41–50 of 410 posts
> On Wednesday Melvin said it had exited its bet against GameStop and repositioned its portfolio If they really had exited, why would they bother telling anyone? > A Melvin spokesperson declined to comment on the firm’s January performance Hmmmm. They won't talk about performance, but they're very keen to convince everyone they've exited their short position. This reads like yet another press release that all the maj…
My theory is that they are not only doubling down but quadrupling down everytime the stock shoots up. Gamestop has no fundamentals going for it, take a look at its other competitors in the industry, they are all gone. Neither do cases for AMC (who themselves acknowledged and WARNED investors that their operations are simply no long viable due to the pandemic).
This is probably a once in a lifetime short, they've seen the order flows from Robinhood, they have probably infiltrated r/wallstreetbets and are egging people to buy in to the "David vs Goliath" narrative which is couldn't be further removed from the truth.
Many people who are jumping in now (from all the posts asking what is a margin, or when do I sell, or even how to use a broker app) and I fear that people are walking into a clever trap setup by the hedge funds that are short.
There is also a lot of institutional money on the long side and they also have interest in continuing the political narrative because they need somebody to hold the bags.
Remember that exuberance of the irrational variety of the 2000s craze, the departure from fundamentals and the mania of the public jumping in while the smart money were happily selling to the eager investing amateur.
We have no way of knowing if people posting gains on wsb are doing it on paper accounts or not.
> On Wednesday Melvin said it had exited its bet against GameStop and repositioned its portfolio. The firm moved to reduce risk in its investments following a turbulent start to January when it lost 30 percent in the first three weeks. Melvin’s leverage ratio is at the lowest it has been since the firm’s founding in 2014, said a source familiar with the firm. The news of Melvin’s January performance was first reporte…
The general assumption on WSB is that Melvin Capital is lying and that they haven't closed their positions. I haven't seen any evidence to suggest they've closed it, and have seen circumstantial evidence suggesting they have not. You don't spend money on ads saying "we no longer have a financial stake in this stock" unless you, you know, have a financial stake in this stock. Considering this is a hedge fund, I just a…
If this is your prior for approaching evidence, you're always going to catch big finance lying. But not because you're actually calibrated on evidence. And you won't be able to distinguish between actual fraud and baseless conspiracy.
We just really like that stock.
And the hedge funds making billions off that sentiment do as well of course, Citadel must be blushing at the runaway success of RH right now
They don't own it.
> On Wednesday Melvin said it had exited its bet against GameStop and repositioned its portfolio. The firm moved to reduce risk in its investments following a turbulent start to January when it lost 30 percent in the first three weeks. Melvin’s leverage ratio is at the lowest it has been since the firm’s founding in 2014, said a source familiar with the firm. The news of Melvin’s January performance was first reporte…
Likely just new shorts from a variety of places. I've seen plenty of people opening shorts with the expectations that WSB's play will blow in their face eventually.
Wouldn't surprise me if Melvin hasn't really closed their position - but it wouldn't be irrational to think that /r/wallstreetbets will at SOME point in the future move on from gamestop to something else.
Earlier quoted context omitted.
And the hedge funds making billions off that sentiment do as well of course, Citadel must be blushing at the runaway success of RH right now
Edit: This is probably wrong. The funny thing is that the money Citadel makes off of Robinhood is basically front running RH trades. If those trades are for GME, Citadel has to choose between: - getting their front running revenue while increasing the price and making things worse for shorts (which I'm sure Melvin still has, despite their PR) - foregoing their RH revenue to not exacerbate the situation for shorts Pic…
Earlier quoted context omitted.
It is somewhat important to describe how these people are not acting rationally or individually and how these internet groups can group together to have very powerful and unusual effects.
And you did just that without referencing either Reddit or memes.
People are also directly visiting the subreddit and they will struggle to understand what is going on which is why the news tries to provide translations and explanations.
Earlier quoted context omitted.
The general assumption on WSB is that Melvin Capital is lying and that they haven't closed their positions. I haven't seen any evidence to suggest they've closed it, and have seen circumstantial evidence suggesting they have not. You don't spend money on ads saying "we no longer have a financial stake in this stock" unless you, you know, have a financial stake in this stock. Considering this is a hedge fund, I just a…
> You don't spend money on ads saying "we no longer have a financial stake in this stock" I don't think they did. The source of this meme seems to be a Twitter ad from CNBC that was teasing an interview with a quote to that effect. That's a CNBC ad selling their show, they don't take paid ads from their guests.
How do you know this?
It's really strange. Why would they openly announce that they have closed shorts and that they are sustaining damage so publicly? My theory is that they are not only doubling down but quadrupling down everytime the stock shoots up. Gamestop has no fundamentals going for it, take a look at its other competitors in the industry, they are all gone. Neither do cases for AMC (who themselves acknowledged and WARNED investo…
They would not have survived Monday, Tuesday or Wednesday if they doubled down once instead of closing out, let alone if they did it on every significant increase. Even if you cite the investment from Point72 and Citadel: that's a fraction of what they'd have needed to survive the stock going from $100 to $300+.
Earlier quoted context omitted.
The general assumption on WSB is that Melvin Capital is lying and that they haven't closed their positions. I haven't seen any evidence to suggest they've closed it, and have seen circumstantial evidence suggesting they have not. You don't spend money on ads saying "we no longer have a financial stake in this stock" unless you, you know, have a financial stake in this stock. Considering this is a hedge fund, I just a…
You should consider at least editing this post given that it has a massive inaccuracy in it, i.e. that Melvin Capital bought ads to communicate not having a position in GME. That was CNBC.
To think hedge funds wouldnt do such a thing when so much is riding on this, is extremely naive.