CLEANING HOUSE ON GEMM
As I said, they are cleaning out the .12-.18 area imo. Pretty good bounce today. IMO, most of the 30M float has been bought up by retail and possibly some other MMs for the ride up. Again, I look for them to jerk this around in this area until they are truly getting no more sells from the volatility. Again, we are watching pros at work. But the bottom line is that if you believe the UCAD explosion was due to dividend covering (I do), then November should be a fabulous month for GEMM. Let's look at a few facts and figures:
7.5M share distribution on UCAD with 1.3M share float = 5.76 ratio
225M share distribution on GEMM (both parts) with 30M share float = 7.5 ratio
Anyone shorter will be in much deeper based on the shares needed versus available ratio on GEMM. PLUS, I think more people are on to this pattern than in UCAD, so I think more retail will have taken out a larger part of the float than they did on UCAD. PLUS, UCAD once it hit $10+ was a big turnoff to investors based on just raw price whereas even at .20, investors will still see this as a huge potential percentage return and feel more comfortable buying it, i.e., shares will continue to get taken out by retail.
Now let's look at this number:
To cover the UCAD dividends per million shares of CMKX, shorts would have to pay roughly $144 per million, assuming a price of $15. And it seemed they were willing to pay it!
Right now at 12.5 cents on GEMM, this amounts to $12.50 per million shares of CMKX. Naturally the shorts would LOVE to continue covering dividends this cheaply. It's STILL considerably cheaper than covering CMKX at $200 or more per millon shares. But my point is not only do I think the shorts will go a LOT higher to get shares of GEMM based on how cheap they are today, but I think based on the ratio of shares available, they will HAVE to and to a LARGE degree.
All just my opinion. And believe me, I ain't pumping since I want to buy MORE next week and as low as possible. LOL I hope the MMs can work it down and keep it under .1 for next week. I will gladly load up.
Z
As always, these are my personal opinions.
Hopefully nobody in here is investing anything but "fun" money that they can afford to gamble with.
