Stock Market - Market Manipulation Exposed Worldwide by WallStreetBets!

itwasntme001

HansOndabush said:

Zola. said:

Did anybody buy a GameStop share? I did just for the sheer gamble and hype around it, a fascinating story. I got a share at £140, prepared to lose it all but I want to see where this rabbit hole goes.... !   The next couple of weeks will be interesting. 

You can get out at around $330 today; I suggest you do so. As previously said, Gamestop will revert to fair value which isn't much more than $10 and that assumes it doesn't go bust.

I would hold.  It is a small amount so presumably you will be fine to lose it.  I can't see how this will end without the hedge funds short covering.  And that can only boost the price higher.

Banning the reddit wsb guys has the potential to cause other problems.  Look at how many are subscribed to the reddit sub.

Thrugelmir

itwasntme001 said:

HansOndabush said:

Zola. said:

Did anybody buy a GameStop share? I did just for the sheer gamble and hype around it, a fascinating story. I got a share at £140, prepared to lose it all but I want to see where this rabbit hole goes.... !   The next couple of weeks will be interesting. 

You can get out at around $330 today; I suggest you do so. As previously said, Gamestop will revert to fair value which isn't much more than $10 and that assumes it doesn't go bust.

I would hold.  It is a small amount so presumably you will be fine to lose it.  I can't see how this will end without the hedge funds short covering.  And that can only boost the price higher.

Banning the reddit wsb guys has the potential to cause other problems.  Look at how many are subscribed to the reddit sub.

Hedge funds probably took the hit a while back. The original players were buying put options (at minimal risk) not physical stock.  

barnstar2077

Zola. said:

For sure, it's super volatile... I got in last week when it dropped to £140, its now at $320, but who knows what way it will go over the next couple of weeks.  Down eventually but I hope to have the sense to pull out if it goes over 5/600. Prepared to gamble just this once... 

You have more than doubled your money, but you are going to wait and see what happens.  I would take the money now personally.

itwasntme001

DiggerUK said:

This thread has come about because a lot of wannabe Gordon Gekkos' are making out that they believe greed is bad and that an opportunity to be noisy and naughty due to teacher being out of the class room has started.

It is nothing of the sort, all thats happened is that everybody involved wants to be a get rich quick day trader. Instead of being honest and acknowledging the truth, they are instead putting up a lot of virtue signalling guff claiming to be raging against the system.

Day trading is what it is and it is the most dangerous way to invest outside of a casino..._

This post shows the serious naivety in what is really going on and should be ignored.

What is really going on is not about making money.  It is about causing problems.  Whether it is due to genuine anger against the elite or not, it is about having fun and they are enjoying it.  Although it is clear to me that a lot of this fun stems from genuine anger and resentment.

You need to appreciate what is happening.  You need to respect it.

itwasntme001

Thrugelmir said:

itwasntme001 said:

Malthusian said:

Thrugelmir said:

Round up 4.5 million users find $20 billion and start buying up shares. Share price rises. The Company issues new shares and starts selling them into the market. Raising fresh capital. Doesn't make the fundamentals of the underlying business any better. Apparently an announcement is expected that a significant number of stores are going to be closed.

Would any of the bros actually buy any of the company's new shares though?

If the music's stopped by the time Gamestop gets its share offer off the ground, the pump doesn't actually do them any good.

One bro buying a share off another bro (or off someone that bought the share off a hedge fund going short) doesn't put any more money into Gamestop; as you point out, they need a capital raising for that.

Gamestop announcing that they're going to issue new shares would likely send the Redditors running for the exit, as they tried to cash out before the share offer diluted the value. Gamestop announcing that it's going to try to take some money off the table would result in the remaining players all trying to grab their share before it does.

This all assumes that there will actually be new equity issuance.  Big reputational risk for the banks to carry this out.  Imagine writing up prospectuses on GME stock issuance at $330 or $180 or even $50.  Everyone knows it is not worth much more than $20.  If you try to issue it that low, it will be seen as the banks helping out the hedge funds.  I doubt anyone would want to be near that sort of reputational damage.

No need for a prospectus.  The Company will have previously obtained authorisation at an AGM to issue shares. The shares will be placed directly. To hedge funds even. 

Are you sure it is as simple as that?  You need SEC approval as well.  I think there are a number of regulatory hurdles to cross.

comment_as...

I think it's hypercritical to celebrate Black Rock using the markets to campaign against climate change while decrying WallStreetBets users who use the markets to campaign against inequality and bail outs. I think people should be allowed to buy what they want

MaxiRobriguez

itwasntme001 said:

DiggerUK said:

This thread has come about because a lot of wannabe Gordon Gekkos' are making out that they believe greed is bad and that an opportunity to be noisy and naughty due to teacher being out of the class room has started.

It is nothing of the sort, all thats happened is that everybody involved wants to be a get rich quick day trader. Instead of being honest and acknowledging the truth, they are instead putting up a lot of virtue signalling guff claiming to be raging against the system.

Day trading is what it is and it is the most dangerous way to invest outside of a casino..._

This post shows the serious naivety in what is really going on and should be ignored.

What is really going on is not about making money.  It is about causing problems.  Whether it is due to genuine anger against the elite or not, it is about having fun and they are enjoying it.  Although it is clear to me that a lot of this fun stems from genuine anger and resentment.

You need to appreciate what is happening.  You need to respect it.

We'll see. 

There's a tonne of people - mostly young and inexperienced, getting sucked into this because they think there's a quick buck to be made.

The idea that all, or even most, of these people are just sticking it to Wall St and not seeking profit is fanciful considering many live pay pack to pay pack. Whilst some say they don't care about losing the money as they never had money, for some it'll impact on ability to pay rent.

When the stock reverts to $10, which it eventually will, we'll see the stories of tonnes of people saying "I was lulled into a false sense of security investing in GameStop. Everyone was doing it, I thought it couldn't lose."

Malthusian

itwasntme001 said:

This post shows the serious naivety in what is really going on and should be ignored.

What is really going on is not about making money.  It is about causing problems.  Whether it is due to genuine anger against the elite or not, it is about having fun and they are enjoying it. 

It will be "not about making money" for as long as the punters are making money, in the sense that their trading apps are showing a profit. Then when the share price reverts to the mean, and the suckers who came in late have lost their money, it will be about money again.

We're being asked to believe that bros who've never in their life donated more than a tenner to feed the hungry or some other charitable cause of their choice, are charitable enough to lose hundreds of pounds purely to "stick it to the hedge funds" and protect the jobs of people working for a struggling retailer.

If someone is willing to spend hundreds of pounds simply to keep someone in a dead-end job for a bit longer, you would imagine they must also be the kind of person who would spend hundreds of pounds to fund food banks, save endangered animals, fund suicide helplines, etc etc. Quite clearly that's not what's happening. So what is it that makes The Great Gamestop Crusade so much more compelling than saving people from dying of hunger or depression? Popular anger about bankers? Give over, the credit crunch was 12 years ago, and the current depression was caused by the twin viruses of rona and lockdown, which even the most ardent Antifasista would struggle to blame the bankers for. You might as well blame the dot-com crash for the riots of 2011.

What differentiates spending hundreds of pounds to stick it to hedgies over any number of other worthy causes is that if you give $100 to one of the others, your phone won't tell you it's multiplied to $200 one day and $500 the next (and there aren't fellow donors posting screenshots of how their donation turned into a million dollar fortune). It. Is. About. Making. Money.

Anytime someone in a money game tells you that it's not about money, that means it's about money.

This is no different to the idea that people piled into cryptos because they were really excited about the potential of blockchain to make financial transactions quicker and more secure.

Thrugelmir

itwasntme001 said:

Thrugelmir said:

itwasntme001 said:

Malthusian said:

Thrugelmir said:

Round up 4.5 million users find $20 billion and start buying up shares. Share price rises. The Company issues new shares and starts selling them into the market. Raising fresh capital. Doesn't make the fundamentals of the underlying business any better. Apparently an announcement is expected that a significant number of stores are going to be closed.

Would any of the bros actually buy any of the company's new shares though?

If the music's stopped by the time Gamestop gets its share offer off the ground, the pump doesn't actually do them any good.

One bro buying a share off another bro (or off someone that bought the share off a hedge fund going short) doesn't put any more money into Gamestop; as you point out, they need a capital raising for that.

Gamestop announcing that they're going to issue new shares would likely send the Redditors running for the exit, as they tried to cash out before the share offer diluted the value. Gamestop announcing that it's going to try to take some money off the table would result in the remaining players all trying to grab their share before it does.

This all assumes that there will actually be new equity issuance.  Big reputational risk for the banks to carry this out.  Imagine writing up prospectuses on GME stock issuance at $330 or $180 or even $50.  Everyone knows it is not worth much more than $20.  If you try to issue it that low, it will be seen as the banks helping out the hedge funds.  I doubt anyone would want to be near that sort of reputational damage.

No need for a prospectus.  The Company will have previously obtained authorisation at an AGM to issue shares. The shares will be placed directly. To hedge funds even. 

Are you sure it is as simple as that?  You need SEC approval as well.  I think there are a number of regulatory hurdles to cross.

Ever used PrimaryBid in the UK? That's how easy it is these days. 

DiggerUK

itwasntme001 said:

DiggerUK said:

This thread has come about because a lot of wannabe Gordon Gekkos' are making out that they believe greed is bad and that an opportunity to be noisy and naughty due to teacher being out of the class room has started.

It is nothing of the sort, all thats happened is that everybody involved wants to be a get rich quick day trader. Instead of being honest and acknowledging the truth, they are instead putting up a lot of virtue signalling guff claiming to be raging against the system.

Day trading is what it is and it is the most dangerous way to invest outside of a casino..._

What is really going on is not about making money.

No kidding, like you believe we all needed to be told that.

This is a site were posters meet to discuss how to save money, not lose it. It isn't a social club for finanarchists to organise shareholder activists into a flash mob..._