The U.S. stock market recently staged retail villagers backing GameStop against short-selling Wall Street institutions, and even allowed the instigator, Citron Research, to surrender and surrender. However, according to a report by the US financial media “CNBC”, American media celebrity James Joseph Cramer praised the retail investors who participated in this “epic holy war” against Wall Street, but at the same time shouted “You have already won”. , Don’t let the stocks in your hands lose too much.
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Kramer, the host of a financial program, praised the retail investors who participated in this “epic holy war” against Wall Street, but at the same time shouted that “you have already won”, it is time to stop.
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The report pointed out that Cramer said on CNBC’s “Squawk on the Street”, “It’s good to hit a home run. Don’t want to play a grand slam, just home run. You have won the game and you did a good job. “, and pointed out that don’t lose too much on GameStop, and hope that people will realize that GameStop and other stocks that have soared in the short term have potential risks. If the stock price collapses, it will set itself on fire.
In addition to expressing his congratulations to retail investors, Cramer also said that although retail investors make short-term profits from these stocks, he still admits that he still wants to see investors profit from stocks with stable fundamentals such as Apple or Microsoft. He said that he is not opposed to anyone who holds GameStop stock for a long time, nor does he hold conspiracy theories against GameStop or others, but this stock is really just overvalued.
In addition, Cramer said he believes GameStop will use the opportunity of rapid stock price surges to issue new shares and repay debt. According to its third-quarter financial report, as of October 31, GameStop’s balance sheet contained $269.5 million in short-term debt and $216 million in long-term debt.
Cramer also emphasized that he has no intention of commenting on whether the villagers on the Reddit forum are good or bad, nor does he mention the merits of short-selling institutions, but he is concerned that as long as this frantic transaction lasts longer, it will impact the stability of the US stock market. What I want to say is that the government should take action, at least express its position to solve this problem, so that other markets will not panic because of these severely shorted stocks.”
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