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u/DeepFuckingValue and the GameStop Reddit mania

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Re: u/DeepFuckingValue and the GameStop Reddit mania

#231

Post by breck »

ignoramous wrote: post #106

Looking back at (u/deepfuckingvalue) Keith Gill's comments on r/wsb, it looks like they had a solid theory to cash out by Jan 2021 for $8+ a share (most of their calls starting June 2019 were 80 cents a share or less [0]). This was by no means a strategy to make money by squeezing the short, though one user, conspicuously named u/burrym, speculated that it ought to be [1]. [0] https://archive.is/Y953e , https://archi…

Wow, some of DFV's comments are great. No wonder he eventually attracted a lot of believers. I love this:

"Well as a longer-term investor I have the benefit of heavily discounting daily moves. I care much more about the longer-term charts, and these have been fairly constructive for months now. Even today, after the typical quarterly sell-off, the longer-term chart still looks decent so there’s been nothing to panic over. Let’s see what the price does over the next few weeks. Of course charts are only a minor part of the equation in my opinion. The fundamentals are much more important in a situation like this."

Re: u/DeepFuckingValue and the GameStop Reddit mania

#232

Post by aphextron »

alasdair_ wrote: post #199
hehehaha wrote: post #28

Earlier quoted context omitted.

The guy struck rich! Same with people who shorted crude last year when it went straight to -40. Billions were made.

Billions were made, but retail traders lost out. The fact that IBKR couldn’t handle a negative oil price at that time made me realize that for all their marketing as being a higher quality broker for serious investors, they had some serious holes. Then when they stopped buys on GME while Vanguard and Fidelity still allowed them, I gave up on IB completely. Right now I’ve bought puts on IBKR - I expect a lot of client…

Liquidated everything on Robinhood today and moved to Fidelity.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#233

Post by throwaway-571 »

ggggtez wrote: post #63
tootie wrote: post #25

Earlier quoted context omitted.

It says as much in the article. He literally just thought GME was undervalued on its merits. He had no intention of creating a squeeze or punishing Melvin.

Just because he's still in doesn't mean that it's actually worth $300 on the fundamentals. I could definitely see the argument that $20 was undervalued, but it's plain to see that the short-squeeze is now part of the calculation of value. There is no way that GameStop has an actual fundamental value of $300 per share. That price is clearly inflated, and in a few weeks will decrease, probably to somewhere above $20, b…

Apparently retails traders were only 1/3rd of the transactions, and the stock went up on the aftermarket on thursday, so I don't think retail traders are driving this price _anymore_.

https://www.bloomberg.com/opinion/articles/2021-01-29/reddit...

Re: u/DeepFuckingValue and the GameStop Reddit mania

#234

Post by UncleMeat »

eurasiantiger wrote: post #219
blackrock wrote: post #200

Earlier quoted context omitted.

What is TSLA’s fundamental value? The price is bonkers.

More bonkers than Amazon?

Yes.

Amazon dominates a market and is making outrageous revenue and income. Tesla doesn't compare.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#235

Post by derptron »

hehehaha wrote: post #18
u678u wrote: post #17

I like Matt Levine's comment " The guy behind one of the greatest trades of our time was giving out financial advice for MassMutual, and somehow they let him go." edit I missed the best part of the quote "I hope he showed up at client meetings in a headband and sunglasses with a glass of champagne in one hand and a chicken tender in the other. I hope he was like “never mind life insurance, man, you gotta buy GameStop…

Really helps discredit this notion of retail vs hedge fund. Most people who frequently make “DD” posts to r/wsb have ties to the financial industry and Wall Street. They either work there or have worked there. And yet they are critical of the Man? This is like ex-Facebook employees having a found-Jesus moment.

>Really helps discredit this notion of retail vs hedge fund. Most people who frequently make “DD” posts to r/wsb have ties to the financial industry and Wall Street.

Do you have a shred of evidence to back this up?

Re: u/DeepFuckingValue and the GameStop Reddit mania

#236

Post by asenna »

eMGm4D0zgUAVXc7 wrote: post #135
jMyles wrote: post #103

Earlier quoted context omitted.

Are speculators making money on ipfs? How? This is news to me.

The IPFS website at the bottom left contains a section "Protocol labs", the "About" link of that links to https://protocol.ai/ which says "We're decentralizing storage with Filecoin". So their end goal might be making money off that cryptocurrency... Thanks to the GP for causin me to figure out why the wheel is being re-invented here! :) :|

Why is adding an incentive mechanism to "pinning" files on IPFS inherently wrong? If you find the right incentives to a tech problem, that pushes the tech forward right? Like Satoshi Nakomoto putting together the right type of incentive to be able to create an almost unhackable network in Bitcoin (along with Ethereum and others).

I'm not yet saying that Protocol Labs will ultimately find the success they're looking for BUT writing off their efforts as "just a way to make money off of cryptocurrency" I feel is pretty dismissive.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#237

Post by arcticfox »

misiti3780 wrote: post #46
MuffinFlavored wrote: post #32

Earlier quoted context omitted.

> I'm honestly confused by the press around this event. A lot of people wish they struck it rich, just like him. Money (to some degree) buys happiness. Gets you out of a job you don't like. Gets you more time with your family, less time doing stuff you don't like (like working). If the poor can "eat the rich" and "catch them with their shorts down" in a stock trade that literally millions of others are pouring into (…

ya sure, i get it .... but he took a bet and won, He could have easily lost everything. For every winner in the options game there are probably 99 losers. It's call survivorship bias.

> For every winner in the options game there are probably 99 losers. It's call survivorship bias.

Sure, if people are taking aggressive positions. I'm not sure his initial YOLO was that insane, it had a fair chance of being OK. (In this unique case, the massive naked short position turned out to be the insane play.)

But it's approximately a zero-sum game, so it's not irrational in general to be betting on options.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#238

Post by ulber »

ralph84 wrote: post #195
seanalltogether wrote: post #54

Earlier quoted context omitted.

matt levine talks about this very thing in one of his other posts on wsj > So if you buy stock with the purpose of pushing the price up so that other people will buy it, that’s market manipulation. If you buy stock hoping that the price will go up because other people buy it, that’s not market manipulation; that’s just normal. Those things are not so different. There is a “traditional four-part test for manipulation…

What is an artificial price and how does it differ from a real price?

The "legitimate forces of supply and demand" seems to be the critical part there. GME stock didn't go up because /u/DeepFuckingValue bought so much of it, it went up because everyone else did. In August 2019 GME had a market cap of $300 million so there was no way /u/DeepFuckingValue buying some hundreds of thousands worth had any real effect on its own.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#239

Post by hehehaha »

alasdair_ wrote: post #199
hehehaha wrote: post #28

Earlier quoted context omitted.

The guy struck rich! Same with people who shorted crude last year when it went straight to -40. Billions were made.

Billions were made, but retail traders lost out. The fact that IBKR couldn’t handle a negative oil price at that time made me realize that for all their marketing as being a higher quality broker for serious investors, they had some serious holes. Then when they stopped buys on GME while Vanguard and Fidelity still allowed them, I gave up on IB completely. Right now I’ve bought puts on IBKR - I expect a lot of client…

As a derivative trader and some one who is constantly looking for mispriced assets from the upside (ie short), my number one concern when we have market turmoils is always broker liquidity. This is also why hedge funds have prime accounts directly with bulge brackets. My recommendation is to always have at least two accounts plus Fidelity. FIDO, while expensive, invested a ton of money into their platform/technology. I rarely see them go down. Plus they basically own everything including cryptos. Key is to have multiple accounts and know how to wire money without even looking up the information so that you’re up and running in minutes not hours or days.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#240

Post by Quekid5 »

ggggtez wrote: post #183
jzoch wrote: post #89

Earlier quoted context omitted.

Trying to figure out the "fundamental" value of anything is a fools errand. Im not saying GME wont drop eventually but there is no value on fundamentals of everything. Look at all the short-sellers of TSLA who made the same mistake. These companies are valued on what the market decides and we all know "The market is irrational".

To be honest, this is kind of the problem I have to stock investing as a whole. It sounds great to "invest on the fundamentals", but there doesn't appear to be a way for the average person to even comprehend what "the fundamentals" even are. But there has to be at least one fundamental: If the company goes bankrupt, the stock is worth nothing. Gamestop is most certainly going to go bankrupt eventually. Their business…

> "fundamentals"

You're right to call this out. It means absolutely nothing.

These massive hedge funds (etc.) throw around billions of dollars on a whim and suddenly they're worried about "fundamentals"? C'mon.

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