OK now do Western Union. Full disclosure: I'm heavily invested in SQ.
Block loses 20% of value as Hindenburg Research alleges fraud
111–120 of 136 posts
Re: Block loses 20% of value as Hindenburg Research alleges fraud
#112Earlier quoted context omitted.
> Personally, I used to be quite antagonistic to shortsellers, but at least the ones holding onto the principles of journalistic integrity and good research provide good value to society. Just look at Wirecard. Which ones don't provide value to society, and how do they differ from shills with a long position?
> Which ones don't provide value to society, and how do they differ from shills with a long position? For example, ones that bet on a stock price where the resulting market cap goes far below the net value of the company (i.e. value of assets - value of liabilities) without any indicators backing that. The "ape army" exposed these shortsellers at GME and iirc, led to the dissolution of at least two of them.
when valuing a company you generally look at cash flows and expectations of future cash flows. a company with $1 billion in the bank is worth less than $1 billion if they're posting annual net income of -$300mm
Re: Block loses 20% of value as Hindenburg Research alleges fraud
#113Earlier quoted context omitted.
5. People for whom fiat money is impractical for one or more reasons This category is way larger than people in well-banked Western circles realise. Bitcoin (crypto) is one of the easiest ways for people affected by capital controls or sanctions (on the financial institutions they use, or the country they were unlucky enough to be born in) to freely move their (legally earned, and taxed) money across borders. Since o…
The idea that some cryptocoin is used by some large but unseen group of people is often talked about but nobody presents the data that show that this group really exists. Is there some real data that shows that this large group actually exists or is it all speculation?
Since the Bitcoin supply is capped, the price itself is data about it being used. At present, it will cost you $28,000 to obtain 1 Bitcoin from those of us who value it.
Re: Block loses 20% of value as Hindenburg Research alleges fraud
#114Earlier quoted context omitted.
Is sanctions-evasion a good thing? Russia is currently fighting a war of aggression, applying controls on the flow of money in or out of there is one way in which the war machine can be starved.
I'm no expert, but restricting the flow of goods seems both necessary and sufficient. The war machine doesn't run on money. A state can always find a way to hide the transactions, on the other hand.
A state can always find a way to hide the transactions, on the other hand
I think the risk of sanctions, means that while there are work arounds, the cost of those work arounds, and the restrictions on who will do business with you, dramatically increase the costs of certain goods.
So sure, the cash moves, but now you pay more. A lot more. Death by 1000 cuts, and all that...
Re: Block loses 20% of value as Hindenburg Research alleges fraud
#115> Dorsey [...] told investors about the large number of songs named after Cash App and described how music had become a way to share with others how valuable the app is to them personally, providing them with “so much utility.” > A review of songs mentioning Cash App shows that the artists are not generally rapping about Cash App’s smooth user interface and robust software integration toolkit. > Instead, lyrics descr…
This is really just an attack on non-wealthy people. If you're fucking wealthy, it's also very easy to move money for fraud, drugs, murder, literally anything. They just don't use the Cash App
> This is really just an attack on non-wealthy people.
It is not an an attack. Neither is it an "attack".
Nobody got hurt, nobody needs stitches, nobody was in fear for their life, autonomy, or well-being. Nobody brandished weapons, nobody damaged physical objects. That is why it is not an attack.
In modern parlance people started calling it an "attack" when someone was ever slo slightly mean to them. I think this usage is contemptible and should be called out. It devalues the meaning of the word. If a market participant publishing research is now an attack then what will you call when someone throws a punch and breaks a nose, or douses someone with gasoline and lights them on fire, or fires an intercontinental ballistic missile at a city?
Re: Block loses 20% of value as Hindenburg Research alleges fraud
#116Hindenburg's on fire nowadays.
Oh the humanity.
Re: Block loses 20% of value as Hindenburg Research alleges fraud
#117“ Initial Disclosure: After extensive research, we have taken a short position in shares of Block, Inc. (NYSE: SQ). This report represents our opinion, and we encourage every reader to do their own due diligence. Please see our full disclaimer at the bottom of the report.” I’m surprised that it’s legal to short sell then go on the attack. If it is, imagine having the cojones to do that and then go live with this repo…
What I am surprised of is how it is legal to have long position in stocks and then lie and pretend to increase the company value...
This here is why I never believe anything someone says about cryptocurrencies. Every time I ask a crypto enthusiast they'll eventually relent that yes they do own a lot of crypto they expect will go up in price.
(And in case someone argues that this is the same as anything else, it isn't. I own an iPhone. I recommend them to people, it works well etc. I don't benefit at all from Apple stock price going up.)
Re: Block loses 20% of value as Hindenburg Research alleges fraud
#118Earlier quoted context omitted.
> Which ones don't provide value to society, and how do they differ from shills with a long position? For example, ones that bet on a stock price where the resulting market cap goes far below the net value of the company (i.e. value of assets - value of liabilities) without any indicators backing that. The "ape army" exposed these shortsellers at GME and iirc, led to the dissolution of at least two of them.
How do these differ from shills who pump a stock price far above the net value of the company without any indicators backing that?
Simple: short sellers can, if they manage to drive the underlying stock price too low, trigger automated "stop loss" orders, which can (and do) send the stock towards complete collapse. And that in turn can cause a cascade of stop-loss orders e.g. for stocks in indices where the flash-crashing stock has a sizable exposure.
Yes, market regulators can issue halt orders to stop all trade regarding affected stocks, but that still has the potential to cause widespread and immense loss of value.
People going long for no reason but "420.69 $GME" are funny to laugh at, and if they buy the right options they can make a lot of money, but there is no potential of cascade events.
Therefore, it makes sense to keep a close watch and a tight leash on shortsellers.
Re: Block loses 20% of value as Hindenburg Research alleges fraud
#119Earlier quoted context omitted.
> Which ones don't provide value to society, and how do they differ from shills with a long position? For example, ones that bet on a stock price where the resulting market cap goes far below the net value of the company (i.e. value of assets - value of liabilities) without any indicators backing that. The "ape army" exposed these shortsellers at GME and iirc, led to the dissolution of at least two of them.
when valuing a company you generally look at cash flows and expectations of future cash flows. a company with $1 billion in the bank is worth less than $1 billion if they're posting annual net income of -$300mm
> and expectations of future cash flows
I'd summarize that under "liabilities"... but even then, a company can be dissolved to stop the outflow of cash and the assets sold at market value.
Re: Block loses 20% of value as Hindenburg Research alleges fraud
#120OK now do Western Union. Full disclosure: I'm heavily invested in SQ.
Western Union got fined a half a billion dollars because it helped facilitate fraud:
https://www.justice.gov/opa/pr/western-union-admits-anti-mon...