| Author | Source |
|---|---|
| u/mrpoopybuttface |
Disclaimer: I’m not a financial advisor. Do your own due diligence. I can’t read.
Preamble
This is why I sleep so well at night, why I don’t feel the need to fuss over the price all the time, why I confidently buy dips, why I’m sitting with 720 shares at a $40 price average, and haven’t even thought of selling yet.
The reported short interest today on FINRA is saying that they’ve shorted 78% of shares, now whether they’re claiming that’s against outstanding shares (~69 million total issued by GME) or the float (~40 million) I’m not sure, but either way I know they’re fucking LYINGGGG.
Right right, but where’re the rockets?
Come hither children, sit round in a circle by the fire while I tell you a story. Afterwards since you’ve been such good children you can come crawl into daddy’s big bed and watch a movie, but you need to go to bed by 9:30 okay? You all can come in and we can get all the pillows in the house and watch Lilo and Stitch, we can make popcorn tonight even, but you need to be in your own room by 9:30. Please wash your sticky popsicle fingers off before you touch my bed, thank you.
We last left off with the evil hedge funds saying that they had covered their short positions down from 100% to 78% by mid January. HOWEVER, suspicions remained. Were a few million dollars in penalty fees for fraud enough to lead them to their ultimate biological destiny of covering their asses and paying out?
Upon some further poking around in Finra’s data, a little someone discovered something magical. By holding their mouth the right way, having a good attitude, and tiptoeing into shareholders > Equity Ownership > Institutions they entered a magical realm.
Riddle me this, how in mrpoopybuttface’s name do the top 10 institutions own 205% of outstanding shares?!
Okay now stay with me, there are roughly 40 million reported shares in the float, a–
FUCK! Dakota–Dakota NO! We’ve been over this the nerf gun is only for outside. Outside time. We’re insi–WE’RE FOCUSING. Focus on me. Okay, yeah, I think it’s time for some weighted blanket time to be in our calm space for the day. Okay. Okay. OKAY. Put on the blanket. Yes. Alright. Alright. Yes it is dark outside. Right…
Right, so roughly 40 million shares in the float (i.e. they’re able to be traded). Let’s be SUPER conservative here and just ignore the 13% of the float that Ryan Cohen owns, the shares that all the other institutional shareholders own, and all the shares that retail investors own. Let’s assume a max amount of float is going to easily trade.
Based on the data for these 10 institutions alone we can assume that at the most extreme minimum an extra 70 million synthetic shares have been issued and shorted than actually exist. So the short interest against outstanding shares MUST be at the very LEAST 100%.
MEANING that the short percent of float must be much, much higher than we–
FUCKING. Dakota. Dakota. Dakota. I know you want goldfish. I know you want goldfish. They’re in the bowl next to you. I know you want them. They’re right there. Yes. Yeah. Yeah. I love you. I know my tone is stern, I’m sorry I love you baby. Okay. Okay. Yes.
Yes okay so the short interest against the float must be at the very fucking LEAST 175%. However, let’s throw in some more estimates here to make this more realistic.
It’s quite likely that more than 70 million of the institutional shares held could be shorted. Let’s bump that up a bit to 90 million shares shorted for institutional share holders.
Now let’s look at the 40 million shares in float and subtract the 13% (~5.2 million shares) Ryan Cohen holds. Then subtract a super conservative number of shares held by retail investor longs: of the 8 million wallstreetbets members, let’s assume maybe 1 million of us want to hold 5 shares longterm and don’t plan to sell for the coming squeeze. This leaves us with a float of ~30 million.
With these numbers, which in my humble opinion are still inconsolably conservative, the estimated SI % against float is a whopping 300%
Here’s a quick clip illustrating so much better than I can what is about to happen to the shorts
tl;dr: Hedge funds have been swimmin’ in their own shit for months. The squeeze hasn’t even begun. Eat the rich. Let’s fuckin’ goooooooooo 🚀 🚀 🚀 🚀 🚀 🚀 🚀 🚀