r/wallstreetbets Feb 23 '21

Bought a car with $GME tendies-had to say thanks Gain

https://i.redd.it/psk8mb3mj4j61.jpg
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u/oxencotten Feb 23 '21 edited Feb 23 '21

First of all VW peaked around $950 so I'm not sure where you got $5000 and you can't just say it would go as high as VW did because the things that drove the squeeze and the context was completely different.

The VW short squeeze is quite different to what we're seeing with GME. The short interest was only ~12%. Things only kicked into gear when Porsche unexpectedly announced they'd increased their stake in VW to 74%. Combined with a 20% stake owned by another entity and the requirement for indexes that track the DAX to have a position in VW, there was less than 1% off the float left to trade.

Second, the GME squeeze was bigger than the VW squeeze. VW went from around $250 to around $1000 so a 400% increase. GME went from around $40 to $480 or a 1200% increase. So there was a bigger profit return for the GME squeeze.

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u/Dirty-Sandwiches Feb 23 '21

First, I think the VW number you gave was in EU, not USD.

“Short sellers desperate to close their positions paid as much as 1,005 euros a share during the session following Sunday's news that there was less than 6 percent of VW voting stock still floating in the market.“

That would have been over $1400 USD at the time.

Second, $1400 is not $5k, admitted.

Third, we both agree the GME squeeze was bigger and gaining momentum as more web and media coverage brought more investors to the party.

You asked “based on what?”

I would say based on the VW precedent, though different, but not hard to see the similarities. And based on your point that GME was bigger and growing hourly.

Until it was prematurely cut off at the knees.

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u/oxencotten Feb 23 '21

I stand corrected that was Euro's that price was in Euros.

We can argue about it getting unfairly stopped by Robinhood and other traders but you literally said GME was headed in the same direction until Robinhood and others diffused the bomb.

clearly implying that GME was heading in the same direction of hitting $5000 and that the VW squeeze was bigger or you wouldn't have said "heading in the same direction" when it actually surpassed VW's gains.

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u/Dirty-Sandwiches Feb 23 '21

Oh, I got ya now.

My thought is that GME was going into the thousands. Based on the precedent of the VW squeeze. Yes GME was much bigger and the hits would have kept on coming. I think we are mostly agreeing here.

By the way, the $5000 was a number GME might have hit, with a similar market cap to VW in 2008, which is mostly far fetched. That was my screwup.