TMC Stock: The 'Short Squeeze' Hype – What Reddit is Saying
Alright, let's get one thing straight: when a CFO starts publicly threatening short sellers, it's usually a sign things are either about to get REALLY interesting, or REALLY ugly. In the case of The Metals Company (TMC), well, it could honestly go either way.
Underwater Riches or Fool's Gold?
This whole deep-sea mining thing still feels like something straight out of a sci-fi movie. Vacuuming up polymetallic nodules from the ocean floor? Sounds expensive, environmentally dicey, and frankly, a logistical nightmare. But hey, if they actually pull it off, those nodules are supposedly worth $23.6 billion. That's a lotta scratch.
Shesky, the CFO, is basically saying anyone shorting the stock is an idiot because regulatory approval is just around the corner. And if that happens, BOOM, short squeeze city. Shares to the moon! He even questioned the "thesis" of those betting against TMC. Which, let's be real, is CFO-speak for "you're gonna regret this."
But here's the thing: regulatory approvals ain't exactly a sure thing, are they? Especially when you're talking about potentially screwing up the ocean floor. Environmental groups are already screaming bloody murder, and rightfully so. So, Shesky's confidence… it feels a little forced, doesn't it?
And what's with Trump's executive order from April? "Advance United States leadership in seabed mineral development?" Give me a break. Sounds like another way to stick it to China, consequences be damned.
The Rollercoaster Ride
TMC stock has been on a wild ride this year, up 385% – but down 49% from its October highs. That kind of volatility is enough to make anyone hurl. One minute everyone's hyped about critical minerals and geopolitical tensions, the next minute they're running for the exits after a disappointing earnings report. It's a classic pump and dump, only with more…ocean.
And speaking of earnings, that Q3 net loss of $184.5 million? Ouch. Sure, they've got $115 million in cash, and maybe another $430 million from warrants. But burning through cash that fast ain't exactly a recipe for long-term success. Silversteyn, the Water Tower Research analyst, says they might be financially stable for the first time since going public. Color me skeptical.
Remember that "explosive October rally" that took the stock above $11? Fueled by "geopolitical unease and enthusiasm around so-called 'critical minerals'"? That's just a fancy way of saying people got greedy and started speculating. Then the China trade truce happened, the hype faded, and everyone bailed. Should have seen it coming, offcourse. As reported by Parameter.io, The Metals Company (TMC) Stock Jumps 24% on CFO’s “Short Squeeze” Comments.
Government Handouts or Real Potential?
Shesky's banking on government support from the Department of Energy and the Pentagon. Because what could possibly go wrong with letting the military industrial complex control deep-sea mining?
He even hinted that production could start before Q4 2027 if the regulators play ball. That's a pretty bold statement, considering the International Seabed Authority (ISA) is still dragging its feet on the whole mining code thing.
But wait, are we really supposed to believe that Trump's executive order will just magically make all the regulatory hurdles disappear? I mean, even if they get the green light, there are still environmental concerns, technological challenges, and the small matter of actually making a profit.
So, What's the Play Here?
Is Shesky a visionary genius trying to shake up the mining industry and secure America's critical mineral supply? Or is he just a desperate CFO trying to pump up the stock price and avoid a complete meltdown?
Honestly, it's probably a little of both. TMC has a lot of potential, but it also faces a ton of risks. And Shesky's "short squeeze" threat could either be a brilliant move that sends the stock soaring, or a massive miscalculation that blows up in his face. I guess we'll just have to wait and see.