is the shorts running for cover! A few more days and the avalanche will begin. It is very simple, funds are buying with both hands now that the dividend is over 5 percent. The shorts can't control the momentum now and the phony "Game over for Gamestop" stories really were shown to be nonsense. Onlive is dead, GME is developing their own technology for streaming, digital and tablet sales are booming, in talks to license patents and new consoles will be out end of year and into 2013 which will even beat comps year over year on the "classic" revenue stream. Shorts will be dead and out of the stock in a few weeks if this gets close to 24 or 25. It's simple: shorts don't want to pay a dollar a share for the dividend, just not worth the gamble GME will go out of business some time down the road.
I agree with your assessment of the future of GME, which is why I am invested. But, I don't believe that funds will be buying in large volume until they see actual growth. If GME can reach their year guidance of $3.10 or higher, and if they can raise guidance for the following year, then I think funds will jump in big time. Meanwhile, there are almost 50 million shares short, and I can't see that many shorts covering in a month or two. Retail shorts are probably covering because they don't have the deep pockets like someone like Jim Chanos.
Funds will buy because the 5.5 percent yield for a company with this balance sheet is very attractive to them. There are funds that invest based on yield percentage. Of course, growth is a factor, you are right about that. Remember,the large hedge funds shorting this have to pay the dividend. Thus, a million shares short owes 250,000 in a few weeks, not a large sum, but it has to be accounted for. I think the volume of these past few days will continue as shorts want to get out before the divdend payment is due.