Anyone else watching what is going on with GameStop?

Its absolutely fascinating and terrifying at the same time. I’m not much of a market or stock watcher but this is a current time Robin Hood story where a group of people are trying to stick it to short sellers.

CaptainMusky wrote:

Its absolutely fascinating and terrifying at the same time. I’m not much of a market or stock watcher but this is a current time Robin Hood story where a group of people are trying to stick it to short sellers.

It’s hilarious. I was told about it a week or so ago but neglected to buy. Two co-workers did at around $50/share. I don’t play the stock market and selling this stock at the right time is going to be clutch because when she starts going, it’ll crash faster than you can dump it!

ClownColor wrote:

It’s hilarious. I was told about it a week or so ago but neglected to buy. Two co-workers did at around $50/share. I don’t play the stock market and selling this stock at the right time is going to be clutch because when she starts going, it’ll crash faster than you can dump it!

Its up over $200 today. Man, I have to wonder what GameStop thinks of this because they are sort of an innocent bystander in all of this. Its got a market cap of $25B right now!

ClownColor wrote:

<div class=”d4p-bbt-quote-title”>CaptainMusky wrote:</div>
Its absolutely fascinating and terrifying at the same time. I’m not much of a market or stock watcher but this is a current time Robin Hood story where a group of people are trying to stick it to short sellers.

It’s hilarious. I was told about it a week or so ago but neglected to buy. Two co-workers did at around $50/share. I don’t play the stock market and selling this stock at the right time is going to be clutch because when she starts going, it’ll crash faster than you can dump it!

I agree. This is awesome. A lot of wealthy people have made big bucks short selling stocks who are now getting slapped in the face. The rollercoaster is fun to speculate on, but I don’t get involved. I have a co-worker who is all over this. He spends his free time as a hobby sifting through forums, reddit, and whatnot on speculation trading.

My coworker who is just a 29 year old middle class average joe said: “I didn’t time it perfectly, but I cashed out about $3400 ahead in 36 hours on Gamestop.”

It’s funny, I hadn’t heard anything about this so I googled “gamestop stock” and I see headlines such as “BofA warns Gamestop stock might crash 93%” and “Gamestop stock surges because of… reddit?”

Why all of a sudden does BofA and the MSM care about an individual (musk) and a website (reddit) causing a stock surge? Stocks are influenced by shareholders all day every day and it’s never headline news. Are they perhaps nervous because THEY didn’t drive the changes themself, rather the surge was manipulated by non-wallstreet entities?

Either way it’s curious. Thanks for sharing

It’s pretty crazy, especially considering the business!

KPE wrote:

It’s funny, I hadn’t heard anything about this so I googled “gamestop stock” and I see headlines such as “BofA warns Gamestop stock might crash 93%” and “Gamestop stock surges because of… reddit?”

Why all of a sudden does BofA and the MSM care about an individual (musk) and a website (reddit) causing a stock surge? Stocks are influenced by shareholders all day every day and it’s never headline news. Are they perhaps nervous because THEY didn’t drive the changes themself, rather the surge was manipulated by non-wallstreet entities?

Either way it’s curious. Thanks for sharing

Yes, when the house doesn’t have an advantage it gets nervous. this one stock has impacted the entire market.

Justin riegel wrote:

<div class=”d4p-bbt-quote-title”>KYLE P ERICKSON wrote:</div>
It’s funny, I hadn’t heard anything about this so I googled “gamestop stock” and I see headlines such as “BofA warns Gamestop stock might crash 93%” and “Gamestop stock surges because of… reddit?”

Why all of a sudden does BofA and the MSM care about an individual (musk) and a website (reddit) causing a stock surge? Stocks are influenced by shareholders all day every day and it’s never headline news. Are they perhaps nervous because THEY didn’t drive the changes themself, rather the surge was manipulated by non-wallstreet entities?

Either way it’s curious. Thanks for sharing

Yes, when the house doesn’t have an advantage it gets nervous. this one stock has impacted the entire market.

Yup, and this created change has been done relatively efficiently and swiftly too. If some of the DIY mobile trading apps can keep up, this movement could continue to spread as average Joe’s can jump in on the fun, gambling, and “stick it to the wallstreet elites” mentality. I wouldn’t be shocked if some of the large lenders who drive a lot of what happens on Wall Street work quick to censor this and stabilize the markets.

buckybadger wrote:

Yup, and this created change has been done relatively efficiently and swiftly too. If some of the DIY mobile trading apps can keep up, this movement could continue to spread as average Joe’s can jump in on the fun, gambling, and “stick it to the wallstreet elites” mentality. I wouldn’t be shocked if some of the large lenders who drive a lot of what happens on Wall Street work quick to censor this and stabilize the markets.

I wouldnt be surprised if there are legislators working on this very thing right now.
I was reading some things on “dumbing down” how short selling works and its fascinating what this group is doing to the short sellers who were trying to crush GameStop which is just another in a long line. AMC is the company the reddit group is going after now too. Its up 228% today. LOL

One of the big winners of the GameStop surge, Chamath Palihapitiya, just cashed out and donated his $500k windfall to the BarstoolFund that is supporting small businesses and has raised over $32 million to do so. Pretty cool!

Blackberry is going through a similar (however not as dramatic) bump. They even came out and said Monday they have no idea why their stock is jumping.

BigWerm wrote:

One of the big winners of the GameStop surge, Chamath Palihapitiya, just cashed out and donated his $500k windfall to the BarstoolFund that is supporting small businesses and has raised over $32 million to do so. Pretty cool!

That is awesome! I would imagine a large number of these people doing this have really no desire to make a ton of money, moreso to crush the short sellers.

Speaking of him, here is an interview I just found where he talks about why the initial people were doing it, etc.

Amazing support for the retail investors. Tell them. Fair access for all to stock market. @chamath https://t.co/UIyVRNNwAe

— Eric Uwa (@uwarren_g) January 27, 2021

I’ve been reading about the Gamestop situation for a couple of weeks now.

The things that come to my mind are:

1. This is an amazing testimony to the power that can be exercised by a large group of bored people with internet access and time on their hands.

2. When this situation reaches critical mass, there’s going to be a blinding flash and then in .00003 seconds it will all be over. If you think you’re going to bail out on the way down, you’d better be really, really, really fast.

3. It’s interesting to me how visible short positions are, which makes me wonder where will all the Robin Hoods go when they’ve beaten the Sheriff of Gamestop shorters? I have to believe they’ll move on because, well, see point #1.

4. Matter cannot be created nor destroyed. Is the same true of finances? When this thing blows up, will the total of the losses by the short sellers equal the losses of those that bought for the purpose of driving up the stock price and then lost when the stock implodes?

Grouse

TheFamousGrouse wrote:

I’ve been reading about the Gamestop situation for a couple of weeks now.

The things that come to my mind are:

1. This is an amazing testimony to the power that can be exercised by a large group of bored people with internet access and time on their hands.

2. When this situation reaches critical mass, there’s going to be a blinding flash and then in .00003 seconds it will all be over. If you think you’re going to bail out on the way down, you’d better be really, really, really fast.

3. It’s interesting to me how visible short positions are, which makes me wonder where will all the Robin Hoods go when they’ve beaten the Sheriff of Gamestop shorters? I have to believe they’ll move on because, well, see point #1.

4. Matter cannot be created nor destroyed. Is the same true of finances? When this thing blows up, will the total of the losses by the short sellers equal the losses of those that bought for the purpose of driving up the stock price and then lost when the stock implodes?

Grouse

Wow. Two weeks ago this stock was sold at ~$20 a share. Today it’s currently going somewhere in the range of $350 per share. I can only wish I would’ve read about it 2 weeks ago.

TheFamousGrouse wrote:

3. It’s interesting to me how visible short positions are, which makes me wonder where will all the Robin Hoods go when they’ve beaten the Sheriff of Gamestop shorters? I have to believe they’ll move on because, well, see point #1.

Grouse

The DOW is taking a dump as the Hedge Funds sell off to cover for their shorts. The wise Robinhoods would be dumping GameStop and then moving on to those the Hedge Funds are dumping.

In the end this is going to backfire on them I am sure. Now you have the attention of the people (majority like me had no familiarity with the nuance of short-selling, etc) and they will find a way to make this illegal and go back to the status quo that was the case before this came to light for many of us.

TheFamousGrouse wrote:

3. It’s interesting to me how visible short positions are, which makes me wonder where will all the Robin Hoods go when they’ve beaten the Sheriff of Gamestop shorters? I have to believe they’ll move on because, well, see point #1.

It’s already happening with AMC, Nokia, and BlackBerry (yes THOSE cell phone companies ). And I’m sure there will be more. I think the real question is what Wall Street does to prevent this from happening again in the future, they don’t want the Proleteriat messing with the games they’ve been playing for decades.

buckybadger wrote:

Wow. Two weeks ago this stock was sold at ~$20 a share. Today it’s currently going somewhere in the range of $350 per share. I can only wish I would’ve read about it 2 weeks ago

To be clear, I was referring to Gamestop’s business situation in general, which along with a lot of other bricks and mortar retailers who are struggling in the pandemic, has generated a lot of chatter going back months. I’m not saying I saw the counter-short-sell or a $300+ per share runup coming and even if I had, I’d have given it a wide berth. As I said when this blows up…

BigWerm wrote:

It’s already happening with AMC, Nokia, and BlackBerry (yes THOSE cell phone companies ). And I’m sure there will be more. I think the real question is what Wall Street does to prevent this from happening again in the future, they don’t want the Proleteriat messing with the games they’ve been playing for decades.

It’s going to be difficult to justify how it should be made illegal to organize the buying of a stock to make the price rise, while at the same time justifying keeping it legal to gamble on the decline in the price of a stock.

Here’s an idea. How about we tax short sale profits at about 50 or 60%?

Grouse

I just read a lengthy thread on Twitter from some guy that started on Jan 25th and in it he outlines some possible collusion between one particular Hedge Fund and Robin Hood (the company making these trades on behalf of the #runup). It will be interesting to see how this plays out because if his accusations are accurate, then Citadel a rival Hedge Fund was likely in on this from the beginning which would certainly be illegal NOW, but how to prove that will be tough. They stand to gain at the demise or destruction of Melvin Capital. Hmmm, this is getting juicy!

BigWerm wrote:

One of the big winners of the GameStop surge, Chamath Palihapitiya, just cashed out and donated his $500k windfall to the BarstoolFund that is supporting small businesses and has raised over $32 million to do so. Pretty cool!

his interview today on CNBC was pretty phenominal.

I bought in at 60 and again at 90. I just sold half my position at close today. not a ton but enough for a few upgrades to my fishing equipment.

I took out 3x what i put in. the rest can just ride as part of the revolution!

here is kind of the jist for those wondering:

Hedge funds shorted GME more than was possible in reality.

Someone noticed a majority of GME was being held in short and let everyone know

GME took off

Everyone kept shorting thinking they could manipulate to get out

They couldn’t and now :

Although individual sellers might crap their pants and sell and buy their grandma a house, there is still no way people will sell en masse because the last few days have ONLY reinforced their positive collective position (Chamath, Musk, etc).

There is no way for regulatory bodies to actually shut this down without admitting OPENLY and INARGUABLY that the game is rigged more than even the most critical cynics thought 3 months ago. Which might legit cause world wide riots (more than we already are having)

Very interesting info hnd!
I see that the Reddit group WallsteetBets Group has been banned on platforms. THis is how the suppress once again. Looking at after hours trading, which regular traders cant do, AMC and GME both dropped overnight.

Looking like both Blockbuster stocks are gonna start bumpin now.

The group is targeting Nokia, Blackberry and Blockbuster as well as AMC. Its kinda fun as someone with no skin in the game to watch them interact.
Apparently they shutdown the Robinhood trading solution too. So much for them exposing the corruption in wallstreet and now they are getting censured and the good ole boys are allowed back in the sandbox. They are being blocked from buying and can only sell. How is this not market manipulation? THey have closed trading for each of those companies as of a few minutes ago.

A day late and a dollar short LOL

CaptainMusky wrote:

Very interesting info hnd!
I see that the Reddit group WallsteetBets Group has been banned on platforms. THis is how the suppress once again. Looking at after hours trading, which regular traders cant do, AMC and GME both dropped overnight.

yeah these hedge funds are paying millions and millions in interest DAILY. they pay interest each day as a percentage of the stocks value.

AND still have to buy back the stock eventually.

Now I’m not so naive to think that there aren’t likely other hedgefunds also working behind the scenes to make boatloads of money on this.

hnd wrote:

Now I’m not so naive to think that there aren’t likely other hedgefunds also working behind the scenes to make boatloads of money on this.

What I was reading yesterday is that one in particular Citadel has paid Robinhood to get access to their data prior to the trades going through so they could see the activity in advance. Then, they could jump on it and potentially get trades in ahead of those coming from the Robinhood app. This was the twitter thread I was referencing yesterday. I dont even claim to have the remotest of ideas of how these all works, but that seems super shady LOL.

Citadel is the market maker for 70% of Robinhood’s trades. So they get the data. Citadel is the same company that bailed out the one Hedgefund that took the largest beating. one of the most successful hedgefunds over the past 10 years. Citadel now got in on that dirt cheap.

ALSO 117% of GME shares are held institutional. retail investors are estimated to truly only own around 5% of GME shares. institutions own the rest.

If you are blinking at the screen at 117% of available shares, you are reading right. They own/borrow shares that don’t even exist.

Pretty wild that TD Ameritrade and Robinhood are pulling trades on these companies, seems like market manipulation to me, but I don’t know anything about trading laws.

TDA is only stopping margin trades if you have cash in your account to cover you can still buy stocks and options.

It appears to be on the down swing today. It briefly hit almost $470/share earlier. AMC has also settled down.