GME, Hedge Funds, Citadel and Reddit

[GG1]

Dividends offset the holding cost.   Few pros look at dividends as money makers.  

[Jauronimo]

On 2/6/2021 at 3:42 PM, Meazza said:

 

I didn't dismiss your opinion, I just predicted (correctly) that a few will get rich and a bunch of retail investors not really knowing what they are getting into will be stuck with a bag full of shit.

 

This was pushed as a revolution in this very thread when it was just another run of the mill viral moments that will be forgotten when the next event happens.

It was very clever branding a pump and dump as a "movement".  A few Redditors with low basis and a rudimentary grasp of risk managed to unleash the awesome power of weaponized Autism on the stock market as militant bag holders drove the price of a shitty retail company to absurd valuations.  That sub went from 2 million subscribers to 8 million subscribers so there was a fresh supply of fools who were convinced that buying GME at $400 was taking down the hedge funds because of their supposed role in the 2008 housing market crash.  Yeah, you read that correctly.  I guess I forgot that Lehman, Bear Sterns, and AIG were hedge funds but that's beside the point.   

 

The message was propagated all over the web.  Don't sell, hold at all costs!  Much like Enron, that's advice for thee and not for me as any mildly functioning Redditor and plenty of other hedge funds cashed out and made millions at the expense of some short sellers and plenty more retail investors who wanted to be part of history.  The stock market remains a zero sum game and winners are measured in profits not memes.  

[Jauronimo]

On 2/3/2021 at 9:43 AM, Meazza said:

 

Exactly.  A couple of hedge funds got it hard, some Portfolio Managers will be fired and life will go on.

 

Meanwhile, Dave Portnoy lost 700K on his meme stocks.  First bite you know the rules.

Portnoy jumping in to this mess and pretending like he is one of the little guys standing up to Wall Street was peak irony.  Last I checked, Portnoy is a publicly traded entity under PENN. 

 

Seems like he needs a refresher on the rules: don't first bite the hand that feeds.

[Chef Jim]

On 2/6/2021 at 6:04 AM, plenzmd1 said:

mix of both...our taxes suck cause of w-2 income

 

 

Your taxes may suck because you're buying and selling stocks.   Short or long term gains? 

[Chef Jim]

On 2/6/2021 at 2:24 PM, GG1 said:

Dividends offset the holding cost.   Few pros look at dividends as money makers.  

 

It's an income play for gramma.  

[Chef Jim]

9 hours ago, Jauronimo said:

It was very clever branding a pump and dump as a "movement".  A few Redditors with low basis and a rudimentary grasp of risk managed to unleash the awesome power of weaponized Autism on the stock market as militant bag holders drove the price of a shitty retail company to absurd valuations.  That sub went from 2 million subscribers to 8 million subscribers so there was a fresh supply of fools who were convinced that buying GME at $400 was taking down the hedge funds because of their supposed role in the 2008 housing market crash.  Yeah, you read that correctly.  I guess I forgot that Lehman, Bear Sterns, and AIG were hedge funds but that's beside the point.   

 

The message was propagated all over the web.  Don't sell, hold at all costs!  Much like Enron, that's advice for thee and not for me as any mildly functioning Redditor and plenty of other hedge funds cashed out and made millions at the expense of some short sellers and plenty more retail investors who wanted to be part of history.  The stock market remains a zero sum game and winners are measured in profits not memes.  

 

David rarely beats Goliath on Wall Street.  You don't beat the rich you join them.  

[Nouseforaname]

14 hours ago, Chef Jim said:

 

David rarely beats Goliath on Wall Street.  You don't beat the rich you join them.  

 

Or you cut off their heads and start a revolution?

 

 

[plenzmd1]

 

23 hours ago, Chef Jim said:

 

Your taxes may suck because you're buying and selling stocks.   Short or long term gains? 

our taxes suck purely from earned income at work...nothing to do with buying or selling stock. 

 

Speaking of which, just sold off some Grow Generation today...weed stock that has been bery bery good to me

 

[Chef Jim]

6 hours ago, Meazza said:

 

Or you cut off their heads and start a revolution?

 

 

 

Wall Street is a Hydra.  You cut off one head two grow back.  

 

[plenzmd1]

9 hours ago, DC Tom said:

 

Good timing.  Pot stocks took a bullet today.

maybe should have sold all of it LOL!!!

[Nouseforaname]

https://www.wsj.com/articles/gamestop-investors-who-bet-bigand-lost-big-11613385002?mod=hp_lead_pos7

 

Mr. Vergara, a 25-year-old security guard in Virginia, started investing four years ago after deciding he wanted to retire young. To save money, he drives a 1998 Honda Civic, eats a lot of rice and lives with his dad. He stashed his savings mostly in diversified index funds, which are now valued at about $50,000. Then Mr. Vergara, a longtime reader of the WallStreetBets page on Reddit, saw others posting about buying GameStop shares and the stock’s colossal rise.

He didn’t want to touch his index-fund investments, so instead he got a personal loan with an 11.19% interest rate from a credit union and used it to fund most of his GameStop purchase. He bought shares at $234 each.

[GG1]

15 hours ago, Meazza said:

https://www.wsj.com/articles/gamestop-investors-who-bet-bigand-lost-big-11613385002?mod=hp_lead_pos7

 

Mr. Vergara, a 25-year-old security guard in Virginia, started investing four years ago after deciding he wanted to retire young. To save money, he drives a 1998 Honda Civic, eats a lot of rice and lives with his dad. He stashed his savings mostly in diversified index funds, which are now valued at about $50,000. Then Mr. Vergara, a longtime reader of the WallStreetBets page on Reddit, saw others posting about buying GameStop shares and the stock’s colossal rise.

He didn’t want to touch his index-fund investments, so instead he got a personal loan with an 11.19% interest rate from a credit union and used it to fund most of his GameStop purchase. He bought shares at $234 each.

 

If this guy bought at $234 on the way up, and passed up a near 50% return within a few weeks, he deserves to lose all.

 

I'm guessing the reddits never learned the age-old "pigs" adage of Wall Street?

[plenzmd1]

Shocking news... some people win in the market, some lose! Let’s shut it all down and protect everyone. 
 

all of this “ let’s protect everyone from losing money” just as I can not turn on tv , get on the net, or listen to a podcast  or radio without getting bombarded by sports betting app ads! 

Edited February 16, 2021 by plenzmd1

[Nouseforaname]

 

1 hour ago, GG1 said:

 

If this guy bought at $234 on the way up, and passed up a near 50% return within a few weeks, he deserves to lose all.

 

I'm guessing the reddits never learned the age-old "pigs" adage of Wall Street?

 

You could buy a lot of rice with 10k.

 

[Chef Jim]

20 hours ago, Meazza said:

https://www.wsj.com/articles/gamestop-investors-who-bet-bigand-lost-big-11613385002?mod=hp_lead_pos7

 

Mr. Vergara, a 25-year-old security guard in Virginia, started investing four years ago after deciding he wanted to retire young. To save money, he drives a 1998 Honda Civic, eats a lot of rice and lives with his dad. He stashed his savings mostly in diversified index funds, which are now valued at about $50,000. Then Mr. Vergara, a longtime reader of the WallStreetBets page on Reddit, saw others posting about buying GameStop shares and the stock’s colossal rise.

He didn’t want to touch his index-fund investments, so instead he got a personal loan with an 11.19% interest rate from a credit union and used it to fund most of his GameStop purchase. He bought shares at $234 each.

This is exactly what I was talking about.  These idiots telling people not to sell but to hold the course at $350 should get a quick kick in the nuts. Those that listened?  Deserve what they get. 

[Just Joshin]

1 hour ago, Chef Jim said:

This is exactly what I was talking about.  These idiots telling people not to sell but to hold the course at $350 should get a quick kick in the nuts. Those that listened?  Deserve what they get. 

Some people only learn by touching a hot stove.  The question is whether he is stupid enough to do this again.

[Chef Jim]

19 hours ago, DC Tom said:

 

Getting back in to trading again, and the hardest thing to learn is planning your exit strategy.  Picking stocks is easy.  Letting them go, that's tough.

 

You have to be right twice.  

[GG1]

It was just a matter of time.

 

Quote

 

Keith Gill, one of the most influential voices that pushed GameStop on the WallStreetBets Reddit forum, was hit with a lawsuit that accused him of misrepresenting himself as an amateur investor and profiting by artificially inflating the price of the stock.

The proposed class action against Gill, who adopted the YouTube nickname “Roaring Kitty,” was filed Tuesday in federal court in Massachusetts. The suit said Gill was actually a licensed securities professional who manipulated the market to profit himself. Gill touted GameStop shares through an extensive social media presence on Youtube, Twitter and Reddit, where he used a more profane alias.

 

 

[GG1]

3 minutes ago, DC Tom said:

 

The "suit says" he's a license securities pro?  Is he?

 

Because "the suit says" isn't enough...but if he is one, he needs to be punished with a LOT more than a civil suit.

We'll find out more tomorrow when he testifies in Congress.   His defense that he never sold securities is baloney because he is licensed, and that is enough for him to stay away from pump and dump schemes.  

[KD in CA]

On 2/16/2021 at 6:04 AM, GG1 said:

 

If this guy bought at $234 on the way up, and passed up a near 50% return within a few weeks, he deserves to lose all.

 

I'm guessing the reddits never learned the age-old "pigs" adage of Wall Street?

 

....and he took a 'personal loan' to fund the purchase.  Good grief.