I have been following this stock GTII for awhile now. I personally have a love hate relationship with it.....if that is possible.
It is $2 a share and it is either going to ZERO or it is going to $20-$200 in a fairly short time frame. So if you like to gamble it is one that you may want to look at.
Back story is this is similar to Gamestop. So if you know the story. Guys short shares of stock with the goal of driving the price down.....trying to drive them into bankruptcy. Then the wall street guys buy the shares back at pennies and make millions.
GTII supposedly (I say supposedly because I am no expert on this) has someone that has shorted a significant amount of shares. A naked short. Basically makes up shares that dont exist to drive the price down.
The company took a couple of actions. This first one seemed smart to me. They offered a digital dividend. Why is this smart. If I bought a fake share and the dividend was say $0.05 and I am expecting that in my account. The short could give Etrade a $0.05 and keep with the short. But since there is only one digital dividend for every share issued. There are not enough digital dividends to go around. That means they need to come up with real shares.
The short is paying his broker a margin to have the shorts in place. That starts to become expensive. If it is going to $20-$200 a share. He tells the broker he cant pay anymore. They are going to go buy up all the shares he has shorted which will drive the price up fast. Basically what happened with Gamestop.
So high risk high reward stock based solely on the short and nothing to do with the fundamentals of the stock. My opinion of how it could play out. If you buy some you too can have a love hate relationship with a stock.....just so you know it could end up as a divorce....and those are expensive.
It is $2 a share and it is either going to ZERO or it is going to $20-$200 in a fairly short time frame. So if you like to gamble it is one that you may want to look at.
Back story is this is similar to Gamestop. So if you know the story. Guys short shares of stock with the goal of driving the price down.....trying to drive them into bankruptcy. Then the wall street guys buy the shares back at pennies and make millions.
GTII supposedly (I say supposedly because I am no expert on this) has someone that has shorted a significant amount of shares. A naked short. Basically makes up shares that dont exist to drive the price down.
The company took a couple of actions. This first one seemed smart to me. They offered a digital dividend. Why is this smart. If I bought a fake share and the dividend was say $0.05 and I am expecting that in my account. The short could give Etrade a $0.05 and keep with the short. But since there is only one digital dividend for every share issued. There are not enough digital dividends to go around. That means they need to come up with real shares.
The short is paying his broker a margin to have the shorts in place. That starts to become expensive. If it is going to $20-$200 a share. He tells the broker he cant pay anymore. They are going to go buy up all the shares he has shorted which will drive the price up fast. Basically what happened with Gamestop.
So high risk high reward stock based solely on the short and nothing to do with the fundamentals of the stock. My opinion of how it could play out. If you buy some you too can have a love hate relationship with a stock.....just so you know it could end up as a divorce....and those are expensive.
opcorn2
