Game Stop Share

[sns2]

Originally Posted by cdmc

Tesla was shorted and managed to survive. Maybe you would want revenge?

I’m no smart man at all but Soros shorted the British pound, pocketed around 1 billion bucks and he still roams the world wreaking havoc.

Who gives a crap if people throw down to spite Wall Street. The fact that they care shows how vulnerable our markets are.





I live in a culvert so maybe I’m just a tinfoil hat.

Shoot. Sometimes it's best to be ignorant of the manipulation. A wise guy once told me that most people aren't smart or lucky enough to make money long term in the market, but we can all pay off our houses if we live within our means. Then you can afford to take some big risks. He was likely right.

Sent from my SM-A705W using Tapatalk

[daveyn]

https://www.nasdaqtrader.com/Trader.aspx?id=TradeHalts

Trading halts are very common and happen all of the time. They are generally triggered when a stock loses a percentage of its value in a short period of time and is designed to halt the downward momentum. So a protection for the stock holder. Attached is a list of today’s trading halts on nyse and nsq. There is nothing weird or out of the ordinary as far as the way GameStop has been handled today by the exchange’s. It’s just a matter of an artificially inflated $10 security that people paid $350 for coming back to where it should be.
What is weird and unusual is the run up and not what’s happening today.

[cdmc]

What’s your opinion on why it was shorted initially?

[jstubbs]

Gamestop’s main revenue was from the sale of new and used physical copy video games. Used especially, they would pay 5-20% of what they would later resell the games for so they’d make killer margins relative to the thinner margins on new games and consoles.

Now people can download games directly from PSN or XBL, thus:
A. People no longer have to go to a store like GameStop to buy a physical copy
B. With fewer people buying physical copies, they have fewer people trading games in, so they have fewer used games to sell at good margins.

Factor in that majority of their stores are in malls, and it’s basically a zombie corporation.

[cdmc]

Your not wrong .....but overselling by nearly 50% didn’t hide well did it.

[cdmc]

It’s not about GME. It’s about HF/WS greed. It could have been any shorted stock GME just happens to be the catalyst. If you still think it’s about a company’s brick and mortar store that smells like old pizza your on a different planet.

[fishtank]

It’s not about the actual gamestop stock this is rather a short squeeze on the hedge fund that got greedy and stuck in a short position and can’t exit it with out taking a huge lost and Reddit retail investors are hold up the price and cause the hedge fund to loose in the billions to prove a point and make some money while doing it .

[daveyn]

Its not about GME but the question was why was GME shorted in the first place and the answer as described above was because the people on wall street saw a company with an outdated business model, consistently losing money, no online presence to speak of in an environment where people are restricted from going to the mall. So they figured the price would continue to fall and shorted it. The bright people on the Reddit investing forum saw opportunity to squeeze and promoted the stock to their audience and the play was successful beyond their wildest dreams. There are no villians here, both players have exactly the same motivation except the Reddit guys are selling themselves as white knights out to slay the corporate dragon, and its working for them, but the motivation is exactly the same.
The next play is silver, the Reddit team is promoting that extremely heavily right now, same pitch to the masses still vulnerable audience and the silver stocks are starting to move. Gamestop, AMC, Bed Bath and Beyond are yesterdays play, moving on to the next and you should see the same type of movement although not quite as dramatic, the shorts will get out earlier and the reddit crowd that got burned by GME won't be as eager to get in. Should be interesting to watch.

[jstubbs]

Indeed, this has nothing to do with Gamestop anymore, it has become a movement. One that will fizzle out shortly and be forgotten about as the bankers and fund managers walk away scot free and the next big controversy comes about, but for the time being it's entirely controlling the news cycle.

But this never would have happened without the company that kicked this off being Gamestop. It wasn't random chance that this happened with Gamestop over any other company.

Think about the demographic browsing a subreddit like WSB. I'd be 90%+ are men ages 15-35, with the largest concentration around the mid 20s. That is the demographic whose childhood revelled in going to Gamestop and buying a new video game to spend the next few weeks playing. There's nostalgia and sentimental value at play.

At the same time this demographic was also the one, like Chamath mentioned in that interview, who saw the devastation first hand that occurred in '08 by the big shadow banks and hedgefunds, but I'd bet most didn't really understand what happened at that time as they would have been quite young. Flash forward a decade, and as they grow their financial literacy through interest in subreddit's like WSB and other social media that covers the stock market, their disgust likely grew as they realized what actually happened in 2008, and the years leading into it. It was purely blatant disregard for any proper fiduciary morality causing a global economic meltdown yet nobody faced any consequences for it.

Fast forward to the present, and look at the current economic situation. Tens of millions unemployed in the US due to COVID, businesses closing left and right, nearly every economic indicator available showing the economy is a trainwreck, yet the DOW breached 30k and funds are making as much as they ever have. Trading and valuation on financial fundamentals was thrown completely out the window as the Federal Reserve was pumping trillions of dollars into the market, yet the US gov't would only send a measly $600 to the everyday Americans who needed it desperately to cover food and/or rent.

Then, these guys saw these greedy hedgefunds trying to short a piece of their childhood, and it brought that feeling of resentment just to a breaking point. Mix in DFV's incredulous post history beginning in Sept 2019 of his $50k yolo in $GME that over time became a legend on that subreddit, and all of that combines into what we witnessed over the past week.

Fun stuff.

[fishnguy]

What is most amusing is the fact that there are people who are still dumping money in it and believe that it will go into thousands tomorrow and next week. If people aren’t lying about what they are writing on reddit, there are plenty who put all their savings into this. For some it is a few hundreds, for others a few thousands. One guy I saw wrote he put all of his savings for college tuition into it. Weird how that works.

It will be something like that “Trump event” many were expecting. Then nothing happened and the guy went home. Many felt empty. This time, many will have empty bank accounts.

Or maybe I will be proven wrong. I won’t be surprised that the noobs will pump it up more tomorrow and then realize that they have been had. Does anyone remember Hertz a few months ago? Stock got pumped, shorted, people lost money. Then, Hertz announced another share issuance, stock got pumped again (which was extremely weird because the effect was supposed to be the exact opposite), shorted yet again by those with more knowledge (and common sense), more people lost money. Share issuance was eventually cancelled because SEC would probably not allow it otherwise anyway. Fast forward, Hertz was delisted a couple of months later after being traded for pennies.

AMC is even worse than GME. They are virtually bankrupt. In a very recent future they added to already extremely heavy debt load another $100,000,000 at 15% due in July (if my memory serves me right) with a possibility of extension for a year at 17%. Good luck with that game. Those who have entered a short in the past couple of days aren’t wrong. They will probably be able to close it in the next few trading days and make bank. The smarter and most able ones will have double up on both, dumping the long and closing the short on the way back.

God luck to those still playing. I would be dumping yesterday in the $400 per range.

[fishtank]

It’s rally starts again.... a lot of these are trading on margin account.

[Off in the Bushes]

I believe it’s a short squeeze because the hedge funds shorted/ sold 140% of all the shares in GME. Some people realized this and it turned in to a supply and demand position for the hedge funds. WSB did simple announced it to everyone and they all purchased shares it tripped the hedges to have to replace the short. How do you buy 140% of all the shares. They would need to buy and sell the same share twice.
So this wasn’t to save GameStop it was to make 💵💵💵 off the hedge funds that took greed too far, and didn’t realize the position they put themselves in and many are capitalizing off that mistake.

[New Hunter Okotoks]

Originally Posted by Off in the Bushes

I believe it’s a short squeeze because the hedge funds shorted/ sold 140% of all the shares in GME. Some people realized this and it turned in to a supply and demand position for the hedge funds. WSB did simple announced it to everyone and they all purchased shares it tripped the hedges to have to replace the short. How do you buy 140% of all the shares. They would need to buy and sell the same share twice.
So this wasn’t to save GameStop it was to make 💵💵💵 off the hedge funds that took greed too far, and didn’t realize the position they put themselves in and many are capitalizing off that mistake.

Exactly. The share price is trading well over $300- and the volume is approximately 20 million shares. To think that this just some internet guys playing around with their beer money is laughable.

[dth_]

How long until GameStop inks a deal to issue more shares and sell to HFs to cover their shorts? This is the only way GS survives in the end, and a way for the HFs to mitigate their losses.

GameStop has a relatively new CEO and was putting forward a huge effort to pivot the company towards a more digital presence. They can easily negotiate a deal that will give them a healthy premium on the new shares, and still be a fraction of what it will end up costing the HFs to cover on the open market and pay borrow fees along the way.

I see this as more probable than GME to $100000000

[dth_]

Originally Posted by daveyn

https://www.nasdaqtrader.com/Trader.aspx?id=TradeHalts

Trading halts are very common and happen all of the time. They are generally triggered when a stock loses a percentage of its value in a short period of time and is designed to halt the downward momentum. So a protection for the stock holder. Attached is a list of today’s trading halts on nyse and nsq. There is nothing weird or out of the ordinary as far as the way GameStop has been handled today by the exchange’s. It’s just a matter of an artificially inflated $10 security that people paid $350 for coming back to where it should be.
What is weird and unusual is the run up and not what’s happening today.

This wasn't a trading halt triggered by the exchange. It was a freeze on purchases by the broker, for some traders only.

Robinhood (and others) accounts were suspended from buying and could only sell. Some accounts GME holdings were liquidated by Robinhood into the market, and the only buyers available were the ones not suspended from buying (ie The HFs that were short).

To add stink to this smelly situation, Robinhoods biggest broker is one of the firms that bailed out Melvin and owns part of that big short position. To me the whole thing smells very unusual.

[The Elkster]

Originally Posted by jstubbs

Indeed, this has nothing to do with Gamestop anymore, it has become a movement. One that will fizzle out shortly and be forgotten about as the bankers and fund managers walk away scot free and the next big controversy comes about, but for the time being it's entirely controlling the news cycle.

But this never would have happened without the company that kicked this off being Gamestop. It wasn't random chance that this happened with Gamestop over any other company.

Think about the demographic browsing a subreddit like WSB. I'd be 90%+ are men ages 15-35, with the largest concentration around the mid 20s. That is the demographic whose childhood revelled in going to Gamestop and buying a new video game to spend the next few weeks playing. There's nostalgia and sentimental value at play.

At the same time this demographic was also the one, like Chamath mentioned in that interview, who saw the devastation first hand that occurred in '08 by the big shadow banks and hedgefunds, but I'd bet most didn't really understand what happened at that time as they would have been quite young. Flash forward a decade, and as they grow their financial literacy through interest in subreddit's like WSB and other social media that covers the stock market, their disgust likely grew as they realized what actually happened in 2008, and the years leading into it. It was purely blatant disregard for any proper fiduciary morality causing a global economic meltdown yet nobody faced any consequences for it.

Fast forward to the present, and look at the current economic situation. Tens of millions unemployed in the US due to COVID, businesses closing left and right, nearly every economic indicator available showing the economy is a trainwreck, yet the DOW breached 30k and funds are making as much as they ever have. Trading and valuation on financial fundamentals was thrown completely out the window as the Federal Reserve was pumping trillions of dollars into the market, yet the US gov't would only send a measly $600 to the everyday Americans who needed it desperately to cover food and/or rent.

Then, these guys saw these greedy hedgefunds trying to short a piece of their childhood, and it brought that feeling of resentment just to a breaking point. Mix in DFV's incredulous post history beginning in Sept 2019 of his $50k yolo in $GME that over time became a legend on that subreddit, and all of that combines into what we witnessed over the past week.

Fun stuff.

Very accurate portrayal. If you read a lot of reddit quotes many of these guys reference The Big Short movie often. Most guys buying in at this point are doing it knowing they can lose it all. Most understand the implications now. This isn't the typical hype run up like with Tesla although there are many of the same players at the table. Be interesting if gamestop can actually parlay their fortunes into a comeback. Sounds like they have some solid leadership and a plan...and now some capital leverage. Time will tell.

Really hope this movement leads to some real change. We need to get the market back to the basic buy and sell on fundamentals as it was meant to be. No derivatives, no HFT, no shorting, no margin accounts same trading hours and rules for ALL. Absolute equal access to trading info and equal access to IPO share issuances. There is no way financial *****ery supported by 100% bias rules should be allowing some to make 10's - 100's of millions of dollars while key workers in society make a pittance and have their savings/investments pilfered all the while.

[The Elkster]

Originally Posted by dth_

This wasn't a trading halt triggered by the exchange. It was a freeze on purchases by the broker, for some traders only.

Robinhood (and others) accounts were suspended from buying and could only sell. Some accounts GME holdings were liquidated by Robinhood into the market, and the only buyers available were the ones not suspended from buying (ie The HFs that were short).

To add stink to this smelly situation, Robinhoods biggest broker is one of the firms that bailed out Melvin and owns part of that big short position. To me the whole thing smells very unusual.

Halting buying but still allowing selling was just such a clear attempt to crater the stock. Just pure manipulation plain as day to see. Limit the buying to those institutional investors who need to buy low to cover their short and be swell enough to let the plebs sell but handicap the upside LOL. This will form another movie when all is revealed. Wallstreet is a cesspool.

[Map Maker]

I like everyone else was pleased to see this happen.
No interest other than a news story.
Crappy thing is that the institution’s traders that are losing big are actually using elderly people’s savings. So it’s not hurting the trader other than his reputation.
Lesson learned. Hope they move on.

[New Hunter Okotoks]

Originally Posted by The Elkster

Halting buying but still allowing selling was just such a clear attempt to crater the stock. Just pure manipulation plain as day to see. Limit the buying to those institutional investors who need to buy low to cover their short and be swell enough to let the plebs sell but handicap the upside LOL. This will form another movie when all is revealed. Wallstreet is a cesspool.

It's also been claimed that several of these trading outfits manipulated the market by holding up transactions on buy orders. So, if a person put in a buy order at $26.00 and the stock went to $28, they held up the order by keeping it in a "pending" state until the stock came down well below the initial buy price. All they have to claim is that "market volumes" caused delays and buyers got screwed.

[fishnguy]

[The Elkster]

Originally Posted by New Hunter Okotoks

It's also been claimed that several of these trading outfits manipulated the market by holding up transactions on buy orders. So, if a person put in a buy order at $26.00 and the stock went to $28, they held up the order by keeping it in a "pending" state until the stock came down well below the initial buy price. All they have to claim is that "market volumes" caused delays and buyers got screwed.

Yeah there has been a few trading outages in the last few months that were blamed on "glitches" that made me suspicious. Seeing the recent manipulations by RH and a few others brings it all home. I would not feel comfortable if I was holding a large position with something like RH and planned to sell as soon as the any downturn hits. My guess is a large market drop will come with a long "trading glitch" and trading limits which will last as long as required to allow for an orderly exit for the big players. The glitch will be fixed once big boys have sold and market then allowed to fully bottom ensuring retail is the last bagholder. Rinse, repeat

[Jjolg123]

Originally Posted by fishnguy

What is most amusing is the fact that there are people who are still dumping money in it and believe that it will go into thousands tomorrow and next week. If people aren’t lying about what they are writing on reddit, there are plenty who put all their savings into this. For some it is a few hundreds, for others a few thousands. One guy I saw wrote he put all of his savings for college tuition into it. Weird how that works.

It will be something like that “Trump event” many were expecting. Then nothing happened and the guy went home. Many felt empty. This time, many will have empty bank accounts.

Or maybe I will be proven wrong. I won’t be surprised that the noobs will pump it up more tomorrow and then realize that they have been had. Does anyone remember Hertz a few months ago? Stock got pumped, shorted, people lost money. Then, Hertz announced another share issuance, stock got pumped again (which was extremely weird because the effect was supposed to be the exact opposite), shorted yet again by those with more knowledge (and common sense), more people lost money. Share issuance was eventually cancelled because SEC would probably not allow it otherwise anyway. Fast forward, Hertz was delisted a couple of months later after being traded for pennies.

AMC is even worse than GME. They are virtually bankrupt. In a very recent future they added to already extremely heavy debt load another $100,000,000 at 15% due in July (if my memory serves me right) with a possibility of extension for a year at 17%. Good luck with that game. Those who have entered a short in the past couple of days aren’t wrong. They will probably be able to close it in the next few trading days and make bank. The smarter and most able ones will have double up on both, dumping the long and closing the short on the way back.

God luck to those still playing. I would be dumping yesterday in the $400 per range.

Not true AMC is far better off and is actually recovering financially due to this run up, they are opening theatres as of today and will likely recover and be above the current price in a year or so. AMC however hasnt had the squeeze that GME did and it likely will Monday now that many of the short options expired today.

Whats criminal in all this is the manipulation by these stock brokers and hedge funds, shorting stocks then having them restricted completely for buying. Even today limiting the purchase of penny stocks even, once that had actual news to go up, only to have the purchase quantities limited to 1200 for example.. yet all these limited stocks have giant percentages of shorts involved.

Its nice to see robin hood get throttled and likely go under from this, was a awful platform to begin with.

[Drewski Canuck]

News Piece one hour before NSE Close that the hedge funds had to pump 2.8 Billion in to cover their positions as the month end trading deadlines approached.

Now the question is when the next set of contracts will expire, and whether those have also been grossly oversold, and at what price point. This could go on for a while until all of the contracts for shorts have been settled.

If the retail investors do smell blood, they can simply hold their shares to keep the pool of available stock tied up, and force another run up for the funds holding these contracts.

Someone thought they were pretty smart over selling the available pool of stock by 138 %. Who would have ever thought that all the shorts could ever be called at once, in a rising market.

Drewski

[fishtank]

Originally Posted by Drewski Canuck

News Piece one hour before NSE Close that the hedge funds had to pump 2.8 Billion in to cover their positions as the month end trading deadlines approached.

Now the question is when the next set of contracts will expire, and whether those have also been grossly oversold, and at what price point. This could go on for a while until all of the contracts for shorts have been settled.

If the retail investors do smell blood, they can simply hold their shares to keep the pool of available stock tied up, and force another run up for the funds holding these contracts.

Someone thought they were pretty smart over selling the available pool of stock by 138 %. Who would have ever thought that all the shorts could ever be called at once, in a rising market.

Drewski

This was never about gamestop company, its the fact that the greedy hedgefund shorts got caught and now the retail invester to teach em a lesson .

[The Elkster]

If you read reddit posts you will also notice that the subscriber numbers are ballooning and this is getting a lot of international attention. There are people chiming in and buying stock from around the world...and the message is buy and HOLD LOL. I think this is going to get a little more traction with regulators than you would normally see from a standard protest. Time will tell but interesting times!

[Dynamic]

Watching billionaire's and these scummy hedge funds get absolutely wrecked is such a feel good story. I thought these hedge funds would of learnt their lesson after losing something like 38 billion in 2020 trying to short Tesla.

[TomP]

This is great. Beat em at their own dirty game. Rumours of a short squeeze on silver next

[troutbug]

I put money into Dogecoin last year, its really paying off right now

[daveyn]

wondering how much your company pension plan or CPP have invested with those hedge funds that we are all so happy to see lose money. Big pension plans (teachers, AHS for example) are all invested in those funds. Most of the Reddit crowd wouldn't be able to make that connection or conceptualize what that even means to them 35 years down the road.
You can't be celebrating sticking it to the man and complaining about your lousy pension cheque when it comes time to collect.
Most mutual funds are hedged behind the curtain to protect the investments, thats what hedge funds do, they are kind of like insurance for the original investment. They can, and often are, managed irresponsibly by high flying fund managers, but if they collapse it does have repercussions to us almost retired folks.

[ehrgeiz]

Originally Posted by troutbug

I put money into Dogecoin last year, its really paying off right now

This is the way.