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Well Known "Short" Investor Citron Research Is Abandoning the Strategy as a Result of GameStop Losses
RedState ^ | January 29, 2021 | Shipwreckedcrew

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 ...


TOPICS: Business/Economy; Conspiracy; Government
KEYWORDS: citron; gamestop; reddit
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To: Paladin2

I guess instead of “Wall street” they could name the game “Main Street”


21 posted on 01/30/2021 9:41:08 AM PST by Billyv ( Ephesians 6:11 for we battle not against flesh and blood...Pray for our leaders and nation )
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To: Mouton

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


22 posted on 01/30/2021 9:41:53 AM PST by Mr. K (No consequence of repealing obamacare is worse than obamacare itself)
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To: CheshireTheCat

I’m guessing Game Stock is not in their new “long” business model


23 posted on 01/30/2021 9:42:25 AM PST by kjam22
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To: NWFree
On to the next company killing hedgehouse!

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.

24 posted on 01/30/2021 10:03:32 AM PST by T.B. Yoits
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To: NWFree

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


25 posted on 01/30/2021 10:09:10 AM PST by Lod881019
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To: BipolarBob

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.


26 posted on 01/30/2021 10:32:28 AM PST by RBW in PA
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To: CheshireTheCat

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.


27 posted on 01/30/2021 10:32:47 AM PST by Bayard
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To: dynoman
Naked shorts are fraud.

I wasn't talking about naked shorts.

28 posted on 01/30/2021 10:38:06 AM PST by Toddsterpatriot (TANSTAAFL)
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To: Toddsterpatriot

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.


29 posted on 01/30/2021 10:46:02 AM PST by Amberdawn (Want To Honor Our Troops? Then Be A Citizen Worth Fighting For.)
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To: Amberdawn
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?

30 posted on 01/30/2021 10:48:16 AM PST by Toddsterpatriot (TANSTAAFL)
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To: CheshireTheCat
facebook-1612006290680-6761244433027883921
31 posted on 01/30/2021 10:58:15 AM PST by cartan
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To: Toddsterpatriot

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.


32 posted on 01/30/2021 11:02:28 AM PST by Amberdawn (Want To Honor Our Troops? Then Be A Citizen Worth Fighting For.)
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To: Amberdawn
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.

33 posted on 01/30/2021 11:32:28 AM PST by Toddsterpatriot (TANSTAAFL)
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To: Yo-Yo

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.


34 posted on 01/30/2021 12:39:13 PM PST by irishjuggler
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To: Toddsterpatriot

Those hedge over shorted game stop at 147% of outstanding shares! I’m happy to see those leeches get ripped off.


35 posted on 01/30/2021 1:10:01 PM PST by dynoman (Objectivity is the essence of intelligence. - Marilyn vos Savant)
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To: Toddsterpatriot

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.


36 posted on 01/30/2021 1:11:57 PM PST by Amberdawn (Want To Honor Our Troops? Then Be A Citizen Worth Fighting For.)
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To: Yo-Yo
Shorting a stock turns the market into a casino. What possible good (other than the short sellers making money) comes from short selling?

The guys shorting (or their buddies) can forcefully take over the company if the price is low enough and they can buy over 50% of the shares. But yea, it's pretty much simply a way to artificially change the market prices so the guys manipulating it can make some money off of it.
37 posted on 01/30/2021 1:16:45 PM PST by Svartalfiar
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To: Amberdawn
They targeted GameStop because they've been losing money for years, even before Covid.

Their short sales don't hurt or help revenues.

38 posted on 01/30/2021 1:18:35 PM PST by Toddsterpatriot (TANSTAAFL)
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To: Svartalfiar
But yea, it's pretty much simply a way to artificially change the market prices

What's artificial about it?

39 posted on 01/30/2021 1:19:57 PM PST by Toddsterpatriot (TANSTAAFL)
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To: Yo-Yo

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.


40 posted on 01/30/2021 1:24:43 PM PST by freedomlver
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