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Forums - Gaming - So what is happening with Gamestop now ?

zero129 said:

Realistically how likely is it for GME to get to at least a 1000$ a share?, I mean i see people on that reddit saying it could go even higher then that?, and 1000 is no longer a meme.
Are they right?, if they all hold and others join and hold too could it?.

Some pretends that for GME it is locked already, the chain reaction started can not prevent it to go 1000+ soon. I would definitely stay away from GME as long as I don't completely understand the rules which define the paying back of the shorted stocks. If it goes 300 to 1000, this will not be the consequence of new small buyers but mainly from the massive mandatory re-buying of the hedge funds.



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Warren "Poci" doubles down on redditors being "manipulators", gets asked multiple times about reddit and social media specifically and claims that these individuals could be hedge funds themselves (2:20 lol what a twist) and wants them investigated by the SEC for manipulation.

It is very easy, ban "short selling" techniques because it encourages the targeted and intentional destruction of companies through AstroTurf campaigns and other means to benefit from their decline.

https://streamable.com/hu2gsf

Last edited by numberwang - on 31 January 2021

numberwang said:

Warren "Poci" doubles down on redditors being "manipulators", gets asked multiple times about reddit and social media specifically and claims that these individuals could be hedge funds themselves (2:20 lol what a twist) and wants them investigated by the SEC for manipulation.

It is very easy, ban "short selling" techniques because it encourages the targeted and intentional destruction of companies through AstroTurf campaigns and other means to benefit from their decline.

https://streamable.com/hu2gsf

I love when I respond to a point that someone says and they come back the next day making the same exact point, responding to nothing. I'll just add briefly about the comment at 2:20, you are misrepresenting what she said. She is not saying that the people on Reddit are hedge funds (although there is likely some degree of astroturf involved here as well), she is saying that Wall St is also participating in buying because...I mean, of course they are.

These moves were made on apps like Robin Hood. How does Robin Hood make money? A good chunk of their money comes from something called Payment for Order Flow. What that means is that they take all of the orders that people make on an app and selling them. That means the buyer can see what is going to happen and make decisions on how to buy/sell on the market in response to that data, before the actual orders are fulfilled. If they see an abnormally high volume of buys in GME, obviously they would jump on that train.

As for your proposed solution, I have seen little evidence to actually back up the assertion that "short selling" is unjustly damaging. Lots of people like to say "shorting bad" but I've yet to see someone provide actual evidence. In my opinion, the changes that should actually be made, are first of all banning Payment for Order Flow. It tilts the market by giving Wall St advance knowledge of market moves, which shouldn't be allowed. Second, we need to do exactly what Warren is suggesting and give the SEC more power to investigate market manipulation and more clearly defining what market manipulation is.



zero129 said:
Amnesia said:

Some pretends that for GME it is locked already, the chain reaction started can not prevent it to go 1000+ soon. I would definitely stay away from GME as long as I don't completely understand the rules which define the paying back of the shorted stocks. If it goes 300 to 1000, this will not be the consequence of new small buyers but mainly from the massive mandatory re-buying of the hedge funds.

What do you mean by "Paying back of the shorted stocks"?. For instance if i was to buy 1 gme @325 and it went up to say 1000, if i sold might the be a problem with me getting paid?.

No, I mean that the hedge funds have a ton of shares to "buy back", because they had sold a lot without possessing it, they are suffering from this today with real pain.

But the rules and conditions for the delay to buy back is really complex, and only if you are perfectly aware about the current situation, you can decide if it is good to buy it or not, or eventually to short it.



@ zero129 No problem for getting paid if you your sell go through.
I will buy some on monday. But this is money I will probably lose. The goal is to hold it until some hedge fund go bankrupt. (maybe at the end of this week)
The Hedge fund still need to buy at least 80% of the GME shares to cover their shorts. And the more they wait to buy back the more it will cost them in interest...
and I really think it can go to 1000... but it can stay there for some minutes and go back to 100. Very volatile. Very risky. Nobody knows what will happen.
I am not a financial advisor ! Please do your due diligence.



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noemie75 said:

@ zero129 No problem for getting paid if you your sell go through.
I will buy some on monday. But this is money I will probably lose. The goal is to hold it until some hedge fund go bankrupt. (maybe at the end of this week)
The Hedge fund still need to buy at least 80% of the GME shares to cover their shorts. And the more they wait to buy back the more it will cost them in interest...
and I really think it can go to 1000... but it can stay there for some minutes and go back to 100. Very volatile. Very risky. Nobody knows what will happen.
I am not a financial advisor ! Please do your due diligence.

The shorting is by essence an absurdity, I would definitely call shorting: "playing with the Devil". What we are seeing has something mystical.

I did not know they still have to cover 80% of GME. If this is true and if enough people resist, it could even reach a 5 digit value.

I have placed some position on BB, AMC and NOK. I feel that GME is now too high for modest people like us to enter.



My god Robinhood, what are you doing???

So the hedge funds want to cover their losses by shorting AMD, so they can get a double whammy: money from both the increase between the original buy and the short, and from the shorting itself.

So, what does Robinhood do to protect their big money? Limit your buys of AMD shares to exactly 1 per day. One. Share. Per. Day. OF AMD. A stock that has been Ryzen since even before Zen got released in 2017, so practically 5 years straight. And which has a HUGE fanbase on the internet.

That will go over well...

https://hothardware.com/news/amd-robinhood-gamestop-gme-shorts-wallstreetbets

Last edited by Bofferbrauer2 - on 31 January 2021

noemie75 said:

@ zero129 No problem for getting paid if you your sell go through.
I will buy some on monday. But this is money I will probably lose. The goal is to hold it until some hedge fund go bankrupt. (maybe at the end of this week)
The Hedge fund still need to buy at least 80% of the GME shares to cover their shorts. And the more they wait to buy back the more it will cost them in interest...
and I really think it can go to 1000... but it can stay there for some minutes and go back to 100. Very volatile. Very risky. Nobody knows what will happen.
I am not a financial advisor ! Please do your due diligence.

Why is the goal to make some hedge funds go bankrupt?  I can understand principles saying that hedge funds shouldn't be doing some of their practices, and this GME movement is going to change the stock market for sure.  But why is it that internet loves to call one group evil, and wants to destroy it by being evil.  If you want to trade a stock and make a profit, make a profit.  This isn't going to end well for Gamestop and in the end and I wouldn't be surprised if it pushes it quicker down the path to closing for good when everyone sells.



rapsuperstar31 said:
noemie75 said:

@ zero129 No problem for getting paid if you your sell go through.
I will buy some on monday. But this is money I will probably lose. The goal is to hold it until some hedge fund go bankrupt. (maybe at the end of this week)
The Hedge fund still need to buy at least 80% of the GME shares to cover their shorts. And the more they wait to buy back the more it will cost them in interest...
and I really think it can go to 1000... but it can stay there for some minutes and go back to 100. Very volatile. Very risky. Nobody knows what will happen.
I am not a financial advisor ! Please do your due diligence.

Why is the goal to make some hedge funds go bankrupt?  I can understand principles saying that hedge funds shouldn't be doing some of their practices, and this GME movement is going to change the stock market for sure.  But why is it that internet loves to call one group evil, and wants to destroy it by being evil.  If you want to trade a stock and make a profit, make a profit.  This isn't going to end well for Gamestop and in the end and I wouldn't be surprised if it pushes it quicker down the path to closing for good when everyone sells.

These people are mostly groups of super rich parasites who do not produce anything but just manipulate fictive money to make the world a bit more unequal every days, while real workers do a real work and are so poor that they can just barely maintain a decent life.



Bofferbrauer2 said:

My god Robinhood, what are you doing???

So the hedge funds want to cover their losses by shorting AMD, so they can get a double whammy: money from both the increase between the original buy and the short, and from the shorting itself.

So, what does Robinhood do to protect their big money? Limit your buys of AMD shares to exactly 1 per day. One. Share. Per. Day. OF AMD. A stock that has been Ryzen since even before Zen got released in 2017, so practically 5 years straight. And which has a HUGE fanbase on the internet.

That will go over well...

https://hothardware.com/news/amd-robinhood-gamestop-gme-shorts-wallstreetbets

RobinHood's explanation is essentially that they saw such a large spike in trading that they could no longer had the capital to be able to put up the collateral required by the DTCC. While I do agree that RobinHood should be investigated for potential market manipulation, there are legitimate reasons to make these changes. When they obtained more capital, they were able to re-open trading, however it was limited for high volume stocks as, again, they only have so much capital. They are protecting themselves, not the hedge funds. 

https://www.barrons.com/articles/why-did-robinhood-stop-gamestop-trading-51611967696