GameStop (GME) Insane Ride

[DrDawkinstein]

1 hour ago, Doc said:

Class action lawsuit filed against Robinhood and likely coming against all others who restricted buying GME and now AMC.

 

Good. Likely a Congressional hearing too.

[Doc Brown]

2 hours ago, Doc said:

Class action lawsuit filed against Robinhood and likely coming against all others who restricted buying GME and now AMC.

The irony in the name is fantastic. 

[TBBills]

Dogecoin... Wow

[EasternOHBillsFan]

1 hour ago, Doc Brown said:

The irony in the name is fantastic. 

 

"I'LL CUT YOUR HEART OUT WITH A SPOON!" - Plaintiffs vs. Robinhood

[Doc]

19 minutes ago, TBBills said:

Dogecoin... Wow

 

Yeah.  As you probably know it was created as a joke.  My son mentioned it to me 2-1/2 weeks ago and I told him that, and he said "yeah, but if younger people like myself start adopting it, it can maybe become another Bitcoin."  I couldn't argue with that logic and bought a ton of it.

[GoBills808]

the squeeze has not been squoze

 

*EDIT- here's a video explaining exactly what's going on

 

Edited January 29, 2021 by GoBills808

[Logic]

1 hour ago, TBBills said:

Dogecoin... Wow

For real.

I transferred some Bitcoin to Dogecoin this morning and, well...it's been a pretty, pretty, preettttttyy good day so far!

[T&C]

Ok then lol... moving right along, quite a bit of info in this, it came out within the hour:

 

https://www.baynews9.com/fl/tampa/ap-top-news/2021/01/28/robinhood-restricts-stock-trading-in-gamestop-other-cos

 

This as well:

 

https://www.baynews9.com/fl/tampa/ap-top-news/2021/01/28/asian-shares-drop-after-us-stocks-worst-day-since-october

Edited January 29, 2021 by T&C

[T&C]

https://www.baynews9.com/fl/tampa/business/2021/01/28/amateur-traders-on-social-media-put-the-squeeze-on-wall-street-firms

[Nextmanup]

On 1/27/2021 at 2:32 PM, Jauronimo said:

What do you think is motivating the people who saw an opportunity to engineer a short squeeze by bidding up the price of GME to levels that are completely irrational?  Altruism?

 

Its all fun and games for now but a bunch of retail investors are going to get wiped out buying into GME and AMC.  Like any pump and dump, your gains are predicated on selling to a greater fool.  When GME starts plummeting there will be a race to the exits and you'll need people willing to scoop up shares.  The people with big enough positions to actually move the needle in GME know when the music is going to stop, the rest of this army of HODLers are useful idiots to them.

You write this as if to seemingly suggest there is a shortage of fools in this country.

 

😂

[Doc Brown]

Wow.  This caused Jon Stewart decided to join twitter.

 

 

[Ridgewaycynic2013]

11 hours ago, GoBills808 said:

the squeeze has not been squoze

 

*EDIT- here's a video explaining exactly what's going on

 

She sounds like the guy looking after my money.  

Edited January 29, 2021 by Ridgewaycynic2013

[Mark80]

For the record...I couldn't resist getting back in yesterday after I was fooled by the clear concerted effort to manipulate the price down by the Shorters and sold original shares at $175 like an idiot.  Took the profits from that sale and got back in at $240/share.  We Won't be Fooled Again!  Its over $1k per share or bust on these ones!  Now, it's a matter of principle.

Edited January 29, 2021 by Mark80

[Back2Buff]

On 1/27/2021 at 3:53 PM, Mark80 said:

 

Funniest argument to date. What do you think Hedge Funds with Billions upon Billions of assets under their control do?  Every single move they make is market manipulation.  Every press release about what they are buying and selling.  But hey, lets get upset when normal people spot a weakness of these jerks and expose it $1k at a time.  So funny.

 

Hedge Funds look at financials and health of a company to make decisions, not mass bait and switch.  We have an issue in the market where stock prices are not matching the true health of company.  People are going to lose thousands when companies end up closing up.  The dumb Robinhood 20 years old literally think that the increased stock price means the company is making more.  Gamestop going up does nothing to help their crap financials, and their obsolete business plan.  

 

The biggest question I have is how these small amount of idiots messing with Wall Street like they are so cool and hip will feel when their Grandparents, Aunt, Uncles and parents lose their 401k when Wall Street really shows how to alter a market.  Wall Street controls the market and always will control the market, good or bad.  

[Mark80]

6 minutes ago, Back2Buff said:

 

Hedge Funds look at financials and health of a company to make decisions, not mass bait and switch.  We have an issue in the market where stock prices are not matching the true health of company.  People are going to lose thousands when companies end up closing up.  The dumb Robinhood 20 years old literally think that the increased stock price means the company is making more.  Gamestop going up does nothing to help their crap financials, and their obsolete business plan.  

 

The biggest question I have is how these small amount of idiots messing with Wall Street like they are so cool and hip will feel when their Grandparents, Aunt, Uncles and parents lose their 401k when Wall Street really shows how to alter a market.  Wall Street controls the market and always will control the market, good or bad.  

 

You, sir, are out of touch and ill informed.  When this all started over a year ago there was plenty of due diligence documented as to why the company was worth more than then the sub $5 price it was selling at when it started.  People stared getting on board for a long play.  Hedgies will say their store revenues dropped, completely ignoring the closing of stores in over saturated markets which is a huge waste of money.  Store revenue per store was actually up during Covid crisis, nonetheless.  Shorters felt they could short because it is brick and mortar, its dying, etc. instead of seeing the big picture.  So, they shorted and shorted and shorted hoping to force bankruptcy.

 

Then, a few months ago they bring on board the Chewy CEO who basically took on and beat Amazon in the pet supply ecommerce space.  By all accounts this man is an ecommerce genius.  This also drove long term interest...yet the shorts continue to short the company.  More and more common folk jumped in.

 

Eventually, word got out at how screwed the shorters were and the stock price took off, not because of the fundamentals, but because of the potential squeeze.  This is about taking advantage of those short sellers who left themselves out to dry when they tried to destroy another company (and, in turn, its employees).

 

GameStop trading has less than 0.01% impact on the whole market.  It will not have any impact whatsoever on the market as a whole.  No one is going to lose 401ks over this unless they specifically put the money into the stock specifically.  Lets be real and stop with the uniformed scare tactics.  Any market impact will be minimal and short term.

 

But hey, keep calling these retail investors "idiots" it has really worked out well so far for the professionals who are losing Billions daily on their genius play.

[ExiledInIllinois]

"...And there's winners and there's losers
But they ain't no big deal
'Cause the simple man, baby
Pays for thrills, with bills, with pills that kill..."

 

 

I am stuck spinning my wheels between the last two posts... But hey...

 

Can we have a stimulus so people can make their summer home and yacht payments!

 

In a way, who doesn't like sticking it to the rich.  But the house always wins, this is like launching nuclear waste at the sun, you just know it will blow back at us.

 

 

[Just Jack]

On 1/27/2021 at 4:48 PM, MarkyMannn said:

This site should have an investments forum, something that would benefit all of us rather than the political forum that is all fights

 

I started a club here on the board for investment talk, just needs an admin approval to go live 

 

Stocks, stocks, stocks - Two Bills Drive

[4merper4mer]

1 hour ago, Mark80 said:

 

You, sir, are out of touch and ill informed.  When this all started over a year ago there was plenty of due diligence documented as to why the company was worth more than then the sub $5 price it was selling at when it started.  People stared getting on board for a long play.  Hedgies will say their store revenues dropped, completely ignoring the closing of stores in over saturated markets which is a huge waste of money.  Store revenue per store was actually up during Covid crisis, nonetheless.  Shorters felt they could short because it is brick and mortar, its dying, etc. instead of seeing the big picture.  So, they shorted and shorted and shorted hoping to force bankruptcy.

 

Then, a few months ago they bring on board the Chewy CEO who basically took on and beat Amazon in the pet supply ecommerce space.  By all accounts this man is an ecommerce genius.  This also drove long term interest...yet the shorts continue to short the company.  More and more common folk jumped in.

 

Eventually, word got out at how screwed the shorters were and the stock price took off, not because of the fundamentals, but because of the potential squeeze.  This is about taking advantage of those short sellers who left themselves out to dry when they tried to destroy another company (and, in turn, its employees).

 

GameStop trading has less than 0.01% impact on the whole market.  It will not have any impact whatsoever on the market as a whole.  No one is going to lose 401ks over this unless they specifically put the money into the stock specifically.  Lets be real and stop with the uniformed scare tactics.  Any market impact will be minimal and short term.

 

But hey, keep calling these retail investors "idiots" it has really worked out well so far for the professionals who are losing Billions daily on their genius play.

Without knowing what is going on today with the stock price, I’d agree that the stock was worth more than $5 and the shorters earned their fate, but most of the current stock price is based on the short squeeze, not the company fundamentals.  
 

What seems odd to me is that there are so many short positions that not only could the price be driven up that much but that it can sustain itself or a while.  
 

A takeaway for me is one of comedy.  First and foremost that some on Wall Street could have the amount of hubris involved to think they are the only ones who understand numbers.  They should be allowed to get what they deserve.  Secondly, I find it funny that the Reddit people think they’ll be able to do this on the regular and that Wall Street won’t adjust.  That’s pretty funny too.  This is meant to be a market and in markets people adjust to equilibriums.  It got out of whack, some people took advantage of that and now comes the adjustment.  

 

Unfortunately the dirty part comes into play as well. Robin Hood and others suspending trades in a company because of a short squeeze, epic as it may be, is not cool IMO.  This is not a market adjusting to equilibrium.  It is an obvious protection of some.  If the shorters ultimately have unlimited upside and also know they will be protected on the downside, they can act with impunity and “decide” companies like GameStop can be run out of business.  

 

 

[Jauronimo]

The explanation I got on brokerages shutting down yesterday from a close friend who works in the industry and knows his stuff:

 

The real reason RobinHood shut off yesterday is because they ran out of money.  They have to post capital to the clearinghouse.  The amount of capital they have to post is a function of volatility [insert Bloomberg screen shot showing GME's volatility which is off the charts like in the 1,000%].  When you over index to this type of garbage AND you offer cheap margin to customers, you get stopped out.

18 minutes ago, 4merper4mer said:

Without knowing what is going on today with the stock price, I’d agree that the stock was worth more than $5 and the shorters earned their fate, but most of the current stock price is based on the short squeeze, not the company fundamentals.  
 

What seems odd to me is that there are so many short positions that not only could the price be driven up that much but that it can sustain itself or a while.  
 

A takeaway for me is one of comedy.  First and foremost that some on Wall Street could have the amount of hubris involved to think they are the only ones who understand numbers.  They should be allowed to get what they deserve.  Secondly, I find it funny that the Reddit people think they’ll be able to do this on the regular and that Wall Street won’t adjust.  That’s pretty funny too.  This is meant to be a market and in markets people adjust to equilibriums.  It got out of whack, some people took advantage of that and now comes the adjustment.  

 

Unfortunately the dirty part comes into play as well. Robin Hood and others suspending trades in a company because of a short squeeze, epic as it may be, is not cool IMO.  This is not a market adjusting to equilibrium.  It is an obvious protection of some.  If the shorters ultimately have unlimited upside and also know they will be protected on the downside, they can act with impunity and “decide” companies like GameStop can be run out of business.  

 

 

That is completely backwards.  The most a short seller can make is the amount of the Strike Price - $0, theoretically.  Its actually even less upside because you need to buy back shares before delisting or bankruptcy.  Their downside risk is unlimited as price per share is uncapped.  

 

Also, don't believe everything you read on twitter and check out the explanation I just posted for RH suspending certain trades.  Remember RobinHood offers margin accounts and there are a ton of people playing a dangerous game with borrowed money.  

[Mark80]

25 minutes ago, Jauronimo said:

The explanation I got on brokerages shutting down yesterday from a close friend who works in the industry and knows his stuff:

 

The real reason RobinHood shut off yesterday is because they ran out of money.  They have to post capital to the clearinghouse.  The amount of capital they have to post is a function of volatility [insert Bloomberg screen shot showing GME's volatility which is off the charts like in the 1,000%].  When you over index to this type of garbage AND you offer cheap margin to customers, you get stopped out.

That is completely backwards.  The most a short seller can make is the amount of the Strike Price - $0, theoretically.  Its actually even less upside because you need to buy back shares before delisting or bankruptcy.  Their downside risk is unlimited as price per share is uncapped.  

 

Also, don't believe everything you read on twitter and check out the explanation I just posted for RH suspending certain trades.  Remember RobinHood offers margin accounts and there are a ton of people playing a dangerous game with borrowed money.  

 

Restricting purchase of options is WAY different than restricting purchases of stock.  I wouldn't have been upset if it was just the options, but it was flat out buying the stocks as well that was shut down which is complete and utter BS.  If you are buying Robinhood's excuse that you mentioned and I saw their CEO give and don't think they were concerned with their eventual IPO and the backings of the Hedge funds around that and getting them mad, then I don't know what to tell you. To me, if I smell a rat, it's usually a F'n rat.   They colluded with the Shorters to help them get out of it as much as  possible.  No doubt in my mind.  And their business is toast after this clears because of it.

Edited January 29, 2021 by Mark80