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It's almost a foregone conclusion that the early movers of the pumps will cash out at some point, and most participants will lose money.
This is cited as a no good, terrible, very bad thing to happen.
I don't really see the difference between a lot of other actors who make first moves in financial markets. Kudos to the GME and AMC pumpers for herding cats too; that's way harder than herding pension funds.
I don't think anyone is buying the "value" angle. The stock market became disconnected from value a long time ago, and Reddit had nothing to do with it.
The only difference I see is that /wallstreetbets is on the outside, and other market movers are on the inside.
My best outcome for this situation is for the companies to issue shares and raise a lot of money and turn around the businesses, the Reddit crowd to make a lot of money and the hedge funds to get smoked.
I don't think anyone is buying the "value" angle. The stock market became disconnected from value a long time ago, and Reddit had nothing to do with it.
Value?? Right!! GME might not be a great company, but the shares are sure worth more than the $2.57 low the shorts crushed it down to at one point. If it’s ok to crush it down below fair value, then it’s ok to bid it up well over it’s fair value too.
Value?? Right!! GME might not be a great company, but the shares are sure worth more than the $2.57 low the shorts crushed it down to at one point. If it’s ok to crush it down below fair value, then it’s ok to bid it up well over it’s fair value too.
Value?? Right!! GME might not be a great company, but the shares are sure worth more than the $2.57 low the shorts crushed it down to at one point. If it’s ok to crush it down below fair value, then it’s ok to bid it up well over it’s fair value too.
There is an old expression on the street. If you don't think the price is correct, take it to the "right" level.
Is $300 the right price for GME? I don't personally think so. But i have not done any work on the company and have not traded a share of any of these "squeeze" plays with the exception of TSLA where i am already short.
Time will tell with GME, but let's assume the weak shorts are squeezed out; the institutions were given a gift and they have sold, and now all that is left are the core shorts (well burned, but that is part of the game) and the retail longs. Where do they get out?
That is the $20, or $300, question. My guess is closer to $20 then $300. Very entertaining, for certain.
My best outcome for this situation is for the companies to issue shares and raise a lot of money and turn around the businesses, the Reddit crowd to make a lot of money and the hedge funds to get smoked.
Any secondary offering would come under great scrutiny. It’s not realistic to think they could simply offer something close to current market and close it in short order
Two words - Ryan Cohen. GMEs current retail business is probably worth around $8-$10 per share. But with Ryan Cohen now in the board and a major shareholder, I think the company may push heavily into e-commerce and streaming and away from brick and mortar, which could give them a chance at a turnaround. For those unfamiliar with Ryan Cohen, he’s a cofounder and former CEO of Chewy.com, so the man has the experience and track record to push GME in the right direction. This has been the bull narrative for GME on WSB for quite a while, and I think there’s some merit to it.
I’m not saying GME is worth $300 per share, just that it’s worth more than the short narrative would have you believe.
Any secondary offering would come under great scrutiny. It’s not realistic to think they could simply offer something close to current market and close it in short order
GME filed for a shelf registration for $100,000,000 on Dec 8th and have likely been selling ATM during the run up. We won’t know for sure if they have until their next quarterly filing.
My guess is that they have completed the ATM offering and are sitting on a pile of new cash. All of this info is widely known on WSB. These guys aren’t as incompetent as the media would have us believe.
Any secondary offering would come under great scrutiny. It’s not realistic to think they could simply offer something close to current market and close it in short order
The only scrutiny would be over risk disclosures which I’m sure would be robust and ignored by everyone participating in the offering.
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