Tag: GME (Page 2 of 6)

Will GameStop See a Massive Short Squeeze in 2022?

August 17, 2022 / Frank Nez

GameStop Short Squeeze — GameStop GME stock – is GameStop Squeezable?

Just when we thought GameStop’s short squeeze was over we begin to see GME gain some momentum.

GameStop has been the heart of the wallstreetbets movement and continues to have a strong sentimental hold on retail investors and gamers alike.

The retail investors who missed GameStop’s first squeeze either bought AMC shares or bought GME while it was still high.

Today, the stock has undergone a 4-1 split.

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.

Short Selling GameStop Stock — 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.

And it recently went through a 4-1 stock split.

As of August 17th, it is trading at $40.53.

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

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.

You can keep an eye on it via. Yahoo Finance.

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

GameStop wallstreetbets — 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.

Bookmark: List of momentum stocks: Interest and utilization

Melvin Capital suffered 49% loss 1st quarter

Melvin capital suffers 49% loss 1st quarter of 2021

Ladies and gentlemen this is massive. Melvin Capital is a hedge fund that has been shorting both GameStop and AMC stock.

Melvin Capital suffered a 49% loss its first quarter of 2021, via. Markets Insider.

Here’s why this matters:

Not only are shorts losing money every day but huge hedge funds are bleeding
This is a huge win for retail investors
Unless shorts close their positions, hedge funds will continue to suffer
Interest rates can skyrocket for short sellers enabling them to close their positions

Now the hedge fund is closing its doors this June 2022 after several losses.

We’ve see GameStop’s short borrow fee decrease but I wouldn’t be surprised if it begins moving back up very soon.

Hedge funds have been trying to obliterate our beloved GameStop from the face of the planet.

Something about them losing a lot of money feels like justice.

Believe me, I’m 100% for making money.

The ethical way.

You should be supporting beloved companies, not targeting them just because you see an opportunity to kick someone when they’re down.

Karma is about to get a lot worse for hedge funds betting against both GameStop and AMC.

Read: How do hedge funds manipulate the stock market?

Will GameStop stock go up again?

GameStop Stock News Today — GameStop Stock News.

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.

Check out: Betting Sites without Verification

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.

What is your first GameStop memory?

Leave a comment below.

Do you remember your first GameStop memory?

I’m sure you have many.

I remember the first time my brother and I went inside a GameStop it was unreal.

It was my first time inside an actual video game store. T

he coolest thing was seeing how many different games and accessories they had for all the consoles at the time.

Some of the most awesome memories at GameStop was seeing that brand new game on display.

For me, it was Guitar Hero.

My god. Seeing all the marketing behind the game and the guitar in display was heaven.

I also remember the employees giving you close to nothing for a used game, lol.

What are some memories you have of GameStop?

I would love to hear from you.

Leave them in the comment below.

And lastly…

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 these articles.

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Read: GME stock: Why it can still skyrocket past $1,000 per share

10 Myths About The AMC Apes The Media Has Wrong

May 4, 2022 / Frank Nez

Who are the AMC apes?

They’re the retail investors fighting for market change in our financial system.

We’re the ones who saved AMC and GameStop from going bankrupt.

Welcome to Franknez.com – the blog that provides you with articles on stock, crypto, and market news. Here are 10 myths about the AMC apes the media has wrong.

Let’s get started!

1. “Apes Have No Education”

Apes actually come from a variety of backgrounds and yes, professions.

Retail investors in the community range from your average 9-5 hustlers to business owners, doctors, and even lawyers.

Though many identities are kept hidden, it’s not difficult to see why.

People from all over the world have become an ape for more reasons than just money.

2. “Apes Want To Overthrow The Government”

Apes don’t want to overthrow the government, apes actually just want a fair market.

Contrary to how apes are portrayed in the mainstream media, the community is not made up of hooligans who want to overthrow the government.

Apes simply want government to hear the communities concerns regarding the market.

Hedge funds pose risks to our financial system.

The ape community has made it a mission to create real change for a fair market thus sparking a real movement.

3. Not Everyone Is A New Retail Investor

The community attracted many new retail investors.

However, many apes have been investing in the stock market for years.

I’ve actually provided the community with my personal long-term winning stock picks for when they’re ready to diversify.

Other apes in the community show new retail investors how to read chart patterns and even how to day-trade other plays that aren’t AMC or GME.

This is the community where the average person can not only learn how to invest in stocks, but also gain magnitudes of value and knowledge.

#4. We Don’t All Hang Out On Reddit

Although apes started on Reddit, a lot of apes don’t actually affiliate themselves as a ‘Redditor’ or with r/wallstreetbets.

AMC and GME apes have separated from r/wallstreetbets mainly due to an increase in infiltration from shills, toxic persons who’s mission is to bring down the community.

Subcommunities are now much tighter around a variety of influencers within the community as a whole.

And although we don’t often identify as community leaders, influencers have done a great job at keeping retail investors together.

#5. We’re Not 19 Years Old

Contrary to what the media might think, the ape community is not made up of 19 year-olds.

In fact, majority of apes are much older than that.

But, I won’t give that information out to marketers.

The community isn’t naïve, there are a lot of wise and intelligent people with real stories and lots of experience here.

The media often times portrays us as rebellious youngsters.

But I believe many of us will actually be the future leaders of our nation.

#6. We Don’t Actually Eat Crayons, Well Sorta

Eating crayons is a taunt and is part of the ape community culture.

It’s a message to smart money that we’re dumb money, yet we’re making money while they lose it by shorting AMC and GME stock.

The meaning of eating crayons originally separated us from formally gathering as a community to buy these stocks.

“Buy and hold, but what do I know, I’m just a crayon eating ape.”

Although I must say, I wouldn’t be surprised if some apes do consume these delicious snacks 😅😂.

#7. “Apes Just Want To Make Quick Money”

If apes wanted to make quick money, then the community would be day-trading AMC and GME stock.

However, that is not the ape way.

Apes buy and hold the stock.

Seasoned apes who got in early could have cashed out tremendous amounts of gains but continue to hold because it’s not about making a quick buck.

It’s about making life changing money through a short squeeze play.

Apes have a why.

In fact, leave a comment below what your why is.

Why do you hold AMC and/or GME stock?

#8. “Apes Worship Adam Aron and Ryan Cohen”

The community has a tremendous amount of respect for AMC CEO, Adam Aron and GameStop Chairman, Ryan Cohen.

We support them because they’re running the businesses of America’s two favorite stocks.

We want to see them succeed, but we don’t worship them.

In fact, most apes are willing to continue investing in both companies after MOASS, especially if a dividend is announced.

#9. We’re Actually Not Jim Cramer’s Friend

Despite The Street’s Jim Cramer portraying to be close to the ape community, he can’t sit with us.

Few apes actually respect the guy, but he can’t sit with us.

Did I mention that?

Mr. Cramer has just contradicted himself too much and the community is huge on trust.

We have more trust for FOX’s Charles Payne and CNBC’s Melissa Lee.

#10. Apes Invest In More Than Just ‘Meme Stocks’

The ape community might have a ton of new retail investors only dedicated to AMC or GME stock specifically.

However, many apes are also invested in other assets such as crypto and even NFTs.

Apes are the retail investors who are finding the early plays and putting their money to work for long-term financial gain.

Some popular crypto apes are currently invested in are Dogecoin and Shiba Inu coin.

These Retail Investors Fight For What’s Right

The AMC and GME communities are a beacon for change.

We seek to establish a fair market so that future generations no longer get taken advantage of by corrupt hedge funds and financial institutions.

I’m confident the fight for a fair market will further continue even after AMC and GME MOASS.

What else does mainstream media need to know about the community?

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AMC apes – watch this.

What Are Dark Pools in Stock Trading? (AMC)

April 15, 2022 / Frank Nez

What are dark pools in the stock market? — AMC Dark Pool

Dark pools are somewhat of a mystery to new retail investors. We hear about them a lot within the AMC community, especially through Trey’s Trades. We know that they allow hedge funds to make undocumented trades behind doors.

So what exactly are dark pools? And, is something being done about them? I want to expose this subject today.

Welcome to Franknez.com – the blog that protects retail investors from FUD media. Today we’re discussing dark pools.

Lets get started!

What is a dark pool?

A dark pool is basically a financial forum or platform for trading stocks or other securities. Dark pools are privately organized and are known to be an alternative trading system.

These ATS’s are seldomly regulated.

The concerns regarding dark pools and AMC Entertainment has been that we simply don’t know what these communities are hiding from the SEC. This slimy strategy is what’s known as backdoor buying and selling.

Why are dark pools used?

Dark pools give hedge funds an advantage in the sense that they are able to conceal their moves. We can only speculate what type of information is being hid from the public here. Details within these dark pools are not accessible by the trading public.

This lack of transparency may allow dark pools to conceal information such as:

The illicit activity of naked shorting
Explanations behind millions of fails-to-delivers
Any discussion regarding malpractice in the market
Inaccurate filings and reports

Dark pools can very well be the place where short sellers get together to discuss strategies and the ruining of companies.

It could be the reason why we don’t know how many short sellers are shorting ‘meme stocks’ and other information that would otherwise prove a fair market for both institutions and retail investors.

Is the SEC looking into dark pools?

In a recent article regarding the high possibilities of automated margin calls, I point out some research I found on Gary Gensler, Chairman of the SEC.

He publicly announces that the SEC has been observing hedge fund activities since January and are taking action to regulate these entities shorting AMC and other ‘meme stocks’.

One of Gary’s proposals states that hedge funds could face 13-F filings. These filings would provide the SEC with insight on equity as well as dark pool disclosure.

I trust we will begin to see this new chairman make the right calls. It’s time for change and our generation will be the ones to make it happen.

Dark pools could explain the low short borrow fee

Could dark pools be the explanation as to why the short borrow fee is so low for hedge funds shorting AMC and GameStop? Now, because so much information is in the shadows, this of course is only speculation.

According to Investopedia, dark pools can charge lower fees than exchanges because they are often housed within a large firm and not necessarily a bank.

dark pools Investopedia — via. Investopedia

Why do these large firms (hedge funds) have this much power in the first place? This advantage is completely deceitful and unruly. It really does make you look at the SEC and think why in the world has no one taken action sooner.

Are dark pools illegal?

Dark pools are not illegal but they are certainly unethical. Per the SEC, we can expect real regulation to surround these exchanges relatively soon.

Bloomberg Tradebook

The Bloomberg Tradebook is a dark pool that is owned by Bloomberg LP. Bloomberg is a financial media company that has been trashing AMC Entertainment for quite some time now.

Bloomberg has published FUD (fear, uncertainty, and doubt) articles in efforts to scare people out of their money. This raises questions regarding the ethics of these manipulators who gather behind close doors in order to stray the public from squeezing shorts out of their positions.

Other dark pool exchanges

Institutions such as Morgan Stanley and Goldman Sachs also offer private trading to their clients through the use of dark pools.

The main concern here is that the information that is made public to the SEC can easily be manipulated. Mainly to conceal foul play and inaccurate information.

The information that is available on Stonk-O-Tracker regarding AMC and dark pools is the percentage of trading within these forums/exchanges; which is usually relatively high.

How does this affect AMC stock?

These private exchanges may be illegally trading naked shares behind close doors refraining AMC’s stock price from further climbing. Although AMC is up nearly 3000% year-to-date, hedge funds continue to attack it through sell walls and short ladder attacks.

And since these private forums could potentially have been getting away with inaccurate reports, the possibility of foul play in the market is certainly there.

AMC Dark Pool Trading

Andrew Hiesinger, CEO of Quant Data took to Twitter to expose AMC’s current dark pool trading volume.

Quant Data provides retail investors with real-time options order flow, alerts, dark pool prints & levels, and news. There has been approximately 34 million shares exchanged in dark pools just in today’s trading day (8/18).

This equates to $1,268,475,800.46 in notional value, says Andrew.

64.21% of trading in dark pools won’t allow AMC’s stock price to reflect the actual price action. This primarily because this amount of trading is done behind closed doors where buy orders aren’t being reported.

This form of manipulation is clouding AMC’s real share price. #DarkPoolAbuse has been trending on Twitter.

Bookmark this article for updated news on dark pool abuse in AMC.

How can retail investors fight these predatory trading practices?

Retail investors have several advantages over hedge funds shorting AMC and other ‘meme stocks’. The community must stay the course if they are to squeeze these short sellers out of their positions.

Not only are hedge funds losing billions, but the SEC has finally begun to implement new regulations that could automate margin calls in overleveraged accounts. I’m personally not worried. These house of cards are falling at the times they should.

Read: 6 things retail investors holding AMC stock should know

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Will GME Stock Split Force a Short Squeeze?

April 13, 2022 / Frank Nez

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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Let’s dive right into it!

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GameStop announces stock split in form of 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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