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Superstonk DD Summary: GME Endgame Parts 1-6

Whale

Whale

GME, or Gamestop, has been a hot topic recently due to the actions of its new board member, Ryan Cohen, and the high level of short interest in the company. In this post, the writer delves into the short situation and offers some analysis on the potential outcomes.
According to the latest short interest data, shorts increased their positions through the end of the year and have been actively trying to defend GME from crossing $20. This shorting activity has resulted in the total short positions (71.2 million) exceeding the total issued shares (69.75 million). The writer argues that this puts shorts in a precarious position, as if they decide to cover, they will have to buy back 71 million shares. However, a large portion of the shares are held by insiders or institutions that are unlikely to sell on price action. This means that the short % of tradable float is at least 300%.
The writer also notes that the days to cover (DTC) ratio, which is calculated by dividing the number of shorted shares by the average daily trading volume, is essentially meaningless in this situation. If all of the shorts were to cover at once, there would not be enough shares available for them to buy, resulting in a DTC of infinity.
In addition to the short situation, the writer discusses the debt that GME has taken on. They argue that the debt is manageable and will not be a problem as long as the company can continue to execute on its plan.
Finally, the writer speculates on what might accelerate GME’s mission to Mars, including the potential for a squeeze, the success of Ryan Cohen’s plans, and the possibility of a gaming boom post-COVID. They conclude by stating that while they have no idea what will happen in the short term, they believe that 2021 will be a massive year for GME.

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