Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

u/DeepFuckingValue and the GameStop Reddit mania

wsj.com

Post reply on HN
Print view View original

331–340 of 554 posts

Re: u/DeepFuckingValue and the GameStop Reddit mania

#331

Post by strogonoff »

throwaway-571 wrote: post #197
strogonoff wrote: post #95

Earlier quoted context omitted.

About $13.8 million he’s got out of the stock to be exact, if reports elsewhere in the thread are correct. This shows how ability to influence large numbers of people can convert to money, and the closer you are to the root the bigger slice of the cake you get.

it's in his daily screenshot. But he still has $30M in stock and calls.

Yes. Was just pointing out that this statement is false or dangerously half-true: “as of now, he has not sold his shares”. This, however, would be true: “as of now, he has not sold all of his shares”.

The danger in “he has not sold his shares” is that a retail investor who did not do their research might misinterpret it and imagine a guy who never sold and will never sell; since that guy has background in finance and knows what he’s doing, common sense would suggest it must be safe to invest into this stock right now; meanwhile, in reality that guy has already cashed in big time.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#332

Post by scruple »

tedunangst wrote: post #77
eternalny1 wrote: post #34

He posted his daily update today, he has not sold his shares through all of this chaos. Talk about "diamond hands". https://www.reddit.com/r/wallstreetbets/comments/l846a1/gme_...

A week ago he had 1000 option contracts, now he's at 500.

2 weeks ago he had 2,000. 1,000 each with different expiry dates.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#333

Post by jbay808 »

fractionalhare wrote: post #249
jpmattia wrote: post #97

Earlier quoted context omitted.

> The overall market is stressed, things are getting weird and I would not be surprised if this is the beginning of another stock market crash. GME short interest was still greater 100% of shares outstanding as of 1pm 1/29 (S3 Shortsight numbers). If forced to cover, short holders will have to liquidate other assets. Could those liquidations force more liquidations in a positive feedback loop? Hopefully no, but certa…

Yes, exactly. When a hedge fund is getting its face ripped off because its shorts are up 50 - 200%, it will liquidate its longs to cover. The rotational dynamics of many funds doing that at once can drive the price down on traditionally stable stocks that everyone owns. In a worst case scenario that could trigger a massive selloff which would crash the market. This is compounded by the fact that funds will defensivel…

Is there some reason a crash shouldn't happen? If you have a stake in the market, even in diversified index funds, presumably you know the risk is non-zero, and accept that because the rewards are higher than lower-risk choices like, say, stuffing your money under the mattress.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#334

Post by u678u »

throwaway0a5e wrote: post #33
hehehaha wrote: post #18

Earlier quoted context omitted.

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.

You can hate how the sausage is made and still work at the sausage factory.

I still eat sausage and I know what's in it.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#335

Post by mattkrause »

blackrock wrote: post #194

What can GME do with the situation? Can they cash out at $500 or $1000? Can they offer additional shares in the market, after clearing it with the SEC? Then, can they take that windfall money, and actually reinvest it into R&D, and build their own GameStation 1 video game system? In order to justify their new lofty valuation.

That’s basically what AMC did.

They issued 50 million new shares at-the-market last week. They also had a $600M loan that was convertible and converted into stock. As a result, they’re sitting on nearly a billion new dollars, which should help them ride the pandemic out.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#336

Post by rualca »

015a wrote: post #284
rualca wrote: post #225

Earlier quoted context omitted.

> My biggest concern with these plays, at this point, is that they're not taking into account the possibility of bankruptcy. Whose bankruptcy? The WSB crowd are very vocal in their goals of bankrupting hedge funds who have a lot riding on forcing gamespot's stock price to plummet.

The funds. There's an ocean of difference between "we finished the year down 98% but we met all of our obligations" and "we finished the year down 100%, and we also failed to meet our obligations". Those obligations include the repurchase and repayment of short-sold stocks sold by the brokerage. WSB wants a short squeeze. They got that. But, their theory is that it isn't over, and if they get the 10x+ returns in the…

> That's a real recipe for shutting down, and if that happens, there is no more short to squeeze. Everyone loses.

It seems you didn't understood that for the WSB crowd the definition of winning is getting these funds to shut down, regardless of their personal losses.

This is no longer about money. This is a protest against a rigged system.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#337

Post by treis »

OJFord wrote: post #322
raziel2701 wrote: post #22

On wsb u/deepfuckingvalue showed he still holds 50,000 shares and 500 deep ITM call options. He has secured a profit of $13.8 million dollars, and his remaining open position is valued at $45 million. I would caution people to not quickly fall into the "if he's still in, I'm still in" meme. He has secured a $14 million bag, regardless if the stock goes to zero he's already secured a life changing amount of money, he…

> The narrative has changed so quickly from this being a value play, to a short squeeze, to now militant activism via buying stock as a means to sticking it to the man. Absolutely! A week or so ago I watched his July 2020 video (declaring it a great value buy looking for 50-100% at around $4..!!) out of curiousity. Interesting, but totally disconnected from the short squeeze mania, I missed that leap, at least from t…

It's wild over there now. WSB was always like the kid at school that always got into crazy stuff. Now, they're off their meds, haven't slept in a week, and just did a bunch of coke.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#338

Post by yreg »

r00fus wrote: post #263
tootie wrote: post #86

Earlier quoted context omitted.

GME is absolutely going to crash and everyone knows it. There was a mod post just today reminding everyone to be ready. The stock is worth $10-20 on it's merits and that's where it will land. We just don't know when. The chance of this as a contagion that brings down indexes seems very unlikely.

GME is worth what a few dozen billion at its current valuation? How would that impact SPX, DJIA, etc.

If short squeeze happens[0], the shorts will have to buy the shares back at whatever the price will be. If they go bankrupt the responsibility passes to the brokers and further upstream.

Of course it might not happen.

[0] https://news.ycombinator.com/item?id=25945253

Re: u/DeepFuckingValue and the GameStop Reddit mania

#339

Post by MuffinFlavored »

sumedh wrote: post #38
MuffinFlavored wrote: post #30

Earlier quoted context omitted.

A ton of people aren't doing any thinking for themselves. I'm pretty convinced there's some kind of organized manipulation attack going on within r/wsb. The same reason Parler got taken down for inciting violence without proper moderation, I'm seeing a lot of baseless claims from literally millions of people who do not understand how large/complex the financial systems at play are. I'm kind of worried Reddit could sh…

> I'm pretty convinced there's some kind of organized manipulation attack going on within r/wsb Do you have any proof for that? If not then arent you the one who is spreading misinformation?

https://www.reddit.com/r/wallstreetbets/comments/l7u8h5/remi...

6,000 upvotes about the possibility of disinformation

Re: u/DeepFuckingValue and the GameStop Reddit mania

#340

Post by toast0 »

jpmattia wrote: post #97
raziel2701 wrote: post #22

On wsb u/deepfuckingvalue showed he still holds 50,000 shares and 500 deep ITM call options. He has secured a profit of $13.8 million dollars, and his remaining open position is valued at $45 million. I would caution people to not quickly fall into the "if he's still in, I'm still in" meme. He has secured a $14 million bag, regardless if the stock goes to zero he's already secured a life changing amount of money, he…

> The overall market is stressed, things are getting weird and I would not be surprised if this is the beginning of another stock market crash. GME short interest was still greater 100% of shares outstanding as of 1pm 1/29 (S3 Shortsight numbers). If forced to cover, short holders will have to liquidate other assets. Could those liquidations force more liquidations in a positive feedback loop? Hopefully no, but certa…

Short interest is high, but AFAIK, none of the reporting tells you what price the shorts sold for.

If the shorts from $20 all got out, and you're seeing new shorts that got in wednesday, the dynamic is much different.

Post reply on HN