[Finance] Gamestop: anyone been following this tale?

Doonhamer7

Well-known member

Jun 17, 2016

1,284

• Jan 27, 2021

• #1

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

 

L

LadySeagull

Well-known member

Jan 21, 2011

1,237

Portslade

• Jan 27, 2021

• #2

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

You can change this

Helpful Moderator

Jul 4, 2003

55,749

Back in Sussex

• Jan 27, 2021

• #3

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

Well-known member

NSC Patron

Nov 15, 2008

31,865

Brighton

• Jan 27, 2021

• #4

Doonhamer has: https://www.northstandchat.com/show...ock-the-mass-take-on-and-beat-the-hedge-funds!

 

B

BHAboi

Active member

Jan 26, 2009

381

BHA

• Jan 27, 2021

• #5

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

 

beorhthelm

A. Virgo, Football Genius

Jul 21, 2003

35,312

• Jan 27, 2021

• #6

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.

 

S

saafend_seagull

Well-known member

Jul 5, 2003

13,891

BN1

• Jan 27, 2021

• #7

beorhthelm said:

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.

Click to expand...

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


Sent from my iPhone using Tapatalk

 

Albion Dan

Banned

Jul 8, 2003

11,125

Peckham

• Jan 27, 2021

• #8

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

A. Virgo, Football Genius

Jul 21, 2003

35,312

• Jan 28, 2021

• #9

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

Well-known member

Aug 30, 2011

4,037

• Jan 28, 2021

• #10

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

 

Rugrat

Well-known member

Mar 13, 2011

10,215

Seaford

• Jan 28, 2021

• #11

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

Well-known member

Jul 7, 2003

1,366

Sydney .

• Jan 28, 2021

• #12

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

 

Last edited: Jan 28, 2021

beorhthelm

A. Virgo, Football Genius

Jul 21, 2003

35,312

• Jan 28, 2021

• #13

Rugrat said:

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

Click to expand...

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

Well-known member

Mar 13, 2011

10,215

Seaford

• Jan 28, 2021

• #14

beorhthelm said:

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.

Click to expand...

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

A. Virgo, Football Genius

Jul 21, 2003

35,312

• Jan 28, 2021

• #15

Rugrat said:

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

Click to expand...

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

Glory hunting since 1969

Jun 11, 2011

13,726

Worthing

• Jan 28, 2021

• #16

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

Living in a De Zerbi wonderland

Jul 7, 2003

18,872

Worthing

• Jan 28, 2021

• #17

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

Living in a De Zerbi wonderland

Jul 7, 2003

18,872

Worthing

• Jan 28, 2021

• #18

lawros left foot said:

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?

Click to expand...

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

Plastic JCL

Sep 14, 2016

10,908

WeHo

• Jan 28, 2021

• #19

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

 

The_Viper

Well-known member

Oct 10, 2010

4,345

Charlotte, NC

• Jan 28, 2021

• #20

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.