Reddit Trolls Screw Hedge Funds out of $13 Billion. Wall Street MALDING - Page 2 - Politics Forum.org | PoFo

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Talk about what you've seen in the news today.

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#15153336
1 hedge fund blows up 1,000,000 retail investors ? “Efficient market”

1,000,000 retail investors blow up 1 hedge fund ? “Market manipulation”

Amerika has a fake free market, like it has fake free speech and fake news. The fakest.
#15153342
Melvin Capital should learn about something called a "stop loss." You'd think they had Hunter Biden trading for them. Who the hell holds on to a short position that's going that hard against you? Morons.

Funny as hell though.
#15153350
blackjack21 wrote:ZeroHedge is reporting that they've bid GameStop up to $500 a share. https://www.zerohedge.com/markets/games ... sume-surge


Gamestop stock won't last long though. At this current rate of growth it will consume all of global wealth in approximately 2 weeks.

Conservatively, at this current trend, gamestop will surpass Apple within the next 5 days if nothing changes. And that is conservatively.

Edit: The funniest shit that can happen is that the stock will stabilise at some point and people won't sell. This would kill the shorters again because they know the crash is coming and are betting on it probably. Probably won't happen though.
#15153363
noemon wrote:Wtf is this?

Image

Image


The is the weight of financial institutions and their money pressing stronger and stronger on our necks. The alternative is worse though. Not having a financial market or some dictatorial asshole and his cronies owning everything.
#15153379
Rancid wrote:News is reporting lots of amateurs are getting into gamestop not understanding what is happening, and also on incorrect/poor/wrong advice. These are the people that are going to get hosed badly.

DO NOT BUY


You can only buy or do nothing.

Don't see what the game plan is with this.
#15153387
noemon wrote:You can only buy or do nothing.

Don't see what the game plan is with this.



Actually, there are two scenarios and 2/3 options each.

If you don't own gamestop:
Buy or do nothing are the options. Given how over valued gamestop is, it is clearly a "do nothing".

If you currently own game stop:
Hold, buy, or sell are the options. Given how overvalued gamestop is as well as their poor fundamental standing (i.e. their future as a company is extremely dim), its clearly a sell.

There is a massive correction coming to this stock, and all of the people that don't understand how markets work are going to get hosed. Sure, some of them will make money, most will not. Some will even go into financial ruin. The investment banks that are losing on their shorts will survive, and the ones that can hold on to their short positions will ride this out and make money.

People are falling for a get rich quick scheme. I feel bad for them.

You guys will often hear me say "Buy the bad news". The corollary of that is "Do not buy the good news". This gamestop "good news" is something that should not be bought into.

As for gamestop the company:
Fundamentally, gamestop is a sinking ship. They have been hemorrhaging money for the last few years, and continue to lose market share and revenue. There is no fundamental business metric at this time that is in their favor. Here's a short off the top of my head list of issues with gamestop and why no one should touch that stock with a 10 foot pole (unless you know you can collect on their coming bankruptcy).

- Console gaming has moved towards digital purchases. Today, over 50% of games bought are bought digitally and downloaded to consoles directly. This trend is expected to continue. As a side note, on my xbox one which I've owned for 7 years now. I only bought 1 game physically. Everything else was digital. This is a trend that is not good for gamestop.

- They are known for shady business practices in their stores. Store associates are pressured by upper management to basically scam customers. They push protection plans on to people, and very often, never make good on honoring those plans. There have been many cases where they sell used games as new as well and visa versa. Mainly so that store associates fake that they are meeting the crazy sales goals pushed on them.

- Their experiments with moving towards selling not just games, but gaming culture merchandise have thus far failed. That is, they tried to dedicate some of their floor space to selling stuff like pokemon cards, toys, collectables, etc. etc. That hasn't boosted sales for them at all.

- Their online presence is atrocious. People do not like to shop on their site, especially for used, because their prices are not at all competitive and out of sync with the market, and they are not honest about the condition of the used products they sell.

- Their CEOs have been changed a few times already just in the last few years. Bad sign...

- They are sitting on a large amount of debt that they cannot service with their revenue

- They have too many stores, some even just 1-2 miles apart from each other.

- They are sitting on a large number of leases that would be expensive to break.

- The retro games market is dominated by independent businesses. It will be hard for gamestop to break into that market. The gaming culture is very much of a "support your locally own gaming shop." The workers and owners of these small shops live, eat, breathe video games. These guys are hardcore enthusiasts, gamers like/need this from their local shop. Would be hard for a faceless corporate entity to replicate this.

This is a VERY BAD company in serious trouble of completely going out of business in the next few years.

I would urge people not to get caught up in this hysteria and frenzy. Yes, some will make money, but most will lose a lot of money.
Last edited by Rancid on 28 Jan 2021 15:26, edited 2 times in total.
#15153389
Rancid wrote:Actually, there are two scenarios and 2/3 options each.

If you don't own gamestop:
Buy or do nothing are the options. Given how over valued gamestop is, it is clearly a "do nothing".

If you currently own game stop:
Hold, buy, or sell are the options. Given how overvalued gamestop is, its clearly a sell.

There is a massive correction coming to this stock, and all of the people that don't understand how markets work are going to get hosed. Sure, some of them will make money, most will not. Some will even go into financial ruin. The investment banks that are losing on their shorts will survive, and the ones that can hold on to their short positions will ride this out and make money.

People are falling for a get rich quick scheme. I feel bad for them.

You guys will often hear me say "Buy the bad news". The corollary of that is "Do not buy the good news". This gamestop "good news" is something that should not be bought into.

As for gamestop the company:
Fundamentally, gamestop is a sinking ship. They have been hemorrhaging money for the last few years, and continue to lose market share and revenue. There is no fundamental business metric at this time that is in their favor. Here's a short off the top of my head list of issues with gamestop and why no one should touch that stock with a 10 foot pole (unless you know you can collect on their coming bankruptcy).

- Console gaming has moved towards digital purchases. Today, over 50% of games bought are bought digitally and downloaded to consoles directly. This trend is expected to continue. As a side note, on my xbox one which I've owned for 7 years now. I only bought 1 game physically. Everything else was digital. This is a trend that is not good for gamestop.

- They are known for shady business practices in their stores. Store associates are pressured by upper management to basically scam customers. They push protection plans on to people, and very often, never make good on honoring those plans. There have been many cases where they sell used games as new as well and visa versa. Mainly so that store associates fake that they are meeting the crazy sales goals pushed on them.

- Their experiments with moving towards selling not just games, but gaming culture merchandise have thus far failed. That is, they tried to dedicate some of their floor space to selling stuff like pokemon cards, toys, collectables, etc. etc. That hasn't boosted sales for them at all.

- Their online presence is atrocious. People do not like to shop on their site, especially for used, because their prices are not at all competitive and out of sync with the market, and they are not honest about the condition of the used products they sell.

- Their CEOs have been changed a few times already just in the last few years. Bad sign...

- They are sitting on a large amount of debt that they cannot service with their revenue

- They have too many stores, some even just 1-2 miles apart from each other.

- They are sitting on a large number of leases that would be expensive to break.

This is a VERY BAD company in serious trouble of completely going out of business in the next few years.

I would urge people not to get caught up in this hysteria and frenzy. Yes, some will make money, but most will lose a lot of money.


BUT THE INFINITE MONEY CHEAT?
#15153392
JohnRawls wrote:BUT THE INFINITE MONEY CHEAT?


On my cursory look at the online chatter. There are two groups of people that I'm seeing falling into this dangerous and risky proposition.

- People that think they are sticking it to the banks by supporting the squeeze
- People that think they are going to ride this to the top and get rich.

The fatal flaw of these mentalities is this:
- Basic investing sin. Never try to time the market. Never go into a stock thinking you can buy and sell at just the right time to maximize you profit.
- The little guy will never win against the investment banks. Especially not in a game where the investment banks make the rules and have far deeper pockets than the little guy.
- Buying stock as a way to wage war is simply not a good reason to buy stock.
- Failure to look at the company fundamentals.
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