herb
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It was the biggest S&#$ show, just straight out fraud. It has been terrribly interesting
General Investing and Economics Discussion - No Politics
- Thread starter CuseJacket
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Deleted member 2897
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Yes, it’s been the classic pump and dump scheme, 2021 version. The guys who started it used social media like Reddit and TikTok. With Robinhood allowing young people to open accounts it’s full of kids 18-24 who have no idea what they’re doing LOL. Just following TikTok videos about how everybody is making millions.
GCdaJuiceMan
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I think it may have been more collaborated than a couple of guys wanting to get rich. It truly read like a subreddit 'r/WSB' banding together to stick it to a hedge fund that bet against a nostalgic symbol (gamestop) of theirs. Are some of them getting rich quick? 100%. I think they accomplished their main goal. The continuation of it all seems like a push to expose the corruption. Its obviously ruffled some feathers.
I promise I am not wearing a tin foil hat lol. This is great coffee conversation.
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If I were king for a day there are two stock market things I would do that morning. 1) Impose a financial transaction tax on all market trades. 2) Ban the sale of financial instruments you do not already own or the purchase of instruments for which you have an existing sell order. Traders of all stipes have made a mess of investing. There needs to be a cost that transforms the markets more positively.
Deleted member 2897
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I agree 100%. They saw 200% of the float was shorted. They saw an opportunity and went after it and it worked.
Deleted member 2897
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Well, if you buy something like GME today and sell it tomorrow, you will owe taxes on it. So there are transaction fees, on top of traditional stock trading fees.
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You would not owe taxes on it unless there was a gain. And then only if it was not offset by losses elsewhere. Let's not get started on trading fees, which impact you and me much more than any hedge fund manager.
Deleted member 2897
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Right. So you have to fill out a long tax form of all your gains and losses to prove you lost money if you don’t owe taxes. I didn’t realize you were talking only about hedge funds and not individuals. I am pretty sure there is a small SEC fee on transactions.
Lotta Booze
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Robinhood has now opened up trading on GME and the other "restricted securities"....kind of. For example, with GME they will only allow you a maximum of a 5 share holding. If you don't have any shares yet you can buy max up to 5, if you have less than 5 you can buy however many to get you to 5, if you have 5 or more already....no more buying for you. "Robinhood's mission is to democratize finance for all" LOL
Lotta Booze
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r/wallstreetbets: 1
Citron research: Zero
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LOL! Love the term Multibagger in the tweet. Bold statement, Cotton!
Lotta Booze
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They found Golden Balls McGee
https://www.wsj.com/articles/keith-...it-mania-he-talked-to-the-journal-11611931696
Deleted member 2897
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Well turns out he didn't invest $50k, his investments in GME were worth $3.4m late last year.
Turns out its fat cats on both sides as we figured.
A new board member who came over from Chewy.com invested $76m over the last month. Looks like there are more layers to this story.
Lots of information about how many people on both sides were way over leveraged on margin.
Kudos to this guy, noticing that the shorts were massively way over-leveraged, having shorted 200% of the float.
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Deleted member 2897
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To his point, Telsa is valued at 1200x earnings. There's no way its worth even 1/10th that. Now that doesn't mean its going to go down. It could go up more again. But there is a lot of risk in pockets out there. When things are valued on emotion and they're out of whack on either side, there's a lot of potential energy to make a big move in the other direction.
How many times do we need to print trillions of dollars out of the clear blue sky, inflate all these massive asset bubbles, see them pop, and not learn the lesson?
RonJohn
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The price appears to be still around 5-6 cents, but trading looks to be ridiculous. With a market cap of $7 billion it has traded $30 billion in the last 24 hours. Kraken's website has been up and down due to volume, which I am guessing is from people trading bitcoin and dogecoin.
Lotta Booze
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He invested $53k in summer of 2019. Grew accordingly
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Deleted member 2897
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This article quotes "his initial $745,991 investment"
YouTuber Roaring Kitty who disrupted Wall Street is Boston dad
The Youtuber known as 'Roaring Kitty' behind the Wall Street meltdown is a Boston father named Keith Gill, DailyMail.com can reveal.
The articles state he began buying in summer of 2019, when the stock was about $5 a share. Indeed, it was around $18 towards the end of this year. 3x $50k doesn't connect the dots. $45m / $50k is a 900-fold increase. That would equate to a $4500 stock.
He put a heck of a lot more in than the original stories implied.