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ahh, it appears the partisan morons have come out. I suppose the whole discussion of HOW it happened, and WHAT should or shouldn't be done, escapes them so long as the Orange Man lives to blame.
I don't think anyone particularly cares that Hedge Funds lost money. You'll see more diverging opinions on the smaller investors who borrowed against their 401k or took money out of a HELOC and bought 1,000 shares at $200 and then didn't get out in time and now it's worth maybe $60 if we want to be overly optimistic. That's really money that unlike a hedge fund they probably cannot afford to lose and now they've lost $140,000. That's a huge set your retirement back by 10 years type of money for a lot of people, and there will be people that lose that much and more who are just ordinary Joe type people that don't have solid six figure jobs or a comfortable nest egg of a 10-20 million to fall back upon. Bitcoin but worse.
actually, in America, you are free to make stupid but legal choices.
Certainly, SOME of the "little guy" purchasers this week who jumped on a social media bandwagon are going to lose most of what they had. That's not "our" fault.
Nor is a bunch of financial wizzes who (probably) knew that shorting transactions exceeded the total # of shares in a company.
actually, in America, you are free to make stupid but legal choices.
Certainly, SOME of the "little guy" purchasers this week who jumped on a social media bandwagon are going to lose most of what they had. That's not "our" fault.
Nor is a bunch of financial wizzes who (probably) knew that shorting transactions exceeded the total # of shares in a company.
Oh, I agree. I just expect that won't be the opinion of a lot of people. A lot of people will feel sorry for the average Joe that takes a 70, 80, 90% loss on their long positions because they were so sure that it was going to be a $1,000 stock and they could get out then and make a quick few hundred thousand or million. I really won't feel any worse for them than the hedge funds that got squeezed. Fools and their money as far as I'm concerned.
You guys all seem to be painfully unaware that when Gamestops stock drops back to reality, the reality of a company that loses about 500mil a year with no relief in sight, then do you know what shows up?
Class action lawsuits.
Because there is now 21+ billion in market capitalization which is going to turn into less than half a billion by this time next year. People get mad when 20 billion dollars of investment goes *poof*. Remember Enron? It was a fraction of that.
Gee, you want to be involved in trading that? Welcome to the lawsuit.
P.S. I don't give a flying fudge about hedge fund managers, there are some people that are going to get REALLY hurt by this and I'm explaining why some brokerages may not want to embroil themselves in what is an obvious pit of litigation.
why should anyone who chose to buy Gamestop at yesterday's price, with no apparent advice whatsoever from Robinhood, expect relief? Because suing is the American Way?
Oh, I agree. I just expect that won't be the opinion of a lot of people. A lot of people will feel sorry for the average Joe that takes a 70, 80, 90% loss on their long positions because they were so sure that it was going to be a $1,000 stock and they could get out then and make a quick few hundred thousand or million. I really won't feel any worse for them than the hedge funds that got squeezed. Fools and their money as far as I'm concerned.
thankfully, we're in full agreement.
I just wish folks understood the difference between "eat the rich" (abnormal jealousy) and "make them pay" (finding out some suit shorted such a high % of a stock).
I am no smart investor. But I laugh at the suited whiners who have given us "this isn't right; they're not looking at company fundamentals", etc. when they pump companies that have not and will likely never make a dime.
Again, I'm not smart and I don't hold a license to give financial advice - but AAL looked like a good play before the market opened this morning, irrespective of any chicanery. I think their 2019 dividend was a 5% yield, and today's price/2019 EPS was < 5. Why would that stock, among the major airlines, be shorted in the 40% of shares range?
You guys all seem to be painfully unaware that when Gamestops stock drops back to reality, the reality of a company that loses about 500mil a year with no relief in sight, then do you know what shows up?
Class action lawsuits.
Because there is now 21+ billion in market capitalization which is going to turn into less than half a billion by this time next year. People get mad when 20 billion dollars of investment goes *poof*. Remember Enron? It was a fraction of that.
Gee, you want to be involved in trading that? Welcome to the lawsuit.
P.S. I don't give a flying fudge about hedge fund managers, there are some people that are going to get REALLY hurt by this and I'm explaining why some brokerages may not want to embroil themselves in what is an obvious pit of litigation.
Quote:
Originally Posted by Malloric
I don't think anyone particularly cares that Hedge Funds lost money. You'll see more diverging opinions on the smaller investors who borrowed against their 401k or took money out of a HELOC and bought 1,000 shares at $200 and then didn't get out in time and now it's worth maybe $60 if we want to be overly optimistic. That's really money that unlike a hedge fund they probably cannot afford to lose and now they've lost $140,000. That's a huge set your retirement back by 10 years type of money for a lot of people, and there will be people that lose that much and more who are just ordinary Joe type people that don't have solid six figure jobs or a comfortable nest egg of a 10-20 million to fall back upon. Bitcoin but worse.
Hedge Funds are in the business of arbitrage. It's amusing because it was Reddit that short squeezed Gamestop rather than another hedge fund. The VW squeeze was orchestrated by Porsche. They just bought back a huge percentage of the stock. Hedge fund lost, a bunch of idiots trying to get rich quick lost, Porsche/VW won.
I highly, highly suggest you both read the Wallstreetbets subreddit to get a better understanding of where a lot of people's mindset is at with regards to GameStop. A lot of what I have read on that subreddit has nothing to do with people wanting to make a buck or a profit.
All lot of them are going in, fully knowing, that all the money they put on Gamestop can get wiped out, but they don't care. They don't care because they want to squeeze the family jewels of the hedge fund elites to get back at a system they percieve to have as a separate set of rules for your everyday plebes vs those at the top, which to them, was was very apparent with regards to what happened to Robinhood and other firms preventing the buy of GameStop.
Now as far as what percentage of all retail investors have this mindset, who knows. But it seems many are putting money down with full knowledge that their money will be a loss. And wether it's right or wrong, to them it's literally what The Joker said in The Dark Knight: " It's not about moneys, it's about sending a message"
I just wish folks understood the difference between "eat the rich" (abnormal jealousy) and "make them pay" (finding out some suit shorted such a high % of a stock).
I am no smart investor. But I laugh at the suited whiners who have given us "this isn't right; they're not looking at company fundamentals", etc. when they pump companies that have not and will likely never make a dime.
Again, I'm not smart and I don't hold a license to give financial advice - but AAL looked like a good play before the market opened this morning, irrespective of any chicanery. I think their 2019 dividend was a 5% yield, and today's price/2019 EPS was < 5. Why would that stock, among the major airlines, be shorted in the 40% of shares range?
2019 dividend is almost meaningless as it's an airline and COVID.
Why specifically AAL rather than other airlines? No idea. I know nothing of the stock, the fundamentals, the relative strength or weakness in an industry that has been hammered. All it means is the outlook is pessimistic and more investors think AAL is overvalued than other airlines.
Day trading is really zero sum stuff. You're making money because someone lost money. It's amusing to see a hedge fund lose a lot of money to a bunch of retail investors on Reddit but really it's just someone making money and someone losing money. On the way back down there will be lots of both hedge funds and retail investors taking money from the people who bought because they got overly emotional and excited about taking money from the rich and then get burned when the pump goes dump. It's really an amoral thing and emotion doesn't belong in the calculation.
I highly, highly suggest you both read the Wallstreetbets subreddit to get a better understanding of where a lot of people's mindset is at with regards to GameStop. A lot of what I have read on that subreddit has nothing to do with people wanting to make a buck or a profit.
All lot of them are going in, fully knowing, that all the money they put on Gamestop can get wiped out, but they don't care. They don't care because they want to squeeze the family jewels of the hedge fund elites to get back at a system they percieve to have as a separate set of rules for your everyday plebes vs those at the top, which to them, was was very apparent with regards to what happened to Robinhood and other firms preventing the buy of GameStop.
Now as far as what percentage of all retail investors have this mindset, who knows. But it seems many are putting money down with full knowledge that their money will be a loss. And wether it's right or wrong, to them it's literally what The Joker said in The Dark Knight: " It's not about moneys, it's about sending a message"
Which is stupid in my book. But hey, if they want to lose a few hundred or thousand dollars to teach a hedge fund that was buying shorts to a point where the short ratio was 120%, that's their business. I'd look at it more as an opportunity to make some money. The higher the short ratio the more susceptible that stock is to a short squeeze and 120% is insane. That may have been the motivation of some on WSB who jsut didn't care about throwing money away and wanting to make a point, which is stupid in my book but it's not my money and they can throw it away if they want. You need a lot of people willing to do that or you just need to rely on the fact that people are greedy and while a few may want to throw away money many more will pile on to make money. I'm in the later category. The thing is the timing though. If I'd been paying attention to it in December I might have been buying but by the time it's buzzing all over the Internet it's way too late and there's far too much risk that you'll just end up being a chump that buys high and gets burned.
Will the people have any power, or will they not? A vote for Biden was a vote for unaccountable power and wealth.
Maybe Bidens Sec of the treasury will help the little guy.... Opps maybe not, it appears she is busy buying a new mansion with $800,000 she got from the Citadel hedge fund for a "speaking Fee"
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