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The original was posted on /r/Superstonk by /u/captainkrol on 2024-09-16 11:54:49+00:00.
My fellow apes
I wish to provide you with some simple clarity by revisiting some important facts and thereby offer a little focus in these fuddy times.
History
Gme had a reported short interest of over 300%. This was pre sneeze and split levels. So we are talking about a range between 1 and 8 dollars. We call it a sneeze and not a squeeze since the research of the SEC informed us that the price increase in 2021 was due to retail/options/gamma and that there was no indication of short covering/closing.
Simply put: there is a very valid reason to believe a massive short position is still hidden, about 2 to 3x the current float or maybe even bigger. Hidden in swaps and the like. Look at the recent activity in XRT, look at Citadel balance sheet, look at the articles and the ongoing media attention begging you to just forget about Gamestop.
Given the decline of the GME stock price and the negative sentiment in te media (this is speculation not fact) I deem it to be likely that the strategy was to hope retail sells at a loss, and wait for GME to go bankrupt and never close those shorts. That was the only viable strategy for those deep underwater. That hope died however. Given that Gamestop raised a significant amount of capital and has a positive cash flow, this is not going to happen. The exit is closed and shorts are trapped.
Current Situation
Gme is up over 40% over the last half year. The stock price seems to stabilize in the $ 20 range. There might be another raise of capital due to an atm, but only at a certain price. The best investor of our generation RK/DFV/KG is active and with his memes clearly stated that some ass kicking a.k.a. the reckoning is coming. This is and always has been sort of a war between shorts versus longs, which takes time. Patience is key. Time and pressure. Therefore the current situation is quite ideal if you compare it with a few years/months ago: GME has significant capital, stock price broke out of the decline, and DFV doing what he does. If you’re short, you’re now even more desperate then before. Remember that FUD (fear, uncertainty and doubt), is an attempt to toy with your emotions. If all this dilution would be that bad, the stock price would tank, but it hasn’t. Just zoom out. Now is still simply the time to buy, hold & drs. With more certainty then ever before, you know that shorts are fucked. Dilution raised the floor and closed the exit. They are trapped in here with us. And like DFV said, if you don’t believe RC is a doofus, then you only have to wait patiently.
Future
Who knows what the future will bring in terms of the business, a M&A, becoming a holding company, etcetera. We can only speculate. However, the shorts are trapped. By whatever means, if GME manages to create more capital and the value per share rises, then eventually the stock price will rise. And at some point we will reach a tipping point after which the price will skyrocket.
The MOASS always has been a mathematical inevitability
Stay patient 🦍🧘🏼♂️👨🚀💜