@Joe Bass time to have the ‘talk’ with the kids. Throw the birds and bees into it also....makes it less awkward.
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Stocks
- Thread starter Boots
- Start date
Well someone is about to get a hurt real bad!
I'm a book guy.
All this talk about short position etc and I'm lost.
What's a good book to explain some of this stuff?
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JB quickly runs away to have an important talk with the kids.
I don't know of a good book, but the internets is your friend. Fundamentally, when you short you borrow stock from someone and immediately sell it. You then hope you can buy it back at a cheaper price before they need it back. You have to give it back no matter what the price though. If someone had shorted GME at $80 (a ridiculous valuation) they could conceivably have to buy shares at $380 to give back to the person they borrowed them from. You can make or lose fortunes very quickly.
D
Deleted member 50930
Guest
Sad propaganda by CNBC
www.cnbc.com
Melvin Capital, hedge fund targeted by Reddit board, closes out of GameStop short position
Melvin Capital closed out its short position in GameStop on Tuesday afternoon after taking a huge loss, the hedge fund's manager told CNBC.
Oh I know but I'm thinking at some point the Reddit hit against the short-sellers will end and they'll be "Hey, this stock mkt thing is awesome. Let me see where else I can invest?" ... in other words, a more value-oriented approach on company's that actually have a bright future.
Ouch.Sad propaganda by CNBC
Melvin Capital, hedge fund targeted by Reddit board, closes out of GameStop short position
Melvin Capital closed out its short position in GameStop on Tuesday afternoon after taking a huge loss, the hedge fund's manager told CNBC.
"Amid GameStop’s explosive rally, short sellers have accumulated losses of more than $5 billion year to date in the stock, including a loss of $917 million on Monday and $1.6 billion on Friday, according to data from S3 Partners.
Short seller Andrew Left of Citron Research said Wednesday he has covered the majority of his short position in GameStop at a loss. He previously said GameStop will fall back to $20 a share “fast” and called out attacks from the “angry mob” that owns the stock."
So the money the short sellers have "lost" is currently in the market valuation of GME but as soon as somebody flinches and the panic selling starts it will come crashing down. If you bought at $6 no big deal, if you bought at $350, it might as well have gone bankrupt even the though company operations are unchanged over the whole rocket ride/crash.
I doubt it. A few have figured out how they can make a fortune at the expense of many using a slightly changed system. Sadly, like cult leaders, they will cling to the power and try to keep the hoard engaged to prop up their money and power. If you want smart value investing, look at financial statements and leaders in the respective fields. Reddit will always be a speculative mess (that can make you a fortune if you get in at the base of the pyramid) or broke (if you are one of the last ones in).
blackcamaro
Well-known member
Suspicious or suspect, type of handshake and no bs
Same as the big Bitcoin rush a few years ago. Everybody win....except the guy buying the day before the massive tanking in valuation. I’m sure lots of people lost their shirt that day.
DownUnder
Well-known member
Its a ponzie scheme atm. However the ones that will lose the most will be melvin, the other hedge funds that doubled down and backed melvin and the banks that back those hedge funds. This is pretty much a slaughter however I have a feeling the fed will bail all those out.
Personally I feel the funds that short companies are scum and its hillarious watching on get its own back.
I doubt it. They may be biggest individual losses, but the cumulative losses the little guys take will exceed the cumulative losses of the big guys. Less of a hit per person but three or four orders of magnitude more players taking it on the chin.
As I understand it (can't bother looking it up), Gamestop is valued at 24B now. Value six weeks ago was roughly 410M (probably close to true value). So far shorts on GME have lost 5B which includes the big players and a bunch of little players. That means there is ~18.5B of phantom value hanging out in GME. That will shortly come back out and smoke most of todays robin-hood heroes.
Sure did. I’m talking about the 2018 ‘crash’ not the current insanity.
Not sure how to even properly buy BTC so never got into it. Once again....gambling.
And that was only a 75% hit. Those that bought in to GME at 300 should expect a 98% hit. Yikes.
Frig me. Dead blockbuster is still listed at BLIAQ. It was up 120% today. So, so dumb.They buying nokia stocks now
Too bad blockbuster is no longer in business eh?
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