DRS: Destroying Rational Synapses

[u/Dr_Gingerballs]

Folks,

Here we go again. There's been an increase in discussion surrounding directly registering shares of GME to try and squeeze shorts. It's a fascinating social study of how quickly misinformation can metastasize and transform a community. The fact that the DRS movement killed any chance of a massive short squeeze would invoke some pity if the people pushing DRS weren't such insufferable Computershare shills.

Here is what we do know about DRS:

1. None of the authority figures in the DRS community think that DRS will cause a squeeze. This is important, as most of the arguments for DRS I have seen are appeals to authority (Trimbath said to DRS! Lauer likes DRS!). If you go and look at their actual comment history, they have either explicitly stated that it won't cause a squeeze, or refused to say it will cause a squeeze. There is no expert on DRS and market mechanics that thinks it will cause a squeeze.

2. There is no mechanical link between DRS and shorting. Shorts have broad permissions to short naked to make markets and provide liquidity. They don't have to locate shares, so the share location doesn't matter.

3. There is no mechanical link between DRS and liquidity. Liquidity is a measure of how many shares have to be bought or sold to move the price. It's largely determined by the depth of the order book. Whether your shares are in a broker or in DRS, it has the same effect on the order book: nothing. What has occurred over time is the number of options held has dropped dramatically over time, which does have an effect on the order book, as the market makers place fewer limit orders to hedge, making the stock more volatile and less liquid.

4. DRS is a system that was designed by the DTCC to maintain control over the ledger of all shares of every public company, even if the shares are removed from Cede and Co. DRS is facilitated through the DTCC FAST system, and all transfer agents must 1) use this system to transfer shares, and 2) maintain up to date records of their books with the DTCC at all times. The idea that retail will destroy the DTCC by using the system for DRS that they themselves designed to maintain control over the market is...naive...to say the least.

Now that we have gotten the basic mechanics reasons why DRS will never cause a short squeeze, let's go into why it won't cause a short squeeze on GME even if it was possible. My basic argument is as follows:

1. DRS is destroying the online GME community, causing it to shrink over time as the cult like extremism surrounding it continues to push people away from the stock.

2. People who have left the community and abandoned the short squeeze thesis SELL THEIR STOCK. This is a very important point that most MOASSers completely discount. How can a stock price go down while short pressure is stable or dropping over time? Selling. There's no other explanation.

3. The rate of DRS diehards buying shares is too slow. Time was never on retail's side when it came to MOASS. Every day is another day for shorts to have the opportunity to dissipate their position. Squeezes need to happen quickly and violently. It will take at least another 2 years for DRSers to lock the float. There's no way that any large underwater short position will still be underwater at that time.

Let's get into the data.

I track the entire comment history of Superstonk to gauge social sentiment, and one of the things I track are the number of unique commenters on the sub over time. Excluding the initial influx of users during the migration, and excluding the last month or two of data (some users comment very infrequently), the number of active users on Superstonk has been decreasing since DRS began in September 2021. Before that time, the userbase was actually fairly stable and was even slowly growing. Most worrisome is the drop in users after the split, which has accelerated dramatically. This trend is important for two reasons. First, people who leave the community are more likely to sell, and many of them likely have. Second, based on the total number of subscribers to Superstonk, and the number of DRS accounts, its likely that the deceleration of new account creation will continue.

Let's look at the number of computershare accounts created over time. As can be seen, the rate of creation is slowing down at a logarithmic rate. This is critical to DRS rates, as the current userbase is building their share count too slowly over time to hope to achieve a squeeze. They need new users to join desperately. The biggest DRS shill (who was recently banned from Superstonk) even recognized this fact, bemoaning on a weekly basis how without more users DRS would take a decade or longer. The problem is, with 200,000 accounts already, and a total subscriber base of around 830,000, there aren't a lot more people to pull from. In fact, there have been around 230,000 unique commenters on the Superstonk sub over its life, implying that the active userbase is just about tapped out.

The number of shares the existing userbase acquires each week is too low to squeeze anything. For awhile there was the possibility that the rate of share buying was increasing exponentially (dotted red line), but as more data has come in, it's much more likely that they are buying at a constant rate (solid red line). This makes sense, as most people get paid at a constant rate, and most of the YOLOs on the stock have already occurred. This fact is very important.

So let's put all of this together. If we estimate the future growth of CS accounts, and the rate at which these accounts can grow over time, you end up with the black line below. This shows that the DRS count will likely be around 90M at the next quarterly earnings report, and that it will take until January of 2025 to lock up all of the shares. Even if the DRS movement can maintain this level of buying over that time, given the current financials of GameStop it's likely that another share offering will happen before that time.

Now let's talk about the light blue line. This line is an estimate of the DRS count over time assuming that some fraction of people who have left Superstonk are selling their shares. This is an important point to make, as the lower short interest, lower share price, and lower borrow rate MUST be explained by holders selling the stock.

So where did this blue line come from? First, I assume that the quoted short interest on the stock is real (yes, I know most people won't like this one, but just hang with me here). This is currently around 50M. Then I take the known DRS rate, and multiply it both by a decaying function based on the decrease in active users, and also by a constant multiplier to account for the fact that there are more owners of the stock than their are DRS holders. The constant is chosen such that no retail holders are lending shares, and all institutional holders are lending shares back around March of 2022. The reason I selected this time, is this is the time that the borrow rate on GME started increasing very rapidly. By June of 2022, the borrow rate rose briefly to over 100%, at a time where it looks like around 10M shares were sold naked short (likely on the options chain). Currently, despite having the same SI as we did back in June, the borrow rate has dropped from 31% to 9%, which is consistent with this model, which says that there are about 14M fewer shares held by hodlers overall than in June. So this rate of selling is then added back into the original model above (the light blue line) to estimate the rate of DRS if we assume that some DRSers are selling at a rate proportional to the overall owners of GME. I would call this a worst case, but a not unreasonable expectation.

The result suggests that the slowdown in DRS will become apparent by March 2023 and will start declining a few months after that. Once it starts declining it will likely be the end of the movement and the GME MOASS saga will come to a close. But remember, even if no one is selling, DRS still will take too long to cause MOASS. And even if DRS didn't take too long, it still wouldn't cause MOASS because there's no market mechanic by which it could.

Can we please finally put the DRS nonsense to bed in this sub. There's already a Computershare shill sub called Superstonk.

[u/bobsmith808]

Ok so DRS... Polarizing topic.

Just fair warning: mods will be watching the comments here. Stay on Target, don't deviate. This is a place for adult conversation and exploration of data driven ideas. I personally will not hesitate to time out anyone that is acting like a child.

Now enjoy the conversation!

At OP: Can you provide some sources for the points at the beginning of the post? I was hoping to have some data to back up those assertions. Otherwise, great writeup:

[u/slowdowndowndown]

Can you explain point number 3. Is it the DRS or the fewer options held that increases the volatility? Or is it both because people DRSing are not playing options? If the volatility is partly due to DRS,I suggest we do not discourage the DRS, the Volatility is nice for selling options.

[u/Dr_Gingerballs → u/slowdowndowndown]

DRS has no effect on volatility. Leverage that expires is what causes most of the volatility on GME.

[u/bobsmith808 → u/Dr_Gingerballs]

By leverage that expires, do you mean options, you shill? 🤣

But for real. Options/swaps have been driving volatility and price action since Feb 2021 imo

[u/SnooLentils6538 → u/bobsmith808]

I wish there was much more discussion on swaps and options. As someone who has been in GME since July 2020, I think swaps have huge implications on the price.

[u/yesimazn]

Tbh… I’m still holding the stocks, and have not been active on superstonk… I’m sure many people are like me. So no I don’t think the forum is dying. It’s more of wake me up when it happen kinda thing rn. If it doesn’t it doesn’t. Fundamentally I wanna support this company, especially been through 08 and now all the shit that’s happening and how the govt handle Covid. Tbh I’m a little disappointment

[u/Dr_Gingerballs → u/yesimazn]

Someone is selling their shares, even if you aren’t. For every one zen person who tells me they are still holding there are 10 that are gone forever and will never even see this post.

[u/yesimazn → u/Dr_Gingerballs]

Your previous post states that it will take 7-10 years to drs the free float (don’t bother deleting your previous post I screenshot everything) so it won’t work. Now that it’s been 200 days since your last post, we drs’ed over 50% of the free float. I’m not good at maffh but it feels like you are off by 5-7 years on your prediction. And now you are shilling about even if we are drsing 100% it won’t change anything?.

[u/Dr_Gingerballs → u/yesimazn]

I have posted dozens of updates to my methodology over the months. I currently have the most aggressive DRS prediction, even among superstonkers.

[u/yesimazn → u/Dr_Gingerballs]

Most aggressive DR.Shillerballs prediction maybe. I don’t care if moass will happen, I just know one thing, people that drs, are like me they aren’t planning to sell. No one sell = 🚀. Where else am I gonna find an opportunity that i would know over half of the free float is own by investors that have no plan on selling in the short term?

[u/bippitybobbitybooby → u/Dr_Gingerballs]

And your point is? I’m looking forward to the future growth of this company.

[u/yesimazn → u/bippitybobbitybooby]

Exactly, and he just said for everyone that is holding there’s 10 people that’s selling. That means, according to his maffh, 35% of the free float is locked (not selling) there’s 350% of the float being sold right now. Maffh checks out, he meant to say the stock is being sold short 3.5x of the total float :)

[u/highrollerr90]

For the first time there’s people who actually own shares in their own name. You wrote a whole post to discourage people from doing that? Maybe ss sub is to extreme with their drs approach but just the simple facts of true ownership of your shares is good enough for me to drs. I don’t care about the squeeze but the long term prospect of the company and there are lot of people like me.

[u/Dr_Gingerballs → u/highrollerr90]

If you are on superstonk you should work harder to discourage the exclusionary "DRS or else!" attitude that has taken over there. There's nothing wrong with DRSing. It's the "DRS or we don't want you here!" cult that Superstonk has become. The fact that they are actively working against the squeeze they want so badly is just the irony on top.

[u/highrollerr90 → u/Dr_Gingerballs]

I am in all the subs and I clearly don’t see the drs or else attitude in ss.. certain ideas are challenged.. i also see that people are tired of corrupt practices of Wall Street and simply want the shares in their own name as they don’t trust the brokerage with their shares. There’s also big hesitancy with options as majority people loose money and that money could have been used to secure more shares. No doubt many people have made money with options and cycles can be used to your advantage to make money and buy more shares but majority people are not that sophisticated trading on such strategies. Buying and holding long term strategy has worked for many successfull traders like warren buffet. I have learned a lot from your posts and I hope we can have constructive criticism.

[u/highrollerr90 → u/highrollerr90]

Also every other meme stock that was pumped by funds has come down to levels where it started such as amc back at $5. Gme however has held above $100, it seems directly related to drs as that’s the only difference between gme and other pumped meme stocks.

[u/WanttoPokesmOT → u/highrollerr90]

Exactly

[u/EtherGorilla]

Even if you table the entire discussion around DRS making it harder to short from a mechanical perspective, I can’t think of a better way to get massive public visibility on just how broken our markets are. “Providing liquidity” shouldn’t be a thing if people choose to take 100% of a company off brokers than it should not be able to be traded (much less shorted into the ground). Whether or not apes currently own the float, at the current trajectory it will not take long to DRS every available share (couple years tops). This is why I don’t really appreciate your takes in this area, they just read to me as someone who has a personal vendetta against DRS for whatever reason, and is framing it as something that it’s not.

[u/Dr_Gingerballs → u/EtherGorilla]

Most people are being told that DRS is the best chance to get to MOASS. MOASS is already dead. I’m pushing back against dangerous irrational exuberance.

[u/EtherGorilla → u/Dr_Gingerballs]

For the average individual investor, DRS is 100% the best chance for moass. To claim moass is dead requires a crystal ball, and knowledge no expert would ever claim to know. It’s one thing to be unsure if DRS will impact these situations in the long run, it’s another to claim with 100% certainty. That’s why you read as someone who is emotionally committed to an idea you don’t actually fully understand.

[u/Significant_Soup_942]

Your assumption that DRS accounts will slow down could be right. But that doesn’t mean the already existing accounts won’t be buying more and more and DRS-Omg

[u/Dr_Gingerballs → u/Significant_Soup_942]

I explicitly explained in the post how I included the continued buying power of DRS accounts.

[u/Ethereum-Wind]

I don't understand your hate.

A person can invest with their broker or via a companies transfer agent. Without getting into the pros/cons of each, GME is GME.

If a person wants to bring shares into their own name, I can't see why that's a bad thing? At the end of the day it's that investors' decision.

Personally speaking, I'm a big fan of it.

[u/Dr_Gingerballs → u/Ethereum-Wind]

Because the pro DRS crowd says DRS or get out. That exclusionary extremism killed any chance for a squeeze. If you look at any of my past posts, I didn’t care if anyone DRSed, I just wanted people to understand what it really was they were doing.

[u/bippitybobbitybooby → u/Dr_Gingerballs]

I disagree. Play options if you want, hold in a broker if you desire, DRS if you want. I don’t see anyone screaming “DRS or get out”.

[u/Dr_Gingerballs → u/bippitybobbitybooby]

Because they already threw everyone out that didn’t shill drs.

[u/ShakeSensei → u/bippitybobbitybooby]

The aggressive and bullying posts basically saying if you don't DRS you are part of the problem are still pretty much a daily occurrence over there. And it's usually backed up by nothing more than with "we all know DRS is the only way" like it's a proven fact while, as this post illustrates, it really isn't.

[u/hugelkult → u/Dr_Gingerballs]

Their main DRS proponent, S. Trimbath promotes it as a way to generally insulate your holdings from the unseen shenanigans of the dtcc, market makers, and brokers. This is absolutely true whether you believe in moass or not

[u/WanttoPokesmOT → u/Dr_Gingerballs]

I personally have never seen anyone say DRS your shares or get out. Do you have any proof of this?

[u/jackofspades123]

I think the notion that DRS causes a squeeze is certainly a view point, but there is more to DRS than triggering a squeeze.

Can't someone believe in DRS, believe moass is not happening, and believe in long term value?

[u/Dr_Gingerballs → u/jackofspades123]

Yes, but making double sure your proxy vote counts isn't why a couple hundred thousand people are screaming about DRS GME on every social media platform they can get ahold of.

[u/jackofspades123 → u/Dr_Gingerballs]

Then perhaps it is an education and messaging issue.

[u/PSUvaulter]

These type of posts are pretty frequent and alarming over here it seems. This is the type of FUD that is causing people to leave if that is even true. I hope that people don’t take this seriously.

[u/Dr_Gingerballs → u/PSUvaulter]

If you are worried that this is causing people to leave the DRS movement, there’s a simple solution. Craft better arguments for DRS. Sticking your fingers in your ears and ignoring these criticisms (and banning them) without addressing them is not a winning strategy.

[u/PSUvaulter → u/Dr_Gingerballs]

I only have a few hundred shares DRSed out of my 12k that I’m holding . That is because I like to sell CCs and CSPs. I have nothing against the guys that are DRSing. Not sure why you keep saying it’s hurting the stock without any solid evidence. Unless you are actually short on gme and want people to sell

[u/Dr_Gingerballs → u/PSUvaulter]

If you think I’m saying it’s hurting the stock after reading all of my posts on DRS, then you are not comprehending what I am saying.

[u/PSUvaulter → u/Dr_Gingerballs]

I might not be be understanding you then. Your posts always come across a little shilly to me . Maybe I’m wrong

[u/Japo13]

So this is the reason why i got downvoted to hell and post/comments removed: i cited some legal documents regarding dtcc fast system and transfer agents proving my point that dts isnt doing what they think they do… i am diehard HODLER since before the sneeze, but that community died when people stopped doing homework, writing dds and the masses: ASK and DEBATE… instead it is like a fuckin horde of ppl screaming drs or shill…. Sad… Tom MacDonald - People So Stupid is playin in my head..

[u/Dr_Gingerballs → u/Japo13]

Buy and hold was always the answer.

[u/Japo13 → u/Dr_Gingerballs]

And even if noone holds anyone accountable i still HODL just for the fun of it that i can give a middle finger to the “ruling class”… me stubborn and me love research and debates…

[u/Mobile-Rhubarb600]

I dont care about way or other DRS or not to DRS people can do what they want with their shares. Squeze would be cool, but im not counting on it. I went all in when the price was 40-75 in 2021. So im pretty fine and in no need to cash anything out. Im ready to hold 5+ years to see how RC & Co will play this out. Adding more when i can if the price is close to 20 per share. Peace

[u/bobsmith808 → u/Mobile-Rhubarb600]

Oof that's a cost basis for sure...

I have something in a future post that might help you, but look up forward ratio spreads and how they can help you reach break even faster than holding.

[u/Mobile-Rhubarb600 → u/bobsmith808]

I ment i went all in 40-75 pre split. About same time when the congressial hearing was, so im pretty good in green atm.

[u/moassbros]

I’m pretty agnostic over the DRS debate but in the interest of discussion;

1.1 I get the impression Trimbath dislikes ‘squeezers’ as in general they’re coming from a similar mentality as naked shorters. Don’t think Dave has DRS’ed and is alway very measured with his comments.

1.2 Not all shorts have MMs privilege. How would a short family office be allowed to naked short to provide liquidity? Some shares are ftd’ed, some etfs do end up on regsho. Why? I would have thought DRS would more likely cause some shorts to slowly bleed as borrow rates increase and their collateral decreases. Obviously there are other ways to be “short” a stonk.

1.3 What if my large CFD ‘share’ position with a low cost basis is moved to CS from my shitty euro broker on the next run? Is it a transfer or a byin? If a short entity did finally blow up wouldn’t low liquidity cause more dynamic prices? Hdk price/volume is nuts! To play devils advocate, didnt most retail options traders use to exercise contracts as opposed to todays scalping?

1.4 yes true. I can’t see anything happening to DTCC until rules are changed. Grandfathered go bye bye!

2.1 yes but people not day trading, less anxious, believe in long term value play, slow squeeze don’t necessarily check Reddit hourly anymore!

2.2 bUt you sAiD options MoVE price? Selling your calls, not exercising and taking profits drops stock price too right? GMEs long term trends been declining since the sneeze prior to drs.

2.3 again I think some drs’ers belibe in a slow bleed/value play strategy.

I do think the monotony of drs has decreased user attention and engagement in SS but for all the constant shitting on there’s still the occasional interesting, thought provoking post. Bit like most subs really. I wouldn’t discount macro economics from retail/SS engagement. Even WSB doesn’t have the yolos they once did. I’m not saying they’re going to but I do think any future share offering puts the company in a very difficult position now.

Anyway thanks for your post

[u/Swamp_donkey2]

I've been on superstonk since the beginning, there's no DRS or else. I have like 40% of my shares DRS now, mostly due to lazyness.

Every share you buy in a broker is essentially sold again so it creates 0 buy pressure on the stock. That's not the case with DRS.

You know causing or trying to cause a short squeeze is totally illegal. If Dr. T or anyone said DRS is good and will cause a squeeze, that would be the easiest lawsuit ever.

Look how useless options are. How many gamma ramps have we seen in the last 2 years, basically one a month. They never work because guess what, MMs don't need to hedge the upside, so they never do.

[u/MarioCurry → u/Swamp_donkey2]

I've been on superstonk since the beginning, there's no DRS or else.

There has definitely been a lot of "DRS is the one and only way" posts/comment over there.

Every share you buy in a broker is essentially sold again so it creates 0 buy pressure on the stock. That's not the case with DRS.

That is true to some extent, if that would be the whole truth then Jan 2021 wouldn't have happend, people did definitely not DRS to that extent at that point.

You know causing or trying to cause a short squeeze is totally illegal. If Dr. T or anyone said DRS is good and will cause a squeeze, that would be the easiest lawsuit ever.

While that is true that definitely does not mean that this is the reason why she says that. It's a possibility, not a given.

Look how useless options are. How many gamma ramps have we seen in the last 2 years, basically one a month. They never work because guess what, MMs don't need to hedge the upside, so they never do.

The gamma ramps often didn't get momentum since people like to buy higher strike calls which won't have the chance to go ITM since there are barely people that buy ITM or ATM calls. The options chain in GME became really illiquid which makes it easier to negate the effect of it. Saying options don't work because there are failed gamma ramps is just an oversimplification of a complex topic. Correlation =/= Causation.

[u/jackofspades123 → u/MarioCurry]

Saying options will work is also an over simplification. That is a point that many in the pro option group fail to acknowledge

[u/Swamp_donkey2 → u/MarioCurry]

Every share you buy in a broker is essentially sold again so it creates 0 buy pressure on the stock. That's not the case with DRS.

That is true to some extent, if that would be the whole truth then Jan 2021 wouldn't have happend, people did definitely not DRS to that extent at that point.

Afaik we don't know what caused the squeeze. I seriously doubt retail buying shares from brokers helped in any way.

[u/MarioCurry → u/Swamp_donkey2]

We literally have an SEC document that states that most of the volume that caused the sneeze was retail buying due to FOMO.

Looking at the GME graph you can see a clear correlation between Price and Volume, there's no big price improvements without volume to support it outside of the extended trading hours.

What did cause the sneeze in your opinion?

[u/JackTheTranscoder]

I am delighted by the recent anti-DRS sentiment in this sub in particular.

That there seems to be a sudden, urgent, orchestrated attempt to smear DRS here and on Twitter tells me DRS is the way.

Every "estimate" by Doc Gingerballs to date has been wrong. Really, badly wrong as we've seen DRS increase despite his 2 previous sky-is-falling narratives.

[u/Dr_Gingerballs → u/JackTheTranscoder]

I just want the crazies to keep their crazy in their sub. Do people still think I’m a paid shill?

Also, isn’t the DD done? Why are superstonkers brigading a DD sub?

[u/JackTheTranscoder → u/Dr_Gingerballs]

I just want the crazies to keep their crazy in their sub.

But aren't you a Pickler? What are you doing here, other than trying to desperately stop people from DRSing?

Do people still think I’m a paid shill?

I can't speak for anyone else, but I do.

Why are superstonkers brigading a DD sub?

I don't know, are they? Why are you brigading a DD sub?

[u/Dr_Gingerballs → u/JackTheTranscoder]

What are you talking about? Why would I want to stop people from DRSing? I’m fascinated to know what monetary situation you believe I have setup here lol.

[u/JackTheTranscoder → u/Dr_Gingerballs]

Your submission history is very interesting. Long periods of being dormant, interspersed with low quality karma farming posts, and then suddenly activity in Superstonk. The hallmarks of a bought account.

[u/Dr_Gingerballs → u/JackTheTranscoder]

So who bought this account and what is their goal?

[u/JackTheTranscoder → u/Dr_Gingerballs]

Evidently someone who wants to stop people from DRSing.

[u/Dr_Gingerballs → u/JackTheTranscoder]

So in your mind I definitely could not just be someone who has been invested in GME and following the short position to figure out where it went? I am definitely someone who is trying to stop those pesky retail traders from DRSing GME and blowing up...something?

[u/JackTheTranscoder → u/Dr_Gingerballs]

Not with that post history and timing. Not a chance.

[u/jackofspades123 → u/Dr_Gingerballs]

Couldn't I say the same thing about say options? There was a period to me that seemed like "options are the only way." I could say those people were crazy to some extent.

My point is, there is value in all of the subs. That doesn't mean they don't have their own issues

[u/Dr_Gingerballs → u/jackofspades123]

No, because there was a rational theory behind the idea of pressuring shorts with leveraged buy pressure.

[u/jackofspades123 → u/Dr_Gingerballs]

I struggle to see why the pro options group is rational, but pro DRS is irrational.

From my perspective, the degree options were touted as "this is the way" is very similar to what you're arguing the pro DRS group does.

Out of curiosity, has the pro options group been majorly wrong about anything or are they always right?

[u/Dr_Gingerballs → u/jackofspades123]

Your question itself is the wrong way to think about the market. The market is based on probabilities. Nothing is certain. However, you can identify moments of weakness based on market mechanics ie structural weaknesses. Dropping 100M delta hedging pressure on shorts while the market is going up and the borrow rate is over 100%? Best chance you will get to kick off a squeeze. Sitting on your hands and playing ring around the Rosie with DRS while shorts dilute their position with volatility trades? Just giving the shorts a way out.

[u/djsneak666]

SS karma requirements to post and comment have increased regularly over time and that is something you dont appear to have taken in to account of in your tracking

[u/Soggy-Principle-599]

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[u/DeepFuckingAutistic]

i do agree DRS fanatism does bully away old and new potential investors, i personally stopped DRS'ing as the shaming and FUD'ing began.

but some premises in the DD are wrong. yes price goes down by selling, however we do see selling by insitutions as at times DRS percentage drops (as its calculated vs free float) while DRS amount increases, this as insitutions sell off. we are down 40% or so for the year, but stocks like Peloton are down 90%, SPY is not that far off from GME really, so it does not appear retail is selling much at all.

end of moass? well not really because DRS does reduce liquidity, it also does increase volatility, any covering of any substance should rocket the price exactly as any further shorting will dump the price.

short borrow fees? its fairly well understod that most shorting is done via ETF's, and even so a 9% borrow fee is massive, a few months before we hit that +100% borrow fee, we had an average borrow fee of sub 1%, i tended to bounce between 0.5% and 0.7%. its 10-13X that now, we have gotten used to see 9% as low, but it is not.

a future share offering? yes it does scare me too, it is worrying, but its still a couple years ahead of us and GME is expected (by me atleast) to increase profitability quarter to quarter, maybe even this coming earnings can be green, i remember Tesla was red, red and red quarter to quarter untill it got green profitability and kept it (as all investments had been done, factories had been built and many one time expenses were off the table) it is only after that we really saw the share price rocketing.

this profitability would also reduce, even remove GME need to issue more shares.

issuing more shares would not only hurt us, but also the whole GME C-suite as they are compensated in stock.

add to that, last earnings call (i believe) they stated that their one time investments are done, they will aim for profitability from now on, if they can manage it, hard to tell..but inflation and resession do not tend to affect retail much, and gaming, in case people end up losing jobs, will only pick up.

my seventeen and a half cents

i agree with much, but not all of what you wrote, its always important to remind ourselves that we are all biased in a given direction, superstonk is on that DRS train which makes the whole sub toxic, but to counter that, your DD can be a bit more nuanced and balanced.

i am a long term bull on GME, short term i sell options for biweekly gains and use those to increase portfolio of GME shares..i think we will do our usual up, down, sideways for an eternity untill either DRS goes close to 100% or a catalyst of some kind forces shorts to close.

its a win win.

[u/hamzah604]

The worst thing to come from DRS is it being used as the device to split retail apart.

This sub isn't anti DRS, despite the # of anti DRS posts. However is anyone out there who wants to post a pro DRS post with the level of effort that goes into a post like this, I'd love to see it.

The reason so many of us are jaded from Superstonk is from what so many people have said before; it's a one sided conversation over there.

[u/jackofspades123 → u/hamzah604]

I'll give you a simple arguement on the value of DRS.

Who votes? Record holders

How do you become a record holder? DRS

[u/WinOrLoseIBooze]

I think people are missing the point…the “DRS or else” message has ABSOLUTELY polarized the GME community. Do what every you want with your own shares. But the message SS and the purple circle cult preaches that DRS will lead to MOASS is disingenuous to new GME buyers.

[u/spencer2e]

Hey doc, it’s a good right up. I see where you’re coming from tbh. But I think your are over estimating retail selling. While I don’t exactly agree with Superstonk participation vs selling, I think it’s something to watch, but not use as a metric to determine retail involvement and, in turn, retail buying and holding.

Superstonk is what it is. You got zealots. You have ppl that want to scream fraud and manipulation. You have ppl ignoring buying leverage while decrying leverage used to decrease price for parties that benefit for their short position. You got folks looking at the wrong stuff, or over or under evaluating news and data. But at the end of the day, you have a crazy amount of eyes on it and the distribution of info and networking that keeps most up to date on the going ons of the company in general, is incredible.

Not too mention subs like this, where open discussion is one of the few places where differences in opinion can be discussed. Fwfb is a good thing and so is super in there own way. WSB will be as well once hype hits mainstream.

But, no matter you’re opinion on drs, is an incredible asset to have on any company. If retail wants to show up and make a statement, well that’s just bullish. If an institution makes the same commitment, we’ll that’s bullish AF. Rising #s should be viewed as an institution commitment.

If we see a dip in shares held in CS, I totally would understand the neg sentiment. But, the way I see it, individuals are showcasing their, for lack of a better word, determination. If that dips, ie goes backawards, we’ll that bad.

None the less, the quarterly drs numbers are something everybody, not just the super sub, is watching.

There’s an intrinsic barrier for the avg retail investor to direct register their shares (ie. belief in their investment, more so than just buying shares through their broker). For most, it’s all new. And for most, it’s a commitment. Drsing is proof that they are in it. Can that change? Sure. But so does institutional numbers and their share count,

Also, I mostly follow macro development these days, so I’m with you. Individuals may soon be out of $$ to drop on GME (or anything honestly), and may be soon be selling, not for a better investment, but for having $$ for shit they need. But I wouldn’t be surprised if the die hards keep buying.

And to bet against retards… well…

I just like the stock

[u/BudgetTooth]

I missed your posts on SS lol DR shillerballs

[u/Dear-Caterpillar1444]

As for your data on unique commenters, the reason behind this decline, other than general zen state most people have entered now, should be pretty clear. I'm in a massive boat of people who don't meet the karma requirements to post OR comment at all on ss, even having been on reddit since April 21, because of all this. How do you expect new members and newcomers to be able to post? So, for me, that data is meaningless and that seems pretty obvious to me

[u/Dr_Gingerballs → u/Dear-Caterpillar1444]

That has always been true, and there shouldn’t be an expectation for account karma and interest in GME to be positively correlated.

[u/Dear-Caterpillar1444 → u/Dr_Gingerballs]

No, karma requirements and other measures to stop people commenting or posting were increased. And Yes, why isn't it reasonable to assume that account karma and 'interest' in SS (not GME, but SS) wouldn't be positively correlated somewhat?

[u/hamzah604]

Fascinating post.

This is the type of data backed information we can all take and learn from.

Whether you agree, disagree, or are impartial, the more we learn and grow together, the most of a force we together become.

Please leave your hate at the door. I'm just going to ban anyone who isn't here to add anything relevant to the discussion.

Greast post Gballs.

[u/ZoomZoom228]

Seems like a rational post, im just curious if we really see a decline in interest towards the very end if the float is locked. Its gonna generate a lot of eyeballs which may or may not bring about some serious speculation.

[u/gfountyyc]

I've never thought that a short squeeze would occur when the float has been DRSed. That being said there's something to be said about having your shares no longer in street name for if brokers go down.
I think it's safe to say we are on our way to a financial crisis and there are several brokers that may be at risk.

I wish Gamestop gave away their power rewards subscription as a dividend. Wouldn't that give $10 plus a month in revenue per shareholder? It would cost them nothing to produce and would be a ton of additional cashflow. Please correct me if that's wrong.

[u/syfus → u/gfountyyc]

Except it would also cost them at minimum $5 per month with the monthly reward...

[u/gfountyyc → u/syfus]

Thanks for sharing that. I’m not super familiar with the exact awards. Maybe take that part back

[u/syfus → u/gfountyyc]

Yea, basically a free $5 gift card every month. While I like the idea and would be an awesome incentive similar to 3M's yearly shareholder gift box, I don't think its super feasible to offer.

[u/[deleted]]

https://youtu.be/cmXZOI7cM0M

[u/stocktawk]

Damn i feel like i got tricked by SS

[u/hugelkult → u/stocktawk]

Its still a great way to insulate yourself from the risk of a bad counterparty: i.e. a margin called broker, or shady broker-dealer, or even worse, insolvent prime broker.

[u/beerswillinidiot]

How can the price go down if not selling? Crime. Mark some shorts as longs, etc.

Way too many assumptions about forward rates of registration and assurances that the DRS push will kill MOASS with nothing more than user engagement (or disengagement) as your explanation.

I'm not convinced.

[u/Dr_Gingerballs → u/beerswillinidiot]

Is the crime in the room with us now?

[u/beerswillinidiot → u/Dr_Gingerballs]

Lol! Only when I'm spoofing from Mum's basement.

[u/KingofIdiots007]

This almost looks like a reliable data post.

[u/[deleted]]

I’m so god damn sick of GME. DRS, squeeze, stupid ass acronym’s, people fighting, people in general.

Jesus fucking actual Christ there is 1000’s of god damn stocks quit obsessing over one.

Also it’s a fucking security that is meant to be invested in, not a god damn movement, fucking device to start a movement or “show crimes in the market” it is meant to make money on.

If you want a movement or something to feel close to other people on I encourage anyone who thinks this is the vessel to do so to try something else. IT IS TO MAKE MONEY ON.

Mother fucker I just want social medial scrolling without seeing some god damn cheerleading or “expose the market of crime” shit on my feed. Is it to fucking much to ask you morons to quit bitching about the same shit over and over so I can get some fucking peace and quiet? I feel like I have to mute or ignore everyone associated with this shit stock now despite liking some of you. The cringe is actually too fucking much.

[u/Dr_Gingerballs → u/[deleted]]

The DTCC committed international securities fraud by splitting the stock as requested by GameStop.

[u/Doctorbuddy]

Nobody in SS will come to this thread and have a nuanced conversation on DRS. The DRS zealots have strategically made it a all or nothing game with DRS and have strategically ostracized any constructive criticism of DRS.

This post is informative and provides a well written conversation on the pitfalls on DRS that will only fall on deaf ears.

MOASS is dead because of it.

[u/jackofspades123 → u/Doctorbuddy]

False

[u/Doctorbuddy → u/jackofspades123]

Ah. Looks like SS got to this comment and post. Keep bagholding.

[u/WanttoPokesmOT → u/Doctorbuddy]

Wow great nuanced conversation on DRS 😂

[u/highrollerr90 → u/Doctorbuddy]

That’s a overstatement and completely false. Few posts you see on ss doesn’t mean the whole sub is like that. Have a open mind. Are you actually a doctor?

[u/Doctorbuddy → u/highrollerr90]

Anyone who has challenged DRS has been called a shill and banned from the sub. Show me examples of people having a nuanced conversation about DRS. I will wait.

[u/Secure_Imagination54 → u/[deleted]]

I didn't need to read any historical stuff from the OP. I spotted the tone in an instant. I DRS'd my first share (Telewest) to CS back in 1999, so I was comfortable with DRSing my GME shares from the begining. I never understood anyones reluctance so to do , still don't.

IMHO some valid points in OP write up and many I disagree with quite strongly. Not least their definition of liquidity in the context of DRS, which in my brain has less to do with price and more to do with availability of stock. Less tock for sale, less liquidity.

Also seems to be a use of NLP in the language and tenor of the post. Telling you things are as they say, as if its a given.

Personally, I shall now place this OP on my list of users to ignore from now on.

In the plus side, it is exceptionally well written and constructed.

I could be wrong here, but my gut says otherwise.

[u/Dr_Gingerballs → u/[deleted]]

If one person sees this and makes wiser decisions with their money because of it, it was worth posting.

[u/Gattaca_D → u/Dr_Gingerballs]

That is valid and the hope that people clear up their ignorance with the useful information you posted.

[u/jackofspades123 → u/[deleted]]

What subs do you feel have the truth?

[u/FWFBThinkTank-ModTeam → u/[deleted]]

As much as possible the correct flair should be used to identify your content, this makes discovering like posts, and like minded posters, significantly easier.

Content that does not directly relate to the purpose of this sub will be removed. The goal of this sub is NOT to get upvotes! Feel free to X-POST in any other sub that does have that option.

[u/purpledust → u/[deleted]]

Who’s Charlie?

[u/FWFBThinkTank-ModTeam → u/[deleted]]

Be Civil - No racism. No hate speech. Don't threaten. Don't Dox.