/biz/ - Business & Finance

>>28886442
The institutions have the collateral to hold indefinitely. Do you think these billion dollar companies don't know what they're doing? They got caught with their pants down on a fluke because someone paid attention, and they've covered after the 1800% squeeze. This was unprecedented and now it's over.

https://www.fool.com/investing/2021/02/02/bought-gamestop-stock-last-week-heres-your-best-ho/
>However, short sellers may have already mostly covered. According to a Bloomberg article citing data fromIHS Markit, only 39% of GameStop's float is now sold short.For perspective, it was over 100% short interest just last month as the squeeze started. This makes sense since prominent hedge funds like Melvin Capital Management have already announced they've covered their positions at a substantial loss.
>With each passing day, the possibility of a new high from a GameStop short squeeze becomes less likely.
>Consider that GameStop stock had a dirt cheap valuation prior to the squeeze because the business was struggling. For much of 2020, the stock traded below 0.2times trailing sales. Let's suppose that Cohen's plan works long term and GameStop starts regaining market share. Some of those sales could also have a higher profit margin thanks to its digital push. Therefore, it's not outrageous to think this stock could someday sustainably trade at a higher valuation. This and higher sales could push its market capitalization marginally higher than where it was last week.
>The point is, if you're hoping to recoup your losses in GameStop stock, Cohen's plan is one of the best chances for it to happen. But this will be a multi-year transformation. In other words, you could be waiting a long time just to reach your original cost basis.