🚀 🚀 🚀 🚀 🚀 UWMC 🚀 🚀 🚀 🚀 🚀 🚀 🚀
UWMC is ready to pop!
I was in UWMC for the value play. It is a STEAL at 10$ on fundamentals anything below that is an insane deal. Even above 10 has a strong long-term argument.
Here is UWMC in a nutshell: heavily shorted, borrow costs skyrocketing, mortgage industry hit overly hard on fears of rising interest rates, the CEO Ishiba announces a 300M stock buyback, and shorts are QUAKING. UP 6% in premarket following being up 1-2% Friday. This puts at starting at $8 Monday with $9 being a CRITICAL Friday target for us.
All UWMC needs is a little unexpected retail buying pressure and it POPS! In truth this is not just a short squeeze, its multiple plays rolled into one. We have retail buying hype train going (obviously, look at all the WSB posts here posted below), short-squeeze due to high cost of borrow, Gamma squeeze due to the MASSIVE options interest, 300M stock buyback by CEO to scare off the shorts, an unfair post-earnings plunge, plus good-ole` company doing good things (making money).
We coming back for some of our loyal bagholders that have been holding UWMC since the last train to $14, hey guys remember to take profit this time 😉
🚀 🚀 🚀 🚀 🚀 UWMC 🚀 🚀 🚀 🚀 🚀 🚀 🚀Short Squeeze.Short borrow costs skyrocketed from 30% to over 93% in a few hours on Friday: They cannot keep shorting at this price. It is now cost-prohibitive to use more shorts to keep the price low. The normal dirty tricks triple in price so become less-used. Shorts use this borrow price to determine feasibility and 93% is obviously unfeasible, THEY WILL COVER. Once one group starts covering and causes a spike, other shorts will rush to do the same.
It's a prisoner's dilemma and HF's want to cut each other's throats just as much as ours. Let's let them!!!
🚀 🚀 🚀 🚀 🚀 UWMC 🚀 🚀 🚀 🚀 🚀 🚀 🚀Gamma squeeze:https://www.marketwatch.com/investing/stock/uwmc/options
Many of these 7.50,9. 10, and 12 are OTM or barely ITM. and an early week spike to put 9c ITM would force MM's to hedge to delta-neutral…further pushing 10c and 12.50 c into hedge territory. This can quickly cause things to spiral out of control for shorts.
Ishbia is going to war with the shorts and his weapon of choice is a 300M stock buyback (similar to RKT's special dividend for the same purpose). The buyback could have started happening as early as May 11th.
Most of the float is owned by institutions and insiders so this buyback puts increased pressure of a heavily shorted (13%+) and heavily held float pool.
Retail is gorging on the float, institutions are holding the float, and Ishbia is buying the free float up. This is a recipe for ROCKET FUEL. WIth shorts paying 93%, they will stop shorting so the shares we are buying are REAL, not synthetic.
Make them buy real shares, from us, at 20$ each.
🚀 🚀 🚀 🚀 🚀 UWMC 🚀 🚀 🚀 🚀 🚀 🚀 **🚀UWMC is a good company, not just a memestock:**UWMC is a good company that pays a good dividend, has a good CEO, and is the king of B2B mortgage refinance.
I am in UWMC for the long-term VALUE-PLAY and like the stock. I like the company., I like the CEO. I like the market position. I like the value. I ilke the stock.
I am loading up on 6/18 8c options. Options are important as we move up to force MM's to buy to remain market neutral.
Options do not pay unless we buy shares, so I suggest splitting half/half to each. options can cause MM's to balance risk and lead to large upswings but this cannot happen without buying pressure and the underlying spiking to necessitate balancing risk, which means we need to buy stocks as well.
Options are good for Gamma Squeeze/MM's balance buys (and profit) but shares are needed to keep the underlying JOOSED and keep those options deep ITM.
MIX IT UP!
This is the final call for the UWMC tendie train so get your fucking tickets and remember; Gravy costs extra,
TL;DR: 🚀 🚀 🚀 🚀 🚀 UWMC 🚀 🚀 🚀 🚀 🚀 🚀 🚀 TO THA MOON!
Associated Recent WSB posts:https://www.reddit.com/r/wallstreetbets/comments/ndcm0p/uwmc_is_a_powderkeg_low_float_high_short_huge/
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