Jim Cramer, a well-known CNBC financial program host, said on Friday (29th) that he praised GameStop (GME-US) Retail investors, but it is also recommended that they accept it now.The data shows that GameStop’s empty order balance has almost not decreased, showing that the powerful Air Force lost nearly 20 billion this monthUSDNot shaken in the slightest.
Cramer said, “Just hit a home run, don’t wait for a grand slam (home run). Take the home run away, you have won, you have won this game, Already done.”
“Please don’t lose a lot of money on GameStop.” Cramer, who was treated in the hospital due to illness, specifically called CNBC, hoping that the public would understand the potential downside risks of GameStop stocks and other stocks that were squeezed soaring.
He said: “Don’t let them get hurt. This is our job. We have to make sure everyone knows that once the stock price collapses, they are setting fire to themselves.”
Cramer’s comments came as GameStop’s stock price soared again by nearly 68% on Friday as trading platform Robinhood reopened for trading. The day before, the platform suspended the trading of GameStop and other stocks with sharp stock price fluctuations, such as AMC (AMC-US)。
Although GameStop and AMC fell sharply due to platform suppression on Thursday, GameStop has risen by 1500% so far this year, and AMC has soared by 475%.
When referring to the profit made by retail investors due to short squeezing, Cramer said, “Congratulations, we all hope that everyone can make more money.” But he emphasized that he prefers investors to make money by investing in companies with good fundamentals. For example, Apple (AAPL-US) And Microsoft (MSFT-US)。
He said: “I am not against anyone, and there is no conspiracy against me or GameStop or any group. This is a stock that is simply overvalued.”
On the other hand, Cramer believes that GameStop should take advantage of the soaring stock price to issue new shares, which can be used to repay debt. GameStop Season 4 ends on Saturday.
According to its third-quarter financial report, as of October 31, GameStop’s balance sheet included 269.5 millionUSDOf short-term debt and 216 millionUSDLong-term debt.
On December 8, GameStop filed an application with the U.S. Securities and Exchange Commission (SEC), requesting that it be able to sell common shares through a public sale at any time. On the day before the submission of the document, the closing price of the stock was 16.35 per share USD。
Cramer said that the longer this crazy retail transaction lasts, the more he is concerned about the stability of US stocks and other markets.
“No one wants to do something common sense here. You have gotten both ends into trouble. What’s happening now is just a tragedy.”
Cramer has no intention of commenting on the quality of the Reddit forum, and regardless of whether the short-term institution is right or wrong, “I just said that the government should stand up and at least try to solve this problem so that other markets will not be affected by the 4 stocks that are seriously shorted. panic.”
The air force is strong and I am not afraid
Some hedge funds that short GameStop said they have closed their positions. Even so, Cramer said, “The recent events need to be more exposed. For these short sellers, let’s see who is actually covering and at what price. Let us have more information to disclose. Let the government intervene in investigating the progress of these transactions so that such things will never happen again.”
GameStop’s short squeeze trade has caused short sellers to lose nearly 20 billion this monthUSD, But still failed to shake these powerful air forces.
According to S3 Partners data, short sellers lost 19.75 billion at GameStop this monthUSD, It lost nearly 8 billion on Friday aloneUSD. Despite this, the Air Force still clings to the bearish position, even if the position is closed, new blood will join the Air Force camp.
According to S3 data, the number of shares of GameStop in short selling last week only decreased by about 5 million shares, that is, the balance of short orders only decreased by 8%. Most short positions covered on Thursday because it was the first decline in 6 trading days.
Ihor Dusaniwsky, executive director of S3’s forecast analysis department, said, “I have always heard the statement that “most GME short positions have been closed”, which is completely untrue. In fact, the data shows that the balance of short orders has not changed much at all.”
He said that although the “value shorts” that were short on GME earlier have been squeezed and covered, most of them were borrowed and shorted by new momentum after covering.
GameStop’s securities lending interest rate (the cost of shorting GameStop) jumped from 29.32% for existing short positions to 50% for new short positions.
S3 said, “If most of the short positions have been covered, we will not see securities lending rates as high,” GameStop is still the most shorted stock in the market, with a short order balance of 113.31%.
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