666666

Like
Comment
Favorite

FFIE
2021-01-27

666666

Become one of the best short targets, will GameStop rise to thousands of dollars?

腾讯科技讯 1月27日，GameStop已经是一家陷入沉寂的视频游戏零售商，由于视频游戏的数字化，它正在关闭门店并失去销售额。从根本上说，它就像是根雪茄烟蒂，充其量还能吸上一两口。在最糟糕的情况下，它

Become one of the best short targets, will GameStop rise to thousands of dollars?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment

Top
Latest

No comments yet

Most Discussed

{"i18n":{"language":"en_US"},"data":{"magic":2,"id":313437381,"tweetId":"313437381","gmtCreate":1611744083143,"gmtModify":1704862613565,"author":{"id":3562922934125513,"idStr":"3562922934125513","authorId":3562922934125513,"authorIdStr":"3562922934125513","name":"FFIE","avatar":"https://static.tigerbbs.com/d1db3b44fa80775a8ac6bf3f8b4a3828","vip":1,"userType":1,"introduction":"","boolIsFan":false,"boolIsHead":false,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[],"fanSize":125,"starInvestorFlag":false},"themes":[],"images":[],"coverImages":[],"extraTitle":"","html":"<html><head></head><body>666666</body></html>","htmlText":"<html><head></head><body>666666</body></html>","text":"666666","highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"link":"https://ttm.financial/post/313437381","repostId":1116763952,"repostType":2,"repost":{"id":"1116763952","kind":"news","pubTimestamp":1611738108,"share":"https://ttm.financial/m/news/1116763952?lang=en_US&edition=fundamental","pubTime":"2021-01-27 17:01","market":"us","language":"zh","title":"Become one of the best short targets, will GameStop rise to thousands of dollars?","url":"https://stock-news.laohu8.com/highlight/detail?id=1116763952","media":"腾讯科技","summary":"腾讯科技讯 1月27日，GameStop已经是一家陷入沉寂的视频游戏零售商，由于视频游戏的数字化，它正在关闭门店并失去销售额。从根本上说，它就像是根雪茄烟蒂，充其量还能吸上一两口。在最糟糕的情况下，它","content":"Tencent Technology News On January 27, GameStop is already a silent video game retailer that is closing stores and losing sales due to the digitization of video games. Fundamentally, it's like a cigar butt, and at best it can take a puff or two. In the worst case scenario, it's even seen as the next Blockbuster Video.That makes GameStop an attractive target for short sellers, as the stock was easily shorted from above $20 per share to below $3 during the novel coronavirus pneumonia pandemic. The shorting industry has become quite crowded, so borrowing costs are quite high. Some borrow money to invest in stocks at around 100%, half of which is paid in cash through brokerage firms, resulting in those stocks generating about 50% cash yields. However, most stocks will give an additional 3-12 basis points yield instead of 5,000 basis points.Declining sales and core businesses make GameStop an obvious short target. Everything changed when a group of savvy retail investors realized that it didn't take much time to ignite a \"short squeeze\" on the stock and push it higher. By buying calls and stocks, they forced short sellers to buy stocks aggressively to cover. At the time of this article, the stock was trading at $88.9 after hours, more than 30 times higher than its pandemic-induced lows.How High Can GameStop's Stock Go? If history is anything to go by, then technically speaking, GameStop could become the world's most valuable company if short sellers can't find a stock to cover their positions. This will send its share price to thousands of dollars per share.Stock price to thousands of dollars?Yes, you read that correctly, there are even historical precedents to prove it. Back in 2008, when most of the world was dealing with the economic trauma of the Great Recession, Volkswagen briefly became the world's most valuable company by market value.Long story short, the company makes a good short target due to its high debt load and exposure to business and credit cycles. When Porsche announced that it had quietly increased its stake in the company to 78%, it signaled to the market that it would try to buy the entire Volkswagen company.This sent short sellers panicking to cover their positions, sending VW shares above € 1, 000 intraday. Volkswagen had 300 million shares outstanding, giving its market capitalization at the time to 300 billion euros, more than any other company at the time.If GameStop is to achieve the above goals, its market cap will need to surpass Apple's $2.5 trillion. Apple is the most valuable company in the world today. Since GameStop only has 70 million shares outstanding, its share price will need to exceed $35,000. Even if the market cap rebounds to $363 billion, which is Volkswagen's dollar market cap during the \"short squeeze\", its stock price will exceed $5,000.While this is a far-fetched scenario, we're talking about a stock with more than 100% short-sold outstanding shares and whose fundamentals are improving. In today's market, anything is possible.Market technical factors drive up stock pricesWhen a group of traders start buying stocks and call options to trigger a \"short squeeze\", the stock price is pushed higher. Buying a stock can trigger a \"short squeeze\" because it increases demand for the stock, which in turn drives up the price.Compared with stocks, call options have a multiplier effect. For every call option purchased by machine speculators, there is a market maker on the other side of the trade. If the underlying trend goes against them, the market maker may face huge downside risks. To hedge against this risk, they buy stocks on the open market. Every dollar of call options purchased can cause market makers to spend several dollars on stocks to hedge their risk.Higher Stock Price Changes Fundamental PictureBuying stocks and call options creates upward momentum in prices, which companies can use to their advantage. Whoever tells you that the stock price is completely out of touch with fundamentals is wrong. Tesla is a good example of a company that could never survive without external capital and has been saved from bankruptcy time and time again by raising the equity of overpriced stocks. Even blue-chip stocks like Amazon, which don't raise equity capital, rely on high stock prices to attract talent through stock-based compensation.Changing fundamentals eliminate the risk of bankruptcy, creating an asymmetric upside. When the stock price rises and the company raises capital, the bankruptcy thesis is all but excluded, undermining the fundamental short thesis. Thanks to an active market, GameStop can essentially eliminate the risk of bankruptcy by selling equity.But GameStop's transformation is already underway, with or without financing. Chewy's co-founder, Ryan Cohen, believes the stock is worth less than $10 a share. He amassed nearly 13% of the company's shares and urged the board to make changes, including a pledge to strengthen its e-commerce business.If Cohen can achieve the changes he wants at GameStop, it could lead to a change in earnings and sentiment on Wall Street. Cohen's previous project, Chewy, was once a darling of Wall Street. Ironically, both Chewy and GameStop have annual sales of around $6.5 billion.Chewy currently has a market cap of $42.3 billion. At a price of $88 per share, GameStop is worth just $6.2 billion. GameStop needs to trade at $600 per share to catch up with Chewy's valuation.conclusionThe GameStop \"short squeeze\" we are witnessing is a fascinating case study of market psychology. Nothing changes market sentiment like price, and the upward momentum in GameStop's stock price has completely changed that narrative. While GameStop's stock price is no longer very high, its valuation is not high either, suggesting that the company's stock has become oversold (a stock that may rise in the near future after a significant drop in the stock price).If short sellers continue to flock to exit, the stock could rise to really eye-popping levels. Even if the company achieves a basic business turnaround, its valuation doesn't end. The asymmetric upside of stocks and extremely high cash interest earnings will only make us long this stock.","source":"lsy1580517846866","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Become one of the best short targets, will GameStop rise to thousands of dollars?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 12.5px; color: #7E829C; margin: 0;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBecome one of the best short targets, will GameStop rise to thousands of dollars?\n</h2>\n<h4 class=\"meta\">\n\n腾讯科技2021-01-27 17:01\n\n</h4>\n</header>\n<article>\nTencent Technology News On January 27, GameStop is already a silent video game retailer that is closing stores and losing sales due to the digitization of video games. Fundamentally, it's like a cigar butt, and at best it can take a puff or two. In the worst case scenario, it's even seen as the next Blockbuster Video.That makes GameStop an attractive target for short sellers, as the stock was easily shorted from above $20 per share to below $3 during the novel coronavirus pneumonia pandemic. The shorting industry has become quite crowded, so borrowing costs are quite high. Some borrow money to invest in stocks at around 100%, half of which is paid in cash through brokerage firms, resulting in those stocks generating about 50% cash yields. However, most stocks will give an additional 3-12 basis points yield instead of 5,000 basis points.Declining sales and core businesses make GameStop an obvious short target. Everything changed when a group of savvy retail investors realized that it didn't take much time to ignite a \"short squeeze\" on the stock and push it higher. By buying calls and stocks, they forced short sellers to buy stocks aggressively to cover. At the time of this article, the stock was trading at $88.9 after hours, more than 30 times higher than its pandemic-induced lows.How High Can GameStop's Stock Go? If history is anything to go by, then technically speaking, GameStop could become the world's most valuable company if short sellers can't find a stock to cover their positions. This will send its share price to thousands of dollars per share.Stock price to thousands of dollars?Yes, you read that correctly, there are even historical precedents to prove it. Back in 2008, when most of the world was dealing with the economic trauma of the Great Recession, Volkswagen briefly became the world's most valuable company by market value.Long story short, the company makes a good short target due to its high debt load and exposure to business and credit cycles. When Porsche announced that it had quietly increased its stake in the company to 78%, it signaled to the market that it would try to buy the entire Volkswagen company.This sent short sellers panicking to cover their positions, sending VW shares above € 1, 000 intraday. Volkswagen had 300 million shares outstanding, giving its market capitalization at the time to 300 billion euros, more than any other company at the time.If GameStop is to achieve the above goals, its market cap will need to surpass Apple's $2.5 trillion. Apple is the most valuable company in the world today. Since GameStop only has 70 million shares outstanding, its share price will need to exceed $35,000. Even if the market cap rebounds to $363 billion, which is Volkswagen's dollar market cap during the \"short squeeze\", its stock price will exceed $5,000.While this is a far-fetched scenario, we're talking about a stock with more than 100% short-sold outstanding shares and whose fundamentals are improving. In today's market, anything is possible.Market technical factors drive up stock pricesWhen a group of traders start buying stocks and call options to trigger a \"short squeeze\", the stock price is pushed higher. Buying a stock can trigger a \"short squeeze\" because it increases demand for the stock, which in turn drives up the price.Compared with stocks, call options have a multiplier effect. For every call option purchased by machine speculators, there is a market maker on the other side of the trade. If the underlying trend goes against them, the market maker may face huge downside risks. To hedge against this risk, they buy stocks on the open market. Every dollar of call options purchased can cause market makers to spend several dollars on stocks to hedge their risk.Higher Stock Price Changes Fundamental PictureBuying stocks and call options creates upward momentum in prices, which companies can use to their advantage. Whoever tells you that the stock price is completely out of touch with fundamentals is wrong. Tesla is a good example of a company that could never survive without external capital and has been saved from bankruptcy time and time again by raising the equity of overpriced stocks. Even blue-chip stocks like Amazon, which don't raise equity capital, rely on high stock prices to attract talent through stock-based compensation.Changing fundamentals eliminate the risk of bankruptcy, creating an asymmetric upside. When the stock price rises and the company raises capital, the bankruptcy thesis is all but excluded, undermining the fundamental short thesis. Thanks to an active market, GameStop can essentially eliminate the risk of bankruptcy by selling equity.But GameStop's transformation is already underway, with or without financing. Chewy's co-founder, Ryan Cohen, believes the stock is worth less than $10 a share. He amassed nearly 13% of the company's shares and urged the board to make changes, including a pledge to strengthen its e-commerce business.If Cohen can achieve the changes he wants at GameStop, it could lead to a change in earnings and sentiment on Wall Street. Cohen's previous project, Chewy, was once a darling of Wall Street. Ironically, both Chewy and GameStop have annual sales of around $6.5 billion.Chewy currently has a market cap of $42.3 billion. At a price of $88 per share, GameStop is worth just $6.2 billion. GameStop needs to trade at $600 per share to catch up with Chewy's valuation.conclusionThe GameStop \"short squeeze\" we are witnessing is a fascinating case study of market psychology. Nothing changes market sentiment like price, and the upward momentum in GameStop's stock price has completely changed that narrative. While GameStop's stock price is no longer very high, its valuation is not high either, suggesting that the company's stock has become oversold (a stock that may rise in the near future after a significant drop in the stock price).If short sellers continue to flock to exit, the stock could rise to really eye-popping levels. Even if the company achieves a basic business turnaround, its valuation doesn't end. The asymmetric upside of stocks and extremely high cash interest earnings will only make us long this stock.\n<div class=\"bt-text\">\n\n\n source：<a href=\"http://new.qq.com/omn/20210127/20210127A08PMK00.html\">腾讯科技</a>\n\n\n</div>\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"https://static.tigerbbs.com/d9d7b5d27c84ff03308c3b081e660723","relate_stocks":{"GME":"游戏驿站"},"source_url":"http://new.qq.com/omn/20210127/20210127A08PMK00.html","is_english":false,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1116763952","content_text":"腾讯科技讯 1月27日，GameStop已经是一家陷入沉寂的视频游戏零售商，由于视频游戏的数字化，它正在关闭门店并失去销售额。从根本上说，它就像是根雪茄烟蒂，充其量还能吸上一两口。在最糟糕的情况下，它甚至被视为下一个百视达录影带公司（Blockbuster Video）。这使得GameStop成为对于卖空者颇具吸引力的目标，因为在新冠肺炎疫情期间，该股很容易从每股20美元以上被做空到3美元以下。做空行业已经变得相当拥挤，因此借款成本相当高。有些人以100%左右的利率借款投资股票，其中一半是通过经纪公司以现金支付的，导致这些股票产生了约50%的现金收益率。不过，大多数股票会给出额外的3-12个基点的收益率，而不是5000个基点。销售额和核心业务的下滑使GameStop成为明显的做空目标。当一群精明的散户投资者意识到，不需要太多时间就能点燃该股的“轧空”（ short squeeze，股价急速飙升）并将其推高时，一切都改变了。通过买入看涨期权和股票，他们迫使卖空者大举买入股票进行回补。在本文发布的时候，该股在盘后交易价格为88.9美元，比疫情引发的低点高出30倍以上。GameStop的股价还能涨到多高？如果历史可以借鉴的话，那么从技术上讲，如果做空者找不到可以回补头寸的股票，GameStop可能会成为世界上市值最高的公司。这将导致其股价每股涨至数千美元。股价涨至数千美元？是的，你没看错，这甚至有历史先例可以佐证。早在2008年，当世界上大多数国家都在应对大衰退带来的经济创伤时，大众汽车公司曾短暂地成为全球市值最高的公司。长话短说，由于其高债务负担以及对商业和信贷周期的敞口，该公司成为很好的做空目标。当保时捷宣布已悄悄地将其在该公司的持股比例提高到78%，它向市场发出了信号，表示将试图收购整个大众公司。这让卖空者惊慌失措地回补头寸，导致大众股价盘中超过1000欧元。大众拥有3亿股流通股，使其当时的市值达到3000亿欧元，超过当时的任何其他公司。如果GameStop要实现上述目标，那么它的市值就需要超过苹果的2.5万亿美元。苹果是当今世界上市值最高的公司。由于GameStop只有7000万股流通股，其股价将需要超过3.5万美元。即使市值回升至3630亿美元，也就是大众汽车在“轧空”期间的美元市值，其股价也将超过5000美元。虽然这是一种牵强的情况，但我们谈论的是一只流通股超过100%卖空的股票，其基本面正在改善。在今天的市场上，一切皆有可能。市场技术因素抬高股价当一群交易员开始购买股票和看涨期权以引发“轧空”时，股价就会被推高了。购买股票可能会引发“轧空”，因为它增加了对股票的需求，从而抬高了价格。与股票相比，看涨期权具有乘数效应，机投机者购买的每一份看涨期权，在交易的另一边都有个做市商，如果潜在的走势对他们不利，做市商可能会面临巨大的下行风险。为了对冲这一风险，他们在公开市场上购买股票。买入的每一美元看涨期权都可能导致做市商为对冲风险而在股票上花费数美元。更高股价改变了基本图景买入股票和看涨期权会产生价格上涨的势头，公司可以利用这一点作为自己的优势。谁告诉你股价和基本面完全脱节，谁就错了。特斯拉就是个很好的例子，一家如果没有外部资本就永远不可能生存的公司，一次又一次地通过提高定价过高的股票股本来从破产中被拯救出来。即使像亚马逊这样不筹集股权资本的蓝筹股，也依赖于高股价通过股票薪酬来吸引人才。不断变化的基本面消除了破产风险，产生了不对称的上行空间。当股价上涨，公司筹集资金时，破产论点几乎被排除在外，破坏了基本面的做空论点。多亏了活跃的市场，GameStop可以通过出售股权基本上消除破产风险。但GameStop的转型已经在进行中，无论有没有融资。Chewy的联合创始人瑞安·科恩(Ryan Cohen)认为，该股的价值低于每股10美元。他积累了该公司近13%的股份，并敦促董事会做出改变，包括承诺加强其电子商务业务。如果科恩能够在GameStop实现他想要的改变，这可能会带来盈利和华尔街情绪的改变。科恩之前的项目Chewy曾是华尔街的宠儿。具有讽刺意味的是，Chewy和GameStop的年销售额都在65亿美元左右。Chewy目前的市值为423亿美元。以每股88美元的价格计算，GameStop的价值仅为62亿美元。GameStop需要以每股600美元的价格交易，才能赶上Chewy的估值。结论我们正在目睹的GameStop“轧空”是对市场心理的一个引人入胜的案例研究。没有什么比价格更能改变市场情绪，而GameStop股价的上涨势头完全改变了这种说法。虽然GameStop的股价不再很高，但它的估值也不算高，这表明该公司股票已经变成超卖股（股价显著下跌后近期内可能上涨的股票）。如果卖空者继续蜂拥退出，该股可能会涨至真正令人瞠目的水平。即使该公司实现了基本的业务好转，其估值也没有止境。股票不对称的上行空间和极高的现金利息收益只会让我们做多这只股票。","news_type":1,"symbols_score_info":{"GME":0.9}},"isVote":1,"tweetType":1,"viewCount":2575,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":6,"xxTargetLangEnum":"ORIG"},"commentList":[],"hasMoreComment":false,"orderType":2}