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Post by mekon on Jan 29, 2021 10:22:58 GMT
Seems this Wallstreetbets reddit thing has really exposed the them and us reality.
Basically if you're not up on it a cunty hedge fund announced it was going to short Gamestock shares - shorting is borrowing shares from a broker and immediately selling , if the price goes down when you have to return you can pocket the difference, If the price goes up , say you borrowed at £10 and then price goes up to £200 and the broker wants their share back....you are fucked.
Short story is a bunch of autists on reddit put into Gamestock and drove the price up and fucked up the hedge fund.........suddenly tradings are being halted, accounts are being closed etc.
I guess you could wrap it up as insider trading or something but it's less than what goes on anyway.
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Post by philthewindsurfer on Jan 29, 2021 12:39:35 GMT
I dont think its uncommon for stocks to be suspended if there are wild swings in the share price. I've seen it on the LSE several times, mostly on smaller companies, but usually only for 15 minutes, not like overnight as in this case. Dealing has been resumed. Investors speculating in a failing retail shop in the CV19 crisis are going to get severely burnt when the price drops to its realistic market value price. This tells me there are an awful lot of dumbfucks having a go. Robin fuckin Hood  www.bbc.co.uk/news/uk-england-nottinghamshire-55849192 |
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Post by philthewindsurfer on Jan 29, 2021 12:51:12 GMT
This is a good piece on what its all about. www.bbc.co.uk/news/newsbeat-55841719Numpties not liking hedge funds and trying to manipulate the system is a recipe for disaster. I think the shorting deal should be banned, if you want to hold shares in a company buy them. Pension funds and long term investors rely on share prices being stable or rising in line with productivity and performance. |
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Post by philthewindsurfer on Jan 29, 2021 13:00:33 GMT
1 year ago GME was trading at $4. The highest the share price previously has ever been is $52.44 in December 2013. The recent peak it was $483, now its $193. Imagine if the company goes bust and you paid $483 a share and you lose your money. Madness! www.nasdaq.com/market-activity/stocks/gme |
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Post by philthewindsurfer on Jan 29, 2021 13:09:20 GMT
Dividends have been fairly constant over recent years, $0.38 a share*. www.nasdaq.com/market-activity/stocks/gme/dividend-historyI dont think during the recent CV crisis they will have been paying that this year. If you had bought shares at $4 thats a 9.5% yield. I guess the share price of $4 was due to the company not doing so well and the dividend probably not being paid. A share price in 2017 of $30 would be a dividend yield of 1.3%, thats more realistic. Some clever fuckers have kicked the ball rolling on Reddit, and a load of muppets bought in to the idea. Now they will be fucked. The hedge fund will also be fucked. Everyone fucked, apart from whoever kicked this off and probably sold at $100, kept up with stoking the fire on the Reddit and kept out. *edit - thats 4 times a year, so yield given 4 times that. They stopped paying a dividend March 2019, long before CV. Guess they were fucked then. |
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Post by philthewindsurfer on Jan 29, 2021 13:13:32 GMT
Seems this Wallstreetbets reddit thing has really exposed the them and us reality. Interested in your thoughts now. |
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Post by spuu on Jan 29, 2021 15:52:56 GMT
Seems this Wallstreetbets reddit thing has really exposed the them and us reality. Basically if you're not up on it a cunty hedge fund announced it was going to short Gamestock shares - shorting is borrowing shares from a broker and immediately selling , if the price goes down when you have to return you can pocket the difference, If the price goes up , say you borrowed at £10 and then price goes up to £200 and the broker wants their share back....you are fucked. Short story is a bunch of autists on reddit put into Gamestock and drove the price up and fucked up the hedge fund.........suddenly tradings are being halted, accounts are being closed etc. I guess you could wrap it up as insider trading or something but it's less than what goes on anyway. Its the exact polar opposite of insider trading, and this is the crux of it. What has been going on over Reddit has been totally transparent. That might change but what kicked this off was done out in the open (you could of course say that a few WallSt bad apples had a hand in that from the start too, but it does not seem that is whats going on here and it really is retail investors vs Wall St) There are a million arguments from all sides on this but its interesting to watch it unfold. |
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Post by philthewindsurfer on Jan 29, 2021 16:01:45 GMT
  I was wondering who was behind all of this. Someone wanting to have a go at the hedge fund manager who shorted? Didnt mind losing a few $m? Millennial types having a pop at Boomer investors who created the last big financial crash? Russians? Pure speculation, no idea at all. To push the share price up you would need a few 'buyers' 'competing' against each other, buying shares off each other at inflated prices. Then as the price rises share the good news on forums and get Joe Public to invest. Games producers like EA Sports, Codemasters, Keywords Studios etc have seen their income and therefore share price rocket with CV and more people gaming. They picked this stock to tap into 'Gaming'. But Gamestock is a bricks and mortar shopping chain, and a failing on at that. Take a look at their share price in the past 5 years vs the NASDAQ. Dealing was suspended as the price behaviour was out of the ordinary and the stock exchanges are heavily regulated as there is so much at stake. Dealing has resumes, the price shot up to $429 and has fallen back to $346. Its as bad as the Bitcoin price volatility, and Bitcoin is based on fuck all when you think about it. Interesting stuff, I wonder what the price will be in a months time. |
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Post by philthewindsurfer on Jan 29, 2021 16:06:29 GMT
Seems this Wallstreetbets reddit thing has really exposed the them and us reality. Basically if you're not up on it a cunty hedge fund announced it was going to short Gamestock shares - shorting is borrowing shares from a broker and immediately selling , if the price goes down when you have to return you can pocket the difference, If the price goes up , say you borrowed at £10 and then price goes up to £200 and the broker wants their share back....you are fucked. Short story is a bunch of autists on reddit put into Gamestock and drove the price up and fucked up the hedge fund.........suddenly tradings are being halted, accounts are being closed etc. I guess you could wrap it up as insider trading or something but it's less than what goes on anyway. Its the exact polar opposite of insider trading, and this is the crux of it. What has been going on over Reddit has been totally transparent. That might change but what kicked this off was done out in the open (you could of course say that a few WallSt bad apples had a hand in that from the start too, but it does not seem that is whats going on here and it really is retail investors vs Wall St) There are a million arguments from all sides on this but its interesting to watch it unfold. Why would people invest in this company? The share price is stupid vs the dividend price. Even if you buy the shares speculating they will be taken over and the company bought out there is no way a buy would pay $100 a share let alone the current price. I've not read any of the Reddit forum, but is it really people willing to lose a few $1000 to teach the hedge fund managers a lesson? |
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Post by spuu on Jan 29, 2021 16:17:23 GMT
Its the exact polar opposite of insider trading, and this is the crux of it. What has been going on over Reddit has been totally transparent. That might change but what kicked this off was done out in the open (you could of course say that a few WallSt bad apples had a hand in that from the start too, but it does not seem that is whats going on here and it really is retail investors vs Wall St) There are a million arguments from all sides on this but its interesting to watch it unfold. Why would people invest in this company? The share price is stupid vs the dividend price. Even if you buy the shares speculating they will be taken over and the company bought out there is no way a buy would pay $100 a share let alone the current price. I've not read any of the Reddit forum, but is it really people willing to lose a few $1000 to teach the hedge fund managers a lesson? Thats the only reason people started buying the stock - because they knew Wall St hedgies had shorted the stock and if they could find enough people to jump on board and start buying, it would swing it into profit. Trading a stock when the underlying reason is nothing to do with the health of the company or the dividends etc - well thats just something that will go pop eventually. This is just something that has never happened before where its public investors vs financial institutions. Porsche and VW pulled off a genius plan and raped the hedge funds years ago. If you dont know the story its a great read - Porsche made more in this one 'trade' than they did over 5 years of core business trading. |
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Post by spuu on Jan 29, 2021 16:25:07 GMT
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Post by philthewindsurfer on Jan 29, 2021 16:50:16 GMT
Thanks, not registered to read that but guess its similar to this Gamestock scenario. If you buy in low enough and hold out until the hedge fund offers you more for the shares you are quids in. If you buy too high there is a chance you might not be able to sell them. Its all high risk and I guess a lot of retail punters going off Reddit forum will lose out. www.bbc.co.uk/news/business-55843829But as the activity drew regulatory attention this week, retail investors found themselves suddenly shut out by their trading platforms, unable to keep buying shares in GameStop and certain other companies.
"They assume we retail investors can't manage our risk, whereas hedge funds have taken a huge risk, an unbelievable risk, and they're just allowed to carry on, business as usual," says Alex.
I've got vague recollections of regulations about buying shares, like not being able to fund via credit cards, as its seen as a form of gambling. When the market is volatile I've found it difficult to buy/sell shares via my online Barclays stockbroker account using their quote and deal method. So its going to take a bit more evidence of retail investors found themselves suddenly shut out by their trading platforms to convince me. |
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Post by philthewindsurfer on Jan 29, 2021 17:26:07 GMT
I bet the hedge fund managers get first dibs on any shares going at say $50 if he has ordered millions. In the same way as any large volume buyer of secondhand cars gets first dibs on any low mileage good condition cars a hire/fleet might sell off. Its a bit tough for the little man on the street but isn't it all like that?
Its good that the short sellers are getting a thrashing as I dont think its a good practise.
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Post by spuu on Jan 29, 2021 17:35:45 GMT
Thanks, not registered to read that but guess its similar to this Gamestock scenario. If you buy in low enough and hold out until the hedge fund offers you more for the shares you are quids in. If you buy too high there is a chance you might not be able to sell them. Its all high risk and I guess a lot of retail punters going off Reddit forum will lose out. www.bbc.co.uk/news/business-55843829But as the activity drew regulatory attention this week, retail investors found themselves suddenly shut out by their trading platforms, unable to keep buying shares in GameStop and certain other companies.
"They assume we retail investors can't manage our risk, whereas hedge funds have taken a huge risk, an unbelievable risk, and they're just allowed to carry on, business as usual," says Alex.
I've got vague recollections of regulations about buying shares, like not being able to fund via credit cards, as its seen as a form of gambling. When the market is volatile I've found it difficult to buy/sell shares via my online Barclays stockbroker account using their quote and deal method. So its going to take a bit more evidence of retail investors found themselves suddenly shut out by their trading platforms to convince me. Yes the fact they've pulled the plug on some platforms to stop these Reddit folks from Trading...that's controversial to say the least. I think nobody knows how to react to this situation. The fact that Wall St can just continue to trade as normal though is wrong on all sorts of levels from an ethical basis. These guys will short a country let alone a stock, but are up in arms over this. I've never bought and sold shares and I never will unless I won the lottery and could afford to loose whatever if it all went wrong. For me, taking a small punt on something is not worth the effort - taking a larger punt is not worth the stress of potentially loosing alot of money. I'll happily stay neutral. |
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Post by spuu on Jan 29, 2021 17:42:51 GMT
I bet the hedge fund managers get first dibs on any shares going at say $50 if he has ordered millions. In the same way as any large volume buyer of secondhand cars gets first dibs on any low mileage good condition cars a hire/fleet might sell off. Its a bit tough for the little man on the street but isn't it all like that? Its good that the short sellers are getting a thrashing as I dont think its a good practise. Yes agree. I was not aware the little man on the street would ever be able to swing a stock price like this. How many buyers are there and in what volume do you have to trade to start to move a stock like that? I have no idea. But it appears to be happening... Companies typically dislike the short sellers as it naturally helps drive down their stocks. Thats what made the whole Porsche VW thing such a win - they saw it coming and completely screwed them over. |
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