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News Focus
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FeMike

01/28/21 7:59 PM

#351020 RE: skitahoe #351018

You need to expound on this and publish a manifesto. I agree with every sentence and punctuation mark in this post. This is exactly what everyone needs to realize.
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flipper44

01/28/21 8:21 PM

#351025 RE: skitahoe #351018

I don’t buy your initial premise. Instead, without timely legal nongovernmental intervention, the shorts had effectively killed GameStop as it limped along during covid. It was effectively walking dead via short wolves. Your inane argument is that shorts can see to it a company ceases to exist, but you agree with shorts that investors should be stopped from overvaluing a company. Did it cross your mind that gamestop might be able to adapt/expand their business model with sufficient/excess resources. No. Instead, you say, go ahead and kill the company, but stop anybody that might overvalue it.

Poor form Gary.
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laser777

01/28/21 9:19 PM

#351038 RE: skitahoe #351018

Your whole premise is LUDICROUS!
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biosectinvestor

01/28/21 9:54 PM

#351044 RE: skitahoe #351018

It’s a hedge fund bust party. It’s all about the hedge funds shorting 150% of float. It is a technical play/vulnerability. They realized they could create an incredible squeeze and the funds would not be able to cover if they locked up the entire float with options. Probably not all those participating understand, but that is the fundamental circumstance, plus the equity investor who is supposedly helping them covert into an online platform.

But the real reason is there are no shares that are available to cover until those with shares or options, put those shares on the market. They can short with unlimited numbers of shares, because the brokerages borrow the shares, but you can only cover with real shares.
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Garyedward71

01/29/21 12:07 AM

#351072 RE: skitahoe #351018

The trading halt was initiated by Robinhood due to clearing issues. Until the shares have been delivered and the settlement is finalized. Robinhood must borrow the money and loan it to the seller until the transaction is cleared. Trades used to be 5 days until shares had to be put in hand. By decreasing settlement time, greater liquidity is created in the market. These loans allow traders to sell a stock and moments later buy another, without having to wait until the shares have been delivered. Robinhood maxed their borrowing limit. The reddit pump actually opened Pandora's box. When a $20.00 stock gets pumped up past $400.00 an even greater opportunity for a profitable short play just got handed back to the hedge funds.