WSB: Why you should hold. Opportunity still exists.
WSB: Why you should hold. Opportunity still exists.

I know a lot of you are looking for confirmation that you should still hold, the truth is that may or may not be in your best interest. Only you can decide will all the information you have what’s best. Don’t listen to random people online.

However I’m going to let you know why I’m still holding. I bought in with a average price of $56 and a lot of the shares bought below $100 will be held by people who haven’t sold yet and aren’t planning on. Institutions and smart investors with a good amount of shares (200+) are currently holding, mostly paper hands (people who jumped on because of media/word of mouth) are gone now and they most likely didn’t have a big amount of shares anyway. We also temporarily lost swing traders because of the restrictions and loss of momentum, people with big balances who seen big dips as swinging opportunities ($124>$300 for example) yes they sell but when they buy it brings pressure back and the price up which brings confidence for other people to invest in. I still think SI is high and HF aren’t out the game yet. With how high the SI is and the low float I think we would have seen a lot more volume on Wednesday/Thursday/Friday. The whole world was buying so this kind of volume to me even if it was HF unloading dosent signal them unwinding.

So what’s the game plan?

Well firstly I think the HF couldn’t have let the whole world buy shares and have a short squeeze, they would be in to much debt and the price may very well have gone past $2000 due to a massive amount of people buying (people normally not involved in stocks) and the HF would of become insolvent. What I think the HF did is allow retail to buy during the week with Melvin unwinding their position, then once retail buying pressure starts to decrease due to people already in the stock, start to coordinate together with other HFs to restrict buying on some brokers(decrease buying pressure) and slow down the momentum caused by the internet and people talking about the squeeze. They would then let people sell and induce FUD which changed the narrative and worked, the price is now at a more comfortable level for them $90. On the 09/02/21 we will see latest SI (2 weeks ago date) and I’m assuming it will still be over 100%. They will try to bring price as low as they can but there will be a buy like with large amount of shares bought early they won’t fold (some can’t sell). When good earnings come out and in addition to Cohen turning the company around and increasing the valuation until fair price is $100.

Then we may see the HFs unwind and the short squeeze would happen, at a much lower price for them as to not have to buy back shares at $500+ also with less people involved (retail got bored/lost too much money and isn’t financially involved with GME) there will be less competition to buy shares. They don’t want the whole world’s eyes on them during the squeeze. This is a waiting game for institutions and smart money. If you have the money and time to hold it would be smart or to make a position at there’s prices would also be smart. We wait for Cohen to turn the company around which would tell everyone short this company will be valued at $100 and you will never close your position and always pay the interest which they wouldn’t do.

TL;DR - HF still have to initiate MOASS. Not yet though people need to hold for Cohen to take action and creat a positive outlook for the company, HF wouldn’t want to pay interest on a company whose valuation will be going up for years. They would unwind.

Source https://www.reddit.com/r/wallstreetbets/comments/lbkzob/why_you_should_hold_opportunity_still_exists_long/

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Nathan George

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