Mullen stock could be the mother of all
short squeezes. what's up guys and
welcome back to the channel you might be
seeing all the talk right now at Mullen
having massive short interest and a
short squeeze about to happen. Well, in
this video I'm going to share with you
what I think the reality of this is and
just how high I think this squeeze can
really go if you are reading through
social media posts right now then you
are surely seeing that this will be a
gme or an AMC style short squeeze #amc and
that Mullen stock could end up being $20
or $30 by the end of next week I have
even seen some polls saying that this
could go as high as $75 or 80 dollars
like what we are talking about is more
than a 50x short squeeze in the next few
days I will look at can this actually
happen I will also look at the 8K
document that Mullen Automotive filed
after hours on Friday and the shocking
details that are in this once again
David is actually telling investors
exactly what he's planning to do and I
think that this could seem more
shareholders try to take action once
again against Automotive. (nasdaq:muln) Before we get
into the video it takes a lot of time to
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point out that I'm not a financial
advisor and this is not Financial advice
always do your own due diligence now
let's get into it by first looking at
the shocking details that Mullen have
sneaked into their latest 8K SEC filing
this changes everything for Mullen from
an investment point of view
so on Friday after hours Mullen
Automotive filed a new 8K document with
the SEC now this document was to be
expected this week and really probably
should have been filed on maybe
Wednesday or Thursday because this
filing
is related to mullen's 25 to 1 reverse
split (gme stock)
so when I first looked at this yesterday
it looks completely standard and I did
not think much of it but there was one
thing that I couldn't find in this
document (amc stock)
which made me look at over multiple
times and that is the fact that at no
point have Mullen quoted the current
outstanding share quantity and this is
something that I really expected to see
in this document but as usual David is
trying his best to be non-transparent
and I will explain
this and talk just how important this is
in a moment. #muln
so when we actually look at the document
it's mostly standard just saying that
the company has filed an amendment with
the state of Delaware
to effect a one for 25 reverse stock
split that became effective on May 4th
and stating that this was all approved
by stockholders back at a shareholders
meeting in January 19th and as we scroll
through the pages it just says that all
the other series ABC Etc of all the
preferred stock will also be affected
therefore all the stocks of the company
are going to be split at a rate of 25 to
1 pretty standard stuff
but there is one paragraph in this
filing which is absolutely crazy
and this is right here back at the
beginning. #amc
this is the paragraph that I kind of
missed at first
as a result of the reverse stock split
at the effective time every 25 shares of
the company's pre-reverse stocks split
common shares
what's combined and automatically became
one share of common stock the company's
post-reversed Oxford common stock began
trading on May 4th 2023
with the new
cusip number #gme
and that is something that we can see
here we can see the new number
and stock which shows all the new
details effective from May 3rd but the
next line in this paragraph is vitally
important this changes everything
right here the reverse stock split did
not change the authorized number of
shares or the pair value of the common
stock nor modify any voting rights of
the common stock so think about this the
reverse stock split did not change the
authorized number of shares
now just try to understand how amazingly
vital this is last week Mullen had
authorized shares of up to 5 billion
shares these were trading at I think six
cents
just before the stock split
and of this 5 billion shares at least
3.7 billion have already been issued we
can see that in this form
the 424 B7 form
that was fired with the SEC on the 14th
of April on page S5 of this document
it states that the current share count
as of April 13 2023 we had outstanding
3.792 billion shares of common stock and
then it lists all the preferred stocks
that basically add up to more than 5
million shares okay so Mullen could not
really dilute much more than they had
already done
like just doing a quick calculation
of the issued stock over the authorized
stock of 5 billion meant that they had
already issued over 75 percent of what
they were allowed to issue and this is
where it gets very interesting
like it's not that long ago that Mullen
were trying to raise the outstanding
shares up from 1.75 billion up to 5
billion and even this was met with a lot
of resistance from shareholders like the
special meeting of stockholders took
place in December everything was
eventually passed
and the authorized shares were raised to
5 billion
but do you think that this would still
have passed if David tried to increase
it up to say 10 billion or 20 billion
shares do you think anyone would
actually agreed to that take a moment
drop a comment below and tell me would
you have voted to allow David to 10x the
author I shares back five months ago
effectively allowing a one thousand
percent dilution
I don't think that that would have
passed
but it looks to me like Mullen have been
very clever let me know in the comments
seriously would you have voted to allow
David
to do extra dilution of nearly a
thousand percent of the shares back in
December
as I said it looks to me like Mullen
have been very very clever
again as we already know Mullen stock
was 3.792 billion back in April so
assuming that there might not have been
any more dilution in the past month that
would mean that there is currently about
152 million of these new shares an issue
which if we back test our data this
proves correct the current market cap of
227 divided by the price of 150 equals
approximately 151 million shares
so this looks correct but here is the
kicker unless I have read this wrong
Mullins authorized Share account is
remaining at 5 billion
like let's read this again the reverse
stock split did not change the
authorized number of shares everything
else has been affected by the 25 to 1
reverse split except for the authorized
shares so in my opinion it is very
obvious what David has actually done in
a way it's actually genius he has pulled
off something
I thought he would never get
shareholders to go along with
151 million shares
is now only three percent of the number
of shares that David and Mullen are
authorized to sell this would have been
the same as Mullen trying to increase
the old authorized shares from 5 billion
up to 125 billion it's absolutely insane
but nothing surprises me any more about
Mullen by doing the reverse lit but not
splitting the authorized shares it looks
as though Mullen have effectively done
these two things one they get to keep
the share price above one dollar for 10
days and keep the stock on NASDAQ but
more importantly
in Mullen they have effectively allowed
themselves near unlimited dilution for
this foreseeable future
and I don't think we will see the actual
current outstanding share count
anytime soon but this is not unusual
formal in directors back in September
2012 which is over a decade ago a
company called seven Arts entertainment
announced the resignation of one David
metry from the board of directors but
preceded this looks very familiar
seven Arts entertainment is now an OTC
listed company
so what proceeded its resignation was
not one but two one for five reverse
splits the company was then delisted
from NASDAQ a year later
and then did a one for 70 reverse split
before David metry eventually was forced
to resign
but none of this matters to most of you
as long as the Mullen short squeeze
happens right so let's take a look at
the logic behind this
the next data that we will see
will be the earning support that will be
coming in the middle of the month
last year they filed this on the 16th of
May so we could easily see this again
within the next 10 days
according to investors place there is no
Mullen stock shares available too short
and that a Mullen squeeze could actually
be happening
which is absolutely incredible to think
that a company that only four days ago
had over 3.5 or 3.7 billion shares
outstanding and less than 10 percent of
that was sold short now has nothing
available to short I have seen this
article on Frank Nez
he shared all over social media this
weekend new data shows Mullen short
interest surges to 125 percent
it's uncommon for a stock to have short
and just above 100 which signifies over
leveraged short positions in a security
analysts at Goldman Sachs later noted
that if short interest exceeding 100 of
a company's public only occurred 15
times in the previous 10 years and this
is number 16. and of course here is the
data to back it up from ortex as usual
or text data is saying something
doesn't seem to be correct because major
data changes are not done regularly
enough it looks to me that rtex is not
factoring in the reverse split at all
so let's look at fintel on the day
before the reverse split there was 355
million shares sold short which
represented about 10 percent of the
float the following day there were 17.7
million shares sold short representing
about 11 percent of the float and on
Friday 5.8 million shares
representing just under four percent now
this data isn't fully complete but there
is no way that dark pool shorting isn't
mounting for an additional
180 million shares no way what is more
realistic is that the short interest is
actually just under eight percent
which is what it would be right now
if I am right and that the reverse plate
has not been factored properly into the
calculations
so guys what do you think will happen
next week
there is actually so much talk right now
on social media of Mullen being the next
massive squeeze
that I think that buying pressure from
this alone could see the stock rise up
over the coming days would be very much
aware that this is not actually a
squeeze
this will be the effect of formal
because everyone wants to get into the
squeeze as early as possible and when it
starts to move this will trigger more
buying so be aware of this there could
be money to be made here but don't get
left holding the bag when the sell-off
begins
drop a comment below and let me know
your thoughts about what will happen if
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if you're new nothing in my videos is
financial advice in any way and I'm not
a financial advisor if you want to
invest in Mullen stock or not that is
your choice and I highly recommend that
you do your own due diligence thanks for
watching and I'll catch you in the next
video