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 Gamers lead the way to fuck up wallstreet, Gamers did what communists failed.

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empyreal
post Feb 1 2021, 07:04 PM

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QUOTE(wanted111who @ Feb 1 2021, 07:02 PM)
So the longer it stays at 300 mark, the better it is to pressure the HF. Even better if it can reach 400 mark 😄 .
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Thats one way of looking at it, yeah.
empyreal
post Feb 1 2021, 07:06 PM

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QUOTE(Syie9^_^ @ Feb 1 2021, 07:03 PM)
what is ftd? unsure.gif
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Failure to deliver, in the case of shorting its being unable to secure the borrowed shares but the deal goes through. It basically just describes naked shorts.
empyreal
post Feb 1 2021, 07:19 PM

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QUOTE(wanted111who @ Feb 1 2021, 07:13 PM)
That means the viable strategy for HF is to make the funds close as low as possible, I assumed they will take closing value into calculation.

So best moment to buy the shares is right before the closing time of the trade when HF actively lowering the value
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Theyll actively trade the stock, so theyll long and short throughout the day. Not sure if pushing down the price (by shorting more) would be a worthwhile activity (i.e. spending more to save).
empyreal
post Feb 1 2021, 08:07 PM

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QUOTE(wanted111who @ Feb 1 2021, 07:31 PM)
Then how does the brokerage determine what gyrate to be used? I understand that it will consist of share value from past 30 days which is volatile. But how is the share value for each day been determine?  It is not by hours is it? I assumed they will take the value after the market close for e.g last Thursday 198? Friday 300?
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not sure what you mean here but in terms of calculating the price it usually is end-day (not sure if same for all brokers). if you close out your position by the end of the day you may not even be charged. not a broker, so i dont know.
empyreal
post Feb 1 2021, 08:48 PM

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QUOTE(icehart85 @ Feb 1 2021, 08:35 PM)
Yes FTD is not new, but when FTD for GME is the highest then Houston, we have a problem

user posted image
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Its just indicative that theres naked shorting. I fail to understand if there is anything new from this info that wasnt raised before.

I suppose its good that it happened to a smaller company instead of a systemically important financial institution.
empyreal
post Feb 1 2021, 09:18 PM

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QUOTE(icehart85 @ Feb 1 2021, 09:08 PM)
Maybe from your point of view, it is BAU, but it certainly is not for the mainstream and retail investors. Btw, the numbers is what is declared, In reality in can be 20-30x more of the FTD. To sum up, the 140% overshort is just what is declared, in reality, there may be 2-10x more or even higher than that.

The implications of this is significant for a lot for retail investors and institutions who are on the other side of this trade. The beauty of this is WSB are able to uncover this. This practice has been prevalent in closed quarters or HFs circles for a long time

This article offers a very good explanation and dated Feb 18, 2008
Explanation on Naked Short Cartel
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I really wouldnt say that theres 2-10x of that short position, but i get what you mean that it may be news for retail investors.

To be fair, the short interests (and in fact the ftd figures) are publicly available (or at least with a terminal). The unique part of wsb is how its utilised as a platform to syndicate buying and selling.
empyreal
post Feb 3 2021, 08:17 AM

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Hope everyone is alright.
empyreal
post Feb 4 2021, 12:27 PM

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QUOTE(whyamiblack @ Feb 3 2021, 04:31 PM)
Don't know, not sure if I care tbh. If you're in it for the money, you have to realize it was gambling from the start. But if you put money that you expect to burn anyway, keep holding. Still holding and don't really care.

Is the squeeze "squozen"? Who knows but we'll find out soon as the short interest gets updated.
Apparently, it's a "bug" and they're working on compensating. You can check out the details at GME news feed. Mine still okay though but I haven't opened new positions during the affected date.
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An alternate measure of short interest is the borrow rate (to borrow shares to short). It was over 80% p.a. at one point then dropped to 30%. As of today, you can borrow at 10% p.a.
empyreal
post Feb 4 2021, 01:06 PM

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QUOTE(Liamness @ Feb 4 2021, 12:56 PM)
Already, there are analyst who value the company at $80 per share.
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Oh, thats interesting. Who?
empyreal
post Feb 4 2021, 04:17 PM

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QUOTE(Stusssy @ Feb 4 2021, 04:02 PM)
I am fucked up
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hope youre alright, man.
empyreal
post Feb 5 2021, 10:34 AM

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QUOTE(killdavid @ Feb 5 2021, 10:28 AM)
Well well ...the little guys lost
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As much as people try to frame it as little guys fighting against the big bads, it ends up as it always do - little guys eating other little guys.
empyreal
post Feb 5 2021, 11:34 AM

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QUOTE(thxxht @ Feb 5 2021, 10:50 AM)
Melvin shorted them to 0 at $4, they were betting gamestop to go bankrupt.

Gamestop is minimum a $20 stock, that's the price Ryan Cohen bought when he took over and he will transform the business from brick & mortar to online e-commerce, their recent hires from Chewy and Amazon is proof that this will be the direction moving forward. RC is a proven activist investor, buying GME is basically betting on him transforming the business.
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i'd say fundamental 20 is ambitious. they'd need big loans or dilution to get any plans off the ground even without the lower revenue, or the fact that theyre moving against established competition.
empyreal
post Feb 5 2021, 12:00 PM

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QUOTE(thxxht @ Feb 5 2021, 11:54 AM)
Instead of loans or issuance of new shares there's another way, and it is through Ryan Cohen's connections with Silicon Valley investors. His work in Chewy has made good returns to those early investors ie: Volition Capital and he can easily bring them in. 

https://hbr.org/2020/01/the-founder-of-chew...o-achieve-scale
If you read the article above written by Cohen himself you get the impression that he's a very committed person that wants to do good for investors and consumers.
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that just means it'll probably be both.

if its like other private equity deals, they'll give gme loans that it'll pay down with their revenue over a few years and also take equity stakes probably via convertibles.
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post Feb 5 2021, 12:02 PM

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QUOTE(Liamness @ Feb 5 2021, 12:00 PM)
they are the largest gaming retailing company in the world, with 5500 stores world wide.

If they closedown even half of those stores, they would raise enough revenue and capital to play around with. They intend to close down most of its stores and keep a few mega-stores, where people can come in and try products, games, and even host tournaments. Kind of like Apple stores.

I don't think they are dying anytime soon. And certainly not under Cohens watch. All that talk about being another blockbuster is rubbish. You still need to buy consoles and controllers, and other gadgets if you intend to play games.

There won't be a netflix version of console gaming, where everything is streamed to your PC to emerge in the next decade.

And unlike netflix, Sony and Microsoft understand the symbiotic relationship that a gaming retailer like GME holds. Together, they complement each others business in the gaming sector. Hence why both Sony & Microsoft decided to keep their physical disc drives in the next gen consoles instead of going completely digital when they could. GME also has revenue sharing of digital sales with Microsoft.

Amazon is on the rise and sure, they are a threat to GME, but even then, GME has a way to deal with Amazon by offering early title releases, trade ins and selling of used games, coming into store for instore collections, drop off, & trying of physical products. You can't do any of that with Amazon.

I think they are in need of a rebranding. Refresh their logo, give their stores a more streamlined, & clean appearance, introduce a more consumer centric shopping experience like Apple and go from there.
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didnt we have this discussion yesterday when you were confident it was worth 100 bucks?
empyreal
post Feb 6 2021, 12:01 PM

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QUOTE(differ @ Feb 6 2021, 08:37 AM)
Lol its Liamness. He probably doesn't have any positions la, just his imagination again cos want to kuda.

Same like his imaginary gf, imaginary wife, imaginary koi fish, etc. There's a pattern to all his threads.

And he is obviously wrong when he says "there is no Netflix to gaming". Cloud gaming has picked up speed over the past 2 years, will be interesting to see where it goes.
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yeah, was kinda disappointed he didnt change his story to say that he's been shorting all along.
empyreal
post Feb 14 2021, 04:55 PM

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Im surprised this thread is still alive.
empyreal
post Feb 19 2021, 04:54 PM

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QUOTE(icehart85 @ Feb 19 2021, 03:42 PM)
Like I said you are looking at it the wrong way. There are many hedge funds not just one or two. Hedge Fund Group A are holding the stocks. They are the one who bought and hold long time ago. Then there's Hedge Fund Group B, these are the ones that short GME from $20 to $5 hoping that GME will go bankrupt. Then there's Hedge Fund Group C that started shorting from the highs of $300 to now.

The problem is Hedge Fund B claimed that they already closed out their positions which many suspects is not true because the volumes traded didnt commensurate with their claims. Then there's also Hedge Fund C who has to eventually close their positions. The question is, are there enough shares outstanding to close their positions or not? Remember the short interest was more than 100+% at the peak of the GME frenzy. Likely Hedge Fund A are lending their shares for them to short, eventually they have to unwind their positions to close the trade. Also remember the borrowing cost to short the shares are high for Hedge Fund C so every day they are shorting is everyday they are bleeding cash in the open position.

My personal take is, Hedge Fund A are very happy sitting in their position right now, they can watch B and C bleeding day by day, until they close their positions to maximise their returns. There is no collusion afaik, at the end of the day, its all about maximization of profits.
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How high is the borrowing cost now? Last i checked it dropped to less than 2% p.a.

 

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