Game Stop Stock, GME

[3rd_gear_Ted]

All the hedge funds are now starting to add "natural language" processing to capture social media sentiment within their Algorithms. Time to start talking in IB. (sIBell gIBamestock)

[speeder]

The crazy thing is that I could show you several stocks that have gone up as much or more in the last month or so with no manipulation at all...the market is that crazy. At least one of these, I was in:

BNGO
JAGX
PLUG

Look at the 6 month or one month chart for any of those.

[Z-man]

Originally Posted by speeder

The crazy thing is that I could show you several stocks that have gone up as much or more in the last month or so with no manipulation at all...the market is that crazy. At least one of these, I was in:

BNGO
JAGX
PLUG

Look at the 6 month or one month chart for any of those.

And I bet that every one of those stocks have better valuations than Gamestop does.

In the end, research and wise investments always win over speculation, manipulation, and hunches...

[KFC911]

Originally Posted by Z-man

...
In the end, research and wise investments always win over speculation, manipulation, and hunches...

Not always.... just like lotteries and Vegas .... some will win just playing along.

I am not one of those

[speeder]

Originally Posted by Z-man

And I bet that every one of those stocks have better valuations than Gamestop does.

In the end, research and wise investments always win over speculation, manipulation, and hunches...

Generally good advice but a guy could get awfully rich just paying attention to which way the wind is blowing as well. Some people are better at that then others.

[jyl]

Originally Posted by beepbeep

It is currently +4% in Germany. Things like this happen only once in the blue moon. Dotcom crash, 2008 crash, algo flash crash, VW short squeeze. And now this...

According to what I can read on net, GME is still heavily (>100% shorted). Shorters will need to cover if GME stock remains artificially propped up . Enter combined gamma squeeze and short squeeze. Perfect storm.

There is a risk that hedge funds will (or already are) sell their other long positions to cover short bets in GME, which might bring whole marked down...market which is already in stratosphere compared to fundamentals.

That has already happened this week, long/short hedge funds have degrossed a lot and fast, don’t know if they are done but probably mostly so.

GME shorts have either held on to positions or new shorts have stepped in. But I’d think the new shorts are well hedged. Other HFs are likely (certainly) on the long side, or in different options trades.

[Sooner or later]

If they liked shorting it at 10 or 15 they gotta love it at 350.

[Sooner or later]

Killing the rich investors!

https://www.investors.com/etfs-and-funds/sectors/gme-stock-gamestop-investors-instantly-make-16-billion-gamestop-stock-squeeze/

Nine investors, including large fund-running institutions like Fidelity FMR and BlackRock (BLK) plus some well-positioned individuals like Chewy (CHWY) co-founder Ryan Cohen watched the value of their GameStop holdings soar more than $1 billion. That's based on an Investor's Business Daily analysis of the most current holdings reported to S&P Global Market Intelligence. It's possible some of these investors may have boosted or cut their stakes since the rally.

All told, these nine investors made a total of $16 billion on their GameStop stakes, just this year.

[Tervuren]

Made, as in, they cashed out?
It's not the chips out on the table that are your winnings..

[Sooner or later]

Originally Posted by Tervuren

Made, as in, they cashed out?
It's not the chips out on the table that are your winnings..

Same with the mob that has drives up the price to hurt the rich. How are they going to unwind their holdings? Yet, the rich are still on track to make an even bigger return because of the mob.

[jyl]

Originally Posted by Sooner or later

Same with the mob that has drives up the price to hurt the rich. How are they going to unwind their holdings? Yet, the rich are still on track to make an even bigger return because of the mob.

Some will cash out, others won’t - just like the retail traders.

RH raised an emergency $1BN to meet capital requirements. I would guess they are between a rock and a hard place. If they restrict trading, their customers bail. If they don’t, they need more and more capital. RH must be wishing this settles down. The CEO has done a bad job communicating, as in alternating between no communications and lying (claimed no capital issue). Their VC investors are also kinda stuck - watch the juicy IPO go away or dump more and more capital into this company.

[Sooner or later]

Wouldn't Fidelity and Vanguard be selling into the feeding frenzy? It's volume has been averaging over 100 million a day. They hold too much to feed much at a time. It looks to me the mob jumped back in everytime the price drops.

[jyl]

Originally Posted by Sooner or later

Wouldn't Fidelity and Vanguard be selling into the feeding frenzy? It's volume has been averaging over 100 million a day. They hold too much to feed much at a time. It looks to me the mob jumped back in everytime the price drops.

If the shares are in passive (index) funds (e.g. IWO) then I’m not sure what their flexibility is to sell. In active funds, I suspect they are selling.

[Sooner or later]

Originally Posted by jyl

If the shares are in passive (index) funds (e.g. IWO) then I’m not sure what their flexibility is to sell. In active funds, I suspect they are selling.

Good point on the index funds.

[Z-man]

Originally Posted by KC911

Not always.... just like lotteries and Vegas .... some will win just playing along.

I am not one of those

Neither am I... everytime I 'played along,' I lost. To the tune of a 60% loss once. That was sufficient to learn me

[dafischer]

I learned my lesson about playing along when the dot com bubble burst. Did make some good coin for a while, though.

[Alan A]

Originally Posted by Sooner or later

Same with the mob that has drives up the price to hurt the rich. How are they going to unwind their holdings? Yet, the rich are still on track to make an even bigger return because of the mob.

The assumption in the case of GME is that since over 100% of the float is purported to be short the short sellers will be forced - by margin calls - to close the positions and so long as they stick sell orders in at a price higher that they paid they are gtg.

[Alan A]

They are also - apparently - trying to do same with silver now. Given how JPM manipulated that market that could get interesting.

Edit: Since I don’t like throwing out unsubstantiated comments

https://www.cnbc.com/2020/09/29/jp-morgan-settles-spoofing-lawsuit-alleging-fraud-in-metals-trades.html

[jyl]

Originally Posted by Z-man

Neither am I... everytime I 'played along,' I lost. To the tune of a 60% loss once. That was sufficient to learn me

I think if you’re early, then it’s ok to play along with something like this, with risk control. By the time lots of people know it, it’s not early any more. And when every shoeshine boy is playing, it’s kinda late.

I used to own GME at my old shop, we bought in 2011, which was a little too early, bought more in 2012 then exited in 2015. That was a fundamental thesis /trade, it was for the console cycle that was coming, that was still going to rely on DVDs. Shorting in 2016 would have been early, shorting in 2020 seems kinda late. Going long in 2020 would have been early - even if you had to be something other than a fundamental investor to do it, that’s cool, different strokes for different folks etc. Now? When you can make or lose 60% in ten minutes? I’m not into that kind of strokes.

[thor66]

Originally Posted by Z-man

And I bet that every one of those stocks have better valuations than Gamestop does.

In the end, research and wise investments always win over speculation, manipulation, and hunches...

In the end, we shall all be dead.

- apologies to JM Keynes