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Posted

so, in the end we know that GameStop is a dinosaur, and going to, most likely go out of business in the next few years... so... after the hedge funds loose a ton of money from their short positions, someone else is going to loose a lot of money... who will it be?  and then, who is next?  This is basically a populist pump and dump, right?

 

Posted
1 hour ago, Bricklectic said:

what do you envision the endgame to be?

Lets say all the shorts give in hypothetically and buy back the stock sending it to 10,000$ a share.

Then what? Its a 750$ billion company?

We all know this ends terribly. Maybe today, maybe in a week. Get out while you can if you own.

End game is likely tomorrow, with calls because it is the end of the week and also expiration of monthly contracts, which will force shorters to buy more stock to cover their shorts.  Hence, more buying otherwise known as the short squeeze.  Last time this was executed was in '08 with Volkswagen, although it was Hedge Funds back then.  Tomorrow and next week will be scary, and there could be big sales to fund margin calls and cover shorts.  And then when those holding the call options cash in.  It will be armageddon.  It will be great to watch.  hopefully there won't be too much collateral damage.

Posted

This is one for the business history books.

By the way, Robin Hood doesn’t really care for the little guy. Some media outlets are reporting why they put some restrictions in-place.

CNBC also reported on the below.





  • Like 4
Posted
6 minutes ago, BrickStanley74 said:

Good luck with that IPO Robinhood 😂

They were the sacrificial lamb.

Does show how scared they are though. Destroying RB in order to save their rear ends is a massive, risky gamble. Especially if they doubled down on shorts in the premarket knowing the restriction was coming. Lots of people just got Robinhood accounts and had opening orders placed and ready for market open. In one move all that momentum destroyed, giving them opportunity to get out or double down. 

Insanity!

  • Like 2
Posted

So who is getting burned here? Besides the short sellers. I was lucky and bought $5K of AMC before all this stuf started (completely unrelated to the reddit stuff) so I sold out at opening yesterday for a $10K profit with a 24 hour hold. Took half of that 10K and bought $5K of NOK which I'm currently down $1700. But up $8300 on the 2 days. And this is play money for me so nothing to worry about if it goes bad. Lots of people got caught with their pants down today I'm sure. 

Meanwhile, AAPL reports the most profit of any company in the history of the world and the stock is down 1.5%. Crazy world we're living in for sure.

Posted

Just saw a article where 2 separate lawsuits have been filed against Robinhood for halting trading today of GME, AMC and others on their app. If this turns into class action suits I could see them being forced to pay some hefty settlements.

Posted
6 minutes ago, Shortbus311 said:

Just saw a article where 2 separate lawsuits have been filed against Robinhood for halting trading today of GME, AMC and others on their app. If this turns into class action suits I could see them being forced to pay some hefty settlements.

 

Posted

How could RH only allows selling stocks but not buying? Then where does the sold stock go? I guess the hedge funds bought the low price stock to cover their short. This is like forcing you to hand ammos to your enemy! 

In terms of "scumbags", we "The LEGO Scalpers" are just peanuts.

Posted
9 minutes ago, exciter1 said:

Just saw a article where 2 separate lawsuits have been filed against Robinhood for halting trading today of GME, AMC and others on their app. If this turns into class action suits I could see them being forced to pay some hefty settlements.

how would this get resolved if there was a class action law suit that RH and/or other brokers lost. How can you prove the damages. I hold my NOK position in Schwab but my NOK was still affected by RH and other brokers shutting down buying limiting the upside for the stock. One can not measure the damages because it is unknown.

Posted
2 hours ago, Darth_Raichu said:

F this. Now I hate not buying GME at $130ish earlier today.  :D :D

I really hate not buying GME @ $2 last spring.  I seriously considered it, but it was not a good investment (even at $2 / share).

Sadly, GME being used as a pawn this way does not bode well for the company's longevity.  It will go down in history as a memory like many stocks in the dot.com bubble.  Personally, I would love to see some changes in the options market.  I really do think the funds were trying to bankrupt GameStop.  Hopefully, GameStop sold some shares at the inflated prices and gained some working capitol to reinvent themselves.

I'll give y'all a stock that is very boring and very cheap.  CIK - $3 stock price, pays 8+% dividend, which is paid monthly.  Technically it's not a stock but a fund.  I have owned it for over 20 years and the dividend has never fallen below 6% (varies depending on the stock value which fluctuates between $2 - $3.5.)

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