Codeblew
Member
All PS5's are sold out everywhere so that means they manufactured them at 9:1 as well. I will buy a digital ps5 version as soon as I see one for sale.
The battle over Gamestop is getting really interesting
- Thread starter LordOfChaos
- Start date
LordOfChaos
Member
Aaand the short side lol. Why would you read GME being memed to high heaven and go short?
Buggy Loop
Gold Member
DFV's gains went to the top of Reddit all. If someone did not know about WSB's GME gamble, they do now.
LordOfChaos
Member
It's an autonomous collective, there's no leader or official direction (though DeepFuckingValue has of course made himself the wizard of GME).
Right now the vibe in there is not selling anything until a really explosive short squeeze, today wasn't it.
Buggy Loop
Gold Member
DeepFuckingValue (Roaring Kitty on youtube) streaming after those gains
LordOfChaos
Member
Buggy Loop
Gold Member
How can he even sleep these past days? With ending the week at 11M$ and not selling, i would be in the fucking shower in a fetal position stressed as fuck haha.
This guy can possibly go from 8 digits to 9 digits next fortune next week
longdi
Banned
How can he even sleep these past days? With ending the week at 11M$ and not selling, i would be in the fucking shower in a fetal position stressed as fuck haha.
This guy can possibly go from 8 digits to 9 digits next fortune next week
maybe it is just a mock trading account?
I would be out with $5M.
Glanced into GME meme stock but never delved too much in it.
But thanks to OP, i made a quick flip with GME last night, could secure a PS5DE if i wanted to.
LordOfChaos
Member
maybe it is just a mock trading account?
I would be out with $5M.
Glanced into GME meme stock but never delved too much in it.
But thanks to OP, i made a quick flip with GME last night, could secure a PS5DE if i wanted to.
Seems weird to post a losing bet a year ago with a very specific January 2021 target and be told you're wrong for most of that solid year, only to have exactly that blow up, if that was a paper account. His thesis was also entirely on the ball with the shorts getting themselves in trouble. That was some The Big Short level weaponized autism right there. Except The Big Short Squeeze this time.
Other paper accounts have been called out on WSB but he's one of the big kahunas now and no one seems to have found anything odd
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James Sawyer Ford
Banned
The short covering happened today, and it is based on retail investors on WSB pumping the stock up. There's no guarantee this goes up 4X from here. if it goes up 4X, that means GME is valued at 16-20 Billion dollars, which is absurd for a company that is teetering on irrelevancy. Pump and dump schemes by forums gone mad is going to end badly with someone holding the bag.
"This is exactly what was planned" is pretty cringe worthy. Stuff like this is illegal, and WSB is really towing a fine line and they could face issues with the SEC over this.
There is no "brilliance" from DeepFuckingValue. He got lucky and almost lost his shirt. Had the board announcement not been made to nudge the stock price up enough, he would have lost his entire position. From there, it went completely viral on WSB from his story alone and everyone and there mother there is pumping the price up to spite Hedge funds that have short positions. It's not tenable, it is the very definition of mania and will not end well for some.
Sure, you can get lucky, it's far from a guarantee. This is also why shorting, especially when you're now dealing with market participants that are artificially pumping stocks, is a dangerous game. Tesla is also wildly overvalued but shorting that isn't a good idea because while you may be right, you can also be fighting against manic market participants. Michael Burry has a notorious short position on TESLA and he's feeling the heat from it right now. He's very likely correct in his judgment, but the market can be irrational for longer than you can stay solvent. His famous "Big Short" move also encountered the same issues, but the timing managed to turn out in his favor but it certainly wasn't without a massive amount of stress.
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James Sawyer Ford
Banned
What they are doing is borderline illegal, so don't expect this to continue into perpetuity.
LordOfChaos
Member
What makes you say the short covering is almost done, when short interest has barely been touched today? Some have compellingly argued today was only a gamma squeeze, not the short squeeze.
Most Shorted Stocks
Short selling for dummies: To sell a stock short means to borrow shares from your broker using a margin account and sell stock hoping that prices will fall.
financhill.com
Also, had anyone said 4x in this thread? Why was that the example you chose to build and tear down? Short squeezes are volatile events that may end in market caps that make no sense momentarily, but I also don't buy the Lemon bear thesis that prices them at 20 dollars when their digital business alone is in excess of that. If there was no weird stock activity to speak of their fair value with Cohen (and Reggie) helping turn it around should find a perch above that.
I'm not seeing the illegal bit. This is the risk you take when you short something, and this is a bunch of individuals taking over pricing power from an institution, really the way it should be working.
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James Sawyer Ford
Banned
What makes you say the short covering is almost done, when short interest has barely been touched today? Some have compellingly argued today was only a gamma squeeze, not the short squeeze.
Most Shorted Stocks
Short selling for dummies: To sell a stock short means to borrow shares from your broker using a margin account and sell stock hoping that prices will fall.
Also, had anyone said 4x in this thread? Why was that the example you chose to build and tear down? Short squeezes are volatile events that may end in market caps that make no sense momentarily, but I also don't buy the Lemon bear thesis that prices them at 20 dollars when their digital business alone is in excess of that
I'm not saying it is done, especially when you have market manipulation to this degree done by a huge reddit community it's kind of unheard of.
But like I said, it's not a gamble I would personally make, and it certainly will end badly for some people at this point. It's a dangerous game to play in when you are relying on people pumping the stock up to initiate short positions.
Also, those holding short positions (hedge funds, institutions) have ways of preventing a margin call that ordinary investors don't have. Don't be surprised if many of them maintain their positions. You are also having to contend with new short positions as the share price rises, so there's nothing that says it must go further. But it certainly can if the WSB Autists continue to shout the loudest.
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Buggy Loop
Gold Member
Why would it be illegal? Market manipulation? What do you call what these financial sites like marketwatch, Bloomberg and these Tv shows like mad money have been doing for decades? You know why it's legal? Because if Citron can publicly say that Nvidia/Tesla/Palanrie are a casino, or called some stocks as fraud or a quick scheme to get rich like he did with Shopify and Ubiquiti, to help his shorting positions, it falls into "I'm just expressing an opinion ". Now try to pinpoint a movement by the possibility of anyone being able to go on Reddit and post his positions? If it's not Reddit, it's also Facebook investor groups, Tik-Tok, etc.
On top of that, you're quick to point at DFV for the attention, while I would point out that Citron Research calling out WSB live on Twitter and making rounds on all these above platforms and then falling flat on the face by not remembering there's an inauguration on Monday, and then not really laying out coherently why you would evaluate a company for less than their digital sales alone, really just appeared as desperate and publicized this whole thing to every investors, because of those above platforms. The shortest leveraged the media, as they always do, to manipulate the narrative. Investors smelled blood, and rightfully so.
Also, as much as WSB is a meme monster, they are not responsible for 197M volume movement today. There's other silent hedge funds that are just on the same side and see that short sellers are in a corner. It's a waiting game. They also have more means than typical investors to ask for a margin call when it gets too obvious the brokers are helping one side.
On top of that, you're quick to point at DFV for the attention, while I would point out that Citron Research calling out WSB live on Twitter and making rounds on all these above platforms and then falling flat on the face by not remembering there's an inauguration on Monday, and then not really laying out coherently why you would evaluate a company for less than their digital sales alone, really just appeared as desperate and publicized this whole thing to every investors, because of those above platforms. The shortest leveraged the media, as they always do, to manipulate the narrative. Investors smelled blood, and rightfully so.
Also, as much as WSB is a meme monster, they are not responsible for 197M volume movement today. There's other silent hedge funds that are just on the same side and see that short sellers are in a corner. It's a waiting game. They also have more means than typical investors to ask for a margin call when it gets too obvious the brokers are helping one side.
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Hudo
Member
ManofOne
Plus Member
Curious as to how you valued their digital business?
And why are they being manufactured like this if that's the case? Wouldn't it be better for Sony to manufacture more digital instead?
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Starlight Lotice
Member
Michael Burry knew something everyone else didn't. Congrats to the man.
Buggy Loop
Gold Member
The hedge fund that Citron Research referred to in his video this week he mentioned as valuing GME at 20$ ?
Well... it's now evaluated at
Well... it's now evaluated at
100$
Buggy Loop
Gold Member
Are all gamers collectively responsible for every doxxing, death threats to developers and swats too?
FBI can go after those individuals, as they should if it really happened (Don't forget that this guy's track record on FUD is out of this world..)
ManofOne
Plus Member
Are all gamers collectively responsible for every doxxing, death threats to developers and swats too?
FBI can go after those individuals, as they should if it really happened (Don't forget that this guy's track record on FUD is out of this world..)
If it can be traced back to the group. Then yes. The modding team is responsible for the harassment that occurred or was promoted on their board.
Also there are arguments being placed that the gamma squeeze that occurred can be akin to market manipulation and have bearings closely resembling insider trading.
Whatever happens from hereon is going to closely looked at.
It was reported on Bloomberg yesterday and this morning. So expect some regulatory interest.
Cleared_Hot
Member
well dang it.. wish i was paying more attention i wouldve dumped cash on that stock too
Buggy Loop
Gold Member
And how can mods regulate what individuals do in their life? There's no threads or movement on WSB to send death threats or doxx this guy, in fact, only thing I found is a thread condoning this when It became news.
This is like asking Evilore to mod better when a developer receives death threats over a controversial game decision and there's threads on the forum saying "fuck this company". Just take TLOU2 if you want as a recent example. I mean what's the expectations, to close any negative expression?
ManofOne
Plus Member
LordOfChaos
Member
From the latest Holiday Sales report, we can see that "E-Commerce sales, which are included in comparable store sales, rose 309% and represented approximately 34% of total company sales, with total worldwide E-Commerce sales year to date reaching over $1.35 billion, far exceeding the Company's $1.0 billion growth objective.
A 20 dollar stock price would put them back at a ~2 billion dollar valuation with a rising digital e-commerce platform, and even most of the B&M stores are cashflow positive. Just makes no sense. 40, 50, 60 dollars aren't insane. 20 dollars was.
This is completely aside from degenerate gamblers blowing up the shorts, and that temporary action was the main point of this.
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Buggy Loop
Gold Member
These boomers still do not understand the internet. Regulate it? So they're fine making "guidance tours" in companies and not call it insider trading, they're fine talking with their buddies and their firms their next move, they're fine with using the media as leverages to manipulate stocks in their favor, but when a bunch of degenerates can post their DD online and peoples jump in, it should be regulated?
This same boomer?
"LAWRENCE H. SUMMERS (treasury secretary) for Slick Willy Clinton called the "things that happened at Reddit today" (he literally said at, not a misquote) signs of "a dysfunctional market" and believes it's something "the sec is going to have to pay a lot of attention to".
?
The guy who when he was the treasury secretary shepherded a couple of bills that helped deregulate financial markets and inevitably led to 2008's crisis?
What are they gonna do, make it illegal to talk about stocks online with your friends? Illegal to talk about rockets, tendies and autism?
They're butt hurt that their huge institutions built like a casino to always fuck the retail traders is for once, reversed.
I cannot find any possible "this is a fine idea" out of this, apparently you do.
ManofOne
Plus Member
That's not how valuations work. They're weighted by revenue, earnings or FCF contribution and forecasted forward based on whatever discount rate and growth is chosen. Even relative valuations have the stock at $35 based on peer consensus and growth.
I did the same thing and got an average price of $23 which isn't far from what Wall Street consensus is. That pricing also includes in their improved digital sales and foward guidance.
Their digital sales aren't sustainable alongside their balance sheet deterioration.
The market is in hyper inflation mode right now with asset pricing so if mods on WSB keep allowing ppl to pump the stock up. A lot of people gonna be losing money soon.
LordOfChaos
Member
Ryah Cohen Ventures letter to the Gamestop board is also baller as hell
Please be advised that RC Ventures is not interested in receiving a lone seat on GameStop's ten-member Board. It is not enticing to become an isolated stockholder advocate on a Board that has overlooked years of digital revenue opportunities and presided over massive value destruction without assuming full accountability. We want GameStop's leaders to do their jobs and implement a strategy for bringing the Company into the 21st century.
Please be advised that RC Ventures is not interested in receiving a lone seat on GameStop's ten-member Board. It is not enticing to become an isolated stockholder advocate on a Board that has overlooked years of digital revenue opportunities and presided over massive value destruction without assuming full accountability. We want GameStop's leaders to do their jobs and implement a strategy for bringing the Company into the 21st century.
YeulEmeralda
Linux User
Going short was invented by Dutch merchants. It was considered so greedy that the Protestant church banned it but nobody listened.
The stock market is a casino: don't bet more than you're willing to lose.
The stock market is a casino: don't bet more than you're willing to lose.
James Sawyer Ford
Banned
What exactly is GameStop going to sell digitally? Collectibles and trinkets?
Again, the pace of digital game sales is only increasing and they are going to get 0% of major online stores like PSN
Again, the pace of digital game sales is only increasing and they are going to get 0% of major online stores like PSN
LordOfChaos
Member
Someone get the Protestant church to long $GME to wreck the shorts
Woo-Fu
Banned
Last time I set foot in one it was like a Spencers with a small game section in the back behind all the trash. Are games still their main draw?
Buggy Loop
Gold Member
They have a deal with Microsoft that every xbox console sold from Gamestop will get a share of the online revenue, yup, any DLC, game, gamepass, or other subscribtion, GameStop gets a share of that.
They also want to implement digital online trade-ins, it'll the only one with this system that i'm aware of.
They'll revamp the entire thing with Ryan Cohen.
James Sawyer Ford
Banned
Yes, that's like an "advertising deal" to turn GameStop into an Xbox marketing hub. We'll see how long that lasts. Microsoft may need it given their share of the market right now, but Sony and Nintendo certainly don't.
Holding onto physical retail to try and market products is basically holding on to the last remnants of a bygone era. These games/products sell themself. They don't need physical retail.
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Earthbound!
Neo Member
Unless another player comes in with a better alternative to GameStop, whether you like the company or not, it would be foolish to want GameStop to fail as a gamer. More retail presence, more copies, more options, more eventual discounts. How does the consumer or the industry benefit from GameStop failing? GameStop could be so much better, but if I am going into a physical store to buy a game I still like the idea of doing it in a game store. I don't care if it's a bygone era. I'd rather be surrounded by crappy funkos than milk and cereal or geeksquad service techs and cell phones when browsing for games.
Trimesh
Banned
But the shorts definitely have their asses hanging out here. The basic issue is that the aggregate size of the short positions is larger than the number of shares available so if for some reason people are forced to liquidate their positions (margin calls, option expiry, etc.) they can't all be fulfilled. This is a perfect setup for a short bloodbath, especially since it appears a lot of the shorts are small retail investors that simply don't have the cash to cover the margin calls.
The strange thing to me is that everyone seems to have walked into this with their eyes open - it's not like the 2008 VW short squeeze where everyone was suddenly blindsided by Porsche's "Oh, by the way we now own more than 30% of outstanding VW stock" announcement - it was clear just from freely available market information that any appreciable increase in the stock price was going to cause a squeeze.
Buggy Loop
Gold Member
Oh also, since GameStop bought 35 million shares at 5$ in 2019...
Someone is gonna make bank. I doubt they sell 35M of them, I believe their disclosure was 100M$, at 65$/share that's a ~1.5M shares, a drop in the ocean of share starved shorters. Just to make it clear, GameStop right now is diamond hand with ~2.2B$ of shares.
But anyway, GameStop, with many hedge funds now evaluating it at 80~100$, is going to be a whole other company with that move they made in 2019.
Someone is gonna make bank. I doubt they sell 35M of them, I believe their disclosure was 100M$, at 65$/share that's a ~1.5M shares, a drop in the ocean of share starved shorters. Just to make it clear, GameStop right now is diamond hand with ~2.2B$ of shares.
But anyway, GameStop, with many hedge funds now evaluating it at 80~100$, is going to be a whole other company with that move they made in 2019.
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Buggy Loop
Gold Member
The idea I've seen is that Ryan Cohen just reinvent the online market (just look what this guy did with chewy), GameStop closes unprofitable stores, rest of stores become a hub of electronics, TVs, PC parts, consoles can even assemble PC live there in a table.
Their digital sales is still where it's at, +-250% growth year over year, and without Cohen.
VGEsoterica
Member
Who would have thought a subreddit would make the NYT and completely change the stock trajectory of GameStop?
Buggy Loop
Gold Member
Hate em or love em, WSB is the best meme machine 
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LordOfChaos
Member
Buggy Loop
Gold Member
"Top? No little retard.."
down 2 orth
Member
I'm all digital and have been for a while, but I find those people cheering for the demise of physical annoying as fuck. Glad to see a little crow being eaten and someone describing himself as an "activist investor" losing his shirt.
Regarding market manipulation on social media, the SEC clarified its stance in 2015
www.investor.gov
Basically you cannot spread misinformation, you cannot represent your comments as investment advice if you're not a registered investment professional and you cannot promote a stock without disclosing you have an interest in it (own some) or that you are benefiting in some other way by promoting it ie, someone is paying you to pump it.
As for insider trading, if you're not an insider you have absolutely nothing to worry about. Moreover, as was observed on WSB a few weeks back, "how can we have insider knowledge when we don't have knowledge?".
So unless you're a complete tool on WSB it's pretty easy to stay on the right side of the law. Investment bbs were around for some time before GME this is nothing new.
Updated Investor Alert: Social Media and Investing -- Stock Rumors | Investor.gov
The U.S. Securities and Exchange Commission’s (SEC) Office of Investor Education and Advocacy (“OIEA”) is issuing this Investor Alert to warn investors about fraudsters who may attempt to manipulate share prices by using social media to spread false or misleading information about stocks.
Basically you cannot spread misinformation, you cannot represent your comments as investment advice if you're not a registered investment professional and you cannot promote a stock without disclosing you have an interest in it (own some) or that you are benefiting in some other way by promoting it ie, someone is paying you to pump it.
As for insider trading, if you're not an insider you have absolutely nothing to worry about. Moreover, as was observed on WSB a few weeks back, "how can we have insider knowledge when we don't have knowledge?".
So unless you're a complete tool on WSB it's pretty easy to stay on the right side of the law. Investment bbs were around for some time before GME this is nothing new.
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