4 ms·
Most people on WSB understand the game here is a short squeeze. They all expect the stock to return to $5-50 when the squeeze is done. That means that the ones
by silexia 6y ago
Most people on WSB understand the game here is a short squeeze. They all expect the stock to return to $5-50 when the squeeze is done. That means that the ones who currently own GME or it's call options plan to sell those in short order when whatever target price is achieved.
Hence my calling it a pump and dump... They are pumping the stock up with highly positive videos like the one you posted and comments on WSB to get the price higher faster so they can sell and make a max profit. But for this to happen, they are going to need a buyer who buys at the very top.
Who is that buyer going to be? No savvy investor will go near buying a pump and dump with a ten foot pole. Sadly, it will be the newbies on WSB and the newbies watching this Rossmann video who buy at the top and lose everything as it plummets down.
You might say, "Well I am not going to be that newbie"... But only a very few will sell at the top... Maybe 1-5%. A few more will make solid returns. But all that profit for those guys on top will come from gullible retail investors. That is why MSM is calling BS.
- teekert 6y agoBut that buyer must be the shorter right? That's shorting, the shorter must return his borrowed stocks. So the people with the stock have a guaranteed buyer in the near future. That so dangerous about shorting, the losses are unbound. I'm just a noob correct me if I'm wrong.
- silexia 6y agoThe buyer could be anyone. But if the stock is so overpriced that no one will buy it except people forced to by margin calls, then what you are describing is a short squeeze... short squeezes are illegal.