Question about Gamestop

[candycorn]

I understand the basics of what happened with Gamestop.

One thing I haven't heard discussed is this....why Gamestop? Aren't the hedge funds doing this with several different stocks? Was Gamestop unique someway?

 

[Tommy Tainant]

I understand the basics of what happened with Gamestop.

One thing I haven't heard discussed is this....why Gamestop? Aren't the hedge funds doing this with several different stocks? Was Gamestop unique someway?

Im not an expert on this but I would see them as an ideal target.Their business model is outdated and it would just take a nudge to sent them crashing.

 

[candycorn]

I understand the basics of what happened with Gamestop.

One thing I haven't heard discussed is this....why Gamestop? Aren't the hedge funds doing this with several different stocks? Was Gamestop unique someway?

Im not an expert on this but I would see them as an ideal target.Their business model is outdated and it would just take a nudge to sent them crashing.

it would seem like there would be a lot of those on Wall Street. GE makes light bulbs....Champion makes spark plugs which isn't necessary in battery operated cars....

 

[Deplorable Yankee]

I understand the basics of what happened with Gamestop.

One thing I haven't heard discussed is this....why Gamestop? Aren't the hedge funds doing this with several different stocks? Was Gamestop unique someway?

I listed the originals the other night
I think we're up to about 50 now

Gamestop
All ya need to know in a few of minutes .

 

[Toro]

Because it was a heavily shorted stock. Its short interest was 140%, meaning for every 10 shares outstanding, 14 shares were sold short.

Typically, a heavily shorted stock has a short interest of 30-40% of its share base sold short. So 140% is pretty extreme.

 

[progressive hunter]

I understand the basics of what happened with Gamestop.

One thing I haven't heard discussed is this....why Gamestop? Aren't the hedge funds doing this with several different stocks? Was Gamestop unique someway?

they do plan on going after other shorted stocks,, gotta start somewhere,,

 

[percysunshine]

Krispy Kreme - Wikipedia

en.wikipedia.org

Shit happens.....stocks get pumped up, shorted, bought on margin, shorted on margin...the exchanges eventually seek to reduce risk exposure.

 

[Agit8r]

I think that print media would be a good target of such efforts. For those who can't afford $400 for a share of Stonk

A. H. Belo Corporation Receives Continued Listing Standard Notice from NYSE

DALLAS, Oct. 30, 2020 (GLOBE NEWSWIRE) -- A. H. Belo Corporation (NYSE: AHC) announced that today it was notified by the New York Stock Exchange (NYSE) that it is not in compliance with the exchange’s continued listing standard for total market capitalization and shareholders’ equity. NYSE...

finance.yahoo.com

ah belo stock price - Google Search

One to keep an eye on, at least

 

[Rocko]

I understand the basics of what happened with Gamestop.

One thing I haven't heard discussed is this....why Gamestop? Aren't the hedge funds doing this with several different stocks? Was Gamestop unique someway?

At first Reddit users who are fans of the company wanted to help them buy buying shares, but that made little sense because transactions in the secondary market don’t help the issuer.

 

[progressive hunter]

 

[progressive hunter]

 

[Missourian]

I understand the basics of what happened with Gamestop.

One thing I haven't heard discussed is this....why Gamestop? Aren't the hedge funds doing this with several different stocks? Was Gamestop unique someway?

Read Toro's post...then understand the 140% means more shares were shorted than there were shares available...by 40%.

That's what makes the squeeze work. The short sellers have borrowed a share and sold it...they still owe that borrowed stock back.

The hope, for them, was that the stock price would fall, they'd buy the stock back atthe lower price, return the stock and pocket the difference.

Right now there are less stocks available than shares owed back from the short sales.

That means the short sellers are forced to buy a stick to return no matter what the price is at the end of the term (the duration of the loan of the stock).

And that ironically drives the price even higher.

 

[Turtlesoup]

I understand the basics of what happened with Gamestop.

One thing I haven't heard discussed is this....why Gamestop? Aren't the hedge funds doing this with several different stocks? Was Gamestop unique someway?

Elon musk---orchestrated short squeeze.

 

[candycorn]

I understand the basics of what happened with Gamestop.

One thing I haven't heard discussed is this....why Gamestop? Aren't the hedge funds doing this with several different stocks? Was Gamestop unique someway?

At first Reddit users who are fans of the company wanted to help them buy buying shares, but that made little sense because transactions in the secondary market don’t help the issuer.

Thanks.

 

[candycorn]

Because it was a heavily shorted stock. Its short interest was 140%, meaning for every 10 shares outstanding, 14 shares were sold short.

Typically, a heavily shorted stock has a short interest of 30-40% of its share base sold short. So 140% is pretty extreme.

So, if ACME (to use a company found only in the Roadrunner Cartoons) was in the same exact situation when this started, we would be talking about ACME instead of GameStop? Meaning that the fact that it was a company oriented toward the Reddit user community didn't have anything to do with it. If Gamestop had made adult diapers...the same thing would have happened?

 

[Moonglow]

I understand the basics of what happened with Gamestop.

One thing I haven't heard discussed is this....why Gamestop? Aren't the hedge funds doing this with several different stocks? Was Gamestop unique someway?

Because it was there...

 

[percysunshine]

I understand the basics of what happened with Gamestop.

One thing I haven't heard discussed is this....why Gamestop? Aren't the hedge funds doing this with several different stocks? Was Gamestop unique someway?

Too large of a short position. Brokers were letting clients run naked without locking up the shares.

 

[Toro]

So, if ACME (to use a company found only in the Roadrunner Cartoons) was in the same exact situation when this started, we would be talking about ACME instead of GameStop? Meaning that the fact that it was a company oriented toward the Reddit user community didn't have anything to do with it. If Gamestop had made adult diapers...the same thing would have happened?

Correct. This has nothing to do with the business.

This is all about squeezing the shorts, trying to make them feel as much pain as possible, and trying to cash in on it.

When it stops - and it always does - people who bought the stock will lose 80-90%, or more.

 

[candycorn]

So, if ACME (to use a company found only in the Roadrunner Cartoons) was in the same exact situation when this started, we would be talking about ACME instead of GameStop? Meaning that the fact that it was a company oriented toward the Reddit user community didn't have anything to do with it. If Gamestop had made adult diapers...the same thing would have happened?

Correct. This has nothing to do with the business.

This is all about squeezing the shorts, trying to make them feel as much pain as possible, and trying to cash in on it.

When it stops - and it always does - people who bought the stock will lose 80-90%, or more.

My late spouse was into ladybugs. So as a gift, I bought a ton of shares of LBRG.... Any thoughts?

 

[Toro]

My late spouse was into ladybugs. So as a gift, I bought a ton of shares of LBRG.... Any thoughts?

I have no thoughts.