Re:High Short Interest Stocks
by mschuster91 on Thursday January 28, 2021 @07:50PM
(#25952010)
> At sufficient price there will be a seller.
When the price is, let's say, 10k or more, then the poor sod having a short position now has a really huge problem. And the WSB people are attempting to do force exactly this - basically, a distributed game of chicken at a world-wide scale with many billions of dollars at stake.
> The company can create stock and sell it if the current holders don't.
That process takes time to set up and exposes the company doing this to image and legal liability - if enough people shout "market manipulation" and file lawsuits, something may stick in the end. Gamestop, AMC etc. will avoid such a drastic step, I believe. Also, there's a side risk of stochastic terrorism in that case, aka one person gambling their life savings away and now going on a "revenge", which is not to be underestimated given how riled up the situation is.
When the price is, let's say, 10k or more, then the poor sod having a short position now has a really huge problem. And the WSB people are attempting to do force exactly this - basically, a distributed game of chicken at a world-wide scale with many billions of dollars at stake.
> The company can create stock and sell it if the current holders don't.
That process takes time to set up and exposes the company doing this to image and legal liability - if enough people shout "market manipulation" and file lawsuits, something may stick in the end. Gamestop, AMC etc. will avoid such a drastic step, I believe. Also, there's a side risk of stochastic terrorism in that case, aka one person gambling their life savings away and now going on a "revenge", which is not to be underestimated given how riled up the situation is.
(Disclosure: long AMC, NOK)