Play Nice Random Chat Thread V

[AnEmptyChair]

Absolutely, but what I meant gambling wise was everyone knows at the end of the day this stock isn’t worth what it is, everyone’s holding on to make the hedge fund pay up..
the moment the hedge fund can get enough shares to get out of their position, and there’s other hedge funds that are helping them, those stocks will be worth 20c again. There’s going to be a lot of people who brought the stock at $200 dollars holding thier dick in their hand at the end of it..

Yeah, I'm completely clueless with how these things work, but my assumption is that won't there be some people who will make a lot of money shorting the Gamestop stocks again when the price starts to fall and everyone wants out at the same time? Don't know if that's possible. Maybe someone like Usayed Givashe would know more.

 

[Themanbun]

What are the thoughts of you folks regarding bitcoin?

I missed that train back at the start as a young whipper snapper. A dorky friend of mine told me to get onto Bitcoin at like $150 a pop - "the currency of the future" he proclaimed where you can buy stuff without being tracked.

I laughed then as he sold his 5 (all we could afford back then) less than ten years later for what would become his house deposit.

 

[Val Keating]

Apparently Blackberry is what they're going after next and apparently that share price has started to rise.

I'm absolutely no expert and in no way offering anyone advice, but if you want to try to get in on it you can set up an etoro account pretty easily where there's 0% commission on any stock you buy on the NYSE and NASDAQ. Pretty sure they don't have a minimum deposit either. It's pretty easy to get into trading if you want to do it without going through the banks, but if you do you have to obviously manage everything yourself and it can be easy to lose a lot of money if you're reckless.

Ahh..Is that why they keep asking are the blackberry boys in town? I’ve noticed them mention Wendy’s a bit too

 

[AnEmptyChair]

Ahh..Is that why they keep asking are the blackberry boys in town? I’ve noticed them mention Wendy’s a bit too

Not sure about Wendy's, but I've definitely seen the Blackberry talk. A quick look seems to suggest the price has risen in the last couple of days too. I expect, however, is that the people within hedgefunds who are involved in it will have already made moves to protect themselves so this doesn't happen to them.

 

[DesertRoo]

What are the thoughts of you folks regarding bitcoin?

Personally wouldn’t touch it.. as it has nothing backing it, so its a intrinsic value vs instrumental value, but like the above episode has shown us, the value of something is actually worthless... emotion is king...

 

[Val Keating]

Not sure about Wendy's, but I've definitely seen the Blackberry talk. A quick look seems to suggest the price has risen in the last couple of days too. I expect, however, is that the people within hedgefunds who are involved in it will have already made moves to protect themselves so this doesn't happen to them.

Jesus. Imagine the phone calls hedge fund managers will get tomorrow?

 

[LuvtheKangas]

Hedge funds shorted GameStop stocks with BIG money.

Essentially borrowed a share from someone, and promised to give them that share back a week from now. They sell those shares pretty much immediately at say $10 a pop, and expect the share price to go down by the time they need to return the share to its owner. If it goes down, they pocket the difference between the original price and the price they bought it for to return it to its owner.

Their short options become due really soon. Reddit coordinated a massive buy (increasing demand and share price) of GameStop stock. These hedge funds now need to buy back that stock at a greatly inflated price.

The end result is redistribution of wealth from wall st cronies to internet memers.

(Above numbers and time frames just made up to illustrate the point)

Unless I'm missing something here, I think many of the Redditors are in for a rude shock. Without following the numbers, surely Melvin Fund only shorted a relatively small percentage of the issued stock in GameStop, say 5-10%, maybe 15%. It would be near impossible to take a short position in the majority of issued shares in a listed entity.

Sure, Melvin will go out of business having to close out their short position, but probably 80%+ of the share register will be trying to sell to Melvin at the current market price and most will be left holding GameStop stock when the short position is closed. I doubt the market price will stand up once this has gone out of the market.

 

[Themanbun]

Unless I'm missing something here, I think many of the Redditors are in for a rude shock. Without following the numbers, surely Melvin Fund only shorted a relatively small percentage of the issued stock in GameStop, say 5-10%, maybe 15%. It would be near impossible to take a short position in the majority of issued shares in a listed entity.

Sure, Melvin will go out of business having to close out their short position, but probably 80%+ of the share register will be trying to sell to Melvin at the current market price and most will be left holding GameStop stock when the short position is closed. I doubt the market price will stand up once this has gone out of the market.

According to Barrons. My understanding is it was targeted due to its freakishly high short position ratio. I don't think it's just Melvin, they're just the biggest named entity.

 

[Devington]

Unless I'm missing something here, I think many of the Redditors are in for a rude shock. Without following the numbers, surely Melvin Fund only shorted a relatively small percentage of the issued stock in GameStop, say 5-10%, maybe 15%. It would be near impossible to take a short position in the majority of issued shares in a listed entity.

Sure, Melvin will go out of business having to close out their short position, but probably 80%+ of the share register will be trying to sell to Melvin at the current market price and most will be left holding GameStop stock when the short position is closed. I doubt the market price will stand up once this has gone out of the market.

I don't completely understand it all, but it seems to me that some the people inciting the buying are just as predatory as Melvin Capital and the other scumsuckers that make their living destroying businesses. Looks to me that there will be a LOT of people left holding comparatively worthless stock, that they bought because people on the internet guaranteed them they would make money off of it. Most of these people wouldn't be understanding the mechanics behind all of this, let alone knowing when it's best to sell.

 

[Ry009]

For people like me who have no clue about shorting, this was video was helpful;




Amazing stuff to read how it's all come about.

 

[LuvtheKangas]

Another GameStop? Here Are the Next 10 Most Shorted Small-Caps.

Barron’s pulled the 10 stocks in the Russell 2000, an index of small-caps, with the highest short interest. GameStop was not surprisingly No. 1. But the next 10—including Dillards and AMC Entertainment --are also worth watching.

www.barrons.com

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Well, that's just silly. You are asking to be put to the sword if you do that. Begging people to take your money.

I can only assume that there are a number of shorters in that market, not just Melvin.

People, if you ever see a situation where more than 100% of the issued stock in a company has been shorted, back up the truck and load up on as many of those shares as you can - it's a money pump. Your theoretical risk is the price going down, but that won't happen once the market recognises the total short positions.

 

[Flawed Genius]

For people like me who have no clue about shorting, this was video was helpful;




Amazing stuff to read how it's all come about.

Phenomenal

 

[Gasometer]

If North was still on the Stock Exchange this Board could have raised trillions and we would have a row of gold seats that circled Level 2 Row A at Docklands.

 

[muttley45]

Can all these stock market $billions be converted from numbers on paper to say Gold, or Real Estate ?

 

[Devington]

If North was still on the Stock Exchange this Board could have raised trillions and we would have a row of gold seats that circled Level 2 Row A at Docklands.

But would you still be seated next to Essendon supporters?

 

[Val Keating]

For people like me who have no clue about shorting, this was video was helpful;




Amazing stuff to read how it's all come about.

“But cry me a river Wall Street” LOL

 

[Val Keating]

Here they go again

 

[ferball]

I missed that train back at the start as a young whipper snapper. A dorky friend of mine told me to get onto Bitcoin at like $150 a pop - "the currency of the future" he proclaimed where you can buy stuff without being tracked.

I laughed then as he sold his 5 (all we could afford back then) less than ten years later for what would become his house deposit.

Someone told me to get on when it was under a dollar a pop. I didn't because I didn't understand enough about it, a lot of years later ... bit of a spew. but I know people who bought and lost it cos they didn't keep track of things. I dunno how.

 

[Val Keating]

What’s AMC? They’re buying it up

 

[Val Keating]

American music company. There’s got to be some heads behind this.

 

[krakouers]

Lol;
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Like Bigfooty after a team wins

 

[krakouers]

If North was still on the Stock Exchange this Board could have raised trillions and we would have a row of gold seats that circled Level 2 Row A at Docklands.

 

[goalieboy82]

since this is page 96:

 

[Del191229]

Yeah, I'm completely clueless with how these things work, but my assumption is that won't there be some people who will make a lot of money shorting the Gamestop stocks again when the price starts to fall and everyone wants out at the same time? Don't know if that's possible. Maybe someone like Usayed Givashe would know more.

Theoretically yes but you'd be pretty game to short Gamestop now.

Someone will do it and make money.

The real lesson from this is that disruption is fine when THEY are doing it to US.

When WE used tech to disrupt THEM, oh no, it is immoral and should be illegal.

 

[Del191229]

Unless I'm missing something here, I think many of the Redditors are in for a rude shock. Without following the numbers, surely Melvin Fund only shorted a relatively small percentage of the issued stock in GameStop, say 5-10%, maybe 15%. It would be near impossible to take a short position in the majority of issued shares in a listed entity.

Sure, Melvin will go out of business having to close out their short position, but probably 80%+ of the share register will be trying to sell to Melvin at the current market price and most will be left holding GameStop stock when the short position is closed. I doubt the market price will stand up once this has gone out of the market.

Course it won't. But folks are essentially willing to pay a small amount to screw a hedge fund.

Some would say that's an illustration of capitalism collapsing under the weight of its own contradictions.