2 ms·
Why is it "over leveraged"? What makes you think the stock is "out of balance"? The hype men will have you believe that there is some magic percentage or tippin
by mike00632 6y ago
Why is it "over leveraged"? What makes you think the stock is "out of balance"? The hype men will have you believe that there is some magic percentage or tipping point that makes it a good buy but it's pure bunk. If GME has any relationship to the company GameStop (which it does) the stock should be in the toilet and is very likely to go out of business soon, which makes a massive short position very reasonable.
- mitch3x3 6y agoGo read the current financial position yourself. The hedge funds still have to buy over 100% of the total amount of GME shares to cover their short positions. To do that they need to buy existing shares at current market value or they go bankrupt. Its a vicious cycle. Go look at previous short squeezes that have happened.
- mike00632 6y agoNo. They don't HAVE to buy the stock. They don't need to cover their shorts. 100% isn't some magic number like you've been told.