Short Squeeze Mania – AMC – BBBY – GME

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Massive short squeezes are taking place in the market these days. Listen in to find out more about Reddit Rebellion.

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Short Squeeze Mania – AMC – BBBY – GME

01/26/2021

Podcast Transcript


Welcome everyone. This is Jeffrey Kamys with Stock Smart where we look at interesting things going on in the market, stocks and what’s going on in general. Wanted to take note of something that’s happening right now is these high interest, short interest stocks like GameStop. GameStop is fantastically interesting right now. GME ticker symbol, which as of today, which is January 26th is 138% short, which is incredible and it’s part of what they’re calling like a Reddit Rebellion, which essentially is a group of retail investors, maybe Robinhood or those investing with eTrade or smaller companies like that, are essentially retail investor again, is what they call like an average investor or someone who is investing for themselves as opposed to like an Institutional Investor.

[00:00:53]
What they’re doing is essentially they ganged up on these stocks and said, hey, we’re going to try to break these shorts and they did it as a group and they’re essentially punishing those who were short in GameStop which is now up to $220, which was stock that was at $12 months ago. So whoever was short in this, generally these large hedge funds that are taking these big large short positions have gotten just punished and literally put out of business by it. There’s a lot of other this seems to be a really common current trend right now. There’s a lot of their shorts that are very interesting, getting a lot of movement as well, SPCE, which is Virgin Galactic. That’s about 80% short, which is now hit I think it’s hit an all-time high.

[00:01:41]
It’s at 42 right now, and that’s been bouncing around a lot. It’s 82% short, it had a high of February 2020 of 37, then it’s bounced around and sat in the mid-20s for a long period of time, now today hit a high of 43 after hours, so that bounced up about 19% today and that’s incredibly short at 80% short again getting pounded by a short squeeze. AMC entertainment, the movie theater company, a couple months back they announced that they were going to, they didn’t know if they had funding and so AMC went down to around $2 a share. There was a large short position taken in it. It’s about 70% short currently, but that stock has rebounded almost 300% now over $6 again, another short squeeze taking place.

[00:02:40]
Other ones of interest too are you know, the retail coupon company Bed Bath & Beyond who generally would send you a large coupon that you can bring into the store every month and get your discounted items, but we know most people aren’t going in the stores these days, Bed Bath & Beyond is 70% short, also kind of on a recent tear when that stock is really gone up a lot in a massive short squeeze, Bed Bath & Beyond today has jumped up greatly in value. It’s up 37% today up to $43, that stock had been in the $5 range just in April and as April of last year. So this thing is really taken off within the last 2 weeks. It’s up something like I don’t know 18, it’s up.

[00:03:36]
It’s doubled it’s about 135% in the last two weeks. So that stock is also part of a short squeeze so it’s really interesting these hedge funds are definitely getting pounded by these other shorts are, it’s actually a stock that we really like, that I really like, it’s Fubo TV. I’m a user. Fubo, which started as like a, Fubo, the name comes from like football. It started off as a soccer broadcaster. But I’ll tell you as far as any of these, you know, these Wi-Fi kind of TV concepts or app-TVs like Apple TV and Hulu which I’ve had before as well, Fubo by far has the best absolute sports package and that also has a large short of 62% short. Fubo has done really well and recently it hit

[00:04:28]
at one point Fubo was up to 60+ just in late December, dropped down all the way to 24 but they short-stated it. And now it’s up to 46 again. So today it made a bump of about 13%. So Fubo is still on a little bit of a tear as the shorts try to evade the position and just to be certain so everyone can understand what a short is, essentially you’re betting against the stocks, you’re betting it to go down.

[00:05:00]
So now if you’re at 46, if you take a short position in Fubo you actually have to borrow those shares from someone who owns them and then you pay them interest to borrow the shares. Now if the shares go up, you know, that’s a negative position that could be negative to infinity so you could be looking at a large loss and you’re also paying interest holding them. So if the shares go up and they go the wrong way on you then what happens is people start evading the short, meaning they have to buy to close out the short position. So that’s what happens in a short that creates this fury of pumped up pricing.

[00:05:36]
So as the shorts evade the position they have to buy and buy and buy and that pumps the price up up and up as demand grows greater. So that’s why you see these massive short squeezes. So technically as an analyst when you look at a short position, it’s actually a bullish indicator because what’s happening right now is you see all these shorts and they are pumping the price up. So will you look at it as though it’s a negative indicator when you have a heavy short position and by heavy generally these are incredibly short shorts at over 10-15%, that’s normally a large short position. These are in the 50-60-100% range for GameStop and there are literally hedge funds going out of business because of this or they’re suffering grave consequences right now.

[00:06:23]
So anyway that was Stock Smart for today, January 26th, this again is Jeffrey Kamys. And I wanted to just bring you that information. I would tell you as far as for retail investors, I’ve had several calls in the last 2-3 days about these stocks and people ask me should I get involved and I say generally no because what’s going to happen on these stocks like GameStop now over $200, they’re going to eventually evade the position and the bottom is going to fall out really quickly. So you can have that stock go back down to $20-30 rather fast, and you don’t want to be sitting there holding that stock that’s never going to see those prices again, you could have a massive loss.

[00:07:05]
So I would say for the average investor do not get involved stay on the sidelines. Let someone else take the hit because those stocks as fast as they went up is as fast as they’re coming down. We’ll talk to you soon. Thank you.

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