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  #101  
Old 02.02.2021, 22:33
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Re: Gamestop/Robinhood

For 3Wishes and Phil_MCR alike it's not easy for hedge funds to short the stock now as there's not much of it for funds to borrow (as you have to have a lender who is long to lend you the stock in order to short) and the price is very volatile so shorting can make rational sense but to quote Keynes, "the market can stay irrational longer than you can stay solvent". Also while the share price has risen, the company can't issue (much) stock on the back of this as few investors are going to subscribe at the elevated price that is far removed from the company's fundamentals.
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  #102  
Old 02.02.2021, 22:56
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Re: Gamestop/Robinhood

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I've just seen that Mark Cuban has an AMA on WSB and 5 hours ago commented that if he owned GME (he doesn't) he would hold!

Sounds very dodgy to me.
Here's what he said :

"Supply and Demand, but in this case it literally could be because the source of demand has been crippled . When RH shut it down, then cut it back, lets put aside why, they cut of the greatest source of demand. They created a RobinHood Dive. No RH buyers, means sellers lower their price to find buyers. And they keep on lowering it till they find buyers. Keep the most natural buyers out of the market and the price keeps on FALLING.

Then that drop accelerates because the more the stock falls the more owners who bought on margin get margin calls. When that margin call happens, its brutal. They just take your stock, send you a you note and sell your stock at the market price, no matter how low. They just want to get your cash to pay back the loan.

That then accelerates the selling.

Which then leads to what we are seeing in the market right now with GME in particular



So what to do ?

If you can afford to hold the stock, you hold. I dont own it, but thats what i would do.

Why ? because when RH and the other online brokers open it back up to buyers, then we will see what WSB is really made of. That is when you get to make it all work.

I have no doubt that there are funds and big players that have shorted this stock again thinking they are smarter than everyone on WSB.

I know you are going to hate to hear this, but the lower it goes, the more powerful WSB can be stepping up to buy the stock again. The only question is what broker do you use . Do you stay with RH , who is going to have the same liquidity problems over and over again, or do you as a group find a broker with a far, far, far better balance sheet that wont cut you off and then go ham on Wall Street."
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  #103  
Old 03.02.2021, 01:15
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Re: Gamestop/Robinhood

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They probably won't bother, although it's never worth $100.

You actually believe you will get your money back, at a date in the future?
We'll see. It's only 10 shares - and started as more of a meme but some of the activity both during and outside of trading hours has been...weird. I don't regard myself as especially tinfoil hat but when you have the NYSE suspending shorts on the stock and people like Michael Burry and Mark Cuban weighing in then...
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  #104  
Old 03.02.2021, 01:21
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Re: Gamestop/Robinhood

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How do you have more than one position at the same broker?
Are you talking options? With that kind of implied volatility?
Fair point. One of the market orders in my GME position triggered a stop loss (that I didn't set). Should have clarified.
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  #105  
Old 03.02.2021, 20:56
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Re: Gamestop/Robinhood

GME bottomed out earlier today around 91 but has since rebounded to around 105. Similar to the price fmf posted yesterday.
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  #106  
Old 03.02.2021, 21:33
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Re: Gamestop/Robinhood

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GME bottomed out earlier today around 91 but has since rebounded to around 105. Similar to the price fmf posted yesterday.
From an investment perspective it should be somewhat closer to zero than 100, not sure how long it can stay so high.
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  #107  
Old 03.02.2021, 21:34
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Re: Gamestop/Robinhood

For those interested in 'Why Gamestop'?


The initial analysis saw an under valued stock price and closing of their brick-and-mortar stores. Standard 'Blockbuster-esque' failure.


People who seemed do their homework saw this as liquidation for a shift to 'online-gaming' enterprises. Further reports saw them apparently investing in hardware to support the online pivot.


Ryan Cohen also invested heavily (10 -> 14 % stake) and he is famous for building one of the most successful e-commerce companies: Chewy (pet related products) with sales well in the billions.


Of course the over-shorting by hedge funds made the stock really take-off (for a while) to overpriced levels which we've seen recently.


Today Gamestop announced a few new exec. positions filled by ex-Amazon, ex-Chewy big shots, and just officially rebranded as: Digital-first, omni-channel, e-commerce retailer. Looks like they are trying to follow Netflix rather than Blockbuster.


Whether it will be successful or not, only time will tell, but it has been a very interesting story.
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  #108  
Old 03.02.2021, 22:42
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Re: Gamestop/Robinhood

At one point it was also trading at less than net cash which is why it attracted the attention of some deep-value investors. I looked at it around this time too. However, I didn't invest as, IMO, the management were just treating the company as a personal piggy-bank and so saw that there were more likely to milk the cow until dead rather than do anything to turn around the company or even do financial moves to benefit shareholders. If you dig, you'll probably see some activist investors try to drive change, I never followed-up to see if they had any success.
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  #109  
Old 04.02.2021, 20:09
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Re: Gamestop/Robinhood

GME issued a shelf offer for up to $100mln on Dec 08, basically announcing to issue 6.1mln new shares based on the stock price at that time. Not bad. That should have brought the total outstanding shares to 75mln or so.
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If you dig, you'll probably see some activist investors try to drive change, I never followed-up to see if they had any success.
They succeeded, RC Ventures are behind the pending management changes and reduction of the board seats.

What may be really interesting is, how RC Ventures acted. RC held 9mln shares as per the latest filing dated January 10, the average price paid was ~8.40$ (their last buys totaling 2.4mln shares were executed mid-December).

I see nothing in the filings that would keep them from selling to buy back later, and pocket the gains and basically getting their new shares for free.
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  #110  
Old 04.02.2021, 22:19
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Re: Gamestop/Robinhood

I suspect the subreddit is going to wind up as an example in psychology courses of the future. A few quotes from today:

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I'm not leaving and I just bought more at 66 from Hong Kong. I am losing money but I want to be part of the history.
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I'm not (expletive) selling. I don't care if the squeeze is not gonna happen, the stock goes to (expletive) zero or even I'm the only one holding left. I'm not giving them the satisfaction. One day, the Sun will go dark, the Earth will be dust in the void, no Moon at all, and the only remnants of the human civilization will be my €GME shares floating in the nothing. F you Wall Street. Holding to VALHALLA.
Okay, then.

Current GME price around $59
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  #111  
Old 05.02.2021, 01:13
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Re: Gamestop/Robinhood

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I suspect the subreddit is going to wind up as an example in psychology courses of the future. A few quotes from today:

Okay, then.

Current GME price around $59

Oh, that's nothing, you should have seen the forums in the time the blockchain bubble burst and all the holders of various $hitcoins where sitting together, giving each other psychological advise.
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  #112  
Old 05.02.2021, 07:56
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Re: Gamestop/Robinhood

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eToro “mistakenly” put a 20% stop loss on one of my GME positions yesterday. It triggered, I noticed, removed them from the other four positions where they had magically appeared and sent their customer service team a fizzer. Got the 20% refunded today, along with everyone else I believe, and then used the funds to bring my average down and bought the dip today
I'm guessing you don't feel so good about this now, unless you are still up even with the crash.

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I suspect the subreddit is going to wind up as an example in psychology courses of the future. A few quotes from today:

Okay, then.

Current GME price around $59
I couldn't help feeling some pity yesterday when reading that subreddit. So many clueless people who bought in to that ridiculous nonsense hype about "sticking it to the billionaires" and put what little money they had on buying those stocks even at the point they peaked. The cynical "Yo bro to the moon diamond hands" crew who orchestrated all of this, who of course likely had their shares from when GME was worthless, must be laughing all the way to the bank. The clueless noobs who fell for all are now of course posting numerous depressed or borderline suicidal threads about how they lost everything and don't understand how it happened etc. Crazy.

The only good thing to come out of it from my perspective is it made me aware of what a good opportunity BB (Blackberry) are.
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  #113  
Old 05.02.2021, 12:32
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Re: Gamestop/Robinhood

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I suspect the subreddit is going to wind up as an example in psychology courses of the future. A few quotes from today:

Current GME price around $59
reddit is too sad, bagholder quotes on twitter is much more entertaining and educative https://twitter.com/BagholderQuotes
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  #114  
Old 06.02.2021, 09:52
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Re: Gamestop/Robinhood

A Swiss has made $2 million on Gamestop and bought a house in Zurich

So much for the wall street bets readers not knowing what they're doing!!

https://www.blick.ch/wirtschaft/zuer...d16332015.html
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  #115  
Old 06.02.2021, 10:06
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Re: Gamestop/Robinhood

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reddit is too sad, bagholder quotes on twitter is much more entertaining and educative https://twitter.com/BagholderQuotes
You just made my Saturday..I think I'll laugh the whole day.
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  #116  
Old 06.02.2021, 22:51
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Re: Gamestop/Robinhood

Interesting interview courtesy of Matt Taibbi and a Gamestop investor.

Not sure I agree with this "investor's" views on some topics (no one bailed out DBL nor Michael Milken as he was jailed for 10 years but only served 2 years in 1990). But, he has some interesting thoughts on GME and hedge funds in particular, deliberately "shorting" company stocks to put them out of business and taking the other side of the same bet.

Here is the interview for those interested:

https://taibbi.substack.com/p/this-i...interview-with

As an FYI, My OH thinks the same "pump and dump" with GME is going on in silver... He works in Trading/Risk Management...

Last edited by terrifisch; 06.02.2021 at 23:59. Reason: spelling
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  #117  
Old 07.02.2021, 09:25
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Re: Gamestop/Robinhood

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Interesting interview courtesy of Matt Taibbi and a Gamestop investor.

Not sure I agree with this "investor's" views on some topics (no one bailed out DBL nor Michael Milken as he was jailed for 10 years but only served 2 years in 1990). But, he has some interesting thoughts on GME and hedge funds in particular, deliberately "shorting" company stocks to put them out of business and taking the other side of the same bet.

Here is the interview for those interested:

https://taibbi.substack.com/p/this-i...interview-with

As an FYI, My OH thinks the same "pump and dump" with GME is going on in silver... He works in Trading/Risk Management...
Shorting a company does not 'put it out of business', no idea what gave you this idea.
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Old 07.02.2021, 13:00
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Re: Gamestop/Robinhood

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Shorting a company does not 'put it out of business', no idea what gave you this idea.
My bad in terms of phrasing. I think shorting can be a positive thing. That said, shorting can also put a lot of pressure on a company's business which could lead to liquidation, takeover etc...
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  #119  
Old 07.02.2021, 13:10
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Re: Gamestop/Robinhood

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My bad in terms of phrasing. I think shorting can be a positive thing. That said, shorting can also put a lot of pressure on a company's business which could lead to liquidation, takeover etc...
I am totally missing how it puts any pressure on the companies business or could lead to a liquidation. The market price only effects buyers or sellers of their fractional ownership of the business, an above market size transaction will always result in a worse price.
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  #120  
Old 07.02.2021, 14:53
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Re: Gamestop/Robinhood

A really big short order will cause the share price to fall. This indirectly can harm the company since the reduced value can adversely affect their ability to get credit at favourable rates. This decreases cashflow which can kill a company.

So generally, shorting is fine, but just like buying huge amounts of stock can benefit a company, huge shorting harms it.

With a company like GameStop, if it's just about holding on, a big short can finish it off.
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