Gamestop: 'Failing' firm soars in value as amateurs buy stock
27/01/2021 | news | business | 422
Shares in a games company have soared more than 300% - the result of a fight between private and professional investors.
1
27/01/2021 15:05:30 10 1
bbc
Invariably they'll all ultimately lose their money, but maybe something like this can lead to changes where businesses can be supported instead of torn down by many of the major organisations that uphold society.
3
27/01/2021 15:08:07 4 2
bbc
By supported you mean kept on life support? Why should anyone keep a clearly failing business afloat?
2
27/01/2021 15:07:15 153 3
bbc
Stuff the short sellers & Hedge Funds. Make them use their own money rather than borrow the shares
5
27/01/2021 15:10:06 110 4
bbc
Should be made ILLEGAL.
23
27/01/2021 15:34:53 3 11
bbc
You do realise the borrowing done when shorting is paid for at market price?
37
27/01/2021 15:48:19 2 5
bbc
Thats not how capitalism works dude...
182
27/01/2021 20:59:58 1 2
bbc
There's nothing wrong with 'short sellers' they simply think the stock is over-valued. We don't complain when people pile in thinking the stock is going to go up, so why can't people invest the other way. Borrowing to do it though... yes, feels irresponsible... you should only be allowed if you have a shirt to lose.
247
SOH
27/01/2021 22:26:52 0 0
bbc
The phrase put your money where your mouth is comes to mind.
Emphasis on your money.
342
28/01/2021 04:17:23 0 0
bbc
that actually doesn't even any form of sense. please let me know what else your doing so i can do the opposite.
1
27/01/2021 15:05:30 10 1
bbc
Invariably they'll all ultimately lose their money, but maybe something like this can lead to changes where businesses can be supported instead of torn down by many of the major organisations that uphold society.
3
27/01/2021 15:08:07 4 2
bbc
By supported you mean kept on life support? Why should anyone keep a clearly failing business afloat?
30
27/01/2021 15:44:41 1 0
bbc
They aren't. If it's destined to crash (and it will), this just makes it crash harderer, sooner. A few people will make a killing, everyone else will lose.
4
27/01/2021 15:08:17 5 8
bbc
All they've done is give hedge funds and the like reason to open even more short positions! Nobody is going to hold onto shares for long in a bubble of their own making.
12
27/01/2021 15:23:05 6 2
bbc
And so we will keep it rocketing up. TO $5000 WE GO. I LIKE THIS STOCK !!!
2
27/01/2021 15:07:15 153 3
bbc
Stuff the short sellers & Hedge Funds. Make them use their own money rather than borrow the shares
5
27/01/2021 15:10:06 110 4
bbc
Should be made ILLEGAL.
Removed
9
27/01/2021 15:20:48 23 2
bbc
Agreed, shorting is a profiteering practise, it is not good for business.
20
27/01/2021 15:30:34 9 7
bbc
The guys who make the laws, including the President himself, are all funded by, and therefore work for the hedge funds!

They didn’t give Biden millions because they wanted him to rejoin the Paris agreement!!!!
58
27/01/2021 16:44:13 9 0
bbc
Naked shorting is illegal but the financial markets are to all intents and purposes unregulated
6
27/01/2021 15:11:10 5 4
bbc
The only winners here will be the ones selling to delusional buyers right now. The person who got this little ball rolling will be laughing ! Out at the top !
10
27/01/2021 15:21:18 21 0
bbc
The person who got this rolling was $24million up yesterday on an initial investment of $50k. Yeah he's laughing.
77
Bob
27/01/2021 17:06:28 1 1
bbc
Yep. People on Reddit will think they've won right now. Let's see how they feel in a few month's time.

Some will make big pay days (as above), others will have been too late to the party of go home at the wrong time and there will be blood shed on both sides of the fence.
7
27/01/2021 15:11:34 10 2
bbc
Loosing the shirt on your back has become very popular. Don't forget to buy your Tulip Bulbs that also went well for a time.
5
27/01/2021 15:10:06 110 4
bbc
Should be made ILLEGAL.
Removed
5
27/01/2021 15:10:06 110 4
bbc
Should be made ILLEGAL.
9
27/01/2021 15:20:48 23 2
bbc
Agreed, shorting is a profiteering practise, it is not good for business.
6
27/01/2021 15:11:10 5 4
bbc
The only winners here will be the ones selling to delusional buyers right now. The person who got this little ball rolling will be laughing ! Out at the top !
10
27/01/2021 15:21:18 21 0
bbc
The person who got this rolling was $24million up yesterday on an initial investment of $50k. Yeah he's laughing.
11
27/01/2021 15:17:25 53 6
bbc
We like the stock.
414
28/01/2021 15:36:36 0 0
bbc
We like it
4
27/01/2021 15:08:17 5 8
bbc
All they've done is give hedge funds and the like reason to open even more short positions! Nobody is going to hold onto shares for long in a bubble of their own making.
12
27/01/2021 15:23:05 6 2
bbc
And so we will keep it rocketing up. TO $5000 WE GO. I LIKE THIS STOCK !!!
14
27/01/2021 15:24:49 4 1
bbc
Yeah that's exactly how you cause a bubble to burst. Best to get your money out of it before it does or you won't be the one laughing.
13
27/01/2021 15:24:28 75 6
bbc
WE LIKE THE STOCK!! GME TO THE MOON!!
12
27/01/2021 15:23:05 6 2
bbc
And so we will keep it rocketing up. TO $5000 WE GO. I LIKE THIS STOCK !!!
14
27/01/2021 15:24:49 4 1
bbc
Yeah that's exactly how you cause a bubble to burst. Best to get your money out of it before it does or you won't be the one laughing.
22
JJ
27/01/2021 15:32:07 1 1
bbc
You have to understand this isn't investing, it's just a game now, like going to the casino. We've disposable cash from lockdown so have fun, you might win, you might lose it all, you'll have a laugh in WSB on the way.
33
27/01/2021 15:45:34 3 1
bbc
I dont care if I lose a couple hundred quid if it bankrupts an investment firm. Sod em all to hell. GME GME GME GME!!
15
27/01/2021 15:26:13 149 1
bbc
There's an error in the article- The short selling on this stock was actually over 130% of the total shares available. This means that if the hedge funds try to get out of their trades to limit their losses, they have to buy back more shares than are available on the market, which is just pushing the price even higher. This happened to Volkswagen back in 2008, and cost traders a lot of money then.
185
27/01/2021 21:05:44 31 0
bbc
Aye.

Porsche had bought all the shares, I seem to recall.

Hilarious.
16
27/01/2021 15:27:02 13 3
bbc
Buy a low cost International (excluding uk) tracker and sleep at night.
Sounds passive, but It is similar to momentum investing, with the index of top shares internationaly being re set every quarter. Look what happened to Tesler when it joined the S+P 500, the price soared as all other tracker funds were forced to follow suit and buy!
If it's good enough for Warren Buffet....
17
27/01/2021 15:27:23 4 20
bbc
What’s the betting that Biden‘s donors (all big hedge funds) get him on the phone and have his mates at Reddit and other social media giants completely nuke the day traders accounts on all the sites they are coordinating, and justify it with laughable false charges?
21
27/01/2021 15:31:01 8 0
bbc
Biden has friends at Reddit? Ok grandpa
18
27/01/2021 15:22:10 369 24
bbc
Hedge fund were allowed to "borrow" 150% of shares, which should be illegal. Now that they got beater in their own game, they're throwing all they have. That includes cheap articles like this one, that doesn't explain the true reason why this situation has occurred and is instead trying to paint retail investors as rabid idiots who are out to destroy Wall St.

GME TO THE MOON. HOLD TILL $1420.69
67
27/01/2021 16:30:56 158 2
bbc
Wall Street manipulating Market to make money average joe kicks them in nuts they loose billions. Stock price have no reflection of value of a company. Look twitter it has never ever made a profits its worthless yet it lives in tec bubble on stock market waiting burst.
108
27/01/2021 18:12:04 13 1
bbc
This is called "naked short selling" and IS illegal (in the US, anyway, where this is being traded).
125
27/01/2021 19:07:02 13 1
bbc
Agreed 100% The fact of the matter is MANY US stocks are vastly over priced based on actual fundamentals. Bubble ready to burst. Good luck all you've been warned!
126
27/01/2021 19:10:26 4 14
bbc
In a digital world Gamestop is a dinosaur and will end up like Debenhams and all the other high street stores, too the moon? Yeah sure, i'd rather invest in bitcoin better returns and more supportable than GME.
129
27/01/2021 19:14:25 2 1
bbc
Based
135
27/01/2021 19:24:56 13 3
bbc
Shorting is not illegal and is part of healthy market ‘price discovery’. NAKED shorting of a stock you do not own is illegal. The SEC just do not enforce it.
148
27/01/2021 19:59:58 13 0
bbc
You’re an idiot if you have bought shares in this company and think it is going anywhere near that price. At some point in the not too distant future the price is going to come crashing down and a lot of people are going to lose a lot of money.
176
27/01/2021 20:53:42 6 3
bbc
not ashamed at all to say that I got in on the party, admittedly a little late at $40, but still made as much in a month as I made in bitcoin over the past few months. And the fact that it's hedge funds that are bleeding makes it even more pleasant.
197
27/01/2021 21:22:02 1 0
bbc
Still holding 400 shares
295
27/01/2021 23:31:00 0 2
bbc
Wrong your they inexperienced generation, we the boomers will have busted
301
27/01/2021 23:52:08 5 0
bbc
any logical reason you get to that value ?? like , dunno , ? revenue ? profit ? margin ?? return ?? got some tulip bulbs here for 50k a piece - you want ?
19
27/01/2021 15:29:07 63 0
bbc
This merely illustrates how far the `markets' have deviated from the real economy. A lot of people are going to make money from speculative postures that will burn out what remains of a failing retail business. Where have we seen that before in recent times?

The situationists used to argue that capitalism will eventually consume itself. It appears they may not be wrong.
5
27/01/2021 15:10:06 110 4
bbc
Should be made ILLEGAL.
20
27/01/2021 15:30:34 9 7
bbc
The guys who make the laws, including the President himself, are all funded by, and therefore work for the hedge funds!

They didn’t give Biden millions because they wanted him to rejoin the Paris agreement!!!!
17
27/01/2021 15:27:23 4 20
bbc
What’s the betting that Biden‘s donors (all big hedge funds) get him on the phone and have his mates at Reddit and other social media giants completely nuke the day traders accounts on all the sites they are coordinating, and justify it with laughable false charges?
21
27/01/2021 15:31:01 8 0
bbc
Biden has friends at Reddit? Ok grandpa
14
27/01/2021 15:24:49 4 1
bbc
Yeah that's exactly how you cause a bubble to burst. Best to get your money out of it before it does or you won't be the one laughing.
22
JJ
27/01/2021 15:32:07 1 1
bbc
You have to understand this isn't investing, it's just a game now, like going to the casino. We've disposable cash from lockdown so have fun, you might win, you might lose it all, you'll have a laugh in WSB on the way.
32
27/01/2021 15:45:22 3 0
bbc
Except you're forgetting that what goes up must come down. The moment it teeters, it's going to crash and a lot of people will lose all the money they've just pumped into it. This is nothing except a pump and dump. The hedge funds will just hold out until that happens.

Gamestop stakeholders are probably dumping all their own shares as we speak! What an opportunity to get out high and dry.
2
27/01/2021 15:07:15 153 3
bbc
Stuff the short sellers & Hedge Funds. Make them use their own money rather than borrow the shares
23
27/01/2021 15:34:53 3 11
bbc
You do realise the borrowing done when shorting is paid for at market price?
24
27/01/2021 15:36:33 273 11
bbc
I'm a terribly simple soul I know.... but in my view selling something that not only is not yours to sell but, in fact, doesn't exist, on the hope you can buy it back cheaper later is.... what's the word.... fraud? Yes that's it... it's fraud.
28
27/01/2021 15:43:43 217 1
bbc
The real issue here is that currently the rules allow hedge funds to borrow more shares that exist. This is why this has snowballed out of control. They need to buy more shares than are in existence in order to cover the losses, but those shares have been bough out by retail investors who believe in the company. Now they're trying to blame the small guys, all because they are losing their own game
36
27/01/2021 15:47:13 18 5
bbc
You are right Mrs Smith.
FRAUD
Another word for it is usury....
But of course that's what banks do, or did do until the 2008 financial crash..
The good book says the love of money is one of the top 10 no no's.
50
27/01/2021 16:23:13 7 17
bbc
But these shares do exist, and they are the fund's to sell if that's in the contract.

Can I borrow the car you're not using during the lockdown? I'm going to sell it, and once lockdown is over and you need it again, I'll buy it back and give it back to you.

It's exactly the same principle, and if the owner of the car is happy with the deal, then there's no fraud involved.
74
Bob
27/01/2021 17:03:24 20 2
bbc
It isn't fraud. It is gambling.

Another commenter has it nailed - why do we view this as a valid job? Gambling is not a job!
119
27/01/2021 18:32:51 10 1
bbc
All the biggest shorted shares on the LSE went up today aswel, its a short squeeze. PSON, CINE, PFC etc. The shorts often manipulate a share down. Taste of their own medicine.
124
27/01/2021 19:04:52 2 0
bbc
It works the same on the way up. An institution will offer instruments without having the physical shares in their possession, that method works for buying and selling.
194
27/01/2021 21:18:07 1 2
bbc
Er, why fraud? You've agreed with the owner that the stock IS yours to sell, and you pay them for the privilege.
Imagine this - you go to the shop and they're charging 5£ for a loaf of bread. Instead of grumbling, what if you could say to them "Ok, I'm selling you 10 loaves". They have to hand you 50£ and you get the loaves at 50p each at the next shop. That's how markets are supposed to work.
268
27/01/2021 22:44:01 1 0
bbc
thank goodness its stock in a games company, not, for example, stock in banks... oh..
308
28/01/2021 00:02:08 0 0
bbc
well, if you own shares, and want to lend them to me for a term at an interest rate that suits you - obviously taking in to account how you perceive my ability to repay you, or credit rating... surely that is your decision. shorting 150% of a companies shares outstanding, is as far as I'm aware BLX, (unless some very short term naked short thing -very unlikely) - i could be wrong, please explain.
369
28/01/2021 10:10:30 0 0
bbc
I agree with the sentiment. Short selling should be banned, I think it's a fundamentally unhealthy thing and distorts the market. However I disagree with your statement about it being theirs to sell, the fact is that the have borrowed the shares, so they do exist and it's their risk. So nothing illegal in this approach (unfortunately). What you describe is Naked Selling, where they don't have them
370
28/01/2021 10:10:45 0 0
bbc
and that's illegal.
376
28/01/2021 10:44:49 0 0
bbc
No its not really fraud if :

1) The shares exist
2) The people they borrow them from agree to that and get a cut.

The problem for Melvin is that neither was true.

But they only ended up defrauding themselves.
25
27/01/2021 15:37:56 161 1
bbc
I have been listening to this most of the day on Bloomberg. Hedge funds have been shorting the company, because they were betting against the company in the virtual gambling wheel. As the company has increased in value, they have been left with very heavy losses, stating today that some hedge funds will have to borrow cash to pay off their losses or close down. Roll the Dice!
39
27/01/2021 15:49:56 16 0
bbc
Fortunately cash is very cheap to borrow at the moment.
226
27/01/2021 21:51:19 1 0
bbc
Yeah that’s not how it actually works.
26
27/01/2021 15:41:18 1 1
bbc
Nervous about stock markets?
The Stock market is the only way to make a decent return over the long term, but short term volatility at these high prices may mean that a fall must be expected as soon as the novelty wears off. Diversify is the name of the game.
You have been warned!
27
27/01/2021 15:42:33 5 2
bbc
No different to what Motley Fool does. The only fools are the readers.. The article writers are the only winners.
24
27/01/2021 15:36:33 273 11
bbc
I'm a terribly simple soul I know.... but in my view selling something that not only is not yours to sell but, in fact, doesn't exist, on the hope you can buy it back cheaper later is.... what's the word.... fraud? Yes that's it... it's fraud.
28
27/01/2021 15:43:43 217 1
bbc
The real issue here is that currently the rules allow hedge funds to borrow more shares that exist. This is why this has snowballed out of control. They need to buy more shares than are in existence in order to cover the losses, but those shares have been bough out by retail investors who believe in the company. Now they're trying to blame the small guys, all because they are losing their own game
44
27/01/2021 16:10:09 19 1
bbc
The poor wage slaves are the winners here: the big hedge funds drove down the price of the stock whilst dramatically increasing demand for it. The average man on the street had little to lose by buying a few shares, knowing full well that in a few weeks time the hedge funds would be eating each other like rats in a barrel trying to get hold of the shares they'd need to cover their bets. Go WSB!
102
27/01/2021 17:54:43 16 0
bbc
Do the retail investors believe in the company or do they want to give a good kicking to what they think are financial parasites? A bit of both perhaps.
280
27/01/2021 23:00:22 0 0
bbc
Love it!
309
28/01/2021 00:05:57 0 0
bbc
what a load of blx, where did you even make this up ? clearly you cant do basic math. borrow more than exists ??? to buy more than exists - because you believe in a company , just because you want it to go up ?? please - break down what you like about the company first - not just it must go up.
354
AJS
28/01/2021 08:42:54 0 0
bbc
Hedge funds are quite often set up with the intent of risk mitigation rather than making tonnes of profit - hence the name. They're not intrinsically bad.
Whipping people up into a buying frenzy / pyramid scheme is going to leave the late comers out of pocket while most instigators will be well shot by then - it might not have been done maliciously but how will it end otherwise?
371
28/01/2021 10:12:09 0 0
bbc
The small investors have changed the rules of 'their' (Walls Street's) game. Tough! Ha ha. But beware the beast turning!
29
27/01/2021 15:44:00 165 5
bbc
This is the problem in society - this is seen as a job and a method of making lots of money rather than people doing something that adds value to society and the world. People are starving, the climate is creating havoc but this is seen as a vital part of humanity which involves some people making money to make others miserable.
136
27/01/2021 19:26:25 32 4
bbc
Are you sure you're an accountant!? ;-)
184
27/01/2021 21:05:39 4 0
bbc
Lack of economic incentives for the other ventures you mention. What we need to do is ensure enough supply of mathematical brains and competition to supply the City, with no barriers to entry...the wages and profit margins will fall. Start making the economic returns for the other areas pay and people will do it. On energy tech that is starting to happen.
307
27/01/2021 23:59:29 2 0
bbc
Just as the rental housing market works.
379
28/01/2021 10:48:59 0 0
bbc
More useful than accountants though .. plus they have a sense of humour & a personality .....
3
27/01/2021 15:08:07 4 2
bbc
By supported you mean kept on life support? Why should anyone keep a clearly failing business afloat?
30
27/01/2021 15:44:41 1 0
bbc
They aren't. If it's destined to crash (and it will), this just makes it crash harderer, sooner. A few people will make a killing, everyone else will lose.
31
27/01/2021 15:45:16 14 1
bbc
Since the Credit Crunch of 2008 the monetary policies put in place to facilitate recovery still remain. They are clearly running out of steam. It is time to get back to the real economics of capitalism: investment, value and profit.

The endless flow of cheap money is producing nothing of value, employs fewer each day, is hollowing out our towns and is slowly driving us all mad.
83
27/01/2021 17:09:52 7 0
bbc
Quote of the day - thank you for putting my thoughts into words
206
27/01/2021 21:32:17 0 0
bbc
Sadly modern capitalism is destroying wealth creators and lauding over things that have momentary capital value, hence complete nobodies can cash in on a moments fame and get rich because thier star has capital, it also leads to stupidness such as when Kylie Jenner tried to sue Kylie mynogue for the rights to Kylie even though Jenner was probably named after Mynogue.
22
JJ
27/01/2021 15:32:07 1 1
bbc
You have to understand this isn't investing, it's just a game now, like going to the casino. We've disposable cash from lockdown so have fun, you might win, you might lose it all, you'll have a laugh in WSB on the way.
32
27/01/2021 15:45:22 3 0
bbc
Except you're forgetting that what goes up must come down. The moment it teeters, it's going to crash and a lot of people will lose all the money they've just pumped into it. This is nothing except a pump and dump. The hedge funds will just hold out until that happens.

Gamestop stakeholders are probably dumping all their own shares as we speak! What an opportunity to get out high and dry.
14
27/01/2021 15:24:49 4 1
bbc
Yeah that's exactly how you cause a bubble to burst. Best to get your money out of it before it does or you won't be the one laughing.
33
27/01/2021 15:45:34 3 1
bbc
I dont care if I lose a couple hundred quid if it bankrupts an investment firm. Sod em all to hell. GME GME GME GME!!
38
27/01/2021 15:49:13 3 3
bbc
Except if you lose a couple hundred quid then it means exactly that you've failed in that mission, and a whole load of other big players who are positioning their shorts now for the inevitable drop will take your money as part of their windfall.
34
27/01/2021 15:46:37 58 1
bbc
This article will just lead more people to go and get involved :)
141
27/01/2021 19:41:44 6 0
bbc
Yep and who owns the media :) I will give it a week before this swings the other way, by which I mean when its reported
298
27/01/2021 23:29:15 0 0
bbc
Yeah... how can I help them?
35
27/01/2021 15:47:09 30 2
bbc
Hold until $1420.69!
24
27/01/2021 15:36:33 273 11
bbc
I'm a terribly simple soul I know.... but in my view selling something that not only is not yours to sell but, in fact, doesn't exist, on the hope you can buy it back cheaper later is.... what's the word.... fraud? Yes that's it... it's fraud.
36
27/01/2021 15:47:13 18 5
bbc
You are right Mrs Smith.
FRAUD
Another word for it is usury....
But of course that's what banks do, or did do until the 2008 financial crash..
The good book says the love of money is one of the top 10 no no's.
2
27/01/2021 15:07:15 153 3
bbc
Stuff the short sellers & Hedge Funds. Make them use their own money rather than borrow the shares
37
27/01/2021 15:48:19 2 5
bbc
Thats not how capitalism works dude...
33
27/01/2021 15:45:34 3 1
bbc
I dont care if I lose a couple hundred quid if it bankrupts an investment firm. Sod em all to hell. GME GME GME GME!!
38
27/01/2021 15:49:13 3 3
bbc
Except if you lose a couple hundred quid then it means exactly that you've failed in that mission, and a whole load of other big players who are positioning their shorts now for the inevitable drop will take your money as part of their windfall.
25
27/01/2021 15:37:56 161 1
bbc
I have been listening to this most of the day on Bloomberg. Hedge funds have been shorting the company, because they were betting against the company in the virtual gambling wheel. As the company has increased in value, they have been left with very heavy losses, stating today that some hedge funds will have to borrow cash to pay off their losses or close down. Roll the Dice!
39
27/01/2021 15:49:56 16 0
bbc
Fortunately cash is very cheap to borrow at the moment.
187
27/01/2021 21:06:38 5 0
bbc
Aye, if you're a hedge fund.

You try borrowing cash at 0.1% or 0.25% or whatever the base rate is.

Good luck with that.
192
27/01/2021 21:16:56 0 0
bbc
No matter how cheaply you can borrow a loss is still a loss!
378
28/01/2021 10:47:59 0 1
bbc
They can probably get Sleepy Joe to print some for them.
40
27/01/2021 15:56:26 305 4
bbc
Interesting to see how many voices are trying to change this narrative into one of 'Market Manipulation', rather than the obvious reality: short sellers get greedy; overstretch themselves by shorting more than 100% of the total stock inventory; amateurs move in and take them to the cleaners. When all this is over, there will be calls to regulate what is, in essence, a case of self regulation.
113
27/01/2021 18:17:17 33 1
bbc
Could it not get even better if say you targeted a quoted hedge fund and multiply the effect if you played the short holdings that they held?
157
27/01/2021 20:17:19 11 1
bbc
Yes hedge funds and short sellers are unscrupulous themselves, deserve what's coming to them
341
28/01/2021 04:12:32 2 0
bbc
except, if you are the guy buying to squeeze the shorts (just a market mechanism to establish value - i.e. the shares aint worth x....t) you best hope you are the first out.... cause bid going to be zero, the second you try and exit.
41
27/01/2021 16:01:43 3 0
bbc
think I am going to have to have a bit of a lie down..........
42
27/01/2021 16:04:43 340 5
bbc
Watching Hedge Funds and short sellers get battered by Reddit users has to be the feel good story of the day. Question is 'Who will get left holding the bag?'
165
27/01/2021 20:29:53 94 4
bbc
If Wall St. loses the taxpayer will foot the bill, if its the day traders then it'll be 'prices can go down as well as up'
319
28/01/2021 00:44:59 6 2
bbc
If there was any actual justice or regulation then the people short-selling shares that they have no affirmative right to acquire, a.k.a. naked short selling, would be prosecuted for what is a crime in most jurisdictions.

Short-selling shares you own or have a legitimate option on is morally questionable. Selling *anything* you don't own is criminal fraud, that's not really a matter of opinion...
43
KL
27/01/2021 16:07:21 48 1
bbc
This is hilarious.
28
27/01/2021 15:43:43 217 1
bbc
The real issue here is that currently the rules allow hedge funds to borrow more shares that exist. This is why this has snowballed out of control. They need to buy more shares than are in existence in order to cover the losses, but those shares have been bough out by retail investors who believe in the company. Now they're trying to blame the small guys, all because they are losing their own game
44
27/01/2021 16:10:09 19 1
bbc
The poor wage slaves are the winners here: the big hedge funds drove down the price of the stock whilst dramatically increasing demand for it. The average man on the street had little to lose by buying a few shares, knowing full well that in a few weeks time the hedge funds would be eating each other like rats in a barrel trying to get hold of the shares they'd need to cover their bets. Go WSB!
45
27/01/2021 16:11:05 31 2
bbc
I suspect the same outcome as ever will happen on the SCC get involved.

The Hedge fund shorting & ‘forcing’ prices will be ignored, and the smaller e-traders will be hunted down & prosecuted for ‘market manipulation’, even though it is less detrimental, & hardly any different than Hedge fund actions.
48
27/01/2021 16:18:29 30 0
bbc
Unless the brokerages are taking an insanely lax attitude to collateral these days, I seriously doubt that e-traders, even with options, have enough skin in the game to manipulate the markets unlike hedge funds. If there's a new version of pump and dump style tactics, fine. But people using the system legally shouldn't be penalised for taking the fight to the hedge funds.
160
27/01/2021 20:21:41 1 0
bbc
Actually its massively different in one sense, one is at least investing in and adding value to a company which is the original point of shares, if people are spotting patterns in illegal manipulation downwards and realise the opportunity in redressing the balance upwards its not them that are in the wrong
163
27/01/2021 20:27:31 1 0
bbc
the short sellers and hedge funds need a kicking, they are the bad guys
46
27/01/2021 16:15:49 24 0
bbc
Short Selling is a Wild West casino

Shoot the lights out and run for the hills

Or as Warren Buffet once said : "When the Tide goes out, you see who has been swimming naked"

Though this time, it might just be the big Traders swimming naked !

If little guys can add liquidity, all well and good, but no one should get any bail outs, losers MUST pay !
47
27/01/2021 16:17:16 104 4
bbc
Surely the regulators should have been stopping "shorting" from happening? Good luck to the privateers - go get 'em boys, down with established greed. They starve kids in Africa to feast on the glut.
211
27/01/2021 21:34:23 25 0
bbc
The point is that the regulators literally enable this behaviour to protect corporate finance. The fact that the guys over at WSB took them on with all odds being on them losing every dollar they invest. As long as they stay strong, the hedge fund firms will pretty much go bankrupt (good riddance).
45
27/01/2021 16:11:05 31 2
bbc
I suspect the same outcome as ever will happen on the SCC get involved.

The Hedge fund shorting & ‘forcing’ prices will be ignored, and the smaller e-traders will be hunted down & prosecuted for ‘market manipulation’, even though it is less detrimental, & hardly any different than Hedge fund actions.
48
27/01/2021 16:18:29 30 0
bbc
Unless the brokerages are taking an insanely lax attitude to collateral these days, I seriously doubt that e-traders, even with options, have enough skin in the game to manipulate the markets unlike hedge funds. If there's a new version of pump and dump style tactics, fine. But people using the system legally shouldn't be penalised for taking the fight to the hedge funds.
49
27/01/2021 16:19:36 83 2
bbc
Hedge Fund is toast, got far too greedy. They had it coming...
242
kat
27/01/2021 22:20:48 21 1
bbc
Yes, they are scummy parasites who provide no value to the human race. Good to see them being squeezed. Hope they go bust.
24
27/01/2021 15:36:33 273 11
bbc
I'm a terribly simple soul I know.... but in my view selling something that not only is not yours to sell but, in fact, doesn't exist, on the hope you can buy it back cheaper later is.... what's the word.... fraud? Yes that's it... it's fraud.
50
27/01/2021 16:23:13 7 17
bbc
But these shares do exist, and they are the fund's to sell if that's in the contract.

Can I borrow the car you're not using during the lockdown? I'm going to sell it, and once lockdown is over and you need it again, I'll buy it back and give it back to you.

It's exactly the same principle, and if the owner of the car is happy with the deal, then there's no fraud involved.
90
27/01/2021 16:54:40 9 0
bbc
The most common way for institutions to short sell shares is to buy "put options" which are options to buy a share at the current price, they are not real shares which are physically owned.

This is can lead to a situation where there are more optioned shares on the market, owned by traders looking to short sell the stock, than there are real shares. Which is obviously suboptimal.
128
27/01/2021 19:10:45 7 1
bbc
All true, except that the big investors have enough clout (usually) to make sure the price goes low (by talking down the stock, going on tv/radio/other media to trash the stock, sending out investment notes telling everyone to sell, "insider dealing" conversations to depress the price, etc) so that they make money and the original investor loses. Market manipulation?
134
27/01/2021 19:24:28 10 0
bbc
sorry you are very wrong its not like borrowing my car and then selling it its much more like borrowing my car then selling it ten times over.
that's why there is fraud as they never had ten cars only one just li9ke banks with loans they use cash deposited at the banks but then lend it out ten times over knowing most times the money is never moving from the banks only between accounts in that bank
205
27/01/2021 21:31:45 1 1
bbc
Until you can't buy it back because it's value has gone up instead of down. Then you owe somebody a car that you no longer have.
216
27/01/2021 21:24:56 2 0
bbc
But in this scenario you are borowing 149% of my car. I only the one car.
352
28/01/2021 08:20:48 0 0
bbc
That's not even remotely how it works. They are also taking a position on the 5 cars your mate has yet to buy, so that when he buys them they make money. Also they are selling a piece of that position, so they can hedge their investment in case your mates plan to buy 5 more cars falls through.... It should be illegal, simple as that.
51
bbc
Removed
52
27/01/2021 16:27:31 4 3
bbc
This is not investment it is pure gambling and is now very common in the US due to the new 'commission free' websites such as Robinhood. (They are not free, they aggregate the orders, add a margin and punters end up paying more for the shares) The US market looks like a bubble to me and will eventually fall but not while the magic money tree keeps printing the$. It will end in tears for many.
101
27/01/2021 17:42:30 3 0
bbc
All stock trading is gambling, this simply highlights it.
53
27/01/2021 16:32:20 0 3
bbc
There's that favourite journo buzzword again "soar".

Perhaps one day they will pick up a thesaurus to find some new words...

https://www.thesaurus.com/browse/soar
72
27/01/2021 17:02:41 1 0
bbc
Finger. Pulse.
54
27/01/2021 16:33:01 27 1
bbc
so the next play is to find what stock is being shorted, and then the small guys act as a group and buy. Hopefully keep their nerve and hold the stock. Small guys are only taking money from the greedy wealthy so its all good. Institutions, hedge funds etc are gonna get spooked by this. Opens everyone's eyes to what value these 'experts' bring.
71
27/01/2021 17:02:23 12 1
bbc
Spot on Raven. Financial (gambling) markets add zero to GDP.
166
27/01/2021 20:29:55 0 0
bbc
love this, take it to the hedge funds, I mean they borrow the stock, hope they sink
55
27/01/2021 16:37:26 235 1
bbc
Instructive that the SEC is concerned about supposed market manipulation by thousands of relatively poor individuals, but (other than a very occasional derisory and inconsequential fine) routinely turn a blind eye to the systematic market manipulation practised by the big banks & hedge funds.
62
27/01/2021 16:52:53 107 2
bbc
Absolutely, the markets are regulated by the very same crooks who do nothing to impose level playing fields for all participants in the financial markets. The big guns are having a laugh often over a few Friday drinks with their SEC best pals...This whole thing is just one very big joke.
314
28/01/2021 00:10:01 0 0
bbc
when the cab driver (i guess these days Uber) says buy, it time to run..... my kids are blindly buying - with no concept of value... ill let them lose a bit , a good lesson.... i ran ages ago... too early maybe , but....
56
27/01/2021 16:38:09 73 1
bbc
...and the geek shall inherit the earth
395
28/01/2021 11:35:22 1 0
bbc
...and the geek shall eventually (shortly?) run out of money.
57
27/01/2021 16:43:27 31 0
bbc
The "big boys" DO manipulate the markets in their favour - EVERYDAY! They are just far more subtle about it when they do it! Go day-traders send that stock through the roof and squeeze those shorters!!!
5
27/01/2021 15:10:06 110 4
bbc
Should be made ILLEGAL.
58
27/01/2021 16:44:13 9 0
bbc
Naked shorting is illegal but the financial markets are to all intents and purposes unregulated
59
Ed
27/01/2021 16:47:25 183 5
bbc
The Hedgefund managers brought this on themselves. They shorted over 100% of the stock, and deliberately drove the value of Gamestop down. They actively tried to bankrupt a company, making thousands of people unemployed so they could earn a quick buck. These are the same people we bailed out in '08, doing the exact thing.

Good on the WSB users for giving them a taste of their own medicine.
63
27/01/2021 16:58:23 37 10
bbc
It's quite hard to bankrupt a company by shorting it's stock. It makes no difference to the balance sheet of the company if its stock value is lower.

A company goes bankrupt when it can no longer service it's debts.

The only thing a high stock price can do is give a company the possibility to raise capital by issuing more shares and diluting existing shareholders.
78
27/01/2021 17:07:04 26 1
bbc
Article fails to mention Elon Musk and he is crucial to this financial ‘play’. The shorters in question had placed a short stop on Tesla in the past and he has helped ramp the price of GameStop as payback; the smaller investors are doing the same. Choose your good/bad guys, but this sort of behaviour in financial markets is unhelpful to the normal Joe.
321
28/01/2021 00:49:55 0 0
bbc
Shame they'll get bailed out again. GO MY TENDIE ARMY, GET YOUR STIMULUS CHEQUES. DADDY GOVERNMENT AIN'T GONNA GIVE YOU IT andmaybesendsomeourway?
60
27/01/2021 16:47:40 21 1
bbc
Financial markets have been divorced from any fundamental reality for quite some time...Propped up by endless money printing schemes where 90% of the new money ends up in this casino instead of real economy. Tulip mania from the 17th century will be a child play when things collapse spectacularly...
61
27/01/2021 16:52:14 3 5
bbc
Who invests in hedge funds? Institutional investors. Who are institutional investors - pension funds. So basically if hedge funds get burnt in a short squeeze its Joe Public who gets it in the wallet. So don't wish too much harm of the hedge funds, 'cos its the pensions that will suffer.
68
27/01/2021 17:00:30 3 2
bbc
Financial markets add nothing to GDP. These people are parasites.

Pension funds play along because that is the way things are. Give them an alternative (the removal of parasitic marketeers) and they will bite your hand off.

Sounds like you got all your eggs in their basket. So you would say that, wouldn't you?
79
27/01/2021 17:07:35 1 2
bbc
The vast sums of money being created by governments around the world don't do pensions much good either, but no one complains about that. You've got to wonder if it will ever be worth saving money again. People's financial behaviour will eventually change and this is symptomatic of that need to find new ways of not losing money.
87
27/01/2021 17:13:47 1 0
bbc
Pension funds don't invest in Hedge funds
95
27/01/2021 17:19:28 3 1
bbc
judging by this comment you are not too far from retirement as most people below 40 honestly dont expect pensions to be worth anything by time they get to retire - assuming they do get to retire with the constantly increasing age limits
55
27/01/2021 16:37:26 235 1
bbc
Instructive that the SEC is concerned about supposed market manipulation by thousands of relatively poor individuals, but (other than a very occasional derisory and inconsequential fine) routinely turn a blind eye to the systematic market manipulation practised by the big banks & hedge funds.
62
27/01/2021 16:52:53 107 2
bbc
Absolutely, the markets are regulated by the very same crooks who do nothing to impose level playing fields for all participants in the financial markets. The big guns are having a laugh often over a few Friday drinks with their SEC best pals...This whole thing is just one very big joke.
59
Ed
27/01/2021 16:47:25 183 5
bbc
The Hedgefund managers brought this on themselves. They shorted over 100% of the stock, and deliberately drove the value of Gamestop down. They actively tried to bankrupt a company, making thousands of people unemployed so they could earn a quick buck. These are the same people we bailed out in '08, doing the exact thing.

Good on the WSB users for giving them a taste of their own medicine.
63
27/01/2021 16:58:23 37 10
bbc
It's quite hard to bankrupt a company by shorting it's stock. It makes no difference to the balance sheet of the company if its stock value is lower.

A company goes bankrupt when it can no longer service it's debts.

The only thing a high stock price can do is give a company the possibility to raise capital by issuing more shares and diluting existing shareholders.
76
Ed
27/01/2021 17:06:05 26 3
bbc
Higher stock value makes it easier for a company to obtain financial assistance or solicit new investment. Lower stock values make them vulnerable to takeovers.

While Gamestop did have debts, they were still solvent. There was no indiciation that Gamestop was going to fail anytime soon, so it was a deliberate act of market manipulation on behalf of the hedge funds.
188
27/01/2021 21:07:59 4 0
bbc
'The only thing a high stock price can do is give a company the possibility to raise capital by issuing more shares and diluting existing shareholders'

Perfect time to issue some new shares and use them to pay all the workers.
334
28/01/2021 02:15:50 6 0
bbc
Two of the hedgefund mangers that were heavily short on GME were regularly sending out press releases claiming that GME was going to face an imminent demise. So no, shorting a stock alone does not make a company go bankrupt, releasing misinformation in the hopes of bankrupting a company to maximize returns does help bankrupt a company, and is market manipulation.
64
27/01/2021 16:25:17 5 3
bbc
Hedge funds manipulated the market makeing shortfall bets.

And a load board people saw these hedge funds have no choice but buy back game shares that they borrowed lent on and need pay back.

Now the price has sky rocketed and hedge funds will go bankcrupt and wallstreet gets kick in the but.

As ymthede average joe investors win.

Price of shares have no reflection of value on a company
73
27/01/2021 17:03:18 7 0
bbc
Im sure the hedgefunds wont go bust over one bad investment. they will try and wait it out.
Hopefully a wake up call that this type of action should not be allowed
65
27/01/2021 16:58:49 27 2
bbc
Brilliant!

The 'financial markets' add zip to GDP, they are run by spivs and fraudsters, whose only intent is to gamble with our hard earned economy. Raking billions out of the public purse and the very heart that is wrong with modern society.

I hope the little guys win and the banks and bankers take a MASSIVE hit!!
93
27/01/2021 17:18:03 12 1
bbc
Quite so. For 'investor' read 'speculator' - not nearly so respectable, and a much more truthfully descriptive term for a lot of the self-serving activity undertaken by the so-called financial services 'industry'.
107
27/01/2021 18:09:59 0 3
bbc
You're actually incorrect.
Having a liquid market where you can easily sell your investment gives confidence to provide funding to companies in terms of capital or loans. If there was no way to sell the shares, very few people would actually give money to companies and the economy would collapse, think 2008-2009 credit crunch.
66
27/01/2021 16:59:21 58 7
bbc
"who probably have a lot of time on their hands during lockdown"

Derisive quips about one party are not politically neutral.
143
27/01/2021 19:36:50 48 2
bbc
The whole article is derogatory towards the private investors. The 'traditional' market traders don't seem to realise the advent of simple trading apps have opened the market to everyone. I don't understand why the news outlets think any regulation should be towards individuals who are just buying stock!
238
27/01/2021 22:12:56 2 3
bbc
“Amateur” = “stay in your clearly marked lane for which you hold the credentials” = just like communism

Sleight of hand:
Now you see your free market,
Now you don’t
18
27/01/2021 15:22:10 369 24
bbc
Hedge fund were allowed to "borrow" 150% of shares, which should be illegal. Now that they got beater in their own game, they're throwing all they have. That includes cheap articles like this one, that doesn't explain the true reason why this situation has occurred and is instead trying to paint retail investors as rabid idiots who are out to destroy Wall St.

GME TO THE MOON. HOLD TILL $1420.69
67
27/01/2021 16:30:56 158 2
bbc
Wall Street manipulating Market to make money average joe kicks them in nuts they loose billions. Stock price have no reflection of value of a company. Look twitter it has never ever made a profits its worthless yet it lives in tec bubble on stock market waiting burst.
355
28/01/2021 08:47:27 1 0
bbc
Except twitter have been profitable for nine year now, making $2.3bn profit last year. Tesla on the other hand, worth more than the rest of the car industry combined I would would question!
61
27/01/2021 16:52:14 3 5
bbc
Who invests in hedge funds? Institutional investors. Who are institutional investors - pension funds. So basically if hedge funds get burnt in a short squeeze its Joe Public who gets it in the wallet. So don't wish too much harm of the hedge funds, 'cos its the pensions that will suffer.
68
27/01/2021 17:00:30 3 2
bbc
Financial markets add nothing to GDP. These people are parasites.

Pension funds play along because that is the way things are. Give them an alternative (the removal of parasitic marketeers) and they will bite your hand off.

Sounds like you got all your eggs in their basket. So you would say that, wouldn't you?
69
27/01/2021 17:00:58 3 7
bbc
The denizens of wallstreetbets are degenerate gamblers, not 'upstart investors.
81
27/01/2021 17:09:33 3 1
bbc
Yet there are enough of them to squeeze the big boys...?
91
27/01/2021 17:16:54 1 1
bbc
"degenerate gamblers" who've cost the hedge funds a lot of money and trouble....so maybe not as degenerate as you try to profess....tellme, did you get stung by them and thats why you are so angry and spiteful towards a group of people you dont know? Thats a lot of hate you got showing there!
70
27/01/2021 17:02:00 16 0
bbc
Speculation is growing that Citron and Melvin have NOT in fact closed out their short positions on GME, as is being reported by most major news outlets. Not enough stock has been traded to cover those positions. Could be desperation on the part of the hedge funds, as they frantically try to damp down amateur interest in the stock.
202
27/01/2021 21:27:33 1 1
bbc
Good comparison, now there's a man who knows his onions, the saying btw comes from a man who mistakenly cooked a tulip bulb thinking it was an onion and was jailed as the bulb was worth its weight in gold. during theDutch tulip boom
203
27/01/2021 21:28:42 0 0
bbc
whoops somehow posted on wrong line meant to post on humpty dumpty
54
27/01/2021 16:33:01 27 1
bbc
so the next play is to find what stock is being shorted, and then the small guys act as a group and buy. Hopefully keep their nerve and hold the stock. Small guys are only taking money from the greedy wealthy so its all good. Institutions, hedge funds etc are gonna get spooked by this. Opens everyone's eyes to what value these 'experts' bring.
71
27/01/2021 17:02:23 12 1
bbc
Spot on Raven. Financial (gambling) markets add zero to GDP.
109
27/01/2021 18:13:32 0 0
bbc
You're wrong, but I already pointed out on your other comment where you make this incorrect assertion as to why you're wrong. Just because you don't understand the purpose of something, it doesn't mean it doesn't serve a beneficial purpose.
53
27/01/2021 16:32:20 0 3
bbc
There's that favourite journo buzzword again "soar".

Perhaps one day they will pick up a thesaurus to find some new words...

https://www.thesaurus.com/browse/soar
72
27/01/2021 17:02:41 1 0
bbc
Finger. Pulse.
64
27/01/2021 16:25:17 5 3
bbc
Hedge funds manipulated the market makeing shortfall bets.

And a load board people saw these hedge funds have no choice but buy back game shares that they borrowed lent on and need pay back.

Now the price has sky rocketed and hedge funds will go bankcrupt and wallstreet gets kick in the but.

As ymthede average joe investors win.

Price of shares have no reflection of value on a company
73
27/01/2021 17:03:18 7 0
bbc
Im sure the hedgefunds wont go bust over one bad investment. they will try and wait it out.
Hopefully a wake up call that this type of action should not be allowed
24
27/01/2021 15:36:33 273 11
bbc
I'm a terribly simple soul I know.... but in my view selling something that not only is not yours to sell but, in fact, doesn't exist, on the hope you can buy it back cheaper later is.... what's the word.... fraud? Yes that's it... it's fraud.
74
Bob
27/01/2021 17:03:24 20 2
bbc
It isn't fraud. It is gambling.

Another commenter has it nailed - why do we view this as a valid job? Gambling is not a job!
174
27/01/2021 20:39:00 4 0
bbc
How does short selling contribute to the real economy? Other than a vehicle for gambling, does it serve any other purpose?
196
27/01/2021 21:19:58 0 1
bbc
How is it any more gambling than buying a stock? Companies puff up their performance all day long in the hope of getting their shares up. Why not have some sceptics that say "yours" when the price is absurdly high?
75
27/01/2021 17:05:19 8 4
bbc
Shorting is Bullying - plain and simple
112
27/01/2021 18:16:09 1 0
bbc
What? No. Did Elon Musk told you to say that?
63
27/01/2021 16:58:23 37 10
bbc
It's quite hard to bankrupt a company by shorting it's stock. It makes no difference to the balance sheet of the company if its stock value is lower.

A company goes bankrupt when it can no longer service it's debts.

The only thing a high stock price can do is give a company the possibility to raise capital by issuing more shares and diluting existing shareholders.
76
Ed
27/01/2021 17:06:05 26 3
bbc
Higher stock value makes it easier for a company to obtain financial assistance or solicit new investment. Lower stock values make them vulnerable to takeovers.

While Gamestop did have debts, they were still solvent. There was no indiciation that Gamestop was going to fail anytime soon, so it was a deliberate act of market manipulation on behalf of the hedge funds.
6
27/01/2021 15:11:10 5 4
bbc
The only winners here will be the ones selling to delusional buyers right now. The person who got this little ball rolling will be laughing ! Out at the top !
77
Bob
27/01/2021 17:06:28 1 1
bbc
Yep. People on Reddit will think they've won right now. Let's see how they feel in a few month's time.

Some will make big pay days (as above), others will have been too late to the party of go home at the wrong time and there will be blood shed on both sides of the fence.
263
27/01/2021 22:28:00 0 0
bbc
Wizman sounds like one of the scammers.
59
Ed
27/01/2021 16:47:25 183 5
bbc
The Hedgefund managers brought this on themselves. They shorted over 100% of the stock, and deliberately drove the value of Gamestop down. They actively tried to bankrupt a company, making thousands of people unemployed so they could earn a quick buck. These are the same people we bailed out in '08, doing the exact thing.

Good on the WSB users for giving them a taste of their own medicine.
78
27/01/2021 17:07:04 26 1
bbc
Article fails to mention Elon Musk and he is crucial to this financial ‘play’. The shorters in question had placed a short stop on Tesla in the past and he has helped ramp the price of GameStop as payback; the smaller investors are doing the same. Choose your good/bad guys, but this sort of behaviour in financial markets is unhelpful to the normal Joe.
84
Ed
27/01/2021 17:09:54 26 0
bbc
You're absolutely correct, and I have no love for Musk. What WSB has done here is expose the absurdity of the markets, but crucially it's the hedge fund managers that have taken the hit. Hopefully this will be a wake up call for them, but I suspect that they will appeal for regulation so they can continue their behaviour without shouldering the risk.
61
27/01/2021 16:52:14 3 5
bbc
Who invests in hedge funds? Institutional investors. Who are institutional investors - pension funds. So basically if hedge funds get burnt in a short squeeze its Joe Public who gets it in the wallet. So don't wish too much harm of the hedge funds, 'cos its the pensions that will suffer.
79
27/01/2021 17:07:35 1 2
bbc
The vast sums of money being created by governments around the world don't do pensions much good either, but no one complains about that. You've got to wonder if it will ever be worth saving money again. People's financial behaviour will eventually change and this is symptomatic of that need to find new ways of not losing money.
80
Bob
27/01/2021 17:09:10 2 0
bbc
So basically a pump and dump with some added hedge fund collateral.

On average this will end up being worse for the retail bandwagoners after all is said and done.
69
27/01/2021 17:00:58 3 7
bbc
The denizens of wallstreetbets are degenerate gamblers, not 'upstart investors.
81
27/01/2021 17:09:33 3 1
bbc
Yet there are enough of them to squeeze the big boys...?
92
Bob
27/01/2021 17:17:19 2 0
bbc
They are a hive and moves in unison. Of course. But you only need take a brief look at the sub to see there's a lot of grade A nonsense, immaturity and naivety on there in and amongst the few good bits.

But no matter the pedigree, a hive can accomplish a goal.
82
27/01/2021 17:09:46 5 2
bbc
APES TOGETHER STRONG
31
27/01/2021 15:45:16 14 1
bbc
Since the Credit Crunch of 2008 the monetary policies put in place to facilitate recovery still remain. They are clearly running out of steam. It is time to get back to the real economics of capitalism: investment, value and profit.

The endless flow of cheap money is producing nothing of value, employs fewer each day, is hollowing out our towns and is slowly driving us all mad.
83
27/01/2021 17:09:52 7 0
bbc
Quote of the day - thank you for putting my thoughts into words
78
27/01/2021 17:07:04 26 1
bbc
Article fails to mention Elon Musk and he is crucial to this financial ‘play’. The shorters in question had placed a short stop on Tesla in the past and he has helped ramp the price of GameStop as payback; the smaller investors are doing the same. Choose your good/bad guys, but this sort of behaviour in financial markets is unhelpful to the normal Joe.
84
Ed
27/01/2021 17:09:54 26 0
bbc
You're absolutely correct, and I have no love for Musk. What WSB has done here is expose the absurdity of the markets, but crucially it's the hedge fund managers that have taken the hit. Hopefully this will be a wake up call for them, but I suspect that they will appeal for regulation so they can continue their behaviour without shouldering the risk.
85
27/01/2021 16:45:02 2 2
bbc
to the moon!

the sec will be changing the rules to protect the dodgy hedge funds and not let this sort of thing happen again.
86
27/01/2021 17:11:04 21 2
bbc
Good luck to the investors,professional funds do not study companies profiles ,strength or viability.They tend to follow algorithms,buying or selling on share price movements,which bear no reality to companies performances.
191
27/01/2021 20:55:20 2 2
bbc
A lot of professional funds do study the companies, their markets, meet the Management (virtually at the moment) etc. I certainly do not use an algorithm for the pension fund I manage.
61
27/01/2021 16:52:14 3 5
bbc
Who invests in hedge funds? Institutional investors. Who are institutional investors - pension funds. So basically if hedge funds get burnt in a short squeeze its Joe Public who gets it in the wallet. So don't wish too much harm of the hedge funds, 'cos its the pensions that will suffer.
87
27/01/2021 17:13:47 1 0
bbc
Pension funds don't invest in Hedge funds
88
27/01/2021 16:48:37 22 1
bbc
I have no sympathy for wall street traders. They have a monopoly on most IPOs with the retail trader very rarely getting a look-in. If retail traders are making a profit on open markets, so be it, it's about time some of us were able to make money when it's tended to be the rich making themselves richer.
89
meh
27/01/2021 17:14:26 97 3
bbc
I've been dabbling on the stock market on and off for decades now. As a small time retail investor i've seen first hand how hedge funds move in to easily short FTSE 250 stocks and decimate the price. They walk away with the profit, meanwhile investors like me are stuck holding trying to recover our losses eventually.

Karma watching hedge funds go broke :)
50
27/01/2021 16:23:13 7 17
bbc
But these shares do exist, and they are the fund's to sell if that's in the contract.

Can I borrow the car you're not using during the lockdown? I'm going to sell it, and once lockdown is over and you need it again, I'll buy it back and give it back to you.

It's exactly the same principle, and if the owner of the car is happy with the deal, then there's no fraud involved.
90
27/01/2021 16:54:40 9 0
bbc
The most common way for institutions to short sell shares is to buy "put options" which are options to buy a share at the current price, they are not real shares which are physically owned.

This is can lead to a situation where there are more optioned shares on the market, owned by traders looking to short sell the stock, than there are real shares. Which is obviously suboptimal.
236
27/01/2021 22:09:53 2 0
bbc
Put options are not options to buy shares at the current price. They're options to sell shares at a fixed price in the future (the strike price). So if the share price falls below the strike price you make a profit. If the stock price rises you let your option expire worthless. You pay the seller of an option a price up front (the option premium).

69
27/01/2021 17:00:58 3 7
bbc
The denizens of wallstreetbets are degenerate gamblers, not 'upstart investors.
91
27/01/2021 17:16:54 1 1
bbc
"degenerate gamblers" who've cost the hedge funds a lot of money and trouble....so maybe not as degenerate as you try to profess....tellme, did you get stung by them and thats why you are so angry and spiteful towards a group of people you dont know? Thats a lot of hate you got showing there!
204
27/01/2021 21:28:51 0 0
bbc
FYI, 'degenerate gamblers' is how WSB describe themselves, and not a label I've given them.
81
27/01/2021 17:09:33 3 1
bbc
Yet there are enough of them to squeeze the big boys...?
92
Bob
27/01/2021 17:17:19 2 0
bbc
They are a hive and moves in unison. Of course. But you only need take a brief look at the sub to see there's a lot of grade A nonsense, immaturity and naivety on there in and amongst the few good bits.

But no matter the pedigree, a hive can accomplish a goal.
65
27/01/2021 16:58:49 27 2
bbc
Brilliant!

The 'financial markets' add zip to GDP, they are run by spivs and fraudsters, whose only intent is to gamble with our hard earned economy. Raking billions out of the public purse and the very heart that is wrong with modern society.

I hope the little guys win and the banks and bankers take a MASSIVE hit!!
93
27/01/2021 17:18:03 12 1
bbc
Quite so. For 'investor' read 'speculator' - not nearly so respectable, and a much more truthfully descriptive term for a lot of the self-serving activity undertaken by the so-called financial services 'industry'.
94
Ed
27/01/2021 17:12:50 20 3
bbc
The most beautiful/powerful internet event of the week!!!
Main street before Wall street for once.
98
27/01/2021 17:25:09 2 0
bbc
Apart from it'll be main street that gets burnt as the hedge funds will just hold onto their shorts.

The hedge funds will only get burnt if failing companies turn themselves around into profitable enterprises.
61
27/01/2021 16:52:14 3 5
bbc
Who invests in hedge funds? Institutional investors. Who are institutional investors - pension funds. So basically if hedge funds get burnt in a short squeeze its Joe Public who gets it in the wallet. So don't wish too much harm of the hedge funds, 'cos its the pensions that will suffer.
95
27/01/2021 17:19:28 3 1
bbc
judging by this comment you are not too far from retirement as most people below 40 honestly dont expect pensions to be worth anything by time they get to retire - assuming they do get to retire with the constantly increasing age limits
96
27/01/2021 17:22:00 42 0
bbc
Ordinary people using an app called "Robinhood" to squeeze money out of unprincipled short sellers who are betting on the failure of companies during the pandemic is the ultimate in poetic justice. Now where's my popcorn..
115
27/01/2021 18:18:50 2 0
bbc
Robinhood's Wikipedia entry is interesting.
97
27/01/2021 17:22:15 26 2
bbc
Shorting should be illegal, shorting itself is market manipulation; often causing stock to fall far more than it should.
94
Ed
27/01/2021 17:12:50 20 3
bbc
The most beautiful/powerful internet event of the week!!!
Main street before Wall street for once.
98
27/01/2021 17:25:09 2 0
bbc
Apart from it'll be main street that gets burnt as the hedge funds will just hold onto their shorts.

The hedge funds will only get burnt if failing companies turn themselves around into profitable enterprises.
111
Bob
27/01/2021 18:14:50 1 1
bbc
Shh, let the naïve believe.
200
27/01/2021 21:26:52 0 0
bbc
The hedge fund shorts have already lost a bit and had to borrow more to buy more to cover their position, they're getting beat
99
27/01/2021 17:27:12 27 1
bbc
This is deeper than simply a bunch of nerds wanting to make a quick buck.. This is the consequence of the uber-wealthy gatekeeping the stockmarket.

Watch as the American mainstream media will now reduce these punters to political extremists who have sullied the good reputation of Wall St.

The hedge fund got bailed out.. And the Robin Hoods of this world will be derided at every turn.
167
27/01/2021 20:31:26 3 0
bbc
No, I reckon the world has changed with the advent of small traders able to. uy shares no longer the business of a few, everyone can get in on the act if they want to so it should be
360
28/01/2021 09:11:10 0 0
bbc
I'm afraid you're right, we now have a history of the wrong people being blamed for things. It's black people killing the most black people, not white police officers. And you can hold a sign "Q sent me" while standing in the Capitol and Trump gets blamed. So this will be Reddits fault probably.
100
27/01/2021 17:32:41 8 0
bbc
It's not just GME going through this. Look at the likes of AMC, NOK, BB, EXPR. Nothing like hedge funds suffering, karma.
106
27/01/2021 18:09:50 11 0
bbc
Funniest was with VW & Porsche where shorting hedge funds had a hissy fit, when it turned out they couldn't cover their short positions as Porsche had built up such a large position in VW, with only 6% free float shares not held by Porsche. Briefly VW was the most valuable company in the world.
Hedge funds tried and failed with a court case afterwards