OT: Game Stop

[Alsacs]

I am watching the silver market this week.

 

[AZOrange]

This is a great response, and you cover a lot of the mechanics on the "plumbing" that don't get enough press coverage. It doesn't help the RH CEO is unable to articulate it in an interview, which makes him seem shady by default.

I'll add one point. The daily volatility in the stocks like GME is truly unprecedented. In a crisis, everything goes down. In this case, you have random stocks moving 50-100%/day, and they are dominating market volume. For example, one day GME was the #1 traded stock in the market.

That is why DTCC raises this requirements. And a smaller clearing broker like RH will have some stress posting collateral. Other brokers had this problem too. For those saying this never happened before, it is true but there is a reason

The more I read, I think it is possible there was some shadiness (because of the connections among players), but more probable it was related to the extreme volatility

As another posted pointed out, Citidel makes most of their money as a market maker. When stocks prices jump around like that, it actually makes it more difficult for them to make money

I would encourage everyone to read articles from Matt Levine from Bloomberg. It is free to get on his mailing list. And he explains many of these topics in a clear way, without an agenda. And he does call people out for shady behavior when it happens

Agreed the underlying post and this response were great

 

[FloridaFan]

I got 55 shares of AMC. Won’t stop can’t stop let’s get this bad boy to 100 #WeLikeThisStock going to buy a large popcorn and nachos next time I go

 

[Ghost]

I got 55 shares of AMC. Won’t stop can’t stop let’s get this bad boy to 100 #WeLikeThisStock going to buy a large popcorn and nachos next time I go

I actually enjoy going to movie theatres - will buying stocks mean theatre stay open?

 

[AZOrange]

I actually enjoy going to movie theatres - will buying stocks mean theatre stay open?

Gotta admit the whole WSB lingo and vibe kills me every time

 

[FloridaFan]

I actually enjoy going to movie theatres - will buying stocks mean theatre stay open?

Considering they were able to get rid of 600 million in debt because of this and are good through 2021 now I’d say yes

 

[Niastri]

I actually enjoy going to movie theatres - will buying stocks mean theatre stay open?

Not if you live in Syracuse... Not an AMC theater.

 

[bpo57]

Considering they were able to get rid of 600 million in debt because of this and are good through 2021 now I’d say yes

Definitely true that they have bought time but it comes at a price. Their share count has grown from 93 million shares o/s four years ago to ~ 450 million shares today. Market cap now just short of $6 bln.

 

[Niastri]

Definitely true that they have bought time but it comes at a price. Their share count has grown from 93 million shares o/s four years ago to ~ 450 million shares today. Market cap now just short of $6 bln.

If you own the stock, not so good... If all you care about is getting to go to the movies, they can dilute another billion shares for all you care.

 

[bpo57]

Actually if they went bankrupt they could still keep the theatres open. All that would change is that the creditors would own the company going forward while the shareholders would get wiped out. But with this new cash infusion it looks like they may not have to go that route.

 

[bozophobe]

I just opened a Schwab account, and a transfer request out of RH. Only took about 10 minutes online. Might also go Vanguard or another. I just need low/no fees, and fractional share buying. Schwab has it down to 5 bucks.

Transfer to take several days. Hopefully the RH crew will get on it. Not much money in it, but the stampede has begun.

 

[Todoubled23]

I am watching the silver market this week.

 

[CIL]

Correct. Pump and dumps aren’t based on insider information either.

Like I said though, I don’t think this qualifies as a pump and dump.

This is 100 percent a pump and dump. Nothing more than folks on a chat room artificially pumping up a position that has horrible financial standing.

It’s entertaining to watch, but you do realize the market is taking a dump because folks have to cover their short positions with quality equities.

I know folks like to think “Wall St” is getting screwed. But really it’s John Doe who invests in index funds.

 

[Brooky03]

This is 100 percent a pump and dump. Nothing more than folks on a chat room artificially pumping up a position that has horrible financial standing.

It’s entertaining to watch, but you do realize the market is taking a dump because folks have to cover their short positions with quality equities.

I know folks like to think “Wall St” is getting screwed. But really it’s John Doe who invests in index funds.

Pump and dumps are usually started behind closed doors, involving some level of collusion based on nothing fundamental to the stock. This was all out in the public domain from the jump and squeezing out the short positions is a legitimate play. GME is a pretty much worthless company, or will be soon, but its crappiness doesn’t make this a pump and dump.

 

[CIL]

Pump and dumps are usually started behind closed doors, involving some level of collusion based on nothing fundamental to the stock. This was all out in the public domain from the jump and squeezing out the short positions is a legitimate play. GME is a pretty much worthless company, or will be soon, but its crappiness doesn’t make this a pump and dump.

Huh? No. Artificially driving up the price of a stock for one’s gain and then selling it is a pump and dump. Doesn’t matter if it started in a boardroom or someone’s basement.

 

[Brooky03]

Huh? No. Artificially driving up the price of a stock for one’s gain and then selling it is a pump and dump. Doesn’t matter if it started in a boardroom or someone’s basement.

Short squeezes are not new. Short squeezes artificially pump up the price of a stock. Short squeezes are not pump and dumps.

 

[Shrmdougluvr]

Huh? No. Artificially driving up the price of a stock for one’s gain and then selling it is a pump and dump. Doesn’t matter if it started in a boardroom or someone’s basement.

Jonathan Lebded.

 

[CIL]

No. This isn’t a short squeeze - it may have innocently started as an attempt at a short squeeze, but at some point those who have made money in the position have to actually convert those shares to cash...and sadly a lot of folks who shouldn’t be doing these types of things are going to lose a large sum of money at this point.

 

[Todoubled23]

No. This isn’t a short squeeze - it may have innocently started as an attempt at a short squeeze, but at some point those who have made money in the position have to actually convert those shares to cash...and sadly a lot of folks who shouldn’t be doing these types of things are going to lose a large sum of money at this point.

The overarching reach of banks like JPM being prime brokers to alot of hedge funds coupled with all the ats trading from internal desks is ripe with institutions painting the tape. They could see all the hedge funds panic covering, sweeping calls hitting the offers hard whatever it takes to hedge. Why not use that info just as hedge funds watch the flow from robinhood. In a phrase, it's good to be king.

 

[Brooky03]

No. This isn’t a short squeeze - it may have innocently started as an attempt at a short squeeze, but at some point those who have made money in the position have to actually convert those shares to cash...and sadly a lot of folks who shouldn’t be doing these types of things are going to lose a large sum of money at this point.

The price will plummet and some investors will be left holding the bag; somebody always is. Again, though, that doesn’t make this a pump and dump, which requires an element of fraud. Share prices always tank after short squeezes; people don’t go to jail or get fined for those.

From the info available now, there doesn’t appear to have been false or misleading information spread to pump up the price. As this is investigated, that could change, but it’s too early to call this a pump and dump.

 

[Cusefan0307]

It's too bad some of the experts didn't buck up and join Temery's fantasy stock league. We could have seen if the returns matched the talk!

 

[Fat tire 13]

I am watching the silver market this week.

AG is the stock ticker of the name they are targeting. It is looking 36% in the pre-market. This is more than retail at this point. More players must be trying to cash in on the silliness. Silver is too big a market for a simple retail squeeze to move prices.

 

[FloridaFan]

AMC up to 16.30 #WeLikeThisStock

 

[Todoubled23]

Easy dump, if IBKR wasn't so slow with deposits I wanted some june puts 50, 45, 40, 25. Shame on such an easy call.

 

[Alsacs]