| Author | Source |
|---|---|
| u/HomeDepotHank69 |
**** I am not a financial advisor, this is not financial advice ****
Greetings apes, it’s been a while. I’ve been a busy autist and have taken a break from DDs, so I’m sorry for my absence. I’m not sure when the next time I’ll be posting another big DD is, but I am still lurking, commenting, and keeping up to date, so it’ll happen. Today’s post is a mini DD that inspired by a message from an ape. An ape by the name of u/emu_fake messaged me and asked what I thought about the ATM offering that GME did right after earnings having an effect on the FTD cycle. Well, here are my thoughts on it.
As well all know, the FTD cycle happens every 35 calendar days which comes out to about every 21 trading days. The idea is that because this is the latest possible day that a HF might have to cover, they do it at the very last minute. We have seen a substantial positive volume and price increase consistently for months now. However, we didn’t see one on 6/24, which was supposed to be an FTD cycle day as well. At first, when I heard what this ape had to say, I didn’t think much of it…. until I remembered another day: 4/26. This was also an FTD cycle date but many of us have noted that it could barely be considered an FTD cycle day because it’s volume and price increase were not that substantial. Guess what GME did right before that date? That’s right, a share offering. They announced this offering as being complete on 4/26 (so they actually sold it before then). That offering was for 3.5m shares, which is 30% fewer than this most recent offering.
Even more interesting, is that a certain coin hit a low a few days before it usually does during the FTD cycle. Interesting….
From all of this, I theorize that because both of these FTD cycle dates proceeded an ATM offering, this gave HFs the ability to buy an influx of shares at a discounted price. They sold off their coin faster than they normally would have to cover. This effectively allowed them to “skip” an FTD cycle price increase. It also makes sense that we saw some light gain on the 4/26 one but no gain on the previous one because the 4/26 offering was 30% smaller, so they still may have had some FTDs to cover. This is all complete and total speculation but IMO it is definitely a plausible theory. If we miss the next supposed FTD cycle date, then I’d say this theory isn’t true, but if we see an FTD cycle next time, then this theory may be accurate. This is also interesting because if it’s true then it is more evidence that: apes own the float, HFs are WAYYYYYYY over-shorted, the FTD cycle is persistent and exponentially increasing, and the MOASS will happen.
Finally, let’s all just take a second to realize the absolute absurdity of GME’s chart. Seriously, wtf. The stock is holding in the 200’s, and went well over 300 a few weeks, on absolutely disturbingly low volume. IMO this shows us just how pervasive the OTC/dark pool trading is. If there isn’t anything going on here, then why are they doing that? Also, the 350 level is absolutely absurd. We’ve been rejected by it brutally two times and when we passed it in January, the market literally shut GME down. Yeah, I’m guessing Marge has HFs on speed dial at $350. Anyway, my tits are jacked and I like the stock. That’s all for now, apes.
**** I am not a financial advisor, this is not financial advice ****