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22 hours ago, TheDragon said:

Yesterday I thought GME was well on its way to the $20 I predicted for today, but seems there is still some interest. Are there really still shorts out there to hurt?

Sheepish of them !

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Actually, one small (3 or 4 branches) bank called Abacus owned by a Chinese/American family got prosecuted. I recently watched a documentary on it - called "Small Enough To Jail". That whole

Your broker can only lend your shares to shorts if you have a margin account. My son is one of the autism spectrum kids playing. Most of them have 30 or fewer shares. This represents essentially

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On 2/1/2021 at 10:13 AM, LenP said:

Yep, at some point the damn begins to crack and the longs start to take money off the table. Eventually it will find equilibrium somewhere south of $1. Probably stays a bumpy ride down until then. 

In the mean time Melvin is pay interest on the loss.

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On 2/1/2021 at 10:13 AM, LenP said:

Yep, at some point the damn begins to crack and the longs start to take money off the table. Eventually it will find equilibrium somewhere south of $1. Probably stays a bumpy ride down until then. 

In the mean time Melvin is pay interest on the loss.

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14 hours ago, Not for nothing said:

 

MARKETS

GameStop mania may not have been the retail trader rebellion it was perceived to be, data shows

PUBLISHED FRI, FEB 5 20217:01 AM ESTUPDATED FRI, FEB 5 20212:56 PM EST

Was that written by the hedge fund stooges at CNBC?  :D    If a Hedge fund losing $7B isn't a rebellion, I am not sure what is.

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2 hours ago, MauiPunter said:

Was that written by the hedge fund stooges at CNBC?  :D    If a Hedge fund losing $7B isn't a rebellion, I am not sure what is.

You got to love CNBC , all the stocks to buy ,sell, short puts ,calls............................... after the fact!

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On one hand, some funds are probably going to be wiped out. On the other hand, putting risky strategies in their own funds is a risk management technique.

Probably a few guys will end up getting new J/99s this summer instead of new ClubSwans. Be gentle to them, they found out what happened when the tendieman comes.

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So who is managing to keep the stock around $60, which is presumably still enough to hurt any remaining hedge funds, given they probably shorted the stock when it was below $20.

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Pretty sure its WSB.  They are still cheering the stock on saying that there is about 100,000 short positions still not closed and they are in it till the end. But, not enough believers to push it to $600.

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  • 2 weeks later...

https://docs.house.gov/meetings/BA/BA00/20210218/111207/HHRG-117-BA00-Wstate-GillK-20210218.pdf

Quote

TESTIMONY OF KEITH PATRICK GILL

BEFORE THE U.S. HOUSE COMMITTEE ON FINANCIAL SERVICES

Thank you Chairwoman Waters, Ranking Member McHenry, members of the Committee.

Before I go further, I want to be clear about what I am not. I am not a hedge fund. I do not have clients, and I do not provide personalized investment advice for fees or commissions. I am an individual investor. My investment in GameStop and my posts on social media were entirely my own.

I did not solicit anyone to buy or sell the stock for my own profit. I did not belong to any groups trying to create movements in the stock price. I never had a financial relationship with any hedge fund. I had no information about GameStop except what was public. I did not know any people inside the company, and I never spoke to any insider.

As an individual investor, I use publicly available information to study the market and the value of specific companies. I consider a complex array of factors and track hundreds of stocks – all in search of market inefficiencies. Like many people, sometimes I post on social media my thoughts and analysis about individual stocks and whether they are correctly valued.

I did that with GameStop. I believed the company was dramatically undervalued by the market. The prevailing analysis about GameStop’s impending doom was simply wrong.

A little about my background: I grew up in Brockton, Massachusetts. My father was a truck driver, and my mom a registered nurse. I was one of three kids, and the first in my family to earn a four-year college degree when I graduated from Stonehill College in 2009, amid the Great Recession and without a long-term job. My first post-college job was in operations at W.B. Mason, an office supplies company headquartered in my home town of Brockton.

Between 2010 and 2014, I worked for a family friend at a start-up company in New Hampshire, trying to build a software program that would help investors analyze stocks and offer related research. We also tried to start an investment firm, which dissolved not long after it was created. My salary never exceeded $40,000, but I did learn something about investing. I learned how to do the tedious work of digging through a company’s financials and focusing on its real long-term value, not prevailing market sentiment or headlines.

I married my wife Caroline in 2016, and I found a job working operations and compliance at LexShares. I left that job in March 2017, and for the next two years I was effectively without a job. During that time, I began actively analyzing a wide array of stocks to try to keep and increase our limited savings. It was both a way to make money and an interest that I pursued passionately while I lacked a job.

In April 2019, I accepted a marketing and financial education job at MassMutual. Caroline and I were both happy about our prospects. I had never made a salary over $100,000 a year before, and I was thrilled just to be working and to have benefits again. My title was Director, Financial Wellness Education. My job was to help develop financial education classes that advisors could present to prospective clients. I never sold securities, and I was not a financial advisor.

I continued analyzing stocks on my own time and investing my family’s funds. In early June of 2019, the price of GameStop’s stock declined on worse than expected earnings, and it began trading at a deep discount, below what I thought was its fair value. I was aware from public reports that a well-known investor, Michael Burry, was interested in GameStop. Because I thought the stock was undervalued, I purchased call options on June 7, 2019. I increased my position throughout much of 2019 and 2020, because as I continued to analyze the company and its prospects, I became increasingly confident that the share price was indeed dramatically undervalued.

Two important factors, based entirely on publicly available information, gave me and many others confidence that GameStop was undervalued in 2019 and 2020. First, the market was underestimating the prospects of GameStop’s legacy business and overestimating the likelihood of its going bankrupt. GameStop, the only major retailer dedicated to gaming, has over 60 million members in its loyalty program and continues to maintain a sizable market share within the gaming industry. Its legacy business, comprised primarily of selling physical video games and related equipment within their stores, was likely to generate meaningful cash flow following the release of new gaming consoles in late 2020. I grew up playing videogames and shopping at GameStop, and I’m looking forward to buying a new console at GameStop. I knew the company had an opportunity to reinvigorate this business by improving customer service for gamers, upgrading its online presence, and offering complementary product lines such as PC gaming and accessories.

Second, I believed – and I continue to believe – that GameStop has the potential to reinvent itself as the ultimate destination for gamers within the thriving $200 billion gaming industry. The new console cycle provides GameStop a unique opportunity to pivot from a traditionally brickand-mortar mindset toward a technology-driven business that excels in gaming products, experiences and services. By embracing the digital economy, GameStop can pursue new revenues streams including larger gaming catalogs, digital content and community experiences, online trade-ins, streaming services, and Esports. While I may be the only panelist here today who had faith in GameStop, I was hardly the only person who advocated these points or ones like them. Investors including Chewy co-founder Ryan Cohen, whose purchase of GameStop shares and advocacy with the GameStop board helped positively affect the share price in late 2020, publicly expressed similar views.

I want to pause to note that the investment I made was risky, but I was confident in my analysis, and I was willing to accept the loss if I was proven wrong. My timing was far from perfect, and many of the options contracts I purchased expired worthless because GameStop’s stock price remained depressed longer than I expected.

I’ve been asked why I decided to share my investment ideas on social media. My investment skills had reached a level where I felt sharing them publicly could help others. I also thought that by sharing my own ideas and accepting critiques, I would be able to identify holes in my analysis. Hedge funds and other Wall Street firms have teams of analysts working together to compile research and critique investment ideas, while individual investors have not had that advantage. Social media platforms like YouTube, Twitter, and WallStreetBets on Reddit are leveling the playing field. And in a year of quarantines and COVID, engaging with other investors on social media was a safe way to socialize. We had fun.

The idea that I used social media to promote GameStop stock to unwitting investors is preposterous. I was abundantly clear that my channel was for educational purposes only, and that my aggressive style of investing was unlikely to be suitable for most folks checking out the channel. Whether other individual investors bought the stock was irrelevant to my thesis – my focus was on the fundamentals of the business. It’s worth noting that after five months of streaming, my final stream of 2020 topped out at just ninety-six concurrent viewers, with an average view duration of twenty-five minutes. On Christmas morning I had only 529 subscribers on YouTube, and 550 followers on Twitter. These numbers are tiny. There were rarely more than a few dozen folks on the stream on any night. The reality was people didn’t really care about boring, repetitive analysis of GameStop and other stocks, and that was fine. For those of us who did care, the stream provided us an outlet for refining our fundamentals-based thesis. We were able to analyze events in real-time and keep each other honest.

Ultimately my GameStop investment was a success. But the thing is, I felt that way in December far before the peak, when the stock was at $20 a share. I was so happy to visit my family in Brockton for the holidays and give them the great news – we were millionaires. That money will go such a long way for my family. We had an incredibly difficult 2020. In addition to dealing with COVID, we lost my sister Sara unexpectedly in June. It brought me tremendous joy to share good news with my family for a change. I am grateful to be able to give back to my community and to support my family, most of all my wife Caroline who has stuck with me through very tough times.

As for what happened in January, others will have to explain it. Threshold lists, order flow, halting purchases – according to the media these all had a material impact on GameStop stock in January. Here’s the thing: I’ve had a bit of experience and even I barely understand these matters. It’s alarming how little we know about the inner-workings of the market, and I am thankful that this Committee is examining what happened. I believe an analysis of GameStop’s recent price action must start with a discussion of the exorbitant short interest in the stock, as well as an investigation into any potentially manipulative shorting practices and brokers’ reported failures to timely deliver shares and settle trades.

As for what I expect moving forward: GameStop’s stock price may have gotten a bit ahead of itself last month, but I’m as bullish as I’ve ever been on a potential turnaround. In short, I like the stock. And what’s stunning is that, as far as I can tell, the market remains oblivious to GameStop’s unique opportunity within the gaming industry.

 

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17 minutes ago, floating dutchman said:

Is this the same guy who singed every post with "don't listen to me, I'm a retard." or something similar?

Keith Patrick Gill is /u/DeepFuckingValue and RoaringKitty. I haven't seen much of his content, but he actually seems fairly measured and professional in what I have seen. Even when he is comparing GameStop with a Roach and a Cigar.

The comments about glue eating and retrograde intelligence seem to come from other members of /r/WallStreetBets, much like our own esteemed providers of silicone enhanced imagery.

 

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34 minutes ago, apophenia said:

FWIW: I can't get the CNBC link to play, but I'm able to play the stream if I go into the iOS YouTube app and search for it in CNBC's channel.

Same here but, I downloaded the app & it’s streaming.

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A few interesting things, but it remains unclear if Robinhood halted buying in part because of what they imagined Citadel might think (even if there was no direct communication between them on this topic as Griffin insists). But the potential for conflict of interests seems clear with Griffin having both Citadel hedge Fund and Citadel Securities handling trades. I can't be bothered to look up all their SEC penalties, but $130m over the past five years would seem to indicate that they are not the cleanest operation.

And of personal interest, Griffin is the republican who managed to torpedo our proportional taxing scheme in Illinois, something we desperately need, and which would obviously have cost him a lot of money, so he's a selfish bastard not willing to contribute a fair share to the function of the state in which he lives.

Not surprisingly, some of the congresspeople are idiots, on both sides. Others ask interesting questions, but 5 minutes is hardly enough to get anywhere when the person questioned stalls and misdirects.

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30 minutes ago, TheDragon said:

 

Not surprisingly, some of the congresspeople are idiots, on both sides. Others ask interesting questions, but 5 minutes is hardly enough to get anywhere when the person questioned stalls and misdirects.

It wanders all over the place - Econ 101 lecture to deep dive on manipulation.  5 mins is annoying at best.

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...aaaaaand we're back.....   :D

Btw, about three days ago, Deep Fucking Value doubled his positions from 5,000 shares to 10,000 when it dropped to $40/share.   I was tempted to buy back in when I saw DFV double his position, but I didn't.  Now its pushing $160/share in after-hours trading tonight. Sigh.

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The one part I can't work out is.:

Are the shorters who supposedly lost the 3 billion or whatever, have they actually lost that money, or are they still to cover?

Are the "retards" still fucking over the Big Guy or are they just proving that Roaring Kitty is not doing anything illegal?

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34 minutes ago, floating dutchman said:

The one part I can't work out is.:

Are the shorters who supposedly lost the 3 billion or whatever, have they actually lost that money, or are they still to cover?

Are the "retards" still fucking over the Big Guy or are they just proving that Roaring Kitty is not doing anything illegal?

I believe the shorts were forced to cover because they exceeded their margins.  I haven't seen the most recent data about the short interest on GME, but, it would NOT surprise me if the hedgies didn't learn their lesson from their $3B loss, and when GME showed weakness the past week or so, that they went back into their short positions, and how are getting fucked yet again.   No idea though.  

AMC seems to be taking off too.  I got in at $5/share a couple of weeks ago.  It's somewhere around $10 right now.

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I have found SNL - DOA for past 5 years or so

unless you get off to the TRUMP chain yanking

same joke with different word arrangements

FAIL

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  • 4 weeks later...

I should have bought back in at the dip.  I saw that DFV doubled his position when it hit $40/sh.  He bought 5,000 more shares.   Then boom, to the moon, again....  Diamond hands win again.

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13 hours ago, floating dutchman said:

What is amazing is that these folk at WSB reddit have kept this game up for over a Month.

Price dropped to around $120 yesterday and is back on the way up again.

This really is quite entertaining.

This isn't really the guys at WSBs.  There are larger actors behind the scenes.

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the holy mother of all shorts is getting ready to roll out.

They are going to take the flaming pile of dog manure called WeWork (re-lease commercial office space IPO which was not close to being profitable before COVID and now nobody goes into the office and it NYC you cannot have more than 50 percent occupancy) and try to sell stock to suckers.

https://www.zerohedge.com/markets/wework-go-public-9-billion-spac-deal-18-months-after-ipo-collapse

You need to be drinking the Kool-Aid to buy into this.

 

The shorts on this will be EPIC!

The hedgies must be licking their chops already..

Gamestop to soon be a distant memory.

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59 minutes ago, Foreverslow said:

the holy mother of all shorts is getting ready to roll out.

They are going to take the flaming pile of dog manure called WeWork (re-lease commercial office space IPO which was not close to being profitable before COVID and now nobody goes into the office and it NYC you cannot have more than 50 percent occupancy) and try to sell stock to suckers.

https://www.zerohedge.com/markets/wework-go-public-9-billion-spac-deal-18-months-after-ipo-collapse

You need to be drinking the Kool-Aid to buy into this.

 

The shorts on this will be EPIC!

The hedgies must be licking their chops already..

Gamestop to soon be a distant memory.

We Work was a piece of shit before Covid.  I saw some YouTube videos about them and it was all fucked up from the get go.

The guy that did this video has some excellent videos about all kinds of things.  Well worth watching.  

 

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8 hours ago, Grrr... said:

This isn't really the guys at WSBs.  There are larger actors behind the scenes.

My understanding is that the WSB folk are keeping the price up and Hedge fund folk are running tricks that I don't really understand to try to bring the price down so they can cover their shorts without going bankrupt.

Close?

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Big companies don't have to make money.   They just have to make the investors money.  Chewie, Uber, Lyft, Spotify, Zillow, Pinterest, a lot of those big names have never had a profitable year.   If they were your business the IRS would claim its just a hobby.    They make interest payments to their investors and grow the gross so they can get new loans to pay off the prior loans.     Years of huge cash infusions allow them to squash all the old fashioned small businesses that actually were profitable.   Once they destroy the competition they can finally make money without interference.   

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7 hours ago, floating dutchman said:

My understanding is that the WSB folk are keeping the price up and Hedge fund folk are running tricks that I don't really understand to try to bring the price down so they can cover their shorts without going bankrupt.

Close?

No - there are other actors behind the scenes.  In fact, they've had to ban thousands of WSB 'posters' after finding out that they are bots.  Go figure.  Someone else is pulling the strings.

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37 minutes ago, Grrr... said:

No - there are other actors behind the scenes.  In fact, they've had to ban thousands of WSB 'posters' after finding out that they are bots.  Go figure.  Someone else is pulling the strings.

Yea I sort of knew that was going on, But I assumed that they were placed by the Hedge fund owners, Guessed that they paid some poor students to play silly buggers or something.

Although in saying that I did see an article on Yahoo news stating that the Gamestop sharp price increase was due to a change of directors.  I don't understand that one...

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15 hours ago, Lark said:

Big companies don't have to make money.   They just have to make the investors money.  Chewie, Uber, Lyft, Spotify, Zillow, Pinterest, a lot of those big names have never had a profitable year.   If they were your business the IRS would claim its just a hobby.    They make interest payments to their investors and grow the gross so they can get new loans to pay off the prior loans.     Years of huge cash infusions allow them to squash all the old fashioned small businesses that actually were profitable.   Once they destroy the competition they can finally make money without interference.   

It sure as shit worked out well for Jeff Bezos.

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2 hours ago, DA-WOODY said:

Well that certainly doesn't comport with the 'science' of economics.  Markets never behave irrationally, never!  It's against the science, dammit!

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8 hours ago, DA-WOODY said:

that MFer is a genius.

He leveraged 10:1 using the Prime Broker's stock.  Did not buy a single share.

In doing so, no SEC reporting is needed since they did not own the stock.

Expect that to change STAT!

And some large banks are in serious do-do as they have to eat billions in losses.

Gory details can be read here:

https://www.zerohedge.com/markets/rehypothecated-leverage-how-archegos-built-100-billion-portfolio-out-thin-air-and-then-blew

 

 

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2 hours ago, Foreverslow said:

that MFer is a genius.

He leveraged 10:1 using the Prime Broker's stock.  Did not buy a single share.

In doing so, no SEC reporting is needed since they did not own the stock.

Expect that to change STAT!

And some large banks are in serious do-do as they have to eat billions in losses.

Gory details can be read here:

https://www.zerohedge.com/markets/rehypothecated-leverage-how-archegos-built-100-billion-portfolio-out-thin-air-and-then-blew

 

 

Your source doesn’t expect any change.   The author feels the regulators don’t dare start a panic sell from others doing the same thing.  It’s better to ignore the warning and hope it gets big enough to warrant a bailout before it happens again.    He’s probably right.

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55 minutes ago, Lark said:

Your source doesn’t expect any change.   The author feels the regulators don’t dare start a panic sell from others doing the same thing.  It’s better to ignore the warning and hope it gets big enough to warrant a bailout before it happens again.    He’s probably right.

Nothing like socializing the losses

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  • 2 weeks later...

The carnage is revealed at Melvin:

https://www.zerohedge.com/markets/melvin-capital-down-another-7-march-brings-q1-loss-49

 

Nothing like losing half of your investor's money.

If the investors get out, the money is GONE....

 

If they hang in there, chances are the rest of their investment will be gone as these folks double down to try and make the money back fast..

 

To quote every villain in a Scooby Doo cartoon "Those darn kids..."

 

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  • 1 month later...

I'm kind of surprised that "those darn kids" are still at it.

They are keeping the price above $200 at the moment.

Rather good stamina for a bunch of internet apes.

Where will it end? I'm starting to doubt their ability to take this to the moon.

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2 minutes ago, floating dutchman said:

IRather good stamina for a bunch of internet apes.

Compared to a bunch of inebriated over-fed businessmen?

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10 hours ago, blunderfull said:

I just sold.  I had bought in at $10/share around February, and sold this morning around $63/share.  I noticed the stock is now halted.  I guess the retail investor was making too much money and Wall Street had to pull the plug.  

BlackBerry is the next stock to go Ape.

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Quote

In a similar occurrence seen in January with the meme stocks like GameStop, defiant short-sellers have increased their bets against AMC shares over the last month, possibly fueling the move higher. About 18% of the AMC shares available for trading are still sold short through Wednesday, according to S3 Partners.

On Wednesday, short-sellers lost $2.8 billion as the stock surged, according to S3. That brings their year-to-date losses to more than $5 billion, according to S3.

Short sellers like hedge funds borrow the stock from an investment bank and sell it in the hopes of buying it back at a lower price and returning the shares, pocketing the difference. However, when a stock surges higher, a so-called short squeeze can occur where investors are forced to buy back the stock to cut their losses.

 

When will the hedgies learn?  :D

 

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I can't imagine allocating capital to these "Professionals" whose only downside is loss of the incentive comp on returns over 6%. Run the fuck away!

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