u/DeepFuckingValue and the GameStop Reddit mania

Post by cwhiz » Sat, Jan 30, 2021, 1:17 AM UTC

dcolkitt wrote: post #72

cblconfederate wrote: post #53

Earlier quoted context omitted.

... and if bitcoin is any guide, people can hodl forever, bacause they are no longer doing it blindly. Who will blink first?

The difference is the supply of bitcoin is fixed. Whereas a company can issue shares at any time. Obviously if the market cap stays at $30 billion for a long time, Gamestop management is going to start spending their overvalued stock like drunken sailors. First it'll be just to plug up the money their operations are constantly losing. Then they'll start going on acquisition sprees, giving out giant compensation packa…

Post by smabie » Sat, Jan 30, 2021, 1:20 AM UTC

tootie wrote: post #274

paulpauper wrote: post #156

Earlier quoted context omitted.

When everyone is convinced X is going to happen, it tends to not happen, or at least not in the way it is expected by the consensus. People said Tesla would crash when Tesla doubled a year ago from $200 to $400, and then to $900, etc., and then it did a 5-1 split, etc. Yes it did crash 20% in August, but from a price that was so high that it was still considerably higher than it was last year when the pundits were wa…

Completely different. Tesla soared on its positive outlook. They have strong sales and have managed to maintain an insurmountable lead in the EV market. Their surge is due to enthusiasm for their business. Gamestop was clinging to life a few months. The rally from $4 to $15 was optimism about their leadership. The rally from $15 to $350 was 100% due to the short squeeze. And the squeeze will most definitely play out…

Post by Rapzid » Sat, Jan 30, 2021, 1:21 AM UTC

shyn3 wrote: post #115

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".

Wsb can remain irrational longer than the market can remain solvent. That was a comment by a poster which I find funny.

Post by sriram_sun » Sat, Jan 30, 2021, 1:22 AM UTC

Post by bravura » Sat, Jan 30, 2021, 1:26 AM UTC

hehehaha wrote: post #239

alasdair_ wrote: post #199

Earlier quoted context omitted.

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.…