Market/Financial Thread

[turnin' two]

5 minutes ago, southsider2k5 said:

Those people are also properly licensed and following FINRA rules and regulations.

Oh shit, they're licensed?  Then they can't possibly be up to no good.  

[Quin]

6 minutes ago, southsider2k5 said:

Those people are also properly licensed and following FINRA rules and regulations.

As long as they're licensed, it's ok if they deceive people or give shitty advice?

[turnin' two]

27 minutes ago, Buehrle>Wood said:

I made about 15k on blockbuster this morning. At one point I had so many shares I think it made me CEO.

Wow.  Hats off to you.  I never have much luck with short term stuff, as was mentioned above.  But congrats!  Have yourself a tycoon level drink.

[Soxbadger]

13 minutes ago, southsider2k5 said:

A hedge fund is one legal entity.  It can invest however it likes as long as it doesn't work with other funds to do coordinate their actions.

The second one is a crime, and should be charged.

You can keep throwing out whataboutisms, but it doesn't change the underlying facts here.

This is closer to the LIBOR fixing that happened.  A group of people got together and agreed to do the same thing in the markets, which is illegal.  Billions of dollars in fines were paid from that.

 

I know the laws. But not all laws are fair when they advantage a certain subset of people. FINRA and SEC rules are skirted all the time, they get bent.

But the idea is the same, one just happens to be legal because they have the money to pump the system so the laws are created in their favor. 

[southsider2k5]

18 minutes ago, Quin said:

As long as they're licensed, it's ok if they deceive people or give shitty advice?

Bad advice is not a crime.

Deception is a crime, and people lose their licences and pay big fines for it.

[southsider2k5]

41 minutes ago, Buehrle>Wood said:

I made about 15k on blockbuster this morning. At one point I had so many shares I think it made me CEO.

That one just amazes me.  That is literally a dead holding company of a bankrupted entity.

[southsider2k5]

8 minutes ago, Soxbadger said:

I know the laws. But not all laws are fair when they advantage a certain subset of people. FINRA and SEC rules are skirted all the time, they get bent.

But the idea is the same, one just happens to be legal because they have the money to pump the system so the laws are created in their favor. 

You can argue the system itself isn't fair, that is fine. I am not here to tell you that they are right or wrong.  But the rules are what they are, as are the enforcement actions around them.

[Soxbadger]

11 minutes ago, southsider2k5 said:

You can argue the system itself isn't fair, that is fine. I am not here to tell you that they are right or wrong.  But the rules are what they are, as are the enforcement actions around them.

And earlier I said that Big Cat from barstool should be investigated by the SEC for his boosting of DOGE and GME. I am not sure what was done on WSB was illegal, I havent seen their posts or if their was coordination.

Edited January 29, 2021 by Soxbadger

[Buehrle>Wood]

31 minutes ago, Soxbadger said:

And earlier I said that Big Cat from barstool should be investigated by the SEC for his boosting of DOGE and GME. I am not sure what was done on WSB was illegal, I havent seen their posts or if their was coordination.

Far from the point here but doge is technically a currency and not a security. That means you are allowed to manipulate it all you want assuming that classification sticks. No rules for currency trading.

[Soxbadger]

6 minutes ago, Buehrle>Wood said:

Far from the point here but doge is technically a currency and not a security. That means you are allowed to manipulate it all you want assuming that classification sticks. No rules for currency trading.

That is a good point.

[southsider2k5]

 

[Texsox]

As my investment horizon gets shorter and shorter it's sad sitting on the sidelines watching the kids yolo'ing and having fun. 

But I'm also wondering . . .

Where's the beef? Currency backed by nothing and people fighting to invest in failing companies. I'm feeling all of my years trying to make sense of it. It feels like we're creating an illusion of success that will vaporize. I get sell the sizzle. I would understand this easier if these were some unproven tech companies that you youngins think will revolutionize society and betting big, but brick and mortar stores and a shitty handset maker? Smh

Grandpa Tex is going to take a nap. Lol

[bigruss]

3 hours ago, southsider2k5 said:

And then coordinated a few million people to all buy the stock.

What do you know this guy has done to coordinate people into buying this stock?  Legitimately asking, because I think a lot of people have made assumptions of this guy, WSB, etc.  Very few people who aren't actually on reddit are understanding the situation from what I've seen/heard.  

[Texsox]

Just now, bigruss said:

What do you know this guy has done to coordinate people into buying this stock?  Legitimately asking, because I think a lot of people have made assumptions of this guy, WSB, etc.  Very few people who aren't actually on reddit are understanding the situation from what I've seen/heard.  

I believe this is another of those situations where the laws haven't caught up with modern society. 

[bigruss]

4 minutes ago, Texsox said:

As my investment horizon gets shorter and shorter it's sad sitting on the sidelines watching the kids yolo'ing and having fun. 

But I'm also wondering . . .

Where's the beef? Currency backed by nothing and people fighting to invest in failing companies. I'm feeling all of my years trying to make sense of it. It feels like we're creating an illusion of success that will vaporize. I get sell the sizzle. I would understand this easier if these were some unproven tech companies that you youngins think will revolutionize society and betting big, but brick and mortar stores and a shitty handset maker? Smh

Grandpa Tex is going to take a nap. Lol

Again, everyone is looking at this as an outsider and not understanding how this all started.  Quite frankly, I had some of the same thoughts until I actually did some research/looking back at how it started and it's so much more sensical than you would think.

You can even go back and watch his original video on the stock, where he breaks down why he's bullish on it (when it was $4 a share).  You can see his reasoning on why he believes Gamestop still has a play for the next 5-10 years, and why he thinks it's wrong to be shorting the company so much (and shows that there has been rallies/resistance with the stock despite the shorts). 

It's easy to shit on Gamestop, which is why the hedge funds did their craziness in their extreme short of the company.  Would I ever invest at this level in that type of company if there wasn't a short squeeze?  Nope.  But this guy didn't create the situation, the shorters did, and folks are looking to make a play against that.  This is not and should not be a play that everyone is able and willing to do.

[bigruss]

10 minutes ago, Texsox said:

I believe this is another of those situations where the laws haven't caught up with modern society. 

I agree with this if you mean that people shouldn't be able to short a company for more than 100% of shares available.  

[Texsox]

12 minutes ago, bigruss said:

Again, everyone is looking at this as an outsider and not understanding how this all started.  Quite frankly, I had some of the same thoughts until I actually did some research/looking back at how it started and it's so much more sensical than you would think.

You can even go back and watch his original video on the stock, where he breaks down why he's bullish on it (when it was $4 a share).  You can see his reasoning on why he believes Gamestop still has a play for the next 5-10 years, and why he thinks it's wrong to be shorting the company so much (and shows that there has been rallies/resistance with the stock despite the shorts). 

It's easy to shit on Gamestop, which is why the hedge funds did their craziness in their extreme short of the company.  Would I ever invest at this level in that type of company if there wasn't a short squeeze?  Nope.  But this guy didn't create the situation, the shorters did, and folks are looking to make a play against that.  This is not and should not be a play that everyone is able and willing to do.

I'm oversimplifying here. 

What I'm looking at is the current price isn't based on the company. I see Game Stop as a bit of a pawn in this.  They could announce they are switching to selling hamsters and bicycles and no one would notice. 

Second point,  I agree,  shorting more shares than available shouldn't be allowed.  Although I'm willing to rethink that position if someone could give me a decent enough reason why it's even allowed in the first place. 

In a new world of mass communications it's much easier for large groups of people to coordinate. From Arab Spring to Covid stimulus stick it to institutional investors stock frenzy. The aftermath of this will cause regulators to review. Sadly my guess is if a couple deep pockets lose,  we'll see change,  if thousands lose it will be passed over. 

[bigruss]

3 minutes ago, Texsox said:

I'm oversimplifying here. 

What I'm looking at is the current price isn't based on the company. I see Game Stop as a bit of a pawn in this.  They could announce they are switching to selling hamsters and bicycles and no one would notice. 

Second point,  I agree,  shorting more shares than available shouldn't be allowed.  Although I'm willing to rethink that position if someone could give me a decent enough reason why it's even allowed in the first place. 

In a new world of mass communications it's much easier for large groups of people to coordinate. From Arab Spring to Covid stimulus stick it to institutional investors stock frenzy. The aftermath of this will cause regulators to review. Sadly my guess is if a couple deep pockets lose,  we'll see change,  if thousands lose it will be passed over. 

Gamestop could also sell any stock it currently holds and get a nice cash influx.  But yea, they didn't choose to get shorted and I'm sure they didn't want a squeeze happening on their stock.  

[Chisoxfn]

6 hours ago, bigruss said:

I agree with this if you mean that people shouldn't be able to short a company for more than 100% of shares available.  

Echo this - and I haven’t ripped the guy who initially did this as much - he is clearly bright and knew exactly what he was doing. I also highly doubt he realized it would ever go this viral. 
 

I give him legit credit for doing his research and I don’t disagree with his play when this was a 5 buck stock. And while I knock GameStop - if they are smart in a digital gaming world they could still find a place and way to do solid for a while. It isn’t like the consoles are dead (yet) and there will always be people like me who prefer the console experience. 
 

That said - once this play ends - we all know exactly where this stock is going - down down down. And honestly I wonder how game stop management feels about this etc - they are just a pawn in this whole thing at this point. Going along for a while ride. Maybe they can capitalize but as I said earlier in this thread it’s not like they can do a lot to leverage this opportunity to get capital at this insane valuation. By the time they were ready to execute the bubble will likely have popped. 

[Chisoxfn]

6 hours ago, bigruss said:

Gamestop could also sell any stock it currently holds and get a nice cash influx.  But yea, they didn't choose to get shorted and I'm sure they didn't want a squeeze happening on their stock.  

I’m assuming they don’t have a ton of treasury stock - usually companies in spot they are in aren’t using their capital to buy back stock - although maybe they did. Haven’t looked but maybe will check their financials over the weekend. 

[Quin]

8 minutes ago, Chisoxfn said:

Echo this - and I haven’t ripped the guy who initially did this as much - he is clearly bright and knew exactly what he was doing. I also highly doubt he realized it would ever go this viral. 
 

I give him legit credit for doing his research and I don’t disagree with his play when this was a 5 buck stock. And while I knock GameStop - if they are smart in a digital gaming world they could still find a place and way to do solid for a while. It isn’t like the consoles are dead (yet) and there will always be people like me who prefer the console experience. 
 

That said - once this play ends - we all know exactly where this stock is going - down down down. And honestly I wonder how game stop management feels about this etc - they are just a pawn in this whole thing at this point. Going along for a while ride. Maybe they can capitalize but as I said earlier in this thread it’s not like they can do a lot to leverage this opportunity to get capital at this insane valuation. By the time they were ready to execute the bubble will likely have popped. 

Here's a profile of him for WSJ.

His current plans are to maybe buy a house and his one dream of building an indoor track facility or track house in his hometown of Brockton, MA.

 

[caulfield12]

The market for GameStop became unsettled this month after activist investor Ryan Cohen, the founder of Chewy, secured a seat on the retailer’s board of directors. GameStop’s stock soared as he stepped up his efforts to transform the company, and soon members of a Reddit group called Wall Street Bets began buying up shares in the game retailer.

Soon, investors betting against the stock — which had faced trouble amid a shift to digital video games — had to buy the stock too, to cover their losses. The stock went from $65 a share at market close on Friday, Jan. 22 to close at $347.51 the following Wednesday.

https://www.yahoo.com/finance/news/we-bull-ceo-explains-why-trading-was-restricted-amid-the-game-stop-market-mania-172539318.html

 

[Texsox]

6 hours ago, Chisoxfn said:

Echo this - and I haven’t ripped the guy who initially did this as much - he is clearly bright and knew exactly what he was doing. I also highly doubt he realized it would ever go this viral. 
 

I give him legit credit for doing his research and I don’t disagree with his play when this was a 5 buck stock. And while I knock GameStop - if they are smart in a digital gaming world they could still find a place and way to do solid for a while. It isn’t like the consoles are dead (yet) and there will always be people like me who prefer the console experience. 
 

That said - once this play ends - we all know exactly where this stock is going - down down down. And honestly I wonder how game stop management feels about this etc - they are just a pawn in this whole thing at this point. Going along for a while ride. Maybe they can capitalize but as I said earlier in this thread it’s not like they can do a lot to leverage this opportunity to get capital at this insane valuation. By the time they were ready to execute the bubble will likely have popped. 

And this is where I like to take Game Stop out of the equation for a moment.  Here's the play,  because the actors don't matter. 

A. Find a stock that a lot of institutions have shorted. 

B. Build up retail demand through mass communications until it goes viral. Class warfare helps. 

The next one will be easier unless institutions change their philosophy. Every small investor who believes they lost out on a great opportunity for easy money will leap at the next one. 

This has already begun to change the industry. I heard Left is dropping his short reports. 

 

[bmags]

People are talking about two different things.

I don’t have any issue with the way this started. It was a value play, it was a short squeeze.

My issue is that this started changing on Wednesday when it proliferated out of Reddit and a bunch of other groups started selling the David v Goliath sale.

People are still selling to buy and that doing so you’ll just be taking free money from “Wall Street”. If you still honestly think hedge funds are going to be buying these shares back and not low info retail buyers who will be left holding the bag you are kidding yourselves.

 

[Texsox]

The hedge funds are in a tough position. It's *almost* like paying ransom.