129
posted ago by FleshWound ago by FleshWound +132 / -3

Theres a ton of talk about how royally trapped/screwed citadel is, but don't they have a very straightforward solution to the short problem if Gamestop just releases more stock? I am a moderate retard, so maybe there are differences betweem AMC and GME that are lost on me.

I only have one share, so it's not like it's going to wreck me regardless, but I'm curious what people think about this since everything hinges on the hedge funds being trapped.

Comments (65)
sorted by:
You're viewing a single comment thread. View all comments, or full comment thread.
5
OrangeCatBad 5 points ago +5 / -0

If I'm not mistake amc was the 2nd most shorted company in wall st. They just didn't enter insane levels like gamestop

3
Auroraalpha 3 points ago +3 / -0

Its worse now, since issuing new shares dilutes the % shorted and lowers the overall price. In other words, the hedge funds got bailed out and their short bets worked.

3
OrangeCatBad 3 points ago +3 / -0

That assuming the stock goes down, when sharea become available the stock can go up depending on voliciity of purchasing

Example sony releases more ps5 but demabd is out pacing supply so price remain high on ebay.

2
Auroraalpha 2 points ago +2 / -0

Correct. I am on the assumption that you arent able to buy all 44M shares they dump in as a supply shock. Then again, the instant shock probably lets the high volume traders buy back cheap first, before we come in to demand for more shares. I really hate this when we have to go through middlemen.

4
Desktop 4 points ago +4 / -0

I dont think in AMC case they have issued stock with the intention of driving down the price or holding the price to help hedge funds. They are doing it to extinguish debt, converting debt to equiy, so they expect the price to hold or continue climbing.