patrick.net

For completeness... Dude where's my short interest?

I’m underwater but I only have an unrealized loss of $750.

I’m about $34,000 underwater on WFC which I inherited and held because I believed the Buffet hype.

As soon as WFC gets up to $50 or so, I’m selling it.

“Dompe eeet!” as a French dude says on YouTube.

My friend showed me her Robinhood app and she made a huuuge % gain from Clovis Oncology.

I asked her “What made you buy this?”
“I don’t know.”

I told her next time she gets a good idea please tell me about it. I will pay her a commission, I show gratitude.

My data is pointing to the "possibility" of $30/25 mid +/- next week.
Price will have cooled down enough by then and round 2 should be
at the door... On a fast bums rush to that area I would take some test buys...

$38.78/sh -$1.91 (-4.69%)

Should stop around 15

$154.8501/sh -15.4099 (-9.05%)

Who wudda thunk? Crowdsourcing as the antidote/antibiotic/nemesis to the hedge fund cabals?

Sounds like Robinhood and the SEC are now doing to small investors what the plutocrats and the Business Roundtable did to the the largest middle class in the history of the world (US 1950-1975) 30 years ago: initiate a war of annihilation against them.

After all, what segment of society has consistently led/supported any major successful revolution in the past 300 odd years? You guessed it: the middle class.

This is all about threat mitigation by the plutocrats.

The Romans said it best, though even they hadn't invented it: divide et impera

$138.4484/sh -2.6416 (-1.87%)

I’m now above water, I got a few more shares so my average cost per share is about $134.

I’m going to hold this thing to either $400 or ride it down to Davey Jones’ Locker.

I just saw elsewhere that GameStop wants to pay a dividend; the shorts are on the hook to pay it out, they keep getting fucked, this is fun.

clambo says

I just saw elsewhere that GameStop wants to pay a dividend; the shorts are on the hook to pay it out, they keep getting fucked, this is fun.

Seems reasonable given their history of dividends:

https://news.gamestop.com/news-releases/news-release-details/gamestop-declares-quarterly-cash-dividend-announces-intent

https://www.nasdaq.com/market-activity/stocks/gme/dividend-history

I love this.

I don't see how the shorts have to pay the dividend directly but a dividend would certainly harm the shorts by driving up the price of the stock.

The shorts owe the dividends for the GME shares they borrowed to the broker who lent the shares to them.

This could be a clever way for guys like Cohen to really put the screws to the shorts.

The shorts are going to have to find a lot of money somewhere in due time.

clambo says

The shorts owe the dividends for the GME shares they borrowed to the broker who lent the shares to them.

Wow, I didn't know this:

If a stock in which you currently have a short position pays a dividend, you are responsible for the dividend on the shares you have borrowed. When the dividend is due, your broker will withdraw cash from your brokerage account equal to the amount of the dividend paid on the shorted shares. The broker then pays the money to the owner of the shares. You should check when a stock typically pays dividends before shorting the shares. You do not want to get surprised by having a dividend payment taken from the cash value of your brokerage account.

https://pocketsense.com/dividends-work-short-positions-7597.html

I still don't quite get it though. The company itself pays a dividend to shareholders out of earnings. So maybe the person holding the borrowed shares (the shorter) gets that dividend from the company, but then has to turn it over to the owner of the shares.

Patrick says

So maybe the person holding the borrowed shares (the shorter) gets that dividend from the company

I don't think so, as the first thing a "short" does is sells the borrowed shares on the open market. Whoever buys those borrowed shares is entitled to the dividend. The short seller doesn't own the stock again until they "buy to cover" (and give those shares immediately back to the original owner).

Ah! Now I get it.

Thanks @EBGuy

The key is the the shorted shares are out there God knows where, and the person who bought them from the shorter is the one getting the actual dividend payment from the company.

So the shorter is liable to pay that dividend to the person he borrowed the shares from.

That's also kinda interesting because the dividend is being paid out twice in the case of shorted stock. First from the company to whoever bought the shares from the shorter. But then the shorter himself has to pay it to the guy he borrowed the shares from.

Patrick says

That's also kinda interesting because the dividend is being paid out twice in the case of shorted stock.

Yeah, that's something I didn't realize until we had this discussion. It's a "short dividend stimulus" in the overall market.

https://dailycaller.com/2021/06/22/hedge-fund-white-square-capital-gamestop-meme-stock/

A London-based hedge fund that bet against GameStop during the first “meme stock” rally in January is shutting down after facing double-digit percentage losses, the Financial Times first reported Tuesday.

White Square Capital said in a recent letter to investors it would shut down its main fund and return capital following a review of its business model, according to people familiar with the matter. The hedge fund had managed about $440 million in assets during its peak but suffered huge losses betting against GameStop early this year, the Financial Times reported.

Small-time retail investors, coordinating their actions on online forums such as r/WallStreetBets in January, drove up the price of so-called “meme stocks,” including GameStop and AMC Entertainment. GameStop surged from less than $20 at the start of the year to more than $480 at its peak.

Hedge funds caught in the short squeeze, including Melvin Capital and Light Street Capital, incurred substantial losses. Melvin Capital, the largest fund that bet against GameStop, saw more than half of its $12.5 billion portfolio wiped away in January.

zzyzzx says

White Square Capital said in a recent letter to investors it would shut down its main fund and return capital

I presume that this "return of capital" to investors will be a fraction of what those investors put in.

https://finance.yahoo.com/news/ryan-cohen-named-gamestop-ceo-123317063.html

(((Ryan Cohen))) named GameStop CEO

Every single time!!!