Biggest short squeeze in history, on it's way, page-207

There will be no short-squeeze, but rather a steady buy-back as shorts lock in profits. Well done to them:




The selling here is mostly retail investors by the thousands locking in tax losses, not shorts which are slowly falling. All those investors who bought in at silly price multiples, expecting a bounce at $8, $7, $6, $5 etc,, believing BNPL's were immune to financial conditions and regulations that eventually beset all finance companies and surely the bounce would come.




Soon comes the bounce, after all those same investors sell out and lock in their capital losses. Shorters aren't opening new positions down here. The risk/reward ratios are no longer there at this depressed price. Yes ZIP has some floating rate debts, but is essentially well funded to late 2023/early 2024 with $200million, it aint going bust in the near-term either.

ZIP is now like a call-option and call options have value until they expire (in this case it runs out of cash and people willing to lend it cash). The delta the probability that ZIP contains bad debts and gets net margins back near 3% and shows at least an indication of becoming cash flow positive as a business, as it reports the Australian business being. I'd only put it at 30% chance. BUt that's why the thing is trading down here.

I am under no illusions to the risk on this stock. But expect a decent bounce in July.