No one said shorting GME is risk free. To win this, you need to make sure you don't get squeezed out if the price ever reaches $1000. That price won't be sustainable and it will be down to earth in a matter of days. History is on short sellers side when it comes to price after a squeeze. Look at RKT, VW, KOSS, BB, KODK etc. They all came down after the squeeze. The only reason I think GME is still high is due to its popularity. Every news channel has been talking about it, attracting more suckers to go long. It can't stay in news forever.
You are 100% spot on. I couldn't agree more. As long as one's pockets are deep enough to ride out the squeeze, because you just never know when the right time to jump in short is. If you're lucky you'll catch the top. If not, the margin calls on the way up will wipe one out unless the account is big enough in regards to the position. As GME stands now, and granted I have not dug into their books, but just guessing, it's not worth much more than $20. We all know it's a dead business model. The one wild-card here is the cat that sold Chewy and has apparently entered the mix. Maybe he's a visionary. I'm sure he has a lot of connections. They have what(?), like 5000 locations? Maybe he's looking at E-Sports emporiums and/or gambling. The guy made enough money off Chewy to do whatever he wants that's for sure. I don't see anything here though that he couldn't start from the ground up. Strip-center storefronts are an easy lease at the moment. He can SPAC the company to get it trading. I don't see why he has to buy the name. But again, who knows what his plans are. I think it's a safe bet to assume however, he does have some plan cooking. That's the wildcard. Know who's a better short, or was in the high $40's (and perhaps still is) is Corsair. I'd be shaking in my boots if I were them, because I have a feeling whatever Mr Chewy does, it's gonna take a big bite out of their model. Seems like similar stuff to me. Could be wrong. Not to mention Corsair's lockup expires here on the 22nd. The float will triple if the early players sell. But everyone loves them atm and they are way off their high so I wouldn't short them either unless they get over $45 again. If you and Salty are short this thing, trust me, I'm over here with pom-poms cheering you on. I don't want to see Salty loose $27K, nor you, however much you stand to loose. I only share insights based on personal experience culminated from more than my share of bad trades on situations like this. One forgets many things over a lifetime, but you never forget the time(s) you reached up and grabbed that annoying (and harmless looking) hornets' nest and tried to pull it from the tree. Some stings are worse than others, this one has the potential to be a doozy. So just be careful. I'm in your corner, even though it doesn't always come off like that.
while I am bearish on GME, the difference woth GME vs the other stocks is that if this Cohen guy can actually fix the company and the company gets the same valuation as Chewy, then the stock will be worth 400-600.
So basically what you're saying here is this guy Cohen has the potential to be (or is) some kind of business prodigy based upon what he did at Chewy. The other day he Tweeted a picture of a sock-puppet and the stock spiked north in a big way. Cute. Real cute. It worked. But there's only one Elon Musk, or for that matter, one Donald Trump. You don't move stock prices with a Tweet on Twitter in the real world. It would appear however that enough players out there are salivating for this, a new visionary savior. Dumb, but it is what it is. I'm not taking anything from this man's accomplishments, he's a billionaire. But there is a world of difference between building a company like Chewy from the ground up at the exact right moment in time being somewhat of an IT geek.... and taking over a dinosaur business model with 5500 brick and mortar locations and all the associated legacy costs. Everything from wages, to rent, to utilities, to workman's comp,.... the list goes on and on. This is not even close to being an apples to apples comparison. Plus.... how the f is he gonna turn the company around, when he's not even mentioned on their Wiki page aside from #102 in the footnotes. https://en.wikipedia.org/wiki/Gamestop Wtf is that about? GME can't update their own wiki page!? They're a $9B fortune 500 company that now has the alleged, 35 yo boy genius, that is going to engineer a multiple for the company that he achieved with an online dog food delivery company in his 20's. Its bs. I don't buy it. Again.... I point out the legacy costs of this operation. 5500 brick and mortar stores. There's no need to dig any deeper. If he does pull it off, he will go down as one of the greatest businessmen of all time. In summary, I am 100% convinced the financial world has lost its collective mind.
And allow me to caveat all this with one more thing. As I alluded to in my post previous to this one... all this matters not near term on the stock price. For all we know the thing will be $1500 by Wednesday and Mr Chewy will announce he's buying a rocket company and sending Meow Mix to Mars. Sooo.... whatever. It is what it is. Trade what ya see.