My portfolio did get hit pretty hard yesterday, I assume it was due to the GME disruption.
Granted I'm up a lot this year so in the grand scheme it's a blip, but is there any thought on your part about the consequences of these actions?
OT: Stock and Investment Talk
- Thread starter RU-05
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Granted I'm up a lot this year so in the grand scheme it's a blip, but is there any thought on your part about the consequences of these actions?
I own a ton of TSLA via funds. If it went back to ~400, I would consider buying some shares straight up (for my crypto/fun portfolio).
I would 100% buy if it went to $400. If only because it would likely bounce to $600 in a couple days.
Can’t argue that timing was pretty damn important for many of these names this week, that’s for sure.
I wrote earlier in this thread that this activity won’t effect the ultimate outcome of the issuers, and that might not be true. AMC issued shares in the face of this surge, and if I’m running GME, I have lawyers working round the clock on a prospectus. It’s a chance to reinvent themselves, if they can move fast enough.
Just a note on the short sellers.
When they are short a stock, and then come out with a short seller hit piece, whether it's substantiated or not, is BS.
I'd think you shouldn't be able to release a piece like that if you have a short position on the stock in question.
When they are short a stock, and then come out with a short seller hit piece, whether it's substantiated or not, is BS.
I'd think you shouldn't be able to release a piece like that if you have a short position on the stock in question.
Ya I think AMC issued new shares at $5 and raised $500 mil. It's up near $20 now, are they now working to issue more shares?
TSLA may be the next Amazon, a truly transformational company. But folks forget, Amazon stock absolutely cratered for 5-6 years after the speculative bubble popped. Regardless of the future for TSLA, the current price has definitely out kicked the coverage as of now!
I could not disagree more strongly with this statement. Contrary to popular perception, short sellers are the police of bad corporate practices. More so than any agency, they uncover frauds or deceptive practices. I wouldn’t limit their ability to provide their findings any more than I’d prevent someone from touting a bullish opinion when they are long.
AMC received a lifeline through mid summer before this stock move. If I’m them, they should raise as much as possible. For a company, they should sell when their shares are overvalued, and repurchase when undervalued.
Just wondering, what is the volume of short selling vs the normal long buying? What is the relative amount? Do sure how often this goes on. I just some well known funds are shorts. Thanks.
Exactly RUrahrah000! I was watching CNBC this morning and they had Jay Clayton former SEC chair on. It was comical how he and Kernan were trashing Reddits WSB and covering for the Hedge funds who were short 140% of the stock. So in laymans terms, the hedge funds sold shares that did not even exist. How is that legal? I just got word that Robinhood has suspended buying GME, so the game is being rigged again in favor of the the big boys. Less regulation is the answer. It always comes down to people being responsible for themselves.
Sounds like GME is tanking now (or at least giving up last night's gains, which pushed them to about $450).
Overall futures look good.
I don’t have figures, but in aggregate, short selling is far lower than long. Very few funds are short specialists, because it’s really, really hard to make money shorting when, as a rule, the market delivers positive returns, Chanos is one of the most well known short sellers, and he generates negative returns over time (from what I’ve read, his negative performance is actually pretty good considering the upward move in share prices over time).
Otherwise, most funds who short are long /short, and the bullish or bearish stance is reflected in the percentage they are long. It ebbs and flows.
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There is no correlation between what is going on in gamestop and what happens in the overall market. The media is trying to spin it as gamestop, AMC, BB, BBBy and others are the cause for the selloff. No correlation between gamestop which even at its outrageous valuation and the stock market as a whole which is valued in the trillions. Your portfolio is going to go down when our current overlords in washington institute enough terrible policies that it begins affecting businesses. They are well on their way to that goal but it will take some time for them to finally sink the market.
Depends if the company maintains a shelf registration or not. If so, it can be pretty fast. Interesting to note that holders of a AMC convertible note just exercised their right to convert, so AMC has a lower debt load in addition to more liquidity from its share sale. Not bad.
I disagree with you. Pumping a long position as long as they disclose they are long becomes a buyer do your due diligence. Buying long also brings a finite potential loss. Badmouthing a company for personal profit just seems unethical to me along with losses being infinite. If a hedgefund or bigwig wants to uncover fraud, he can just go public without touting a position that profits himself and hurts others. I am strongly against short selling.
They're all down pre-market probably because they've all been blocked on Robinhood.
Totally disagree. The end product is so different, they will never be able to achieve the margins like Amazon.
AMC could surely need the extra funds! Probably 4-6 more months until we get back to normal (or the new normal).
At the end of the day, no one cares what you say if you are a nobody. But SEC likes to go after big names to set examples. It’s a free market. You can take a position and show your work. But you can’t say big news coming I’m long or short.
If TSLA went down to $400, it would be because something catastrophic happened like the automation does not work, or there was something seriously wrong with the company. If that happens, you are not going to want to touch the stock. You should hope for 15-20% correction and jump in. $750 would be a good level.
Actually the history of the SEC and FINRA has been going after anybody BUT the big boys. That is how Madoff went decades running his ponzi scheme, why not one executive who was responsible for the financial crises of 2007/2008 went to jail or was even punished, and now why the SEC and FINRA are looking into Gamestop and reddit. They are looking to make sure that this does not happen again to their hedge fund buddies whom they see at the country club on the weekends. So shorting more shares of a companies stock than are available in the market is ok, but when a group of individual investors discover it, act on the information, and are destroying one of the big boys who regularly manipulate the market to their advantage, now the regualtors have to do something about it. Of course the official spin will be, "This is for the protection of investors", "This is to maintain the integrity of the markets", and "We cannot allow this kind of bahavior because it hurts individual investors". Meanwhile for the first time ever, individuals have figured out wall streets game and turning it against them. Nothing could be more democratic or capitalistic than that. It will take the government some time to figure it out but the clampdown is coming...seen this picture before and know the ending.
Very true. In the fall, I did a quick estimate of my funds and I likely had $60-80k in TSLA across my retirement portfolio (7 accounts). One of my best funds, Fidelity Growth Company K, reduced TSLA from 6% to 2.8% by the end of 2020. I'm sure some other did the same. Hell, even ARKK trimmed TSLA a bit.
That’s fine, but I’m sure you’ll change your mind in time because you’re smart and I’m right😀.
Why should a hedge fund not profit when they expose a fraudulent company or business practice? The market will either agree or disagree with their work or analysis. These funds look for frauds and then short, rather than the opposite look for companies to short and invent narratives. And they bear a ton of risk if they are wrong, both from their short position and if they are sued. I’d encourage you to read about Bill Ackman’s experience with the monolines in The Confidence Game or einhorns experience with Allied Security I’m Fooling some of the people all of the time.
The market benefits from short sellers who offer a well supported thesis.
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I could be wrong but I have not seen someone disclosing improprieties within a company ever disclose that they are short the stock whereas I frequently see disclosures of long positions.
What's happening right now, this very instant, is history folks. Quite possibly the biggest "F you" to mainstreet by the establishment, EVER. Silenced speech, cut off purchase capacity (what hedge fund made the call there? Citadel?). Wow.
And I'm no occupy wall streeter. I'm just a suburban NJ guy. And I can see clear as day how egregious this one is. .
And I'm no occupy wall streeter. I'm just a suburban NJ guy. And I can see clear as day how egregious this one is. .
I just gave you two books written about two prominent shorts exposing deceptive or fraudulent practices. Look at Lumber Liquidators. For one that didn’t work for the shorts, look at Herbalife. Google the firm Muddy Waters and see what comes up. Valiant Pharmaceuticals. Enron. World com. Tyco. Lehman,
Brokerage are allowing buying GME. But no options and not on margin. Nothing wrong with that. Shorts (if you can get in) requires 300% margin.
Don’t know how to add a picture but essentially have to think about hedge funds and how they manipulate everything
all of robinhood order flow goes through citadel(hedge fund). Citadel just put money into Melvin capital to help them cover their shorts. You think citadel wants to lose money??
citadel prob ordered robinhood to stop trading in specific. Names so they can protect the country club
all of robinhood order flow goes through citadel(hedge fund). Citadel just put money into Melvin capital to help them cover their shorts. You think citadel wants to lose money??
citadel prob ordered robinhood to stop trading in specific. Names so they can protect the country club
Herbalife was a public squabble between Ackman and Icahn with Ackman losing on his short position. That was one I forgot about. I haven't read the books you referred to but Enron and Bear Stearns weren't shorted as far as I know. Hell, my retirement advisor (well respected firm) bought positions in those two stocks literally weeks before they went under. Especially concerning since he worked for Bear Stearns for years before changing firms.
Ackman put out a hundred plus page deck on his analysis on Herbalife, and he was not alone in his views. That said, his reports did get the attention of the authorities and Herbalife was forced to pay fines and change certain business practices. But, as I said, it didn’t work for the shorts. I never mentioned Bear. Enron was most certainly shorted.
I watched the full 33min interview last night.
Chamath is so FOS. so tired of multi-billions talking about being "men of the common man".
He really said all this is being done based on strong fundamentals for GME.
Also nice that the "retail investor" they brought on has over 100k invested in GMEM across various positions.
This isn't who the interviewer was talking about.
He is talking about the guy who sees "GME is going up" and then he buys in for a couple hundred or a couple thousands at $350.
Are the "Evil Hedge Funds" wrong and need further regulation? Sure.
But don't piss on my leg and tell me it's raining.
WSB and all these "retail investors" are using the same tactics to pump up the stock.
Are they really going to hold this stock for months?
No - and when the stock settles back down a lot of actual "retail investors" are going to lose money.
This is all a purely "f@ck the man" and has nothing to do with any actual companies or fundamentals.
Better question is - who pissed off Chamath/Musk and the rest of the Wall Street "outsiders" that they are targeting Melvin and Cohen?
Can someone explain to me how Cohen is involved and affect by this? I keep hearing that he is.
Fake news. If you have money, not margin, you can buy it. People are just too dumb to realize they are buying in margin.
