One third of the outstanding shares are being shorted . I can't believe it . I'm looking at key statistics in Yahoo finance for GME for those numbers . Can that be real? The short ratio is 17.The percentage of shorted shares of the float is 51%. Actual shares shorted are up 1 million to 43 million from the previous month. Well I think you might say that there are a whole lot of shares that share my sentiment that this thing is overbought .But, on the otherhand , if you are right , and this thing continues to climb there will be no doubt about a short squeeze ,since there are a alot share to cover.. You are going to have to look at valuation here to see if you have a chance. At $33 , GME is 10 times earnings for this year and the expectation of relatively slow growth fpr 2014 puts GME at $36 for the next year . Get yourself some protection with a fill or kill stop , or some option hedge, if you have doubts.
The short squeeze started when it was at $20.. The only reason it's not already at $40 is most of the long term non management employees I know where willing to cash in some stock options for less. Now that there are even fewer people willing to sell and the company still has a stock buyback war-chest, and folks are trying to double down their shorts on the way up, the trend remains solid upwards. Maybe the shorts are under the impression Uncle Ben Buyitall Bernake will sell them some cheap shares when GME reports a strong quarter and it hits $50.
We will hit $50 if they keep leveraging buymytronics. They hinted at spinning it off as a separate store at the cc. I was watching digital and the re-commerce on last call and the numbers were good.
The last NPD numbers were not bad, hardware is killing those numbers. Software up 2% with PCs. I think GME gets a pass on earnings until new consoles, however, software, used, digital and re-commerce should be watched.
Lots of positive catalysts still coming, E 3, possible next box event, GTA V and PS4.