38 Replies to “GameStop Revolution”

  1. Didn’t own any – mostly because I was late to looking under the hood as to why GME was running up.

    So grabbed 10 shares yesterday just to support the cause. Wont be selling them.

    1. I bought a few shares of blackberry for the same reason. Ha, never thought I’d be buying blackberry stock ever again!

  2. Instead of more regulation, why not revoke the trading license of, and jail the guys who broke the current regulations with their naked short positions?

    1. Rusty – That’s my worry, this short term laugh fest could turn into a Pyrrhic victory if the Feds/Dems use this aberration as an excuse to implement enterprise-crippling regulation.

  3. They made a bet , they lost . Screw em . The crying from the fund billionaires is delicious .

    1. And just how much of that fund is theirs?
      If they are a publicly traded company the fund is other people’s money.
      It’s those other people they are truly in fear of.

  4. Ah but here’s the rub.
    The hedge fund is still on the hook to the brokerage they borrowed the stocks from, and the shareholders from whence the funds the brokers are able to obtain the shares loaned to the hedge fund.
    The shareholders that those brokers represent could be putting in sell orders already and the brokers are on the hook to sell and then issue a payment at current valuation of said shares.
    The brokers can’t complete those orders without the hedge fund making good on the loan, which they can’t without going bankrupt.
    If the brokers lent out more shares than they actually held, they now have to scramble to cover their assets before fiscal year end with a clean financial report. Should they report the true state of their brokerage, their shareholders will definitely vote to show them the door or vote with their wallets.
    If they don’t file, they have their license revoked.

    The longer this goes on the further it goes into the swamp.

    1. 150% of GameStop stock was shorted. Gee, there can’t be a problem there, can there?

      In nature, when something is too big then it dies and there is much feasting by the rest of the ecosystem. Hedge funds that act as scavengers or bottom feeders are no exception.

      1. Nooo…that wasn’t a problem. Hedge funds using the markets as their playground is fiiine. The problem is obviously individual investors with $600 to spend.
        More seriously, I have seen several posts from people who explain their support of GME as payback for the professional investors getting bailed in 2008 and popping champagne out while their family lost their business, house, and ate “ketchup-pack soup”. Justice (not revenge inmho) being served cold.

        1. Tesla just reached profitability! And at the very least will be a takeover target- there is, plausibly, value there.These 2 are not the same.

  5. It has all roiled the crap out of the broader market, the Dow is down over 600 points, nearly a 1000 from its all time high.

    I think also a lot of investors are looking at the dishonesty and favoritism just revealed as well as the lunacy of Biden and the Dems and are refusing to play.

    KXL murdered for no reason, proposed net corporate -personal tax rates of 62% climate change inefficiencies demanded everywhere, nope, not another dime into the market for me.

    I just bought a few ounces of just plain gold bullion and I’ve never been a gold-bug in my life, I thought they were crazy, but now…I dunno. And not bullion certificates either, the actual little metal bars, which are not going into any safety deposit box that Justin Trudeau could empty with the stroke of a pen.

    Am I paranoid enough?

    1. It has all roiled the crap out of the broader market, the Dow is down over 600 points, nearly a 1000 from its all time high.

      My portfolio got clobbered as well. It was a broad-based decline as money went from solid, legitimate stocks to this crapola.

    2. This isn’t what is causing the market to decline, it’s the election of Biden, and his EOs destroying key parts of the economy.

      That and the realization that if they will hack a presidential election, they will not think twice about f-ing up any company they take a dislike to.

    3. No. Wrong metal, though. Should have bought SKS when it was $200. It’s more than double now.

      1. I did buy them then, Tooner, and you can get good used ones now and again at a decent price. Although, with the twists and turns of everything this past year, I would think a lot of folks will now be hanging on to em now!

    4. I’ve been buying those little bars ever since $750 an ounce. Silver too, since $16. Today was different though. Each of those hedge funds also own a lot of solid stocks, as they have to track the index to a certain degree. So i went looking at some of those names and then looked at ones with poor prospects, as I though these guys would be selling otherwise good companies to raise cash. Sure enough, so i bought out of the money puts on a couple that looked most likely overvalued and ripe for selling, and at the end of today those puts are in the money. 55% one day return, and i think i will stick with them, as i don’t think the selling is over.

    5. Fred Z, No, you’re NOT paranoid enough! A gold bar is usually assayed to test for purity before selling, therefore using up a small amount of that metal. Gold and Silver coins do not need to be assayed and retain full value. However, if you buy gold coin currency, such as (22 karat, (full Oz of 24 k, precious metal plus an alloy) to make it harder) Kruger Rand, or US gold and silver eagles from a reputable dealer, (at least here in Canada) As it’s an alloyed metal you will be charged GST on your purchase. Pure gold and silver (24 karat) you will not be charged GST. So I’m even more paranoid than you. Hope this helps.

  6. So a video game retailer has upset the whole market,have i got this right.
    So my fishing lure online retail could do the same?
    If i had enough backers?
    Someone explain this to me,I’m old and lost and do not play video games.
    But my soon to explode Knot tying business may benefit.
    I do not understand how a retailer of simple minded entertainment can drive a market.
    Fill me in.

  7. L – This is a most entertaining story. The Hedge Fund guys turning out to be just
    as predatory as Hollywood portrayed the 19th Century Robber Barons.
    Am I the only one to see the potential for a new digital/board game(?)

    “Gamer Boy Davids vs. Hedge Fund Giant Goliaths” . – How long before it hits the market ?

    “Short Sellers lose their shorts !” The potential for meme wars … use your imagination.
    Hedge Fund mgrs. bragging about what they do to for status… got “shorted”, too.
    Add your best game promo idea…

  8. It’s a big club and you ain’t in it.
    George Carlin

    Seems some are playing it back at the Big Club and they don’t like it.

    bverwey

  9. CNBC, after market hours, had on two talking heads, one from the NYT and the other from Vanity Fair. Both were upset with the commoners attacking the Wall Street system.

  10. Redditors saw that 140% short selling was overdone but the hedge funds couldn’t see that?
    Proof that you can’t fix stupid.

  13. Joe Rogan, his flunkies and the guy on his video clip don’t understand the stock market. This narrative about a merry band of Reddit heroes sticking it to the evil billionaires is a popular but false lefty narrative. When strident Wall Street hater Pocahontas Warren is calling for more regulation, you know it’s probably a bad idea.

    The hedge guys who were short GME stock were not the same people who caused the housing bubble a decade ago. Hedge funds didn’t create that crash in 2008/09. That was banks with teaser mortgages, sleepy regulators who didn’t notice and a lot of people not taking responsibility for their own finances. Governments then went too far in bailing out the financial system, because they were terrified of a run on the banks. Bank bailouts created moral hazard with the “too big to fail” mentality, but also set up a ten year bull market in stocks.

    The hedge guys were short GME, a stock that was not even expensive on earnings or cash flow. In fact GME was on a cheap stock screen I follow, for most of the last year or so. I didn’t think it a compelling buy. It was cheap because it wasn’t growing, but I also never thought of shorting it because it was cheap and wasn’t obviously going out of business. The best targets for shorting are either supposed to be really overpriced stocks or companies soon going out of business, or both. GME was neither.

    Shorting is not immoral. It’s necessary, to deal with perceived overvaluation, even if the target in this case was a baffling one. Hedge funds are not evil and haven’t manipulated the stock market, as Rogan and the idiot in his clip asserts, although non-financial people and innumerate media want to blame the hedge funds for every evil, in a world obsessed with envy about inequality. Everybody on social media wants to kill billionaires. Ridiculous.

    If anything, the current US stock market today is way overvalued, due to governments flooding the world with borrowed money, which has reduced interest rates to almost zero, which juices the stock market to outrageous levels by lowering corporate borrowing costs and makes bonds a less attractive than stocks.

    Don’t cheer too hard for these Reddit clowns. They have taken a few small, thinly traded stocks and manipulated them to unsustainable valuations. Those stocks are going to crash, causing thousands of Reddit lemmings to lose their shirts. That’s not the fault of the hedge funds, either. It’s just a bunch of young jackasses on computers, who’ve never seen anything but a bull market in the last ten years, drunk with what they think is power. It will not end well, because GME and the others are not worth anywhere near the valuations to which the Reddit mob has pushed them.

    It’s not clear that more regulation is the answer here. Halting the stocks only delays their fall. Maybe the best we can hope is that the Reddit rebels feel enough pain for their inevitable losses that they don’t make a habit of these pump and dumps.

    1. MMMM……nope. This is the opposite of a pump and dump. When a company is shorted 140%, it was brilliant. That stock may crash, but not for awhile, gamestop should be issuing treasury shares at $340, the hedgers will have to buy them to help unwind, if GS is smart, only about 10% of the existing float, they have enough money to continue the transformation to online, they have a smart CEO now. As long as the guys with decent positions selectively sell dribs and drabs, they can keep the price high for quite a while, the hedgers have to buy everything that comes for sale, at least to the limit of their cash. For guys that are supposed to be good at math, they seem to have forgotten that division by 0 still equals infinity.

      1. In a classic Pump and Dump, the pumpers are deliberately over-promoting to suckers, while selling themselves. The Reddit posse isn’t that sophisticated. This thing has “succeeded” beyond their wildest dreams. So it’s more of an accidental, mob driven Greater Fool Pump and Dump.

        For their sake, I hope a few of them are smart enough to get out with their gains, because the short squeeze can’t last forever, they don’t have enough cash to keep buying and the value of the stock is a lot closer to $25 than $325. There’s some wicked mean reversion coming.

        I agree with you that this cheap stock was a dumb short for the hedgies.

        1. Again…no. There is no “pump” here. There is a recognition by some fairly sagacious individuals that 140% short is a time bomb, if you know how to light the fuse. Lots of good money has already been made by the guys who came up with the idea, because now the mob are providing their liquidity. There are still some hedgers over a barrel though, there hasn’t been enough volume for them to have covered, so you still have deep pockets who have to buy. Some of these kids with 10 shares don’t give a crap, they are wiling to lose a couple thousand on paper to stick it to the man. That was the initial plan, not to just pump a stock way over value, the guys who came up with the idea knew there was serious money who “had” to buy. I went to reddit and went back and read the genesis of the idea.

  14. Every accusation is a confession.

    In the globalist narrative, Donald Trump was a slave to Jewish (“Russian”) creditors and jumped when they said hop for fear they would kill him for non-payment of enormous debts.

    Lots of people on Wall Street manage the money of some truly ugly people—Chinese gangsters and Communist Party big shots (but I repeat myself) among them. That’s why Wall Street dances to China’s tune.

    And that’s why they’re panicking now.

    God help them when Xi Jinping’s favoured oligarchs demand to know how the blue-eyed devils lost their money. The CCP and the Chinese underworld know better than to go to American courts for justice.

  16. Paul Krugman still has his shitty clown world article about the economy “never” recovering if Trump wins.
    It’s short and proves what kind of idiotic scum the elite are.
    Paul Krugman “The Economic Fallout”

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