The number of friends I have spoken to over the past few days who are suddenly interested in the markets and going to buy GME.... is concerning.
I know the pandemic brought a LOT of people out, let's hope some of them survive getting their faces ripped off.
Very true. This is a short term bubble in the GME stock brought on by a war of the 2 sides. I plan on buying 1 share for giggles and seriously looking to pay the price to have a paper certificate to hang on the wall. I am 100% sure my tiny 1 piece will drastically fall but my goal is different. New investors should just watch from the sidelines.
Hey all...let me know if this isn't the place to ask these questions but I do have a few for any willing to share their insights! Like many I am watching this with a mix of fascination and confusion. Sorry if these are stupid but I haven't been able to find detailed answers elsewhere yet... It seems like this whole "GME to the moon" thing is based on a lot of assumptions and some old(ish) data. My understanding is that HFs only have to report their short positions periodically and so the latest numbers on their positions are at least a couple weeks old and the newest data will come out February 9th. Any numbers between then and now concerning their short positions are "just" analyst speculation. So is there any data-based way we'd KNOW if the HFs really did close those shorts in that window? Surely these HFs have models and all kinds of data that would have shown red flags far earlier than most of us realize and they would have started making exit moves ASAP? So what concrete data (if any) leads people to think they haven't yet and that buying/holding is going to lead where they hope? Are there deadlines that the HFs need to close out the shorts by? Or could they wait 2, 3, 10 years if needed and are able to pay along the way? It sounds like a lot of people are counting on them to cave and start buying up shares because they'd be crippled by interest payments the longer this goes on but surely they have tools we probably don't even know about (deferring interest somehow, shuffling shorts around amongst each other somehow, etc.) in order to buy time? Not saying this stuff is all legal but I imagine they have a lot of options beyond just sitting tight, paying interest, and hoping for a good outcome and most people just don't know them. There's been a lot of reporting that the HFs have closed their positions in GME. Why on earth would they broadcast this regardless if it's true or not? If they lie wouldn't they face some sort of penalty from the SEC (which would presumably come on top of their already crippling interest payments they're supposedly dealing with)? And if they're telling the truth is it customary to announce such a thing? Is the broader downturn we've seen in the markets the past several days truly because HFs have been liquidating to cover some of this GME craziness? I've seen a lot of chatter online that that's the case. But can we even know? And finally, what's to stop GameStop from just releasing more shares? Surely they'd be offered a lot of incentives to do this if HFs and others really are in the pinch they're claimed to be in? Anyway, thanks for the time and any info or perspective you're willing to share!!!
I'm deferring for Gil's response, it appears he is still at the emergency conference call meeting with Interactive Brokers of "WTF are we going to do if they refuse to sell and keep buying" .
I think we both know how this ends. Im already dreading the countless news articles we will see about all these people that have overextended and will lose everything.
Conflicting reports. CNBC says yes, data says no...maybe updated data later this week tells us more. At this point it makes no difference to the hoards of noobs jumping in. If the stock moves too much against them, margin requirements will be the biggest problem they have, which is what is happening. Could be the truth, or could be a tactic meant to make people stop buying and trying force a squeeze. Its possible that funds have sold long positions to shore up cash to cover short positions in the affected meme stocks. But the market has also been pretty toppy and due for a pull back anyway. They most likely will, if they dont, they are idiots!
When I worked at a publicly traded company, we could only dilute the issue when there was value to sell into. My respect for corporate auditors is about zero but selling this would be a heavy lift, even for Kellyanne Conway.
Hey thanks a lot for the reply! I've only ever focused on long-term investing so this shorter stuff is new to me. And pretty wild lol.
True. The tough part is so many kids are seeing other kids their age post these sick gains, +2000% and holding onto $200,000 in a Robinhood account. Its causing a stampede into the meme stocks, most of which are way higher than 100% of recent lows.
Im so excited for the action tomorrow! If it goes up, thousands of new traders make bank! If it goes down, thousands of new traders just paid some serious tuition!
True and True Funny how the ones that are labeled, basement traders and social media traders, etc have managed to inflict pain and embarrassment to some very heavy hitters to the point of desperation. They ultimately have brought them to their knees and a few to tears. For the most part its a matter of principal and some are willing to get a bloody nose. Its been a wakeup call to watch and take notes. When we see a grown man go on national television literally cry and whine simply because he got CALLed out in his own rigged games that have destroyed so many of the little people, its worth every penny of it. At this point its not investing. Best to just watch the show and learn. I think few fail to see the overall picture of what is fixing to unfold.
--Could be the truth, or could be a tactic meant to make people stop buying and trying force a squeeze- Personally, I don't believe for one minute that Melvin unwound its position in one freaking day.
I fully agree. Why in the world would we have virtually every media outlet claiming the shorts have covered and the retail players should sale and move on. On the other hand we know that it will drop in time, but the hard-core ones know that every share held will take 1 less out of play to help cover. The facts will never change, the funds have lost more money than they can imagine, simply by being beat in their on game. Now we see VLAD " robinhood" trying to save face claiming conspiracy theories and virtually begging customers not to leave. The war was won but some of those clowns fail to realize, the battle has just begun. When they cry " its not fair" "somebody needs to do something," it starts to make sense how bad they got hurt. Enjoy the show.
