[Finance] Gamestop: anyone been following this tale?

[Doonhamer7]

Gamestock - the mass take on and beat the hedge funds!

D7 jr just pointed what is happening in the stock market as the ‘people’ have counter shorted or some other term the big hedge funds on Gamestock a ‘failing bricks and mortar game shop’ whose shares have gone from sub $20 to c$300, some hedge funds are now being bailed out to tune of $2.5bn. Looks like the ‘people’ are going to do the same with other shorted shares. SEC is investigating but may be unable to stop it.

“It's a generational fight, redistributive and all about robbing the rich to give to the millennial 'poor'."

Have the hedge fund leech’s been found out? I look forward to the wisdom of NSC on this!, I expect it probably hurts my pension somehow

https://www.bbc.co.uk/news/business-55817918

 

[LadySeagull]

We've been discussing this at home tonight. My son said:


''All we need is these reddit people to give all their money to charity and we've got a modern day Robin Hood film''.

 

[Bozza]

A group of, in the main, subredditors on r/wallstreetbets taking on the hedge fund shorters and, thus far at least, winning.

The Gamestop share price has been driven up from under $20 to c$350 with one hedge fund reportedly needing a £3bn cash injection to help get them out of their position.

Decent piece here covers it all: https://www.pcgamer.com/uk/the-whit...-as-reddit-pushes-gamestop-stock-even-higher/

It will be interesting to see where this goes, but it's hard to feel that some won't get badly burned as they are holding somewhat overvalued paper right now.

 

[Acker79]

Doonhamer has: https://nortr3nixy.nimpr.uk/show...ock-the-mass-take-on-and-beat-the-hedge-funds!

 

[BHAboi]

Yep hopefully the focus shifts to Cineworld shares here in the UK, heavily shorted also so has potential..

 

[beorhthelm]

only got wind of the moves yesterday, missed the massive gains. very annoying as looked at wallstreetbets last summer and writting it off - Gamestop was about $5 then. see what we can make off it now, there are plenty more targets.

 

[saafend_seagull]

only got wind of the moves yesterday, missed the massive gains. very annoying as looked at wallstreetbets last summer and writting it off - Gamestop was about $5 then. see what we can make off it now, there are plenty more targets.

I sold it on 11th January, lol. Although have NAKD which rocketed by 250% today.


Sent from my iPhone using Tapatalk

 

[Albion Dan]

The most sinister part of the tale is that the trading exchanges have now blocked trades for the targeted shares to try and protect the institutional snorters (leeches). Who said the system wasn’t rigged to screw the common man?

 

[beorhthelm]

looks like Reddit got leaned on, just forced the sub private. someone is hurting.

as i gather the shorts are hosed, option expiry on Friday and a loooong way from being in the money.

 

[jackalbion]

Quite a funny video on the complete chaos that is r/wallstreetbets

 

[Rugrat]

Crazy, looks similar to what I (ignorantly perhaps) believe goes on in the crypto markets. Just goes to show how easy it is to manipulate prices. Could kick off a trend followed by a major headache for the regulators

 

[The Maharajah of Sydney]

It's contagious.

In a case of mistaken identity, GME Resources, a "penny dreadful" mining stock here in Australia with the same ticker code as GameStop, GME, is up 33% today

 

[beorhthelm]

Crazy, looks similar to what I (ignorantly perhaps) believe goes on in the crypto markets. Just goes to show how easy it is to manipulate prices. Could kick off a trend followed by a major headache for the regulators

the main difference is crypto degens believe there is the beginning of new economic model and technologies that will take over the world. the wallstreetbets degens know they are taking a punt on old, low value companies. no one believes (or probably considered) if Gamestop is really a $10bn company.

 

[Rugrat]

the main difference is crypto degens believe there is the beginning of new economic model and technologies that will take over the world. the wallstreetbets degens know they are taking a punt on old, low value companies. no one believes (or probably considered) if Gamestop is really a $10bn company.

Probably right ... I just wonder if the crypto craze didn't start out like that and then simply got over run with whales manipulating the prices, dumping and then running them back up again. No knowledge at all but that's what it looks like from afar. Without even bothering to look at the reddit forums I just guessed there was the usual stuff about 'going to the moon' and 'get on this baby' quick stuff to bring quick profits to the few

I'm cynical about the Robin Hood comments but if it really is about stuffing the hedge funds then well done them I say. I think a lot of people will get hosed though

As I suggested in first post it's all supposition on my part ... putting 2 and 2 together and coming up with a load of random numbers

 

[beorhthelm]

I'm cynical about the Robin Hood comments but if it really is about stuffing the hedge funds then well done them I say. I think a lot of people will get hosed though

no doubt. there are always losers in a bubble, someone has to buy the top while someone exits. some dont acknowledge that, but get the sense some dont care as its someone else like them who profits, so "they" win either way and the short sellers will be the bigger losers.

 

[lawros left foot]

Okay, I understand the principle of short selling, I understand the strategy to stop the hedge funds.

What I don’t know is, how long do the hedge funds ‘borrow shares for, is there a time limit to when they have to be returned to their original owner, or can they be kept until all losses are cut.
And what kind of a percentage is paid to the original share owner to ‘borrow’ the shares?

 

[Papa Lazarou]

Having once worked for a Hedge Fund company I'm comfortable to say that they are absolute parasites. Hedging is all about minimising risk, but these companies are simple sophisticated gamblers.

It's amusing to see normal people disrupting their aims of feasting on a struggling company.

Note: It's no surprise that much of the money that paid for the Brexit campaign came from Hedge fund companies, who made billions(?) from the sterling crash that resulted from the Leave vote.

 

[Papa Lazarou]

Okay, I understand the principle of short selling, I understand the strategy to stop the hedge funds.

What I don’t know is, how long do the hedge funds ‘borrow shares for, is there a time limit to when they have to be returned to their original owner, or can they be kept until all losses are cut.
And what kind of a percentage is paid to the original share owner to ‘borrow’ the shares?

A short contract will have a date by which it needs to be closed. So, by that date they will either have to had 'sold' it on or settle.

 

[BNthree]

Bit late to the thread but saw this elsewhere and thought it explained it nice and simply:

 

[The_Viper]

I love this, gutted I didn't get in at the ground level and there will of course be losers when this all comes crashing down but that is an inevitable side effect of something like this. The main thing is this is showing the stock market to be the scam it is, it's not any different to you going and putting your weekend acca on, just instead of it being you its rich elite lizards doing the spending.

What is going to be sad is the speed in which US congress will get something put through to stop this ever happening again, with a brand new president who is supposed to be a moral and decent man, US citizens are about to see just how different 'immediate' for Wall Street and 'immediate' for people desperately waiting for financial help is. **** the elite, eat the rich.