OT: Stock and Investment Talk
- Thread starter RU-05
- Start date
WSB aren’t investors they are gamblers. Which is fine other than it creates headlines that make the entire market look like a circus. Here’s a hypothetical - what if during half-time of the next sold out RU/PSU game Schiano made a public announcement that he’s a football coach not a financial advisor but that everyone should buy as many shares as they can of NewCo when the stock market opens Monday morning because it’s a great company with a bright future. Schiano owns 100,000 shares at the time. Any problem with this scenario?
Younger, perhaps less educated or informed, people will come to view the sagas of GME and AMC as capitalism. This is a terrible misrepresentation of capitalism, of course, and may foster acceptance of other forms of economic organization.
I fear these meme stocks, and crypto, are destructive to healthy perception of the benefits of capitalism.
I'd say if they're willing to lose money to "stick it to the man" they're already acolytes of other forms of economic organization. Almost an Occupy Wall Street in the era of social media ascendancy and zero commissions.
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I don’t buy the “stick it to the Man” crap. That was the angle Roaring Kitty was playing in his attempt to avoid a pump-and-dump scheme. Not sure why anyone really believes it.
Just imagine where the stock could have traded if they didn’t sell those shares. He needs to do more. I’m happy since I covered some of my shorts at 42% gain. Puts are still way out of the money.
Right on queue
AMC CEO Adam Aron urges shareholders to support plan to issue 25 million more shares
Aron's latest push to persuade investors to allow AMC to issue more stock comes after it failed to gain shareholder support to add 500 million shares.
Good read. AMC would’ve been BK if they couldn’t raise cash through shares sales. LOL
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I don’t see this ending well for Aron. He’s apparently made over $100M+ through all of these maneuvers. If AMC doesn’t turn around the business there will be no shortage of lawsuits.Raised $600 million and never put on pants.
ZeroHedge
ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zerowww.zerohedge.com
But he did disclose that you could lose all your investment by buying the stock. It’s not his fault people want to stick it to the man or help him get richer. Investors do get free popcorn with those shares.
Depends on how thorough the disclosures were, though I'm sure someone will file class action hoping for a quick settlement. That will provide the class with enough to buy each a Dunkin Donuts medium (not enough for a Starbucks) and the lawyers a nice fee.
Jobs report misses estimates again, but higher gains than last month. Good news for the market.
www.cnbc.com
Job creation accelerated in May but is still below lofty expectations
Nonfarm payrolls increased 559,000 in May, below the 671,000 estimate.
If the stock/company tanks, Plaintiffs lawyers will jump all over this especially when retail gamblers start crying about how they took out a second mortgage to buy AMC stock or lost their kid’s college savings. I think Aron is playing with fire but he’s clearly willing to let it ride. Like I’ve said before, I don’t have an issue with this nonsense and the WSB gamblers, but the headlines make the market look like a circus.
I don't recall many of these suits being successful in the dot com era. Self directed investors don't make out well in arbitration. Also, I can't imagine a securities lawyer picking up all these $25,000 cases from busted Robin Hood accounts. There's plenty of pissed off full service clients who were told to sell Apple and Tesla a few doubles ago. LOL
The Apple and Tesla investors didn't LOSE money, just didn't make as much. Apples and oranges😉. And no securities lawyer would represent a single Robin Hood investor. It would be a class.
Example: A senior client has $3 million Apple stock that is most of her account with a cost basis of $15,000. The brokerage firm has maintained a "Strong buy" on Apple for several years. In 2018, her broker recommends selling a third of the position and reallocating it into a 60/30/10 allocation, with the equity in 60/30/10 Large/SMid/Int'l. The client passes in March 2020, now one of the 3 heirs hire a lawyer who wants to know why the broker recommended selling a stock that the firm recommended buying, has since tripled, and put the proceeds into "risky" investments that have lost money. Fun! LOL
Diversification would be the easy and, I believe, effective answer. The problem for them will be the "risky" investments (if they are indeed risky) that lost money. Did they diversify into investments that the company didn't rate "strong buy"?
I looked up Apples historical price and it was about 25 cents in 2000 and at current price of $125 went up 500%.
Yeah, it was 31 cents the day my son was born. If only I put $400 into it that day, I could have paid his 4 years of college. That day happened to be the day Worldcom imploded. Guess which company I had money in? LOL
It's a hypothetical, but in this situation a lawyer will ask for damages of $205,000 because $100,000 of the $3 million that went from Apple into an international fund that lost 5% instead of tripled, and claim the broker was churning a senior client's account into inappropriate investments that she did not understand. And then settle for $10,000. SMH.
Which is probably less than the cost of arbitration and considerably less than if it ended up in court.
this reminds me that E-trade has a thing where you can do simulated trades.
I'll have to see if they have one for options as well.
That would be 50,000%. if it went to $1.25, it would be 500%
LOL…bunch of AMC executives dumping shares. S4s filed after market closed. Making their beloved retail investors look like morons.
Don’t own any stocks in anything, but from a country boy point of view, it sure looks like Tractor Supply stores and Boot Barn are thriving through corona. Tractor Supply closing in on 2,000 stores including one opening this Summer in Toms River and Boot Barn is finally tackling the Northeast.
Tom, Tractor Supply is everything except supplies for a Tractor lol. Everything you mentioned plus clothing, toys, pet supplies, and at certain times of the year, you can purchase live animals. The pet supply portion includes horses, cats, dogs, rabbits, squirrels, hamsters, birds, etc. I don’t think I am their typical customer, but I mostly stick to buying jeans, Western style shirts, socks, and they sell soda for $1 a liter. One area where I would have spent more money on at TS would have been on cowboy hats and boots. They have a very small selection in both. Would love to see them and Boot Barn build stores together side by side. Boot Barn could take care of the Boot market that a lot of Tractor Supply customers are interested in. The stores would feed off each other in my opinion. The one I currently go to is right near the New Jersey Horse Park in Upper Freehold/Allentown just off I-195. They have stores all over the state now. By the way, for those of you, especially with children, looking for a fun, Free day, the New Jersey Horse Park Offers Free parking and about 90 percent of the shows are Free. You can also bring your own food and drink.
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I’m shocked. These guys just hit the lotto. I wonder if they did the same as GME. Dump their shares as part of the equity issuance.
I will have to stop in the one off of 195. I have used their parking lot as a meeting place but never went inside
