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GameStop Stock keeps going up no end in sight

Nytegard said:
From my primitive understanding, what's been happening does sound like collusion and market manipulation.
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It has been going on for well over a hundred years, and it's the exact same reason the great depression happened.
The only difference between now and then is now we see microcosms of it (like what happened in 2008) rather than on a massive and immediate scale - except today, what is happening is a microcosm of the reverse where the average individual is now fucking the big traders and megacorp investors.

The only thing that is "illegal" is that the big traders and megacorps are losing, and that certainly will never be tolerated, as evidenced from the post above. ^
 
Ebernanut said:
Don't forget Egghead.
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Sure you're not thinking of EB Games (electronics boutique)? Egghead filed chapter 11. I was a share holder briefly in the late 90s. They were struggling even before the website breach scandal with Visa. Other companies like Cyberian Outpost with Super Bowl TV spot firing Gerbils from a cannon caught all the glory. Recent action in GME reminds me of the old days during the dot com bubble when you could watch the hype and money move from stock to stock from buzz on message boards - Yahoo finance, raging bull, etc. Made a few very nice short term trades that way.
 
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Susquehannock said:
Sure you're not thinking of EB Games (electronics boutique)? Egghead filed chapter 11. I was a share holder briefly in the late 90s. They were struggling even before the website breach scandal with Visa. Other companies like Cyberian Outpost with Super Bowl TV spot firing Gerbils from a cannon caught all the glory. Recent action in GME reminds me of the old days during the dot com bubble when you could watch the hype and money move from stock to stock from buzz on message boards - Yahoo finance, raging bull, etc. Made a few very nice short term trades that way.
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Ah yes, EB games, weren't they owned by Babbage's? Anways I forgot to mention that one too.
 
Susquehannock said:
Sure you're not thinking of EB Games (electronics boutique)? Egghead filed chapter 11. I was a share holder briefly in the late 90s. They were struggling even before the website breach scandal with Visa. Other companies like Cyberian Outpost with Super Bowl TV spot firing Gerbils from a cannon caught all the glory. Recent action in GME reminds me of the old days during the dot com bubble when you could watch the hype and money move from stock to stock from buzz on message boards - Yahoo finance, raging bull, etc. Made a few very nice short term trades that way.
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I'm pretty sure there was an Egghead store locally that switched directly to Gamestop but I think the other switched branding to EB games for a year or two before that so you're probably right about them being bought out first. It was definitely part of that group of mergers that ended with only Gamestop left standing though.
 
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Gotta love all the "No regulation, we need free markets!" when they're winning and exploiting the fuck out of everyone, yet the moment the barest scent of others getting in the way of that offends them - there are now calls to let the big players "recalibrate" because the serfs scuffs their boots momentarily. The whole system should be implicated when we see this sort of thing.

There have even been calls from big investors to "go after those Redditors and make sure they pay all their taxes" while they themselves use all sorts of loopholes, tax havens, and other things to not only avoid paying taxes on ill-gotten investment resources, but to claim they deserve to be paid by the taxpayer for the privilege. Yes, but be damn sure that the guy who made 10K to pay for medical bills that, in a just society he wouldn't even have, gets screwed!

This same script will play out the same way when the next bubble (likely Housing related, possibly in the larger scheme of COVID19 effects) bursts and We The People will be forced to fly in to rescue those Too Big To Fail banks and investment firms without so much as a slap on the wrist. Some use the terms "socialism for me, bootstraps for thee" but while the core ideal is understandable, its a massive misrepresentation of socialism; that is to say socialism is about the workers owning and having control of the means of production, not having the value of their labor stolen from them by capital etc.. socialism is NOT "when the government does stuff"
 
RanceJustice said:
View attachment 323506

Gotta love all the "No regulation, we need free markets!" when they're winning and exploiting the fuck out of everyone, yet the moment the barest scent of others getting in the way of that offends them - there are now calls to let the big players "recalibrate" because the serfs scuffs their boots momentarily. The whole system should be implicated when we see this sort of thing.

There have even been calls from big investors to "go after those Redditors and make sure they pay all their taxes" while they themselves use all sorts of loopholes, tax havens, and other things to not only avoid paying taxes on ill-gotten investment resources, but to claim they deserve to be paid by the taxpayer for the privilege. Yes, but be damn sure that the guy who made 10K to pay for medical bills that, in a just society he wouldn't even have, gets screwed!

This same script will play out the same way when the next bubble (likely Housing related, possibly in the larger scheme of COVID19 effects) bursts and We The People will be forced to fly in to rescue those Too Big To Fail banks and investment firms without so much as a slap on the wrist. Some use the terms "socialism for me, bootstraps for thee" but while the core ideal is understandable, its a massive misrepresentation of socialism; that is to say socialism is about the workers owning and having control of the means of production, not having the value of their labor stolen from them by capital etc.. socialism is NOT "when the government does stuff"
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I hope redditors continue the good fight against the man! Major props to those guys over at WSB!
 
Really makes me feel warm inside to see the president and CEO of the NASDAQ say that they should halt trading to let the big investors (aka rich people) "recalibrate" it's like you're seriously watching 1% getting permission to continue to control 99% of the wealth.
 
sfsuphysics said:
Really makes me feel warm inside to see the president and CEO of the NASDAQ say that they should halt trading to let the big investors (aka rich people) "recalibrate" it's like you're seriously watching 1% getting permission to continue to control 99% of the wealth.
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I guess 24 Billion market cap on something worth less than 1 billion with stock you cannot get since there is really not enough of it for sell on their shorted positions is scaring the BeJesus out of them. The issue is not now, it is if the stock goes up another 10x and that 24 Billion market cap becomes 240 billion+ and folks will want their shares back from the shorts. Mathematical collapse, 140% where 40% does not exist and can never be settled. Can bankruptcy laws protect the hedge funds? I would not think so.

Stock market defaulting, fairness broke I would think would lead to some terrible runs. I can see the panic and beginning to see the reasons why. Maybe the CEO is wanting the shorts, from the big investors time to pay them back before the next squeeze. Time to plan and execute maybe when the exchange is reopened if the case.
 
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noko said:
I guess 24 Billion market cap on something worth less than 1 billion with stock you cannot get since there is really not enough of it for sell on their shorted positions is scaring the BeJesus out of them. The issue is not now, it is if the stock goes up another 10x and that 24 Billion market cap becomes 240 billion and folks will want their shares back from the shorts. Mathematical collapse, 140% where 40% does not exist and can never be settled. Can bankruptcy laws protect the hedge funds? I would not think so.

Stock market defaulting, fairness broke I would think would lead to some terrible runs. I can see the panic and beginning to see the reasons why.
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No bankruptcy protections; the house call would close out all their other positions before they got there. Ish. They’d be just out of business - holding nothing at that point. There would be a delay though.
 
lopoetve said:
No bankruptcy protections; the house call would close out all their other positions before they got there. Ish. They’d be just out of business - holding nothing at that point. There would be a delay though.
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So the investors in the hedge fund would get nothing? Wow! Thinking too far ahead of course.

Well it is opportune time for GameStop to create more shares for capital and settle this mess.
 
noko said:
I guess 24 Billion market cap on something worth less than 1 billion with stock you cannot get since there is really not enough of it for sell on their shorted positions is scaring the BeJesus out of them. The issue is not now, it is if the stock goes up another 10x and that 24 Billion market cap becomes 240 billion+ and folks will want their shares back from the shorts. Mathematical collapse, 140% where 40% does not exist and can never be settled. Can bankruptcy laws protect the hedge funds? I would not think so.

Stock market defaulting, fairness broke I would think would lead to some terrible runs. I can see the panic and beginning to see the reasons why. Maybe the CEO is wanting the shorts, from the big investors time to pay them back before the next squeeze. Time to plan and execute maybe when the exchange is reopened if the case.
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Bankruptcy protection doesn't magically make all your debts go away. Depending upon what the courts say it often involves liquidation of assets of the company. Unfortunately unlike the movie Trading Places, it probably doesn't take the personal assets of hedgefund managers as it's not them doing the trading it's the LLC company doing the trading. That said you know the courts will go up their ass with a fine toothed comb to see how much assets were transferred back into personal accounts.

That said I doubt the stock will go up another 10x, in fact considering all the attention it is getting you probably can see it as plateaued, or at worst move up a bit more.

Either way shows one of the many flaws of the US financial institution... aka stock markets.
 
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lopoetve said:
Welcome to margin trading. Don’t touch hedge funds if you can’t risk losing it all.
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yep, learning painfully everyday. Also found listening to the so call experts is a sure way in losing money as well. Most of them make money suckering people in their schemes, top stocks, hidden treasures for some obscure subscription rate and not actually from the stock market itself it seems. With endless email spam saying nothing except click here for info commercial that also says nothing except to join some sort of group, letter, subscription, cap stocks . . . I would never do a hedge fund since it is like a contract with a time frame. I do my own brokering, that way I don't have to get mad at anyone, just myself.
 
I consider myself a smart guy, but I've completely lost the plot about . . . well . . . everything these days. You know how when you drop something and you go to grab it but it just keeps bouncing off your hand until it crashes to the floor? That's what my brain feels like trying to grasp all the chaos in the world today.
 
Smashing Young Man said:
I consider myself a smart guy, but I've completely lost the plot about . . . well . . . everything these days. You know how when you drop something and you go to grab it but it just keeps bouncing off your hand until it crashes to the floor? That's what my brain feels like trying to grasp all the chaos in the world today.
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Yep, time to simplify, buy some land in Wyoming, Texas, Montana or some where, build a cabin, house etc. on it. Sip tea all day, shoot some deer for food and watch the stars lol.
 
noko said:
Well I expect the hedge funds will be selling their good stock as well, driving down prices in general to cover their losses. So more than just them losing. How this plays out ? Does not look good overall for people confidence in risking their capital in the stock market, a pullback? Domino effect? Who knows.
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If you're an investor (as opposed to a trader), this is irrelevant. If you have cash, it's a buying opportunity. If you're fully invested, this will be a blip. If all you do is get stocks via your 401k, the market going down 10% or even 50% just means you get more stock for each dollar you put in.

If I'd gotten in on Gamestop 1700% ago, I'd be selling my position, or at least selling enough to cover what I invested x2 and perhaps a bit more to cover the taxes, but the current price is insane and is bound to pop sooner, rather than later.
 
The idea isn't to make money. Its to buy and hold so that the shorts can't ever cover. The penalties and interest build till they wipe out the hedgies, the the lenders pick up, but still cant buy the shares. Maybe they start a cascade of failures.

Far more rewarding than making a few thou. Its diabolical.
 
Westwood said:
I wish I understood whatever it is that is happening. XD
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In summary, hedge funds and institutional investors ("rich folk") have been massively shorting Gamestop stock i.e. betting Gamestop stock will decrease in value. A group of retail investors ("normal folk") who meet up at Reddit's WallStreetBets have started buying Gamestop stock, thus increasing the value of that stock, thereby decreasing the value of those short bets the rich folks made.

Shorting and hedging shouldn't be illegal in my view. But there definitely should be a heap of guide rails that either don't exist or aren't enforced well. At the end of the day, this is a localized incident and comparatively small retail investor groups/movements like this have very little power/influence -- institutional investors own >90% of the market at this point (by design as the rules are made by them, after all).
 
idiomatic said:
The idea isn't to make money. Its to buy and hold so that the shorts can't ever cover. The penalties and interest build till they wipe out the hedgies, the the lenders pick up, but still cant buy the shares. Maybe they start a cascade of failures.

Far more rewarding than making a few thou. Its diabolical.
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It'd be like the reverse of Enron, instead of the margin sellers blowing open the doors on a huge problem, it's Reddit stock traders doing the same.
 
lopoetve said:
Welcome to margin trading. Don’t touch hedge funds if you can’t risk losing it all.
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The overwhelming majority of people don't have anything close to the entry fee to "touch" hedge funds. It's normally an invitation-only affair, at least for the "real" hedge funds (not the two guys out of Wharton whose mommy/daddy gave them a few mil to start with).
 
Ebernanut said:
Normally I'm against any sort of market manipulation but this is just manipulating the manipulators so I'm okay with it. I see it as less of a turd in the punch bowl and more of another turd in the turd bowl.

I am curious to see how regulators handle this situation.

Indeed, that's why I use the Old Reddit Redirect plugin that changes any reddit link to link to old.reddit. I consider that and RES essential for reddit use.

Don't forget Egghead.
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Egghead wasn't ruined, they were doing just fine at the time the old guard sold/got out. As I understand it, founder took an exit because he wanted to cash out to start in SaaS and Training services where the money (and fun) was/is at, in lieu of dealing with the increasingly competitive retail landscape and razor-thin margins in electronics.
 
insectomorph said:
How much revenue can their business actually generate in the digital era?
I don't see this ending well.
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if they were smart they would make like those key re-sellers online. apparenty a number of those resellers are legit so it's doable business.
 
cdoublejj said:
if they were smart they would make like those key re-sellers online. apparenty a number of those resellers are legit so it's doable business.
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unless they can have the cheapest price for those keys, they would have a very tough time.
 
sk3tch said:
Just the beginning, my friend. The squeeze has not happened. The reports of Marvin covering their shorts were BS.

120% of float, still:
https://www.marketwatch.com/investing/stock/gme

Disclaimer - I own GME shares.
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There are other funds. And I wouldn’t be surprised if folks shorted assuming an eventual drop from peak. Hell, I thought about it- stock ain’t worth 500 by any traditional vision, but I also ain’t stupid enough to take on Reddit!
 
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