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.
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blackjack21 wrote:ZeroHedge is reporting that they've bid GameStop up to $500 a share. https://www.zerohedge.com/markets/games ... sume-surge
noemon wrote:Wtf is this?
noemon wrote:Wtf is this?
From my chat with cityindex just now.
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
noemon wrote:You can only buy or do nothing.
Don't see what the game plan is with this.
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.
JohnRawls wrote:BUT THE INFINITE MONEY CHEAT?
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