Anybody Buying Yet? Where’s the Bottom?

[Irrelevant]

not me. I did hesitate on the buy button once in the last week though. Some of my friends were whoopin and hollerin today

Yeah I got a screen shot of a buy at 49 and sell at 125... with a big smiley face. Then about 10 minutes late a expletive as the price shot up to 190. I didn't get the memo before the train left the station and wasn't about to jump on that one while it's moving.

 

[Sytes]

Did anyone read the bones correctly and take a ride on the GME train today?

Can we say... Holy chit!?!?

 

[BigHornRam]

APA

 

[Benfromalbuquerque]

Goddamn GME, I missed another opportunity to bear raid.

 

[Sytes]

It's a bit bearish today... Hope it smooths out.

 

[Benfromalbuquerque]

Right, for the other stuff. GME is being manipulated like a real mother. It’s still just same as always was, like failed Blockbuster, but for video games.

 

[BigHornRam]

Right, for the other stuff. GME is being manipulated like a real mother. It’s still just same as always was, like failed Blockbuster, but for video games.

Playing around with that stock is like smoking cigarettes and drinking gasoline at the same time!

 

[Irrelevant]

Playing around with that stock is like smoking cigarettes and drinking gasoline at the same time!

No because it's not all negative. Fortunes have been made

 

[BigHornRam]

No because it's not all negative. Fortunes have been made

Fortunes have been made in Vegas too. It's dangerous and I get it that some people like to live on the edge.

 

[TOGIE]

i'm of the mindset that if you're not diligently putting money away for well thought out indexes and reinvesting divedends in those and long term stocks you're a gambler

while you may be doing that, if you have an account where you're not doing that you're a gambler

i just feel like people act like they don't gamble in the stock market when that's exactly what they've been doing for many years

 

[Sytes]

It's a $ maker and breaker.

The deal is... hobby money vs retirement investment proper daily living budgets.

A good friend plays volatile markets and quit his Contractor job 8 years ago. He makes 3-4x's his prior good salary working with 200k. He's disciplined market, pre, and after hours. It's his money. Made a KILLING off Covid crash and made a KILLING off Covid recovery.
He plays conservative with ETF's yet has a side chunk he runs with the schemes such as GME, etc.

 

[BigHornRam]

Fortunes made and fortunes lost. Easy come easy go Roaring kitty.

GameStop poster boy 'Roaring Kitty' hit with lawsuit

Keith Gill faces a potential class action lawsuit that accuses him of market manipulation and posing as an amateur investor.

seekingalpha.com

 

[TOGIE]

Fortunes made and fortunes lost. Easy come easy go Roaring kitty.

GameStop poster boy 'Roaring Kitty' hit with lawsuit

Keith Gill faces a potential class action lawsuit that accuses him of market manipulation and posing as an amateur investor.

seekingalpha.com

you act like he already lost the lawsuit?

he bought 4 million dollars worth of gme last week if i remember correctly, he's already what 3-5x up on that?

i think it won't be an easy lawsuit to win. he has a lot of video evidence going back years where he was like "it'd be sweet if this stock hit 20 bucks, that's my target, if there was a short squeeze that'd be awesome"

random reddit users took over from there.

 

[BigHornRam]

you act like he already lost the lawsuit?

he bought 4 million dollars worth of gme last week, he's already what 3-5x up on that?

i think it won't be an easy lawsuit to win. he has a lot of video evidence going back years where he was like "it'd be sweet if this stock hit 20 bucks, that's my target, if there was a short squeeze that'd be awesome"

random reddit users took over from there.

He should be able to hire some good lawyers with his money. Probably settle and have a few bucks of his fortune left to play with.

 

[Sytes]

Pissy big boys peeved little boys flipped their intentional oppression (Shorting) of Game Stop... I don't like the manipulation of a company one bit - Rocketing the extreme overbought / inflated value nor the extreme pressed short positions big funds have placed on this brick and mortar based company. It's a company hard pressed to find means to evolve and happens to be woven into the fabric of Reddit type gamers, etc...

Shows the power of the masses. Mass $ by a few big ones to short a company or Mass people to inflate.

Would be amazing if the big funds were sued for shorting. Hah! The lawsuit is b.s. it's meant by big funds that lost their shorts (pun intended), legit lawsuit or not, to make a public stink within media to hopefully muzzle the masses who've realized by financial gains, the big boy game they play to manipulate our Market - ON A DAILY BASIS.

Meh, a hobby player's opinion. Shorts have bit me and scored my annual hunting gear funds.

 

[SAJ-99]

Pissy big boys peeved little boys flipped their intentional oppression (Shorting) of Game Stop... I don't like the manipulation of a company one bit - Rocketing the extreme overbought / inflated value nor the extreme pressed short positions big funds have placed on this brick and mortar based company. It's a company hard pressed to find means to evolve and happens to be woven into the fabric of Reddit type gamers, etc...

Shows the power of the masses. Mass $ by a few big ones to short a company or Mass people to inflate.

Would be amazing if the big funds were sued for shorting. Hah! The lawsuit is b.s. it's meant by big funds that lost their shorts (pun intended), legit lawsuit or not, to make a public stink within media to hopefully muzzle the masses who've realized by financial gains, the big boy game they play to manipulate our Market - ON A DAILY BASIS.

Meh, a hobby player's opinion. Shorts have bit me and scored my annual hunting gear funds.

Short or long, Big Boys don't make any money until after they put on the position and the rest of the market begins to agree with them. Absolutely nothing wrong about short selling. Short selling does not cause a company to go out of business, the health of the business does. Every time you buy someone else has to be selling, so you can't have the same opinion on that company. If you lost money it wasn't because of short sellers, it was because your view was wrong. Sorry to be the one to break it to you.

 

[Sytes]

Short sellers will flip a company on earnings. Hate to break it to you though the rare short squeeze is their only enemy. Otherwise Big boy shorts will flow the roller coaster the direction their short % captures attention. After all - Market is merely a big boy mover... the rest ride the roller coaster for the $ made (or lost).

To add:

A contact/acquaintance on another Stock related q/a forum - Credit to "Jasper" for his response on the subject of shorting: By lowering the market capitalization of a company, they can reduce a potential lender's valuation of the company. This can prevent loans and preferred stock issuances. It also harms the morale of employees who are emotionally attached to the value of their shares and/or stock options.

 

[SAJ-99]

Short sellers will flip a company on earnings. Hate to break it to you though the rare short squeeze is their only enemy. Otherwise Big boy shorts will flow the roller coaster the direction their short % captures attention. After all - Market is merely a big boy mover... the rest ride the roller coaster for the $ made (or lost).

To add:

- Buyers will flip a company on earnings too. So...?
- Agree, short squeezes are a huge risk because there is unlimited risk if the short sellers are wrong. But there is negative carry in waiting- There is the direct cost to borrow the stock and, if a stock pays a dividend, the short seller has to pay that dividend to the lender. That cost varies by stock, but it can be substantial.
- some momentum players don't care which direction the flow is going, but none of the "big boys" I have ever seen. Momentum down happens very fast and is hard to catch and if they trade it, they are in and out pretty quick. Funny how that is bad, but the same company buying GME on a tweet and sending it up 100% is good. I have trouble reconciling the difference.

Most (the VAST majority) short positions are to create some market neutral position, i.e. long XOM, short COP to eliminate the exposure to O&G commodity price exposure and nature the idosyncratic difference in the companies. It really is a pretty boring business.

I think Jasper is misreading the dynamic. A company's stock price should have no bearing on the price of its debt. It's capital structure does and its cash flow. I'm not saying there is not some truth in that statement, it typically happens in high-flying companies (and certainly in the private lending market) where the lender says "well, they can issue more stock to cover our debt". In any reputable shop covering public debt markets, the person who says that will be assigned to cover the Utilities sector.

Can it crush employee morale? sure, i guess. But no short seller says "I really want to crush the spirit of the company's marketing department". Most of the stock/options in a public company goes to C-level execs. Ironically, the reddit crowd is helping those "suits" more than they are "crushing" short-selling hedge funds.

Warren Buffett -“We have no objection to anybody selling Berkshire short at all," "The more shorts, the better, because they have to buy the stock later on.”

 

[Sytes]

Speaking specifically of GME - They are the specific candidate that, if sought capital for business intent to break out of Brick/Mortar and into a large web distributor of digital license, etc - the prospective investor, be it a bank, capital funding institution, etc - they will directly evaluate GME's short interest. Which, when I played with them pre Reddit romper room, was 35-40%! That's approximately 10x's the typical queried short of companies I seek for long holding / call plays - the less the better.

I enjoy your comments and take stock of as much as possible whether agree or disagree. One factor of market activity is to keep an open mind on info and focused on metrics / research, such as short interest or overbought scale. Both sides have messed with GME. Though to sue one side? b.s.

BTW, Birkshire Hathaway is less than 1% Short Interest (0.89%). I dig him and his thoughts and I don't doubt his comment though he is not sitting under a 35-40% short interest.

 

[SAJ-99]

Both sides have messed with GME. Though to sue one side? b.s.

Completely agree. There are always losers in these situations and America has a LOT of lawyers. I don't think they have a chance in hell of winning, but it might be interesting to see Gill's account statements and match them up with reddit posts. He should be fine as long as he didn't say/spread anything materially false.

Buffett's point was if you manage the business well (turn GME into an online player that makes money) those shorts are buyers. Still disagree that anyone looks at short interest the way you describe. That short interest is a reflection of 1) the company's general business prospects and 2) the volume of open put options the market market needs to hedge by shorting. If a prospective investor were to make a capital infusion, the stock typically jumps. Look at AMC. It closed at $3.50 on Jan 22. Announced $900m in new financing on Jan 25 and the stock jumped to $4.40. Of course, it went crazy after that for different reasons. I admit that the financing probably wasn't cheap, but the company bought itself time.