Talking Stocks in 2021

[CsabaLazlo]

Is shorting that much normal activity for these companies? Sounds like it's asking for trouble but, I know bugger all about this topic.

[coelian]

8 minutes ago, CsabaLazlo said:

Is shorting that much normal activity for these companies? Sounds like it's asking for trouble but, I know bugger all about this topic.

Yes it is, it is not "wrong" per se. It helps to weed out shitty companies or companies screwing with the books. In this case, you can argue that GME as a B&M game shop is a dying trade and probably should end up like blockbuster. However, the fact that the funds have shorted more than the outstanding float show how brazen they are and the man in the street would like to bring the funds down. If this materializes, it would be a great redistribution of billions.

[spener90]

I think this just points out the irrationality and vulnerability in the markets (not that they are ever truly expected to be rational). Is GME overvalued currently, almost certainly. But to me it appears that those pushing the stock aren't pushing it based on whether the stock is vastly undervalued, but instead pointing out the vulnerability of shorts. Alone they hold very little influence, but as a group they can push the stock higher, take a significant amount of shares off of the table, and thus cause those covering the shorts to have to pick at a smaller amount of available shares. Only when this group, who appears to be unwilling to sell, begins to be willing to sell, will you see these prices come falling back. This can happen today, tomorrow, or at a random date 3 months from now. Commentators on CNBC were trying to gin up sympathy for the groups (Hedge Funds) that shorted this to 140%, like they don't ever attempt a giant manipulation of stocks.

Also, I believe this will ultimately result in a changing of laws for shorting stocks and what percentage is allowed. Especially if this boils over into other areas of the market.

Disclaimer - I am not an expert in any of this, and might be wrong on some of the above claims. Please correct me if I'm wrong, but it is my understanding of the topic. I have to stake in GME, and a small (just for fun) stake in AMC.

[Foreman Porgy]

AMC, BB, NOK, KOSS, BBBY

I’ve done a lot of reading the past week or so. These are all on WSB radar. Buy at your own risk. 

[KShine]

Basically everyone that is overshorted is scared sh*tless that their stock could be next (which makes them all bail, which makes it all happen).

[exracer327]

Upon hearing that AMC secured financing (including doubling the number of shares of stock) so they won't go bankrupt, stock was up 12%. 

AMC up 200% in pre market.  On what news?  None. 

Someone is playing games in the options market.  Play at your own risk.

I believe the age-old saying is true, "If you want to gamble; go to the casino."

[spener90]

35 minutes ago, exracer327 said:

I believe the age-old saying is true, "If you want to gamble; go to the casino."

That's the problem though, people can't really do these things anymore.

[exracer327]

10 hours ago, NIevo said:

 

Not totally going against what you are saying, but your last paragraph isn't completely true.  I follow an investing thread on another forum and numerous people knew and let us know GME was going to run crazy simply because of it's metrics and short float.  No, I do not get into options, nor understand them completely, but if you do understand them then profiting right now is the definition of genius investing.  As with any investment you have to be aware of the risks involved.

AMC is more then likely going to run almost like GME did.  Already up over $8 in the aftermarket with a $4.96 close.

I can appreciate that playing the options game is an investment strategy, but in my mind, you just made my point for me.  

Let's put it this way, the only thing guaranteed are taxes and death.  I've seen way too many investment posts - "Next big thing," etc. only to see a stock run up over the course of a week of two and then watch it crash and burn shortly thereafter.

I have to admit, I have been wondering if the companies themselves are instigating this in an effort to raise capitol for their own company.  If the company was buying their own stock (when it was cheap) and then caused their stock to spike up, then they would sell their stock at inflated prices to raise capitol.  If that is the case, then we should all be watching every single stock that is near bankruptcy and see if they all do the same thing.  Of course, if that is the case, the SEC will be on it.  You have to know they are already looking into GME and now AMC.

BTW, AMC (Movie theaters) is not the same as AMCX (AMC cable channel), they are different companies but AMCX is being run up today as well.

Just now, spener90 said:

That's the problem though, people can't really do these things anymore.

Casinos are open - at a reduced occupancy, but they are open.  That has been one of the complaints of restaurants - why are casinos open but they are not?

[Mark Twain]

Ha, the Times even has a report on the Reddit story. https://www.nytimes.com/2021/01/27/business/dealbook/reddit-wallstreetbets-gamestop.html

[spener90]

3 minutes ago, exracer327 said:

I can appreciate that playing the options game is an investment strategy, but in my mind, you just made my point for me.  

Let's put it this way, the only thing guaranteed are taxes and death.  I've seen way too many investment posts - "Next big thing," etc. only to see a stock run up over the course of a week of two and then watch it crash and burn shortly thereafter.

I have to admit, I have been wondering if the companies themselves are instigating this in an effort to raise capitol for their own company.  If the company was buying their own stock (when it was cheap) and then caused their stock to spike up, then they would sell their stock at inflated prices to raise capitol.  If that is the case, then we should all be watching every single stock that is near bankruptcy and see if they all do the same thing.  Of course, if that is the case, the SEC will be on it.  You have to know they are already looking into GME and now AMC.

BTW, AMC (Movie theaters) is not the same as AMCX (AMC cable channel), they are different companies but AMCX is being run up today as well.

Casinos are open - at a reduced occupancy, but they are open.  That has been one of the complaints of restaurants - why are casinos open but they are not?

I definitely don't think any of these stocks are "the next big thing". Gamestop is revolutionizing any industries anytime soon. I do see AMC potentially fixing their problems (the pandemic created), but obviously the price isn't actually logical.

Casinos are open, yes, but a good portion of that crowd has moved to the stock market.

[coelian]

Again this has nothing to do with valuation, its about funds being greedy and shorting the stock more than the float and got caught with their pants down. Pump and dump? No, this is the man in the street (possible some whales as well in the background) taking money from hedge funds. Will some people get burnt? Yes for sure. There will also be many more who might have never had a chance get heir break against the institutions. No sympathy for those who shorted the stock to oblivion, you should have hedged your risks. Hopefully shorting will be regulated more tightly but from the looks of it became business as usual just like the temporary restrictions during GFC which have been lifted.

Edited January 27, 2021 by coelian

[Jessekidd13]

3 hours ago, Foreman Porgy said:

AMC, BB, NOK, KOSS, BBBY

I’ve done a lot of reading the past week or so. These are all on WSB radar. Buy at your own risk. 

What do you guys like today if I want to screw around with this wave of craziness (I understand this isn't rational movement, this is "fun" money...although the short squeeze stuff on GME is interesting)? Still GME?

[KvHulk]

Say what you want but I've made $4200 on an initial $10k investment this morning... This is... fun.

Added: GME that is. Already out too...

Edited January 27, 2021 by KvHulk

[Gonkalin]

So I accidentally got caught up in all this ****. I had no idea about the Reddit stuff going on with GME. I just saw AMC as a good brand that had been beaten up by pandemic and prob had more upside than downside near term. So yesterday I bought 20K worth of AMC. I sold a couple positions I had in Chinese companies (Alibaba and Xiaomi) to buy the AMC. After thinking about it more I ended up selling 75% of the AMC. I never day trade. This was literally a first for me to buy and sell a stock in the same day. But I kept $5K worth of AMC. I bought at $4.75. Then this morning it has spiked 350% but settled around up 250% by opening bell. I tried to sell at opening bell. But everything was crashing. When I would try to sell all my position in AMC using Charles Schwab it flagged the sell as not possible because the symbol was not valid. WTF? The symbol was AMC. And I had it in my account. So it tried multiple times and of course, eventually it showed up as trading halted....multiple times it went live and then halted again. Eventually I got a trade to go through (I thought) using my mobile schwab app instead of my desktop computer. I tried calling Schwab multiple times and it would put me on hold in a waiting queue and then randomly hang up on me after waiting for 5 minutes. So I called my Schwab rep who I have been working with for 25 years. She called me back and informed me that my trade had indeed been placed at a sell price of $14.75. But they can see my action online from earlier in the day and if the system said the symbol was invalid that was a mistake and they may be able to place the sell order based on what the price was at the time I tried to originally place the sell. Long story was it was a complete **** show. But not complaining about a 200% return in 18 hours. But glad to be out of that one. Too risky and stressful for my old blood. But it certainly is interesting what is going on with these Robinhood and Reddit buyers/sellers. 

[Gonkalin]

3 hours ago, Foreman Porgy said:

AMC, BB, NOK, KOSS, BBBY

I’ve done a lot of reading the past week or so. These are all on WSB radar. Buy at your own risk. 

What is WSB?

[BrickStanley74]

9 minutes ago, Gonkalin said:

What is WSB?

Wall Street Bets - it's a subreddit.

[Darth_Raichu]

Lol, the story of my life.  By the time I know about GME, the party is over

[BillyBricks]

I think the thing I have enjoyed most are the pundits getting their panties in a bunch over what retail investors are doing while ignoring what got these hedge funds in trouble in the first place. 

[coelian]

7 minutes ago, Darth_Raichu said:

Lol, the story of my life.  By the time I know about GME, the party is over

The stock is still being shorted close to 100% and the gains are just crazy I don't see how they can cover if this continues. The shows not over, the mother of all short squeezes will occur if folks continue to hold shares. Maybe bigger than the vw 08 one. Again buy at your own risk and do ur Dd. I've been tracking the volume and percent shorts out there. 

[TANV]

3 minutes ago, coelian said:

The stock is still being shorted close to 100% and the gains are just crazy I don't see how they can cover if this continues. The shows not over, the mother of all short squeezes will occur if folks continue to hold shares. Maybe bigger than the vw 08 one. Again buy at your own risk and do ur Dd. I've been tracking the volume and percent shorts out there. 

GAMESTONK, man. GAMESTONK. I went in this morning managing to snag 1 share in pre-market. So far, I'm sitting back, eating chips, and enjoying this ride.

[coelian]

2 minutes ago, BillyBricks said:

I think the thing I have enjoyed most are the pundits getting their panties in a bunch over what retail investors are doing while ignoring what got these hedge funds in trouble in the first place. 

Andrew left goes on cnbc cries foul over this coordinated attack on short sellers. The irony is he gets a chance to go on TV declaring short positions, cause panic selling and getting retail investors  burnt. He's not shorting companies for the good of society. 

[MarleyMoose]

 

TTI has been great for me. I'm up 200% since I got in. May be time to bail though.

 

[Darth_Raichu]

5 minutes ago, coelian said:

The stock is still being shorted close to 100% and the gains are just crazy I don't see how they can cover if this continues. The shows not over, the mother of all short squeezes will occur if folks continue to hold shares. Maybe bigger than the vw 08 one. Again buy at your own risk and do ur Dd. I've been tracking the volume and percent shorts out there. 

Lol, I would have jumped in when it was $100.  At $300+ during special "Revenge of small investors" time, it is too rich for me

[Bricklectic]

24 minutes ago, coelian said:

The stock is still being shorted close to 100% and the gains are just crazy I don't see how they can cover if this continues. The shows not over, the mother of all short squeezes will occur if folks continue to hold shares. Maybe bigger than the vw 08 one. Again buy at your own risk and do ur Dd. I've been tracking the volume and percent shorts out there. 

so whats the endgame? If/when the shorts stop, why isnt this a $4 stock when the dust settles?

I dont hear a coherent endgame justification for the price.

[Miami Bomb Squad]

WHEN THE BIG BOYS DIP, YOUR LEFT HOLDING THE CHIPS.