Gamestop Reddit short squeeze

C-Note

Ostrich
Gold Member
The kvetching machines are firing up, I think the squeeze has been squoze but I'll be able to recover some money thanks to Elon musk memeing the stock market, after that I am going to pull out, when everyone has their stimulus check and throws it in GME I'm ripping out of there and the other meme stocks.
I'm still holding my one share and watching to see if it keeps going up all the way to the end of this week. I may unload it on Friday afternoon. I notice that the MSM has been quiet so far on phase II of this squeeze.
 

Cuchulainn2016

Woodpecker
I'm still holding my one share and watching to see if it keeps going up all the way to the end of this week. I may unload it on Friday afternoon. I notice that the MSM has been quiet so far on phase II of this squeeze.
I think that most people are missing the point about meme stocks, primarily gamestop.

It will rise far above expectations every time there is a positive announcement about the company, just because it is the meme stock.

And when the price drops because of bad news, people will buy it, because why not?

It has the potential to be one of those 1 in a million stocks that ends up with a share price thousands of % higher than it should be due to low available volume, but even if it doesnt, big short term gains can be had with it for the short to mid future, if you are canny enough.

I wouldnt bother with the meme stocks (AMC, BB, NOK etc), they just follow GME, and wont have as considerable gains.
 

C-Note

Ostrich
Gold Member
I assume the WSB denizens switched their trading accounts to brokerages that won't intervene like RobinHood and a few others did last time? I hope so, so that they can keep it going. The stock was all over the place today, shooting up to $342, then dropping to 198, before finally settling down at $265. It might be a week or so before most people get their stimulus checks, so I'm curious to see if they can keep the price high until then.
 

eradicator

Peacock
Gold Member
This might become a household meme stock like tesla. I am expecting a lot of ups and downs. Eventually gamestop might actually bring some value if they buy the gambling website and expand still never ever should be at this price but doesnt matter. The days of careful analysis of revenue, debt and value investing seem to be long gone.

I sold due to the alien intervention in the stock so i am out but I had liquidated everything if you see my previous post i was anticipating a market downturn which didnt happen then but it happened now.

I am about to buy back at discount all of the tech stocks

Oh they could totally copy tesla and use company funds to invest in Bitcoin and tie their fortunes to Bitcoin. They are flush with cash from the increase in their stock price. It would be really difficult to screw things up at this point.
 

Easy_C

Peacock
Oh they could totally copy tesla and use company funds to invest in Bitcoin and tie their fortunes to Bitcoin. They are flush with cash from the increase in their stock price. It would be really difficult to screw things up at this point.
How does High stock price translate to them being flush with cash?
 
If they issue new shares they will be flush with cash. Which they totally should do, they have an active shelf registration so they could drop a bunch of shares on the market at any time.

That would kill the short squeeze idea though, and thus piss off a large segment of future possible customers (and free publicity). Only worth it if they need the cash.
 

C-Note

Ostrich
Gold Member
The Gamestonk Phase II appeared to lose steam yesterday. The market as a whole had a record surge (I rebalanced some of my 401k portfolio last night to do some profit-taking on it) but GME declined a little. I think there may be a general selloff today, but we'll see if GME can resume climbing. It didn't get as high as I was hoping, so if it doesn't surge today I'm going to wait until the incentive checks kick-in over the next couple of weeks to see if a Phase III can get going and push GME to bigger highs.
 

eradicator

Peacock
Gold Member
How does High stock price translate to them being flush with cash?
They own a lot of shares in their own companymillions. They paid like $2/share or less.

The price of the shares suddenly jumps to $300/share or higher. And then does it again. They can sell a small fraction of the shares they own over the course of a couple of months, maybe 20 million shares, while the price is still sky high. They are making 6 billion dollars profit on that transaction.

Surely you see how a company can benefit and become flush with cash when their company stock price skyrockets?
 

Easy_C

Peacock
Well, first we don’t necessarily know their cost basis. You’re talking about a concept called “treasury stock”. Accounting rules around them can be a bit odd.

Second that’s not as simple as you make it out to be. There can be complicated bylaws related to releasing treasury stock due to dilutive effects of doing so. Issues large enough to produce a significant balance sheet impact can also be market movers themselves and you probably won’t be able to sell it all at the current bid.

All that aside there’s a very tangible reason I was hoping you’d realize when I asked the question: GameStop had a reported Treasury Stock value of 0$. They don’t have any “lot of their own shares” sitting around to sell off. Individual managers probably realized options but that doesn’t mean the company coffers did.
 

C-Note

Ostrich
Gold Member
Second that’s not as simple as you make it out to be. There can be complicated bylaws related to releasing treasury stock due to dilutive effects of doing so. Issues large enough to produce a significant balance sheet impact can also be market movers themselves and you probably won’t be able to sell it all at the current bid.
Yes, it depends on the company's bylaws as to if and how they can sell additional stock. At the least, it usually requires the company's board to meet and decide whether to do so or not. Whenever a company's board makes a major decision like that, it can cause a chain reaction of unanticipated consequences, or uncontrollable/undesired consequences, to happen.
 
The Gamestonk Phase II appeared to lose steam yesterday. The market as a whole had a record surge (I rebalanced some of my 401k portfolio last night to do some profit-taking on it) but GME declined a little. I think there may be a general selloff today, but we'll see if GME can resume climbing. It didn't get as high as I was hoping, so if it doesn't surge today I'm going to wait until the incentive checks kick-in over the next couple of weeks to see if a Phase III can get going and push GME to bigger highs.
LE surge is entirely propped up by the fed, the economy is in a state of freefall the fed just gives money to bankers and other institutions to inject into fortune 500 companies to prop up le stonk market. It is a bad idea to buy in now, or to think this will last.

On the other hand gamestop is driven by retail investors not the fed, its a safer bet and once those stimulus checks go out im guessing we are going to the moon.
 

C-Note

Ostrich
Gold Member
Why hasn't GME taken back off since the incentive checks started arriving? Are the hedge funds using market manipulation to keep the price down? It wouldn't surprise me. This isn't over. I think there are still some hedge funds who haven't executed their shorts on GME.
 

typtre

Robin
Why hasn't GME taken back off since the incentive checks started arriving? Are the hedge funds using market manipulation to keep the price down? It wouldn't surprise me. This isn't over. I think there are still some hedge funds who haven't executed their shorts on GME.
It looks like they are still laddering, and I get the feeling they are trying every market trick they can think of to not having to buy any (or the absolute minimum amount of) shares back.
 
Or the more realistic explanation is that buying pressure dried up at the $200 range and now sellers are in control and will likely drive it to $130 range unless there is any new catalyst.

Not everything is some crazy hedge fund or MM conspiracy.
 
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