Short-selling hedge funds have suffered a mark-to-market loss of $19.75 billion year to date in the brick-and-mortar video game retailer GameStop, according to data from S3 Partners.
Still, short sellers mostly are holding onto their bearish positions or they are being replaced by new hedge funds willing to bet against the stock.
GameStop shares that have been borrowed and sold short have declined by just about 5 million over the last week, marking an 8% dip in the short interest, according to S3.
Most of the short covering occurred on Thursday, when the stock fell for the first time in six days.
Hmm ... very interesting!
There are sellers to match buyers!
But only 8% dip in the short interest i.e. no massive short covering! Paper losses only. LOL!
Who are buying bloody high to fight this war?
War hasn't ended yet!
Let see who die first?
Short sellers or late buyers supporting this War?
Heroes always die first?
$5m profits are paid by short sellers and the rest of millionaires' profits are paid by who?
Read? What is the Greater Fool Theory?
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Silver Lake Partners, a private-equity firm and, until recently, a major investor in AMC Entertainment, disclosed in a regulatory filing Friday that it has sold all of its equity in the company.
ReplyDeleteSilver Lake dumped its shares for $713 million on Thursday, turning a roughly $113 million profit on its initial investment, according to the filing.
The move came near the peak of AMC's share-price surge this week, fueled in large part by Reddit day traders who had targeted short-sellers of AMC, GameStop, and other stocks, who have since lost around $19 billion. AMC shares were up as much as 370% this week.
The surge this week triggered $600 million of Silver Lake's convertible debt notes, allowing the company to exchange its risky debt for the surging equity. The debt was ultimately swapped into stock at a price of $13.51, according to a regulatory filing on Thursday.
LOL! I'm sure the underlying companies are busy taking advantage of the huge run ups to raise cash by selling shares or refinancing debts. Lots of people gonna get hurt though. In the meantime watch the fun & hoping the markets will drop another few % points. 😛
ReplyDelete"The public should be aware that certain individuals may exploit this interest for their own benefit through 'pump-and-dump' activities that can amount to market misconduct under the Securities and Futures Act (SFA)," the two agencies said.
ReplyDeleteThis could include people - either working alone or in a group - to encourage other members in a chat group to trade a particular security.
As more members in the group do so, the share price goes up. This could be similar to the way certain investors collectively pushed up certain share prices in the US. They might then sell the securities which they had bought earlier - typically in a low-volume, low-price security - at a profit without alerting other investors.
SGX RegCo and MAS warned that any conduct that intentionally, knowingly, or recklessly creates a false or misleading appearance regarding the active trading, market or price of securities is prohibited under the SFA.