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Robin Hood etc....

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189.56▼ 35.44 (15.75%)After Hours ·

February 1, 7:59 PM EST

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7 minutes ago, Jeff Matthews said:

The Gamestop kids were in it together as they drove it up, but now that it's over, they abandon their loyalty to the group as they bail for the last of the cash.

 

 

I viewed it WW Z   zombie attack on the city walls

 

Perhaps the effects will be like a crowd running from side to side on a ship ?

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10 minutes ago, Bubo said:

 

I viewed it WW Z   zombie attack on the city walls

 

Perhaps the effects will be like a crowd running from side to side on a ship ?

I can't imagine who would want to buy at this point, but we'll see.

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Really, there is no need to fear this happening again for a while.  It was a suicide pact.  Those don't happen a lot.  AMC, etc. are just aftershocks from late-comers.  Short-squeezing companies as large as AMC really isn't possible.  I have no idea what those poor kids are thinking.

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It lives

 

GME Surges 85% 'Off The Lows' After Robinhood Lifts Trading Restrictions

by Tyler Durden Tuesday, Feb 02, 2021 - 9:59

Update (1120ET): After collapsing earlier, various heavily-shorted stocks are soaring off the lows after Robinhood lifted trading restrictions, now allowing clients to buy up to 100 shares of GameStop. The brokerage also raised the limits on AMC Entertainment, Express and a few of the other five restricted stocks. Koss, BlackBerry and Genius Brands are no longer being restricted.

 

Quote

Perhaps shares were sold short naked.  Usually you need to borrow shares in order to sell them short.  The illegal action of selling shares you don't own and haven't borrowed is revealed by the "failure to deliver" notices.  The failure to deliver notices can be kicked down the road for 21 days.  So perhaps this is the reason you "got grief" for suggesting people cover.  Perhaps this isn't so much about making money as it is about showing the world the illegal action that has become normalized.

 

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4 hours ago, Bubo said:

It lives

 

GME Surges 85% 'Off The Lows' After Robinhood Lifts Trading Restrictions

by Tyler Durden Tuesday, Feb 02, 2021 - 9:59

 

But the inevitable is death:

 

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I have the hardest time believing anyone is buying GME right now.  If buyers were smart, there would be no sales, and the stock price would not move.  I guess you could call it a "long pull."  (I coined it first!)

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A couple of things regarding this mess. First of all the Robin Hood/Wall Street Bets crowd identified an arbitrage opportunity by recognizing that several hedge funds were short a total of 140% of the total outstanding float of shares of GameStop. So they banded together and started running up the share price on this stock, which as it soared in value forced the hedge funds to either cover their shorts at huge losses or borrow the shares for delivery at high rates in the stock loan market. In this instance, thousands of small investors caught the big boys with their pants down and crushed them, nothing wrong with that. 

 This works well if anyone holds their position but you cannot blame someone for taking extraordinary profits in the trade. So once the crack in the dyke started it became a flood of selling. I would imagine hedge funds were among the biggest sellers at the highs, (hey if you are going top lose your job you might as well double down.)Trapping some of the longs at ridiculous prices and wiping them out as they ran for the exit.  Saw an interview with an analyst who has covered GME for 16 years. He had the most optimistic earnings call on the stock at something like 95 cents per share, which would mean the stock should be trading at $20 per share. The average earnings call from his fellow analysts was something like a loss of 19 cents a share. To justify some of the lofty prices at which GME traded would mean they would have to earn over $20 per share this year. Not gonna happen. 

 I will not shed any tears about hedge funds getting their lunch money stolen, they have been screwing over the general public for years, ever hear of “Frontrunning orders”? Heck Robin Hood MAKES their money by selling their stock orders to the big boys who then execute those orders in the most advantageous manner to benefit THEMSELVES, not the retail customer. If you think you are getting best order execution on your minuscule stock trades, dream on McDuff. Anyway, perhaps the SEC will limit shorting of shares to 100% of the float of any one company, might be a prudent move. But if you think that the small investor would win more than one round against the titans of Wall Street, you are delusional. The High Frequency traders are in and out of the trade before your buy order hits the tape, They have computing power and telecommunications supremacy that allows them to execute orders in milliseconds on exchanges all over the world. Even the biggest get a bloody nose once in awhile a some even get wiped out, remember Long Term Capital? Damn near took down the whole system. 

 

  Some folks made a great deal of money in this trade, good for them. When all is said and done most of the buyers of these shorted stocks will have lost their investment. I can only hope they only bet what they could afford to lose, somehow I doubt it. 

 

 

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