Why DRS Won’t Work: What “Apes” fail to recognize is that unless you DRS most of the float to the point where there are significantly less shares available to cover than are short, the plan won’t work very well, at least not as desired, even if you succeed at pumping the price high enough to force them to close.
Problem with drs is, institutional holdings make up a large percentage of the float and they’ll never drs. Why? Because most of those holdings are “required” to be bought by institutions like $BlackRock(BLK)$ and Vanguard for their many index funds that track the indices that “must” include GME by weight.
Approximately 90% of institutional holdings are just for that purpose. And since they’re required to hold for as long as GME is included in the indices their funds track, they lend their shares to shorts just to generate some income while doing so. Can’t blame them and they can’t lend their shares if direct registered.
In addition, since retail already owns 221M shares, why are only 75M drs’d? It’s been 3 yrs of this movement already and the count has done nothing but go down for a year.. Between institutions without index funds and plenty of retail shares still available, 68M shorts will never have a real problem covering if forced to.
You’ll be the ones having trouble selling at the right time, when your shares are not held by a broker, if a small squeeze does ever happen someday.
That’s why the DRS movement will never work. Nice try anyway. It’s the thought that counts.
Matthew Broderick Reaction GIF
Comments