Gamestop
- Thread starter Bonerfarts
- Start date
I sure hope the people in my life who tried to learn card counting after the Kevin Spacey movie, who tried to get me to do their latest MLM, and who first effed with trading after watching The Big Short... I hope they don't expect me to have sympathy for them this if they lose their money on this just because rich aholes are on the other end.
GME is not the new Bitcoin. Eventually the short positions will end, the party will be over, and the company will be evaluated on fundamentals. Also, the SEC will probably stop GME from offering secondary offerings.
There are a handful of others out there that this are happening to as well but I am hoping Fubotv jumps. I have been holding 100 shares in that one for quite some time and it has doubled this month, which I assume is a partial squeeze. Obviously not in as bad of shape as Gamestop but it is heavily shorted as well.
One other casualty of all of this lunacy is short seller reports might be going away for a while. Few of you probably know what I’m even talking about but most of you think you do know... anyway, markets need the Carson Blocks of this world to keep companies honest too. Citron research already announced today they’re done issuing short sell research reports and want to focus on “multi bagger long opportunities for retail investors”.
Because of shorts, there's always been more downward pressure than upward movement on every stock. There are investors and there are gamblers and there are some people who hover in between. Those only doing shorts are gamblers, pure and simple. They are also powerful in the industry. I agree with others there will be a push to regulate short selling very soon.
On the political side, we will know very soon which Representatives and Senators are in the pocket of hedge funds.
On the political side, we will know very soon which Representatives and Senators are in the pocket of hedge funds.
The point is that the price of shares is now completely disconnected from the value of the company. Which, with all of the other obvious evidence, suggests deliberate price manipulation.
So we have one group of people (our Reddit folks) who are working to get the price further and further disconnected from true value, and a second group of people (the brokerage firms) trying to slow down this process.
Who is acting in good faith here, and who is not? Who is behaving in an ethical manner, and who is not?
So the Wall Street players plan to rig the game in the future by burying information so the little guy doesn't have the resources to get it or access to it.
Got it!
I'm not so sure. Gamestop unloaded their debt back in November. This was a big deal on WallStreetsBets at the time. People really liked the position the company was going. They have to be loving the publicity, and they do not want to piss off all these new investors. You know who Gamestop doesn't care about? The hedge funds that were trying to short them into oblivion. I agree its smart to offer more stock, but there are other factors they are weighing.
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Ok, pissed I missed the GME and DOGE run, let's get some of the other hot names again for us with FOMO.
Neither but the brokerage firms and it seems our federal govt is trying to provide covering fire for these hedge funds and institutional investors. They need to stay out, let the market work, and let this war be fought on a level playing field out in the open for all to see.
GameStop is just a pawn in a larger game of public outrage that is being played out.
I think it’s funny that you continue to think you are so much smarter than everyone else.
I would argue that a majority of stocks are disconnected from the value of their company. Example 1 is Tesla
You can’t punish retail investors for investing their money into a company that is over valued lol.
The war is being fought at GameStop, I expect things to coalesce more and more around GME.
Krypto will also benefit greatly out of this and may solidify it in the publics eye now. Doge will crash back down but look for a few other players to take hold as more and more people decide that centralized currency is a tool to help keep people chained within the system.
We are in agreement, but not fully. What is true value? If I have bottle of water today it's worth $1.00. If its the last bottle of water in the world and people need to water to live, what is the bottle of water worth? Buying and holding shares is reducing the water for the hedge funds. One side trying to raise a price and one side lowering a price is what happens millions of times a day in the market. Buyers have caught the Hedge Funds with their pants down and are beating them at their own game. You might be right that it's not ethical, but how else can you hold the hedge funds accountable if not by holding them to their risks. Like I said if the short interest in the stock drops, that's when we will see a price drop. Until then stock is worth the same price anything is worth - whatever someone will pay for it. This is the squeeze the shorters are in.
Yes...if you look at many tech companies their P/Es are out of this world high based on some expectations of future earnings that may or may not happen.
Imo, there aren’t really any other opportunities like GameStop.
Exactly right. The bubble will burst, and they will end up punishing themselves.
The brokerage firms are not acting in bad faith. What is happening is unnatural and has nothing to do with the free market - it is market manipulation which makes it impossible for the brokerage firms to cover the crazy volume of trades. They weren't doing it at the behest of anyone in the government - else they could have thrown them under the bus. They weren't doing it to protect the hedge funds. They did it to protect themselves.
TSLA isn't necessarily overvalued. TSLA is a leader in a lot of technologies that will shape the future like self-driving and green energy. I don't think it's certain how big the market for things will be.
My disagreement here is that the run-up of the price is not free market, while I do believe short-selling is free market. It's not like the hedge funds got together and said, "let's drive GameStop stock price down." They looked at the stock price compared to the future prospects of the business, and said, "I'm going to short that stock, because the business does not support that stock price."
Clearly, you almost have to be a mind-reader to decide who is behaving based on what they believe is justifiable price for Gamestop shares. But I think in this particular instance it's pretty easy to figure it out.
Great idea! I had never even thought about my 8 year old's 529! Thanks brah!
Telsa is a slower case of what we've seen with Gamestop. Tesla was overly shorted last year, and the shorters lost billions. Tesla's prices increased from buyers long term optimism, but also from shorters having to cover their positions. When shorters buy back to cover their positions the price has to increase exponentially. Both TSLA and GME are symptoms of the same disease, over shorting.
Tesla short sellers lost $40 billion in 2020. Elon Musk made more than triple that
Elon Musk's net worth increased by more than $100 billion in 2020. His loudest critics, aka investors who have shorted Tesla stock on the assumption the share price would go down, lost a record $40.1 billion.
www.cnn.com
Tesla’s P/E ratio is 1301.89, it is over valued
Well booo, but that 'tis life. I was following bets back midsummer, but the market kind of took off so thought the best plays were all gone. Darn.
Anyone know where I can pick up some ENRON stock?
Telsa is a slower case of what we've seen with Gamestop. Tesla was overly shorted last year, and the shorters lost billions. Tesla's prices increased from buyers long term optimism, but also from shorters having to cover their positions. When shorters buy back to cover their positions the price has to increase exponentially. Both TSLA and GME are symptoms of the same disease, over shorting.
Tesla short sellers lost $40 billion in 2020. Elon Musk made more than triple that
Elon Musk's net worth increased by more than $100 billion in 2020. His loudest critics, aka investors who have shorted Tesla stock on the assumption the share price would go down, lost a record $40.1 billion.
TSLA memes was how I found and joined WSB. They will be back when this is all over.
I understand this better than most people.
good luck though, I can tell you’re all in!
There is chatter about $FUBO getting squeezed next, but it is only 70% shorted (not 120% like GME).
I just checked and AMC is only ~42% shorted (according to TD Ameritrade). Should I try to sell the rest of my 400 shares?
I wonder if people even realize why their has been such a run up in Tesla..but now, GameStop is so over valued while Tesla is so under valued. I continue to be shocked at people’s lack of understanding here.
You make good points, and I agree it's all free market.
I disagree slightly on your take on shorts. While hedge funds aren't actively getting together, everyone knows what short positions are out there. That's how this whole scenario was able to evolve.
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Yeah, I’m totally all in, idiot. And you are a condescending douche. I hope you and your hedge fund cronies lose your asses.
Exactly. This whole situation is unique, and will be representative of a complete and total outlier, which by definition are rare and unpredictable phenomena.
