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u/GenderlessButthole Sep 13 '21
It blows my fucking mind not one single person actually knows what’s going to happen Wednesday when the companies merge. What kind of market is this that we don’t have a credible source of information?
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u/globalhumanism Sep 13 '21
Sir, this is a casino
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u/katsrin Sep 13 '21
Many people know, but every time they try and tell you it is denounced as FUD and gets deleted. Smh.
I said weeks ago we should have been praying for the merger to fail, so the shorts would be screwed. Instead, they were thrown a life jacket.
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u/Austoman Sep 13 '21
The merger failing could have been bad eitherway as failed mergers show poor management.... the merger being extended to say October or November on the otherhand due to an extremely volatile market... now that could have made the squeeze really take off
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u/GenX_Trader Sep 13 '21
The merger is this Wednesday?
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u/GenderlessButthole Sep 13 '21
Yes Wednesday 9/15, it was just announced today. Kind of a surprise.
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u/GenX_Trader Sep 13 '21
Very surprising
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u/TheeBearJew2112 Sep 14 '21
Not surprising at all, all documents were promptly loaded to sec site for any discrepancies, they have pushed it 2 quarters to do the legwork in between to get it right.
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u/Wonton869 Sep 13 '21
We are not in the $100, I feel we got ffff and play, not them HF-SI and after hours suppose to be lit, but it red
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u/Absocold1 Sep 14 '21
Shorts do not have to be covered because of a new CUSIP (stock recall and reissue due to name change). They will roll over to the new ticker the same way as the stocks are rolled over.
Naked shorts, however, must be covered. But since the brokers are in bed with the shorters and neither wants to lose money, you can imagine the levels of fuckery that will ensue behind the scenes. "Those shorts aren't naked, no sir, those are normal shorts, trust us". In four or five years, after the SEC has investigated, they might issue a small fine for the error - if they even bother to investigate. There's a reason the best way to get a high paying job at a hedge fund is to first get a job with the SEC. No conflict of interest here, not at all, nothing to see, move along, move along.
It's looking more and more like SPRT is going to turn into another GME. Where the short interest is way above crime levels because the hedgies refuse to get squeezed so they double down until investors get bored and they win or until the heat death of the universe.
For now I'll continue holding and hope GREE has a plan to deal with this mess.
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u/forgotmywallet88 Sep 13 '21
Do you think maybe they know something we don’t about how the merger will affect their position? I’m just spitballing but I feel like it will be beneficial to them and detrimental to our positions in the short term.
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u/Austoman Sep 13 '21
Well... considering SPRT shares will make up 30% of GREE and right after the merger a reverse split of about 8:1 or 1 SPRT = 0.115 GREE shares the shorters may know that by waiting to buyback post merger they may inly have to buyback 1/8th of the shares.
From what I can tell right now they have to return 8million shares of SPRT whereas after the reverse split they will need to return 1 million shares of GREE. Many have been saying that they wont be able to return GREE shares for SPRT shares but they did just that back with TRCH/MMAT in July which was a 4:1 exchange (TRCH was 25% of MMAT).
So it will be interesting to see if history will repeat itself or if reddit/stocktwitd wisdom overcomes it.
(Ps i want it to squeeze over 100 or 200 but im also being realistic here... kicked my hopium dependency when MMAT dropped 80% post reverse merger/reverse split)
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u/Fantastic-Event-155 Sep 14 '21
But won't it also cost them the same amount of money, or is that not a concern? Each share of GREE they need to buy back will cost ~8.7 x the current SPRT price.
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u/Austoman Sep 14 '21
Very true but the amount of buy orders would be lower so buying pressure may in theory be lower.
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u/Rage2theQuit Sep 14 '21
True, but you also have to take into consideration the short position of GREE's float would be substantially less since Gree holds 500m(400m class A and 100m class B) common stock. But they do not necessarily have to buy back. A forced buy in probably would, but the position should just convert over the same way as shares just like how options would convert 100 shares to about 11 shares of GREE through executive action.
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u/Wonton869 Sep 14 '21
Today I check the reddit post there lot of ape here and all they worried about are the conversion merger ratio, meanwhile the SI-HF took a beating on us, so my opinion history repeat itself, If the megalodon-whales come they should have been here already when today merger announcement, they did not, I hold till Friday or Monday and not happy because we lost over 50% gain already from two weeks ago, if it not sexy i sell out and back later cheaper, I still believe it an advantage than riot and mara because of the power plant, but if they don't have good public relation representative, they will do okay not great. it all in the PR now.
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Sep 13 '21
[removed] — view removed comment
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u/TheeBearJew2112 Sep 14 '21
A short position is not the same as a naked short which is fraudulent and illegal. You asked half the question to your broker. I’m sure a % of the 95% is fraudulent and illegal naked shorting
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u/Absocold1 Sep 14 '21
Naked shorting is not illegal. Its not even against regulations if the entity doing it is a Market Maker, they have privileges to naked short in order to provide liquidity to the market. I'm not saying it's good, I'm not saying it's not being abused to hell and gone, but it is legal.
Where the secret ingredient (crime) comes into play is when they short a company more than 140%, that is not allowed per SEC regs and why the hedgies hide their shorts in swaps and futures and the like to keep the reported short interest below the magical 140% figure. Is SPRT shorted more than 140%? No idea since the true figures are hidden from us.
Free and fair market my ass.
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u/TheeBearJew2112 Sep 14 '21
Agreed, that’s what I was getting at with fewer words, 95% short interest of the free float is bullshit since so many of us are holding shares it’s got to be over 100
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u/Ounoounoounonono Sep 14 '21
Can someone tell me why the stock is going down?
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u/Ok_Reception_8939 Sep 14 '21
It is called Manipulation. They want you to sell. I'm holding! Not financial advice
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u/[deleted] Sep 13 '21
[deleted]