GameStop (GME) Stock Surges Amidst New Board, Short Squeeze [Read Threadmarks]

Fabtacular · Feb 2, 2021

RoastBeeph said:
The whole idea that this movement is hurting hedge funds is a pipe dream. The hedge funds are too smart, too sophisticated. They have already repositioned themselves to take advantage of this situation. I am sure they are making $$$ off this. The people who will be eating losses are the small retail traders, especially the people who jumped in last week from FOMO, first time stock buyers who have no clue what they are doing.

This isn't true, though.

Certain hedge funds, namely those with the early short positions, lost an incredible amount of money. Certain people in the industry will never be trusted in a decision-making role again. The investors in those funds lost money, and the management team that was hoping to realize a ton of income via carried interest will no longer get those bonuses.

The whole movement had an effect.

But there was this idea that the whole trade was going to work this way:

All the retail investors were going to be sitting around some virtual marketplace, holding their GME stocks and looking like a gaggle of those WSB babies.
A herd of disheveled men in expensive-but-wrinkled suits, with bags under their eyes and desperation on their faces, were going to be dragging sacks of money through the desert.
The WSB babies would sit there and smugly exchange their GME stocks for sacks full of money, spit on the beleaguered bankers, and dance away into the night.

But that's not how it worked out at all. In the market everyone is a rando. When the price was zooming, hedge funds were buying to cover their short positions, sure. But there were also a ton of retail investors getting in late. And they were left holding the bag at grossly-inflated prices.

Was there a "ladder attack" pushing the stock down? I'm sure, because once the price was in the 100's of dollars per share, new hedge funds said "if this stock was over-valued at $20 it's WAY overvalued at $300" and they took all-new short positions. And rightly so!

So what happened? Some hedge funds lost of ton of money, and some made a ton of money. Some retail investors made a ton of money, but many lost a ton. It wasn't the clean story of heroes and villains that so many painted it to be.

Caz · Feb 2, 2021

Anacaona said:
I guess the movie is not happening then :(

Not all movies have happy endings.

demondance · Feb 2, 2021

rickyson33 said:
was never in on this but kinda disappointed by how boring the ending of it is turning out to be

was hoping for more of an explosive fall than this bleeding out over several days for dramas sake

dropping this much in a couple days is pretty dramatic as it is, you're just missing the usual freak out of a drop that big and that fast, because so many people are treating it like Bitcoin and refusing to say a single negative word about anything that happens.

a slightly faster cratering of the price wouldn't have led to that by now either. This all feels like crypto striver culture more than anything. It'll have to get really bad in a sustained way for the salt to flow.

Deleted member 27751 · Feb 2, 2021

ADS said:
People keep saying this but it's not what happened. Like I said earlier in the thread, I've been a WSB member for years. I saw a bunch of WSB-ers pumping silver a day or two before the media picked it up. The media started (accurately) reporting that WSBers were pumping it, until other WSBers (keep in mind, there are 8 million of them now) saw it, realized it was taking focus off of $GME and started claiming it was a coordinated "fAkE NeWs!" takedown.

Honestly, I think many older WSB members have diversified into various options, so it wouldn't surprise me some had silver bids earlier. It just seemed all too coincidental for a lot of the media to jump on the bandwagon of silver, especially some of the media claiming it was a better return (it is a good return in long run like all commodities). I'm not going full conspiracy as I know there is definitely something fishy on both sides that's for sure.

It is interesting seeing AMC, and other shorted stocks that didn't even get a bump from the GME, going down in such a coordinated manner. It shows the sheer strength of the big investors, but also the clear frenzy retail traders can be in when smelling blood. Stonks are hard.

SapientWolf · Feb 2, 2021

Eorl said:
Honestly, I think many older WSB members have diversified into various options, so it wouldn't surprise me some had silver bids earlier. It just seemed all too coincidental for a lot of the media to jump on the bandwagon of silver, especially some of the media claiming it was a better return (it is a good return in long run like all commodities). I'm not going full conspiracy as I know there is definitely something fishy on both sides that's for sure.

It is interesting seeing AMC, and other shorted stocks that didn't even get a bump from the GME, going down in such a coordinated manner. It shows the sheer strength of the big investors, but also the clear frenzy retail traders can be in when smelling blood. Stonks are hard.

Not sure if it was coordinated, per se. Unsophisticated traders dumping money into failing businesses is like throwing chum into the water. Shorting after the pump was actually the right move.

Anacaona · Feb 2, 2021

ADS said:
People keep saying this but it's not what happened. Like I said earlier in the thread, I've been a WSB member for years. I saw a bunch of WSB-ers pumping silver a day or two before the media picked it up. The media started (accurately) reporting that WSBers were pumping it, until other WSBers (keep in mind, there are 8 million of them now) saw it, realized it was taking focus off of $GME and started claiming it was a coordinated "fAkE NeWs!" takedown.

Bots

ADS · Feb 2, 2021

Eorl said:
(it is a good return in long run like all commodities).

Unrelated to the topic at hand, but I've literally never heard of anyone holding commodities for long term return (except maybe weirdo boomer gold bugs). People don't hold commodities for return, it's generally an uncorrelated diversification play to protect against unexpected inflation.

Eorl said:
It is interesting seeing AMC, and other shorted stocks that didn't even get a bump from the GME, going down in such a coordinated manner.

I'm confused by your use of the word "coordinated". What was coordinated about it?

japtor · Feb 2, 2021

SapientWolf said:
My worry with Gamestop is how small a lot of the stores are. It would be hard for them to pivot to selling more clothing or PC gear, for instance. Let alone something completely different like a barcade.

Even with larger spaces I imagine barcades would be pretty unrealistic for a lot of locations just cause either rental agreements or the amount of retrofitting/construction (plumbing, kitchen, etc) that'd need to be done.

Skyzar said:
I think he's worried he'll be a villian if he pulls out before it rock bottoms. If he pulls out at any stage, the thing falls apart. Everyone loses rapidly...rather than giving people a chance to pull out slowly... I dunno man. I think this went places he wasn't expecting. He might have to go down with the ship.

People know his face and he might even be in danger afterwards.

Plus, he's made $13 million already.

Yeah I wouldn't be surprised if he's holding just for personal safety as much as anything else. Might be letting millions of (paper) gains go down the drain, but he already got his millions to begin with. I haven't followed his whole story, but how was his situation before all this? I'm thinking he might've already been well off enough to begin with.

Eorl said:
Honestly, I think many older WSB members have diversified into various options, so it wouldn't surprise me some had silver bids earlier. It just seemed all too coincidental for a lot of the media to jump on the bandwagon of silver, especially some of the media claiming it was a better return (it is a good return in long run like all commodities). I'm not going full conspiracy as I know there is definitely something fishy on both sides that's for sure.

Wouldn't be surprised if Wall Street people were watching Reddit for anything to jump on (if they weren't already). Someone makes a case for silver, maybe gets some traction, some big money notices and comes in to make it move, everyone else notices and joins in mindlessly, then the smart money gets out with their quick profits.

ADS said:
I'm confused by your use of the word "coordinated". What was coordinated about it?

I'm thinking a better word there would be "correlation". And not that crazy. If the big main "Reddit powered" stock is fizzling, why believe any of the other ones are any better to get into at this point?

RoastBeeph · Feb 2, 2021

RobertM said:
A lot of people didn't cash out, hence not much volume movement. When you take loses like that you are forced to hold, the market still does not reflect the current demand or the actual price of the stock. That person will just have to be a LONG on the stock and that's about it.

People mass panicked when Bitcoin dropped, and here we are.

And FYI, all shorted stocks dropped in the same pattern if you haven't noticed.

I wouldn't equate bitcoin to GME. Very different situations. GME is a shit stock that went up from market manipulation. It has no where to go in the long run but where it is actually worth, which is $20 or less per share. GME is not going to all of a sudden rise back up like Bitcoin has because it is in a dying industry.

Fabtacular said:
This isn't true, though.

Certain hedge funds, namely those with the early short positions, lost an incredible amount of money. Certain people in the industry will never be trusted in a decision-making role again. The investors in those funds lost money, and the management team that was hoping to realize a ton of income via carried interest will no longer get those bonuses.

The whole movement had an effect.

But there was this idea that the whole trade was going to work this way:

All the retail investors were going to be sitting around some virtual marketplace, holding their GME stocks and looking like a gaggle of those WSB babies.

A herd of disheveled men in expensive-but-wrinkled suits, with bags under their eyes and desperation on their faces, were going to be dragging sacks of money through the desert.

The WSB babies would sit there and smugly exchange their GME stocks for sacks full of money, spit on the beleaguered bankers, and dance away into the night.

But that's not how it worked out at all. In the market everyone is a rando. When the price was zooming, hedge funds were buying to cover their short positions, sure. But there were also a ton of retail investors getting in late. And they were left holding the bag at grossly-inflated prices.

Was there a "ladder attack" pushing the stock down? I'm sure, because once the price was in the 100's of dollars per share, new hedge funds said "if this stock was over-valued at $20 it's WAY overvalued at $300" and they took all-new short positions. And rightly so!

So what happened? Some hedge funds lost of ton of money, and some made a ton of money. Some retail investors made a ton of money, but many lost a ton. It wasn't the clean story of heroes and villains that so many painted it to be.

Good post, interesting.

PonyStation · Feb 2, 2021

Isn't it possible that the shorts have already been covered?

alexlf · Feb 2, 2021

PonyStation said:
Isn't it possible that the shorts have already been covered?

I'm not 100% sure (I'm barely literate in terms of the stock market), but I think volume is enough now such that it's possible most of the shorts have been covered.

PonyStation · Feb 2, 2021

alexlf said:
I'm not 100% sure (I'm barely literate in terms of the stock market), but I think volume is enough now such that it's possible most of the shorts have been covered.

I think the shorts were 130% of the float, but volume traded is sigificantly higher than that, it would be easy to cover the shorting by now

-Peabody- · Feb 2, 2021

Part of me is insanely happy the older wsb community is pissed off at all the bots/newcomers; their "culture" is toxic and pathetic. What drove me to sell wasn't the share price dropping (I bought low) but having to look in that SubReddit every day to see what was up.

Deleted member 2379 · Feb 2, 2021

Fabtacular said:
This isn't true, though.

Certain hedge funds, namely those with the early short positions, lost an incredible amount of money. Certain people in the industry will never be trusted in a decision-making role again. The investors in those funds lost money, and the management team that was hoping to realize a ton of income via carried interest will no longer get those bonuses.

The whole movement had an effect.

But there was this idea that the whole trade was going to work this way:

All the retail investors were going to be sitting around some virtual marketplace, holding their GME stocks and looking like a gaggle of those WSB babies.

A herd of disheveled men in expensive-but-wrinkled suits, with bags under their eyes and desperation on their faces, were going to be dragging sacks of money through the desert.

The WSB babies would sit there and smugly exchange their GME stocks for sacks full of money, spit on the beleaguered bankers, and dance away into the night.

But that's not how it worked out at all. In the market everyone is a rando. When the price was zooming, hedge funds were buying to cover their short positions, sure. But there were also a ton of retail investors getting in late. And they were left holding the bag at grossly-inflated prices.

Was there a "ladder attack" pushing the stock down? I'm sure, because once the price was in the 100's of dollars per share, new hedge funds said "if this stock was over-valued at $20 it's WAY overvalued at $300" and they took all-new short positions. And rightly so!

So what happened? Some hedge funds lost of ton of money, and some made a ton of money. Some retail investors made a ton of money, but many lost a ton. It wasn't the clean story of heroes and villains that so many painted it to be.

Melvin's already raised an incremental $3B over the weekend from existing and new investors even after the 50% loss.

They ran an aggressive book so the loss should have been managed better but is what the investors were trading 4 years of 30%+ gains for.

Deleted member 2379 · Feb 2, 2021

PonyStation said:
Isn't it possible that the shorts have already been covered?

Shorts covered last Wednesday.

Been saying that for awhile.

Any short interest is new money with time and gains ahead of them as they got in at $300+.

Everyone claiming short interest was over 100% heading into the weekend doesn't understand what happened last week when all hedge funds pulled back risk across the market in the largest degrossing since corona.

Deleted member 86105 · Feb 2, 2021

PonyStation said:
Isn't it possible that the shorts have already been covered?

I think that's mostly the case.

Bloomberg has GME's short interest at 40% now of free float. S3 has it at 50%. Estimates obviously. So it's still elevated compared to the rest of the market and may fall further before the squeeze is fully over, but it's nowhere near what it was.

We're definitely no longer in the phenomenon where there are more shorts than available shares in the market, which propelled the meteoric price increase alongside the speculative bubble. There's no more "HODLing to the moon" lol.

big_z · Feb 2, 2021

Had the apps not stopped the ability to buy it would have been interesting to see how high this would have gone. Taking away super simple ways to buy from the average joe killed the hype.

But at least the GameStop experience still lives on in stock form. Buy at high prices, get a nickel for trade in.

SapientWolf · Feb 2, 2021

I feel like GME is going to rally one more time this week as they squeeze the last juice out of the lemon and then take the elevator to hell as it gets shorted into oblivion. The people with cack hands are gonna be left holding the bag.

Chopchop · Feb 2, 2021

PonyStation said:
Isn't it possible that the shorts have already been covered?

According to the news, part of them have been covered. Maybe half? Reddit seems to think there's still plenty left over, but I don't know if I believe them.

I feel like there is probably still enough left over to make the price go up momentarily sometime in the near future, but it probably won't shoot that high, and that's just my opinion anyway.

Deleted member 86105 · Feb 2, 2021

RoastBeeph said:
I wouldn't equate bitcoin to GME. Very different situations. GME is a shit stock that went up from market manipulation. It has no where to go in the long run but where it is actually worth, which is $20 or less per share. GME is not going to all of a sudden rise back up like Bitcoin has because it is in a dying industry.

Good post, interesting.

Bitcoin has utility as a store of value because it's decentralized and scarce (i.e. "Digital Gold"). It acts as a hedge against inflation from traditional currency. GME is a traditional stock from a dying company where hedge funds stupidly had >100% short interest, and Reddit pumped up a cultish freedom fighter scheme so the early investors could cash out.

Both are highly speculative with insane volatility, but at least cryptocurrency has underlying utility. GME was a temporary phenomenon rife for exploitation, whereas Bitcoin has been around for 12 years and has demonstrated its long-term viability.

Neither are worth investing mass amounts of money into, though.

RobertM · Feb 3, 2021

RoastBeeph said:
I wouldn't equate bitcoin to GME. Very different situations. GME is a shit stock that went up from market manipulation. It has no where to go in the long run but where it is actually worth, which is $20 or less per share. GME is not going to all of a sudden rise back up like Bitcoin has because it is in a dying industry.

Good post, interesting.

I am not equating Bitcoin to GME in the value sense, I am equating it in terms of hysteria that follows when people lose money or the price of the stock/crypto drops. Everyone was on board last week and cheering on, rejoicing in elation of sticking it to the big guy Hedge Fund, to now when the stock dropped due to manipulative tactics (ladder attacks, bots, misinformation campaigns, diverting attention to silver, etc) and they lost money, others are coming out of the woodwork saying "I told you so" and acting the righteous heroes that this was a sham all along. Seriously? GameStop can be consider a dying retailer, but there is a reason why someone like Ryan Cohen would step in to change the course around and guess what, his getting on board would drive the stock up which it did. So to say there value is $20 or less per share is parroting talking points of the likes of short seller Citron who has been wrong on most stocks they shorted. On top of that GME has multiyear partnership with Microsoft and expanding their eCommerse. So again, are you sure about $20 stock valuation? With console looming on the horizon, that price makes no sense.

In August Ryan Cohen got a stake of 9% in the company, the stock started moving around the end of August to modest $7.8 just to be met with short resistance. It becomes very apparent what was going on when on October 8th there was 76 million volume in stock movement, and 77 million the next day showing a huge interest in the stock, but the short would start their movement around the end of the month driving the stock from $15 down to $10. The uptick starts around mid to end of November with a bit of resistance that ultimately drove the stock to $17, and earning call dropped it to $13. Sidenote, WSB noticed huge short interest even back in July where there was 99.7% and talks of short squeeze ( here ). The big movement starts around December 22 and this is where I jumped in and everyone was saying to buy the stock or miss out, and sure as hell January 13th is when things start to pop off, stock price doubled, and we were on the journey of short squeeze. From that point on the price would fluctuate a lot with crazy volumes and sells.

Regarding the dying industry part. Do you have high speed internet in your area? Do you have data caps on said internet? Are you able to sell, share, or rent digital video games? Yeah, that's the problem. Physical video games are a dying medium, but there is still demand for it and sales indicate that, but we still should still remember that we still have shitty internet service around US with crappy speeds and data caps, and games are only ballooning in size with their patches *cough* Warzone *cough*.

RobertM · Feb 3, 2021

Gamechanger87 said:
Shorts covered last Wednesday.

Been saying that for awhile.

Any short interest is new money with time and gains ahead of them as they got in at $300+.

Everyone claiming short interest was over 100% heading into the weekend doesn't understand what happened last week when all hedge funds pulled back risk across the market in the largest degrossing since corona.

Interesting how that works where all of a sudden we were limited to stock buying, and yet we are still here a week later with again limited to how much stock we can buy, disinformation campaign raging on, the silver squeeze nonsense, bots on reddit telling people to sell, ladder attacks this week. Tell me oh wise one, why are they still trying to push the stock down if they "covered" last Wednesday. Either you're full of shit or we all are dumb. Tell me, what would have happened on Thursday if brokers didn't limit the stock buy?

Chopchop said:
According to the news, part of them have been covered. Maybe half? Reddit seems to think there's still plenty left over, but I don't know if I believe them.

I feel like there is probably still enough left over to make the price go up momentarily sometime in the near future, but it probably won't shoot that high, and that's just my opinion anyway.

Data, where? Guh

SapientWolf · Feb 3, 2021

RobertM said:
Interesting how that works where all of a sudden we were limited to stock buying, and yet we are still here a week later with again limited to how much stock we can buy, disinformation campaign raging on, the silver squeeze nonsense, bots on reddit telling people to sell, ladder attacks this week. Tell me oh wise one, why are they still trying to push the stock down if they "covered" last Wednesday. Either you're full of shit or we all are dumb.

Data, where? Guh

He's not full of shit.

Ashhong · Feb 3, 2021

I'm confused with the silver situation. Saw a lot of hype around SLV, was that just another stock like NAKD that was getting the GME glow? Or was it something more complicated than that?

Avitus · Feb 3, 2021

Ashhong said:
I'm confused with the silver situation. Saw a lot of hype around SLV, was that just another stock like NAKD that was getting the GME glow? Or was it something more complicated than that?

Yes but as a long term thing, not an attempt at a short squeeze or anything immediate.

WSB is full of bots and people were quick to throw money in every direction during the frenzy.

Deleted member 2379 · Feb 3, 2021

RobertM said:
Interesting how that works where all of a sudden we were limited to stock buying, and yet we are still here a week later with again limited to how much stock we can buy, disinformation campaign raging on, the silver squeeze nonsense, bots on reddit telling people to sell, ladder attacks this week. Tell me oh wise one, why are they still trying to push the stock down if they "covered" last Wednesday. Either you're full of shit or we all are dumb. Tell me, what would have happened on Thursday if brokers didn't limit the stock buy?

Data, where? Guh

Massive degrossing across all hedge funds last week. Amazon went down because it was a pair trade with short GameStop. All PBs said hedge funds were out of shorts and just playing with each other on the vol.

All of my commentary on the shorts was confirmed over the weekend and yesterday when the latest numbers said shorts were only 50 percent of float.

I've been right every step of the way here.
Retail flows were like 5-10% of the actual volume especially at those prices. Retail is just a tiny piece of the market. Even in this stock. Price moved up because other hedge funds saw a squeeze and pushed it. Not a bunch of retail.

you can complain all you want but I'm calling it like I'm seeing it from what I know which is more than you.

Silver was likely a few people trying to gather the masses to chase something else because it never moves. Hedge funds are net long silver.

also, what the heck is a short ladder attack? These don't exist. You can't target a particular participant in the exchange. You just fire in a price to the order book. Off market transactions don't move the price. A Short Ladder attack is a made up concept from people trying to justify why things went against them.

Ashhong · Feb 3, 2021

Avitus said:
Yes but as a long term thing, not an attempt at a short squeeze or anything immediate.

WSB is full of bots and people were quick to throw money in every direction during the frenzy.

Ah I see. I saw some posts about how it was the hedge funds pumping silver, and how buying silver directly pays the hedge funds or something like that. Didn't really make sense to me. I bought some myself on the dip today but am willing to hold it long.

FreezerGeezer · Feb 3, 2021

Took out half last week and made big ol' profit (At least for me), just going to let the other half sit there and see what happens.

Caz · Feb 3, 2021

Jintor · Feb 3, 2021

Hoo boy

japtor · Feb 3, 2021

Big oof at the guys holding on hoping to hit it big...that already hit it big last week and lost it all hoping for more.

hayabusi · Feb 3, 2021

It's quite unbelievable for me that people invest their savings in this.

I put in only 600€ on Monday (yes, too lttp) and losing it doesn't effect me at all. But at the same time it bothers me that I will most probably lose all of it..
Perhaps a good sign in that I will never develop a gambling addiction or similar.

Chackan · Feb 3, 2021

Guess I'm going really really looong with my 0.4% of a share lol

Figured this would happen, that is why I never bothered investing more than 100$, although even that sucks too loose but hey, had to try!

Abominuz · Feb 3, 2021

I did not buy any GME stocks, i already could see it happening and was to late to hop on. I bought a little AMC just to see what the movements are and what will happen. If you do not know what you are doing never bet more then you are willing to lose. I saw a lot of people with no understanding buy in high and expecting to make a big profit off it. And now they are crying beacause they lost so much. And they forgot what wallstreetbets is about, it is betting and winning it all or losing it all. If you want to learn about stocks, learn somewhere else.

Deleted member 20964 · Feb 3, 2021

God damn at the conspiracy theories running wild in the sub. Most of these people know absolutely nothing but keep throwing terms like "SHORT LADDER ATTACK" around with absolutely zero evidence. People with sensible opinions getting downvoted or called bots. There are multiple big players in the game, retail has not even 10% of the power they think they have. Delusional. Yes, some hf lost a lot of money, but that's it, they are smart but most importantly they are QUICK. Way quicker than average Joe can ever be. The squeeze happenend or would have happenend if RH hadn't run out of money on Thursday. Either way, Thursday was the high. I'm also laughing at the VW comparisons. Fucking idiots.

KillLaCam · Feb 3, 2021

I just dont get why people YOLOd their life savings into it. If you're gonna do something like this at least do it with some money that your don't actually need. Like sure I probably wasted a bunch of money on it, but it was money that would have been wasted on random shit I didn't need anyway. Even gambling on a random stock would have more potential positives and entertainment than buying some expensive clothes to wear around the house during the pandemic.

Deleted member 20964 · Feb 3, 2021

KillLaCam said:
I just dont get why people YOLOd their life savings into it. If you're gonna do something like this at least do it with some money that your don't actually need. Like sure I probably wasted a bunch of money on it, but it was money that would have been wasted on random shit I didn't need anyway. Even gambling on a random stock would have more potential positives and entertainment than buying some expensive clothes to wear around the house during the pandemic.

Well, that's the essential fundamental thing those 6 mio newcomers did not understand about the sub. It's called "bets" for a reason; the "yolo" is the essential trademark move in that sub; those people were already in it long before the hype went through the roof; newcomers, hype and mania, were very useful; they know when to pull out and probably didn't even delete their 420.69 limit sells. And most of all, they do not fucking care about politics or any social movements. They care about money.

alphacat · Feb 3, 2021

I am losing IQ points reading the WSB Reddit.

Deleted member 51848 · Feb 3, 2021

Welcome to the world of naked short selling, where it's perfectly possible to borrow shares you will never own to drive down the price of a company whilst simultaneously locking retail investors out from being able to buy. This should be a lesson in market fairness. I.E - it isn't.

Son_of_Oden · Feb 3, 2021

Jumped in way to late at 230€ just for shits and giggles and jumped out at 110€. Lost a little bit of money but I calculated with this outcome anyway.
However, GME and AMC are still very interesting for day trading I guess, because both of them spiked this morning >40% but I'm still on the fence if I should risk it again due to being a total n00b when it comes to day trading etc.
For today I'll just keep following the stock (and how it will plummet after midday and close to closure).

Deleted member 27751 · Feb 3, 2021

I'm fine with my investment of $500AUD (bank so minimum $500 and we get fuck all retail apps) into AMC as I bought in at $10. I honestly see it getting to about $20, maybe $30 if lucky once vaccines are further rolled out. People are desperate for human contact and social enjoyment, plus Marvel movies are around the corner to bring hype.

Heck, the company just did the right thing and cashed in some of the hype to pay off their debts. Why the hell wouldn't you invest in a company that does that despite it being an aged medium against streaming? Like someone else said, even GameStop has itsuses in a world still barely connected efficiently against the growing size of video games. I live in the fucking desert of Queensland and our Internet is atrocious. I get all giddy going into an EB because I don't have to wait a billion years to download a game.

I'm glad there is an investigation underway though, the stock market is a shit concept that is purely for the rich to rip off each other and destroy companies values. Brokers fucking off retail investors too is just classist, removing any ability for those wanting to try their hand at investing.

Kyuuji · Feb 3, 2021

Eorl said:
I'm fine with my investment of $500AUD (bank so minimum $500 and we get fuck all retail apps) into AMC as I bought in at $10. I honestly see it getting to about $20, maybe $30 if lucky once vaccines are further rolled out. People are desperate for human contact and social enjoyment, plus Marvel movies are around the corner to bring hype.

Heck, the company just did the right thing and cashed in some of the hype to pay off their debts. Why the hell wouldn't you invest in a company that does that despite it being an aged medium against streaming? Like someone else said, even GameStop has itsuses in a world still barely connected efficiently against the growing size of video games. I live in the fucking desert of Queensland and our Internet is atrocious. I get all giddy going into an EB because I don't have to wait a billion years to download a game.

I'm glad there is an investigation underway though, the stock market is a shit concept that is purely for the rich to rip off each other and destroy companies values. Brokers fucking off retail investors too is just classist, removing any ability for those wanting to try their hand at investing.

This is a lot more of a tempered post than these..

Eorl said:
$585 worth of AMC, it's a slow burner but it is primed to go boom.

Eorl said:
AMC is the second highest shorted stock on the market, and even outside of that it has a rather healthy investment now that the company is out of bankruptcy. Add in once vaccines rollout and the human need for social interaction, you've got a powder keg waiting. The short squeeze side comes from hedge funds erroneously causing it to be shorted, relying on that bankruptcy to gain profits.

Eorl said:
It is actually lined up in the exact same trend as well, complete with ladder stacking/push to silver to avoid hedge funds losing out. $88 is key to this short squeeze, due to the pricing.

..though I'm still not 100% sure it's grounded in reality when AMC hasn't been consistently above $20 a share since before July 2017.

So what fundamental analysis behind these price points ($20/$30) do you have other than them just being double or triple your buy-in. You've been bullish and promoting a stock that's seen losses in others here alongside the other meme stocks, so I think it's prudent to show how much depth of thought is in this position beyond it being a vested interest for others to buy in.

If there's tangible reasons why you see those figures and a near 5Y high being hit spread them out so that people can understand why you see it going that high.

From reading articles the current bearish points are:

The stock price wasn't anywhere close to the expected levels pre-COVID
Return rates to cinemas post-COVID aren't guaranteed to be higher than years prior
AMC have been issuing more shares as a means to get out of their financial position with the possibility of issuing more in the future
They still hold ~$5.7bn of debt growing each quarter with ~$450m in deferred rents
Some analysts put the future value at $1 because of how much they needed to dilute to achieve solvency

Deleted member 2379 · Feb 3, 2021

ModularBen said:
Welcome to the world of naked short selling, where it's perfectly possible to borrow shares you will never own to drive down the price of a company whilst simultaneously locking retail investors out from being able to buy. This should be a lesson in market fairness. I.E - it isn't.

Do you know what a naked short sale is?

Do you know how it happens? Can you please explain the functionality of when these happen an how?

Deleted member 51848 · Feb 3, 2021

Gamechanger87 said:
Do you know what a naked short sale is?

Do you know how it happens? Can you please explain the functionality of when these happen an how?

Naked short selling redefining systemic risk (part 1 of 2)

There is some evidence suggesting the federal government is spending tens of billions of dollars to deal with the accumulation of failed trades caused by ill...

youtu.be

Deleted member 2379 · Feb 3, 2021

ModularBen said:
Naked short selling redefining systemic risk (part 1 of 2)

There is some evidence suggesting the federal government is spending tens of billions of dollars to deal with the accumulation of failed trades caused by ill...

youtu.be

Lol.

Get out of conspiracy land. Are you really going to post a video like that as evidence of what naked short selling is? By posting that video, you have shown that you have no idea how any of this works.

I mean really...

When an investor wants to short a stock, the market maker essentially does a "locate" which looks for any shares available to be borrowed. The market maker is not supposed to allow the investor to short the stock until they have located a borrowable share. If the MM allows the investor to short the stock without finalizing the locate and matching that is considered a naked short as there is no share on the other side.

This is very rare and it has nothing to do with the investor. The investor doesn't say I want a naked short. All that happens is they say they want to short a stock and the MM handles the rest.

Deleted member 51848 · Feb 3, 2021

Gamechanger87 said:
Lol.

Get out of conspiracy land. Are you really going to post a video like that as evidence of what naked short selling is? By posting that video, you have shown that you have no idea how any of this works.

I mean really...

When an investor wants to short a stock, the market maker essentially does a "locate" which looks for any shares available to be borrowed. The market maker is not supposed to allow the investor to short the stock until they have located a borrowable share. If the MM allows the investor to short the stock without finalizing the locate and matching that is considered a naked short as there is no share on the other side.

This is very rare and it has nothing to do with the investor. The investor doesn't say I want a naked short. All that happens is they say they want to short a stock and the MM handles the rest.

Yes. A naked short happens when a share is borrowed but never bought. They report all undelivered shares at the end of every day. That video is an interesting look at what happened to one company that had agressive short positions taken against it to drive down its stock price. Naked shorting is essentially what brought down Barings bank and that is also covered in the vid.

Deleted member 2379 · Feb 3, 2021

ModularBen said:
Yes. A naked short happens when a share is borrowed but never bought. They report all undelivered shares at the end of every day. That video is an interesting look at what happened to one company that had agressive short positions taken against it to drive down its stock price. Naked shorting is essentially what brought down Barings bank and that is also covered in the vid.

Do you work in the industry or are you a keyboard warrior pulling poorly put together videos from WSB to just make it seem that way?

That video is from 2009 and references a situation from 2003 before Reg SHO was in place. Reg SHO was further modified in 2010 to include Rule 201 which mandates that when a stocks price decreases more than 10% in a day, all short sales must be above the current bid which prevents regular short sellers from accelerating the decline.

But you knew that right?

steejee · Feb 3, 2021

Looking like a baby bounce here today for AMC/GME.

They trajectory feel like a rubber ball you slam into the ground - first jump goes super high, then drops hard, then bounces back up but a lot shorter, then again and again, till it's just doing little baby bounces fast. Each time, coming up short of the previous bounce.

GattsuSama · Feb 3, 2021

belairjeff said:
this isn't investing. This is gambling. Never gamble anything you are not willing to lose.

Investing IS gambling.

Deleted member 4090 · Feb 3, 2021

The term "Short Ladder Attack" is totally new, it seems?

Reddit - Dive into anything

www.reddit.com

No Google results before this whole debacle. A "short attack" is something different that doesn't apply to Thursday, I guess, based on both the volume and the situation (shorting when low is way different than shorting when at 100x).

GameStop (GME) Stock Surges Amidst New Board, Short Squeeze [Read Threadmarks]

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