-
Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.
The battle over Gamestop is getting really interesting
- Thread starter LordOfChaos
- Start date
LordOfChaos
Member
Yep, I know nothing but that does not look healthy at all
You have to look at it in terms of other infinite short squeeze events of its kind, and there have been very few. It looks bonkers irrational, but if a short gets margin called they have to buy their position out, and with very low shares selling that's what it looks like. We've only seen the bumps and dips of the gamma squeezes so far.
Not saying if anyone should buy or not. But if the thesis is correct we're not at the middle finger part of the Volkswagen squeeze yet.
Last edited:
Buggy Loop
Member
The good news out of all of this is that GameStop will have shaken off the leeches and probably repulse then for years to come. They’ll be so much lighter after, even if their stocks falls to a ~60$. Imagine being covered from leeches almost like the pig in princess mononoke and then be freed.
D
Deleted member 17706
Unconfirmed Member
Their tagline is finally true! For these last few days at least.
NecrosaroIII
Ultimate DQ Fan
I fucking hate myself for not investing in GME stock back in september.
DaleinCalgary
Member
edit: whatever
Last edited:
I fucking hate myself for not investing in GME stock last Friday.
*Nightwing
Member
I don't think that's good news, its market price is still artificiality inflated in my non-professional opinion.The good news out of all of this is that GameStop will have shaken off the leeches and probably repulse then for years to come. They’ll be so much lighter after, even if their stocks falls to a ~60$. Imagine being covered from leeches almost like the pig in princess mononoke and then be freed.
Gamestops executives are kicking and screaming fighting with the board on their way to being modernized to the 21st century.
The reason their stock was being shorted from the go is because the value of it is always going to go in one direction only if they keep making stupid mistakes like having a CEO in this day and age that refused to shift focus from brick and mortar retail to online sales. To the point the board voted and forced to add competent investors to the board of gamestop to try and turn it around to focus on online sales to save the company.
I hate gamestop as one of the numerous people they tried to bleed dry as an employee back in the day and have been waiting for the entire company to become insolvent with glee, but they will survive as this will artificially inflate their worth which will allow them to borrow against it to continue to shift towards focusing on building a larger scalable online infrastructure. They actually have a pretty good warehouse/logistics for the stores but have never focused on swapping that to online retail which this fun madness will give them the borrowing capital to do since each CEO they have had in the past decade at least has been a star in brick and mortar retail but idiots in internet retail driving thier worth down making it ripe for shorting.
PuppetMaster
Member
Even Michael Pachter chiming in on this. Haven't seen him in a while. He has let his hair grow out!
He makes the other analyst look like a idiot when it comes to video games. But still... he is probably wrong. Because he is Pachter.
finance.yahoo.com
He makes the other analyst look like a idiot when it comes to video games. But still... he is probably wrong. Because he is Pachter.
Retail investors, hedge funds go to war over Gamestop
Wedbush's Michael Pachter on the monumental run-up in Gamestop shares that's pitting the Robin Hood crowd, versus hedge funds shorting the stock.
Grumpy Toe Nail
Banned
Bought about 45 shares @ 91 yesterday. Still holding.
LordOfChaos
Member
Even Michael Pachter chiming in on this. Haven't seen him in a while. He has let his hair grow out!
He makes the other analyst look like a idiot when it comes to video games. But still... he is probably wrong. Because he is Pachter.
Retail investors, hedge funds go to war over Gamestop
Wedbush's Michael Pachter on the monumental run-up in Gamestop shares that's pitting the Robin Hood crowd, versus hedge funds shorting the stock.
Not bad, not bad. I don't know what other anal-ysts are looking at saying physical is going away in less than the timeline he gave of 7 years iirc. Look at the stats of how physical is fading, yeah it'll go away, but not tomorrow, not next year or the year after.
One thing I would have brought up if I was him was that it does impact Gamestop's business decisions in one way, which is that they can raise capital out of this. A share offering of 10m shares may put a temporary dent in this movement but it would allow them the running capital for more time and leeway to pivot to other businesses.
Cohen's been entirely quiet through all of this. I think he wants all the shorts completely shaken off even if it means not getting an offering in at the highest it can be.
{insert code here}
Member
Except they don't have to borrow anything to raise capital. They bought back 30M+ of their own shares last year when it was trading in the $2-4 range. There's only 69M total shares available to be traded and they own almost half of them. As far as I know they haven't sold any yet but they could issue 10 million shares tomorrow at market value to raise over 2 billion in capital and still have another 20M+ shares to leverage in the future.
Last edited:
LordOfChaos
Member
LordOfChaos
Member
kiunchbb
www.dictionary.com
'Big Short' investor Michael Burry made a 1,500% gain on GameStop during its Reddit-fueled rally
The Scion Asset Management chief's investment ballooned in value from $17 million to as high as $271 million in under four months.
markets.businessinsider.com
D
Deleted member 17706
Unconfirmed Member
Makes zero sense to me. The only thing that caused this situation was the massive shorting. Is that what he's talking about, or is he mad that it looks like mere retail investors are actually going to make it out on the other end of this thing with some real wealth? Cause yeah, I guess that would be rather 'unnatural'.
Last edited by a moderator:
OuterLimits
Member
GameStop eventually settling between $80 and $100 is a damn joke for the current health of the company overall.(so was $3 though)
not that it matters much in this climate since Wall Street doesn't reflect main street. Hell, the market is surging to record levels despite a pandemic/lockdowns and massive unemployment. It's all good though because Amazon and other giant corporations make record profits while small businesses get destroyed.
The Government then pumps trillions in relief funds(which never help the small businesses) and the market cheers while the dept increases to insane levels.
Our whole system has became a damn nightmare. I'm happy some are making money off this at least.
Granted, I have a fairly significant amount invested in this giant casino as well.
Last edited:
Buggy Loop
Member
Really good movie btw, if you have not seen. The big short
Maybe someday they’ll make a movie about the big squeeze.
StreetsofBeige
Gold Member
Unless you are shorting GME, this is fantastic news.
Not only are GME shareholders going long making a killing, but this whole thing seems orchestrated by the reddit community against short attack hedge funds. And anyone whose invested a long time has surely been nailed by these asshole firms who say the company sucks, the stock drops 30% and then they slither away after they've cashed in. Then they say..... OK, the company isn't so bad after all. Bye. But they already cashed out leaving normal investors holding the bag in the dust.
Other stocks owned by the same Melvin company are also getting pumped higher making Melvin going down the tubes. They've lost $3 billion and have resorted to borrowing from other investment companies to cover.
If the reddit community keeps this up, it gives any investor opportunity to latch onto other stocks and hope to make a quick buck and get out. You just got to track which stocks are involved.
Other stocks who've similarly shot up which Melvin shorted include AMC, Bed Bath Beyond, Blackberry, iRobot, National Beverage. There's a coordinated effort to put this fund who likes attacking and shorting companies into the ground.
Not only are GME shareholders going long making a killing, but this whole thing seems orchestrated by the reddit community against short attack hedge funds. And anyone whose invested a long time has surely been nailed by these asshole firms who say the company sucks, the stock drops 30% and then they slither away after they've cashed in. Then they say..... OK, the company isn't so bad after all. Bye. But they already cashed out leaving normal investors holding the bag in the dust.
Other stocks owned by the same Melvin company are also getting pumped higher making Melvin going down the tubes. They've lost $3 billion and have resorted to borrowing from other investment companies to cover.
If the reddit community keeps this up, it gives any investor opportunity to latch onto other stocks and hope to make a quick buck and get out. You just got to track which stocks are involved.
Other stocks who've similarly shot up which Melvin shorted include AMC, Bed Bath Beyond, Blackberry, iRobot, National Beverage. There's a coordinated effort to put this fund who likes attacking and shorting companies into the ground.
Last edited:
{insert code here}
Member
Yeah these guys probably won't stop at GME. After the squeeze has fully played out, they're going to look for another vulnerable hedge fund and if there's a play to be made they will make it. And if there is a next play I think a lot more people will be on board from the start.
StreetsofBeige
Gold Member
I'm all for putting short attack companies out of commission. I remember having Aphria years ago (made money). In Dec 2018, Hindenberg came out shorting it saying its a scam. They even posted pictures in a PPT presentation and claiming "90% of our short analysis is true". The stock dropped from around $10 to 6 in two days.
I held. It rebounded, and I sold for $11 later on.
After their claim, people were posting they purposely got the address wrong and took pics of the wrong location.
A few weeks after (mid December), they quietly said on Twitter (responding to a guy) that they've changed their mind and that Management has improved.
Ya ok asshats. You made your short money and bolted probably days ago.
Last edited:
I hope this goes on until every short is bankrupt and on the streets. Fuck shorts. I want this shit to be biblical.
They can bring back Christian Bale as Michael Burry, Elon Musk as himself, Henry Cavill as DFV, Bob Odenkirk as Andrew Left, Alan Cumming as Gabriel Plotkin and a more naked Margot Robbie to explain the technical terms for regular movie goers.
James Sawyer Ford
Member
Why "fuck shorts"? There's nothing wrong with shorting a stock, as it's useful in terms of price discovery. GME is just an extreme example of it being overly shorted (and possibly fraudulent).
{insert code here}
Member
Strider Highwind
Banned
I bought some more after initially getting out while up big and the shits going insane right now
Also grabbed 400 shares of AMC at a little over 4 dollars yesterday lol....What a fucking week
ahahahahahhaa im out
Also grabbed 400 shares of AMC at a little over 4 dollars yesterday lol....What a fucking week
ahahahahahhaa im out
Buggy Loop
Member
You checked the premarket for AMC?? You’ll bank
What's going to happen with Citron and Melvin saying they closed out their short?
www.cnbc.com
Melvin Capital, hedge fund targeted by Reddit board, closes out of GameStop short position
Melvin Capital closed out its short position in GameStop on Tuesday afternoon after taking a huge loss, the hedge fund's manager told CNBC.
www.cnbc.com
Fox Mulder
Member
GameStop was the free stock I got signing up for Robinhood a few years ago.
LordOfChaos
Member
I've never seen anything like what's going on here. The number of 1-2 hour old Reddit accounts that are promoting lower than consensus exit points have skyrocketed, and a bunch of new accounts have profile pictures (LOL Boomers). The shorts are in full on FUD war. Good thing they're bad at it and it's been quite easy to spot the bullshit.
See the first link above, it looks like they can't have closed yet
What's going to happen with Citron and Melvin saying they closed out their short?
Melvin Capital, hedge fund targeted by Reddit board, closes out of GameStop short position
Melvin Capital closed out its short position in GameStop on Tuesday afternoon after taking a huge loss, the hedge fund's manager told CNBC.
See the first link above, it looks like they can't have closed yet
Last edited:
Trimesh
Banned
They were far from the only people shorting GME, even if they were the loudest and most obnoxious ones. The outstanding short interest is still > 100%, so there is no reason for the squeeze to end.What's going to happen with Citron and Melvin saying they closed out their short?
Melvin Capital, hedge fund targeted by Reddit board, closes out of GameStop short position
Melvin Capital closed out its short position in GameStop on Tuesday afternoon after taking a huge loss, the hedge fund's manager told CNBC.
BigBooper
Member
Almost 400 now. This is ready to blow.
Buggy Loop
Member
What's going to happen with Citron and Melvin saying they closed out their short?
Melvin Capital, hedge fund targeted by Reddit board, closes out of GameStop short position
Melvin Capital closed out its short position in GameStop on Tuesday afternoon after taking a huge loss, the hedge fund's manager told CNBC.
This is FUD I think, the short interest is still over hovering around 140%, barely dropped.
Even if they are gone, the shorters are worth approximately 12B$ of squeeze
BigBooper
Member
This is FUD I think, the short interest is still over hovering around 140%, barely dropped.
Even if they are gone, the shorters are worth approximately 12B$ of squeeze
So, if there's 12B$ of shorts left, I don't see this getting into the thousands like people are saying, at least not for longer than a few minutes. Look at the trade volume. 22,000,000 before the first hour is over around $300. No way these people really hold out for the thousands some are claiming.
Last edited:
Buggy Loop
Member
Andodalf
Banned
100% A Squeeze in the modern era will last minutes instead of weeks
Buggy Loop
Member
Ah sorry, should have clarified that this was last night at closure. The more the shorters hold and the price goes up, the more the bag fills, until they are either bankrupt or they get margin called because they no longer have the capital to cover that big red number.
In the end, they have not budged on short positions. They’re insane.
LordOfChaos
Member
Jesus Elon Christ. Made 16K taking a shit today. Still diamond hands here, I have my cost basis out but that's it. 420 is looking like a joke and 1K is starting to look EZ.
Remember, Elon had 20x the followers of WSB, and the short pressure still appears to be on.
Remember, Elon had 20x the followers of WSB, and the short pressure still appears to be on.
Trimesh
Banned
I don't think you understand how a short position works. Effectively, you borrow the shares and then sell them. Let's say you borrowed the shares when they were at $5 and then sold them - you realized $5 in cash, but owe one share. As the share price goes up, the amount of interest or margin you have to pay to hold that position also increases. Sure, if you have enough money you can theoretically hold the position indefinitely, but you will be constantly bleeding cash while doing so. The other option is to just exit the position - this will turn your unrealized loss into an actual loss (since you have to buy the stock at current market value), you at least you stop bleeding.
On top of this, a lot of the smarter shorts had bought OTM call options to put some limit on their downside risk - for example, if our notional short had bought $20 calls back when the stock was $5 they would be extremely cheap because they are so far out of the money - and it means that no matter how high the stock gets they can buy it for $20 at option expiry, hence providing an upper bound to the potential losses.
The flip side of this is that then whoever sold the calls (probably a market maker) would be on hook for obtaining those shares - and no matter what the current market value is, they have to sell them for the strike price in the option - in this case, $20. This is a very quick way to rack up massive losses.
Sure, nobody would WANT to pay $6900 for a GME share - but if you are in a position where you have no choice but to close the position and that's the lowest ask price on the board then you don't have any choice.
BigBooper
Member
You are 100% correct I don't understand shorts or options very well, but this is the point I was talking about. "that's the lowest ask price on the board"
People aren't showing that's likely to be the case.
D
Deleted member 17706
Unconfirmed Member
That's what they say every day until all it comes crashing down!
Personally, I've got some reasonable stop-limit order set up that should guarantee I don't lose too much of my gains.
LordOfChaos
Member
How in fuck
Last edited: