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I'll throw this item I've been following for a while. There is a supply/demand problem with a certain stock that had a massive rise in Jan in the video gaming
by matt_s 5y ago
I'll throw this item I've been following for a while. There is a supply/demand problem with a certain stock that had a massive rise in Jan in the video gaming industry. It could be short term and you may see it as risky but there is a lot of research being done by folks over in reddit that point to large Wall Street firms having naked shorted the stock for months, possibly much longer. Bankruptcy isn't an option anymore (which was the bet these firms made at start of pandemic on several retailers) since the company paid off long term debt and is winding down brick-n-mortar while ramping up ecommerce.
People are estimating 2x-4x of the issued shares exist out there for this security and the large Wall St firms are losing runway where they can play bookkeeping games with failing to deliver shares, etc. Look for the "House of Cards" posts on reddit by a user named atobitt for a lot more detail.
Anyhow, the annual shareholder meeting is this Wednesday. Many retail investors have been encouraging proxy voting their shares because then the company will know that when say 200 million votes come in and only 73 million shares were ever issued that there is a significant problem. Setting aside fundamentals of the company and "valuation", if this situation is going on to the magnitude people claim, it is a massive short squeeze where the price could skyrocket.
I'll admit the research on reddit seems very tin-foil hatty but they have been interviewing trusted professionals that know about these things - lawyer, journalist and former DTCC employee and digging up as much data as they can to the point of FOIA requests to the SEC. Interview are up on youtube.
If nothing like that happens, there is a strong fundamentals case building where it could be the amazon of video gaming in a few years. Another option would be finding an entire stock market index fund as a solid fire and forget investment that will average decently over the long term.
- matt_s 5y agoAh down voters that probably think "meme stock, stupid suggestion". GME will release its 8k SEC filing within a week and it will likely contain vote counts. Votes equate to shares and there is a high probability the vote counts will be higher than the number of shares ever issued. The Naked Short Selling loophole has led to this, for reference: https://en.wikipedia.org/wiki/Naked_short_selling https://en.wikipedia.org/wiki/Naked_short_selling and an interview on Fox Business https://www.youtube.com/watch?v=VRVBbNYfAOM https://www.youtube.com/watch?v=VRVBbNYfAOM describing the problem. This is a simple supply/demand problem that should correct itself in the market.