Posted on 01/30/2021 8:43:32 AM PST by CheshireTheCat
...Citron was one of the Wall Street firms with a significant “short” position in GameStop, meaning his investment would have benefitted by a collapse of GameStop’s stock price, but Citron closed out its short position this week among the frenzy of buying and selling that has had the price move in wild gyrations between $100 and $500 a share. Earlier in the week, Left made a comment in the media that GameStop’s share price would eventually crash back down to $20 share — but it seems like he couldn’t afford to wait for that to happen and has taken a loss on his position in closing it out.
But today comes the announcement from Left that Citron will no longer be publishing its newsletter on targets for short investors. Citron will now be focusing on “long” investment opportunities — promoting the buying of shares of companies that Citron believes will go higher in the weeks and months ahead.
This is a bigger concession than one might imagine. A noted “short” investor is basically conceding that the “jig is up.” It is a recognition that a meaningful short position now has exposure to coordinated action by retail investors that will cost the short seller massive amounts of money over a very short period of time in circumstances where it is unlikely that the short investor can mitigate or avoid the loss....
(Excerpt) Read more at redstate.com ...
I guess instead of “Wall street” they could name the game “Main Street”
That sounds like a good rule. They should go back to that.
They could still trade in decimal points but only allow short at a eighth or quarter ticks
I’m guessing Game Stock is not in their new “long” business model
A hedge fund's worst enemy is not the companies they're betting against, nor activist investors like the GameStop situation. Their worst enemy is other hedge funds who can't wait for them to fail.
The politicians, as long as they're paid, couldn't care who gets burned.
If you ever seen this guy his mere presence on CNBC has caused stocks he talks about to crash dude deserves everything he gets for all the money he’s cost the little guy
If you look at the Wallstreetsbets reddit board, there is “trader” claiming they only closed out a small portion of the shorts. According to him, they are spreading disinformation (who would think) that they settled there obligations in order to trick the people holding the stock to sell it. Personally I believe this based on all the fraud that is put before the american people.
I think Short selling has its place and shouldn’t be prevented, except for some restrictions on overburdened use.
Its a risky thing to do and the GME ultimately provides a harsh lesson to those who short sell at ridiculous amounts beyond where there is actual stock to cover a sale.
I wasn't talking about naked shorts.
I heard that the Enron fraud was discovered by short sellers, so I think short selling has a place in order to ferret out fraud, but these hedge funds are using it to deliberately make money by killing a company.
How does a hedge fund short sale make people stop buying at GameStop?
Gamestop is mainly a brick and mortar company, i.e., they sell at shopping malls and since the pandemic, most of those malls have seen less traffic. The hedge funds figured that this company would fail but video game players didn’t want the company to go under. If the hedge funders win, Gamestop will have to close it’s doors because they don’t sell their games online.
GameStop closing has to do with lack of customers, nothing to do with hedge funds.
There are two sides of every trade. For every short seller, there is a long buyer. If I as a long buyer think stock X is worth $20/share or more, and if someone (i.e., a short seller) will sell it to me for $20/share, why should I care if that seller already owns the stock or not? As a buyer, the short seller can be my friend if I’m right about the stock and he’s wrong.
Those hedge over shorted game stop at 147% of outstanding shares! I’m happy to see those leeches get ripped off.
That’s why the hedge funders targeted Gamestop in the first place. Gamestop was still holding on and planning to sell on line in order to boost sales.
Their short sales don't hurt or help revenues.
What's artificial about it?
When companies get overbought as in the case of tala, amazon, apple and many others that have pets that are so outrageous, he shorts come in and bring the price down to earth.
The market is nothing but a manipulated casino nowadays anyway.
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