock every day. Shorts are fighting a war they cannot win.
Important advisory: I am not a licensed financial advisory. I simply have a passion for finance and writing.
What happens when a short covers their position?
A short position will be profitable if it is covered at a lower price than the initial transaction; it is at a loss if it is covered at a higher price.
In AMC’s case, shorts who drove the price down to $5 but are still holding to-date are at a loss.
AMC is currently trading around $15.50 per share as of 7/22.
When there’s a ton of short covering happening in a particular stock, it will result in a short squeeze.
What is a short squeeze?
A short squeeze occurs when a stock spikes in price action due to an increase of short-sellers closing out their positions.
We’ve seen a short squeeze happen with both GameStop and Volkswagen. GME topped almost $500 while Volkswagen spiked shy below $1,000 back in 2008.
Short squeezes are massively profitable for retail investors.
These one-time phenomena are how people are able to accumulate wealth in such little time.
Instead of exiting, short sellers are holding. Some shorts might be waiting for a more favorable price to close their positions.
Another way shorts will be forced to close their positions in AMC is through a margin call.
This is when their accounts don’t have the sufficient funds to meet the accounts minimum amount of dollar required.
At this point they are forced to liquidate.
Now, because there’s no rule to how long they can hold their positions, they’re in the long game like most retail investors waiting on a short squeeze to happen are.
The good news is that AMC bankruptcy is no longer on the table and Wall Street analysts are even saying the industry is on a solid path to resurgence, via Hollywood Reporter.
As we continue to see a high utilization and the short borrow fee increase, we can only expect shorts will cover sooner than later.
What percent does the short borrow fee have to be?
AMC’s short borrow fee is currently at 7.90%, via. Stonk-O-Tracker on 7/18.
There seems to be some sort of manipulation or loophole here. The borrow interest rate should be much higher.
Short sellers have been borrowing millions of shares to short.
It seems they thought AMC’s 500 million share dilution was going to go through.
Funny enough Adam Aron, the CEO and President of AMC Entertainment actually scrapped that idea leaving short sellers in a deeper hole.
I personally think retail investors are going to experience the short squeeze of a lifetime.
Journalists and analysts alike are now claiming AMC to be a big buy.
Shorts can continue to hold their loses on paper for months to come or close their positions while it’s at the current price action.
Closing now is recommended due to an overwhelming amount of attention AMC Entertainment has received.
With new titles coming to AMC movie theaters soon, we’re only going to continue to see a surge in price action due to an increase in the company’s sales revenue.
Even if shorts continue to hold, lenders will eventually run up the interest rate again and force them to cover.
If you’re a retail investor reading this article, I’m already celebrating your success.
Leave a comment below and let the community know what a short squeeze would mean for you.
AMC is on the ‘Potential Short Squeeze’ list via. Fox Business
In case you missed it, a squeeze is very possible, via FOX Business.
All the data at hand point towards the inevitable for both shorts and retail investors.
Retail investors holding AMC stock are going to experience a once in a lifetime opportunity.
A lot of you have been sharing my posts on Facebook Groups, Reddit, Discord chats, and Twitter. Words can’t explain how grateful I am for you sharing positive and valuable information for new retail investors to look at. Thank you.
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?
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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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