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GameStop slugfest spreads as calls for probe build
Reuters via MSN ^ | Jan 28, 2021 | Sagarika Jaisinghani and Nikhil Nainan

Posted on 01/28/2021 2:29:19 AM PST by Reverend Wright

(Reuters) - The battle between small-time traders and hedge funds that has shaken U.S. and European stock markets moved into Asia on Thursday, with surges in several Australian companies squeezing another batch of financial institutions that have bet on the stocks falling.

(Excerpt) Read more at msn.com ...


TOPICS: Business/Economy
KEYWORDS: gamestop
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To: srmanuel

Re: 5 - Day traders better have an exit plan, because there’s two sides to a trade. And some traders are going to get crushed when this stock’s price normalizes.


41 posted on 01/28/2021 4:29:41 AM PST by Fury
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To: rb22982

From June: https://seekingalpha.com/article/4356058-gamestop-zero-near-term-bankruptcy-risk-yet-still-priced-for

Infusion. Off-loading key properties within its portfolio will provide GameStop with a tremendous cash infusion in the very near term.

Cash not capital but same effect. Liquidity.


42 posted on 01/28/2021 4:32:05 AM PST by LesbianThespianGymnasticMidget
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To: relictele

Reddit intentionally purged much of its conservative membership with the closure of various subreddits eg ones dedicated to Trump. The usual specious reasons were given.

The point is that most remaining on Reddit are of neutral or liberal political stances.

The Wallstreetbets crowd are hardly conservative or libertarian. In fact, they are probably more left especially since they view their cause as Robin Hood-esque.

However, they are quickly discovering what happens when the Big Tech/Government tactics are aimed at them. They’re being frantically deplatformed with no explanation or recourse.

The Nasdaq CEO is a quota-hire glamour-puss airhead in her leather jacket looking down her nose at the hoi polloi.

SUPPOSEDLY Janet Yellen (yes that old boiler again) was on the phone with various and sundry insiders and power players trying to figure out how to subvert the subversion. I don’t think she is taking all possible consequences into consideration. They’re panicking.


The Financial Times are already trying to link r/wallstreetbets to the ALT RIGHT. You see? That’s what the establishment does when they seek to discredit any group challenging their authority.


43 posted on 01/28/2021 4:34:03 AM PST by flatpickingflyer
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To: Fury
Re: 5 - Day traders better have an exit plan, because there's two sides to a trade. And some traders are going to get crushed when this stock's price normalizes.

For sure there are some day traders looking for a quick buck. But if you read through the subreddit, it's feels more like a crusade or a David verses Goliath.
44 posted on 01/28/2021 4:39:22 AM PST by flatpickingflyer
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To: Reverend Wright
Let me get this straight:

Wall Street and Soros can short these companies with impunity and bankrupt companies and countries without any repercussions at all but if smaller investors fight back, THEN there is a problem?

45 posted on 01/28/2021 4:46:31 AM PST by nonliberal (Caput gerat lupinum)
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To: nonliberal

Sort of like the divers weights and unjust measures we get across the board.

Social media bans, financial deplatforming, charges for “rioting”, FBI investigations, court decisions on election law...

Also, the trading platforms are putting on restrictions on margin, options trading, cash tansfers...etc for small investors especially for GME. Trying to help out their assh@le financial elite cronies !


46 posted on 01/28/2021 4:55:02 AM PST by Reverend Wright ( Everything touched by progressives, dies!)
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To: nonliberal

https://patriots.win/p/11SK7LcWlK/tendies-for-everyone/c/


47 posted on 01/28/2021 5:01:03 AM PST by mewzilla (Break out the mustard seeds. )
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To: MeneMeneTekelUpharsin

You are right about SEC corruption. SEC employees’ own-book investing outperforms the market, based on the information they receive from company compliance notices before SEC publicly posts it.


48 posted on 01/28/2021 5:03:53 AM PST by TimSkalaBim
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To: Reverend Wright

These Hedge Funds do everyday what Reddit buyers are doing.

So what is the difference?

I don’t understand why they are crying about it?


49 posted on 01/28/2021 5:11:57 AM PST by Enlightened1 ( )
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To: LesbianThespianGymnasticMidget
"Then there is the fact that Gamestop has had a massive capital infusion with this run up."

What you just posted has nothing to do with an infusion with this run-up - which is what you said (see your quote above). Even that article you listed from 7 months ago estimates that they would get $90 million - and that's just some joe schmoe's opinion (Seeking alpha articles are so-so at best for equity analysis). At $45/share (1/10th it is now), that $90 million would be less than 3% of their market cap. And they are still bleeding money every year. I think longer term this stock continues to trend back single digits but medium term I think ~$40 after this insane spike is done is probably about right.

50 posted on 01/28/2021 5:12:54 AM PST by rb22982 ( )
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To: Enlightened1

Biden will help his oligarch friends.

The little people are not allowed to fight the swamp.


51 posted on 01/28/2021 5:13:15 AM PST by Jewbacca (The residents of Iroquois territory may not determine whether Jews may live in Jerusalem)
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To: Jewbacca

$454

https://www.marketwatch.com/investing/stock/gme


52 posted on 01/28/2021 5:15:14 AM PST by Enlightened1 ( )
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To: Jewbacca

Haha!

Yep that is probably correct.


53 posted on 01/28/2021 5:15:42 AM PST by Enlightened1 ( )
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To: HamiltonJay

The company cannot used their stock as collateral without issuing new shares (executives that may not be the case depending on their insider trading policy but that wouldn’t benefit the company). Issuing new shares would simply dilute existing shareholders, especially if they did it without raising capital through a secondary offering, which at least that would in theory would at least keep their EV/share the same, although those typically put at least temporary downward pressure on the stock.


54 posted on 01/28/2021 5:15:52 AM PST by rb22982 ( )
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To: MeneMeneTekelUpharsin

Bkmrk.


55 posted on 01/28/2021 5:23:50 AM PST by RushIsMyTeddyBear
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To: flatpickingflyer

The Financial Times oozes sympathy for every left wing cause it can find — as long as it is approved by the oligarchs. By the way, who really owns the Financial Times?


56 posted on 01/28/2021 5:26:06 AM PST by Bookshelf
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To: Reverend Wright

I bought NOK on Friday. Sold 1/3 on Tuesday. Sold 1/3 Tuesday, sold last 1/3 13 minutes later. 70% up. I don’t intend to be hog. :)


57 posted on 01/28/2021 5:28:53 AM PST by DaveArk
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To: Jonty30; central_va; riri
This is going to hurt a lot of predatory traders

Hanging with piano wire hurts worse.

They should thank these guys.

58 posted on 01/28/2021 5:29:54 AM PST by Jim Noble (Lo there do I see the line of my people, back to the beginning)
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To: HamiltonJay
I am sure Melvin didn’t have the majority of its assets tied up in short options of a single stock...

If they did they deserve to go out of business.

The danger of shorting a stock is that you can lose a lot more than you put in. If I borrow a stock at $20 to short it and it goes to $500 where I have to bail out, I've lost 25x my initial investment.

59 posted on 01/28/2021 5:42:56 AM PST by KarlInOhio (The greatest threat to world freedom is the Chinese Communist Party and Joe Biden is their puppet.)
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To: sauropod
I have no sympathy for these short sellers. They’re just as rapacious as the socialists

I understand not liking the shorts who try to drive stocks down but what’s wrong with investing on the premise that a company is overvalued?

Are we only allowed to assume that stocks go up?

60 posted on 01/28/2021 5:48:05 AM PST by semimojo
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