![]() ![]() Corners really shouldn't be possible in current markets and everyone should be thankful for the immense greed and extreme leverage employed by modern day hedge funds. They were able to eventually find enough shares to close their positions by going door to door to small retail investors and buying their individual shares.īasically it's a story about how rules get bent/broken to protect incumbent players and it highly resembles what is happening with GME. Piggly Wiggly stock was borrowed/shorted, shares were recalled and the rules were bent to give the cornered short sellers more time to resolve their situation (they would have been bankrupted). This was back when if you didnt return the shares you went to prision. The owner didn't go bankrupt from this and they just didn't get the payday they deserved. You should do some further reading on this - the full story is documented really well in the book titled "business adventures". This leads to the MOASS when all shares are DRS'd instead of an eventual bankrupt, right? However, in our story it is possible due to shares being passed around and not effectively removed from the DTCC. There was no such thing as naked shorts in 1923. The difference between this story and our story is that in 1923, before the switch to electronic, shares were all certified owned when you bought them. In the end, Saunders owned all of PW but was unable to sell his shares on the public market? NYSE suspended the trades and all the shorts bought up the remaining 1128 float and closed their positions. We are DRS'n the entire float just like the CEO of PW in 1923. In this story, Piggly Wiggly is essentially doing what we're doing. But the campaign fizzled out and Saunders was forced to turn over his stock and file for bankruptcy. He made an early attempt at crowdfunding by taking out ads in local papers saying that the failure of Piggly Wiggly would shame the whole South. Saunders ended up with complete control of Piggly Wiggly stocks, millions of dollars of debt and no ability to sell his shares on the public market. The suspension gave the short sellers time to buy up most of the company’s 1128 outstanding shares and cover their positions. The following day, the NYSE suspended trading in the stock, before permanently stopping all trading in Piggly Wiggly on 26 March. Using his own money and $10 million from a group of bankers, he bought up all available Piggly Wiggly stock, pushing the price of the stock up by approximately 50%.īy March 1923, Saunders owned all but 1128 shares of the company’s outstanding shares, and he called on the short sellers to pay up. Within six years, there were Piggly Wiggly stores all over the Southern and Midwest regions of the US, and Piggly Wiggly stock was being listed on the New York Stock Exchange (NYSE).īut then Clarence Saunders overplayed his hand.Īfter market traders started to short Piggly Wiggly stock, Saunders vowed to hit back. For the first time, customers could roam the aisles of a grocery store and pick out their own products. When Clarence Saunders opened the first Piggly Wiggly grocery store in Tennessee in 1916, it was a revelation. The most effective route to BUY, HODL and OWN GameStop SharesĬould broker diversification be the catalyst? Or is it just a good idea?ĭiscord Daily Thread DRS Guide AMAs DD Library Hide CS Posts The GME Masters' Guide: A DD Campaign for Apes Levels 1-20 Looking to catch up on the GME Saga? Start here!Įverything Superstonk Knows About Naked Shorting - A Definitive Guide Visit /r/VeryGMErryHolidays for info on Superstonks annual Toys for Tots charity event! New here? Start with these: The Superstonk Library aka gme.fyi Comment !apeprove! anywhere on the sub to be added to the list of pending approvals.Approved Users will bypass these karma and age restrictions entirely.Not enough karma? Post your DRS Proof /r/GMEOrphans.*total post and comment karma only, excludes award karma Community Posts Wiki || Rules || Automod Info Post Flairs □ Due Diligence A place for theoretical discussions about GameStop Stock ($GME). ![]()
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