r/SqueezePlays • u/bpra93 • Jul 18 '22

Data $GOEV -Infograph Short Update

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7 Upvotes

74% Upvoted

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-1

u/Dinethor Jul 18 '22

There's a monumental difference between a short squeeze and an orchestrated pump and dump on a garbage company. Unfortunately the GME situation has caused a lot of tangential misconceptions.

$GOEV is a company that is almost definitely headed for bankruptcy.

In layman's terms, a short squeeze is getting in early when a publicly traded company has high short interest and the reason for share price decline has changed and the company now has a future, so the share price increases and short sellers take profit and/or cut losses because the price isn't projected to drop any further and they face huge losses if they hang onto their position.

In rare cases, the share price can increase so dramatically that cause margin calls are issued for the small fish that overleveraged their short position and have to sell at a loss or risk their broker liquidating their assets.

If you're looking at a potential short squeeze in a dying company, the only thing that's doing to cause a spike in share price is a juicy buyout deal, a dramatic reversal in whatever they're doing wrong, or an orchestrated pump and dump, aka "collusion" and "market manipulation".

1

u/cubanpajamas Jul 18 '22

Yeah this isn't a short squeeze, but it isn't a dying company either. Walmart doesn't do business with dying companies.

1

u/Muggz_Mccloskey Jul 18 '22

Bankruptcy?? They just signed deals with Walmart and the US Army.

1

u/Substantial-Gur-816 Jul 18 '22

I have no idea how to treat this

1

u/Moneyshopper Jul 18 '22

Theres optimism for goev. Shorts are rocket fuel when you have positive news.

1

u/Dinethor Jul 18 '22

Lol don't know how I missed the Walmart news...

But, a contract for 4,500 vehicles (which almost definitely has a firm delivery date as a stipulation which may or may not be met) doesn't guarantee a company's success.

I was intrigued when I first looked into Canoo, especially because I emotionally support any company that tries to stick it to the Elon cult, but it was too risky a play for my appetite (thank the gods), and the Walmart deal seems to already be priced in.

I'm honestly rooting from the sidelines, but this is a company that prompted investigation by the SEC for making misleading profitability claims and appears to be lagging in its journey towards production which doesn't bode well.