What Rarely Happens (but happening now with Gamestop)

- A loaf of bread is priced at RM20/loaf

- You "borrow" a loaf of bread from Ali. Promising to return it back in 7 days (with some interest, of course)

- You sell it to Kassim. Kassim gets the bread, you get RM20.

- After a few days, the price jumps to RM45/loaf. Now you have to make a difficut decision. All options sucks.

Option A

- You buy a loaf of bread from Raju. Raju gets RM45, you get a loaf of bread, and loss of RM25.

- You "return" a loaf of bread to Ali plus some interest.

- You end up with loss of RM25 + interest

Option B

- Hold from buying and keep paying hefty interest to Ali
The extraordinary part with Gamestop is that:
- greedy "investment" company over short Gamestop
- redditors (common people + smaller companies) bought a lot of real Gamestop stock and refusing to sell at any price
- the price gets pushed up gila-gila
- Either option A or B... those investment companies kaw2 rugi

If some people believe that a perpetually loss making company with not much growth prospect is worth 300usd a pop, id say theyre brave.

I see people happily go buy derivatives like call put warrants, and hope that will make them rich, while it is actually hedging which make such things possible in the first place. they don't see it as exploit then.

but for some reasons, they consider this to be exploits:

A hedge fund is an investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction and risk management techniques to improve performance, such as short selling, leverage, and derivatives.[1] Financial regulators generally restrict hedge fund marketing except to institutional investors, high net worth individuals and others who are considered sufficiently sophisticated.

Hedge funds are regarded as alternative investments. Their ability to make more extensive use of leverage and more complex investment techniques distinguishes them from regulated investment funds available to the retail market, such as mutual funds and ETFs. They are also considered distinct from private-equity funds and other similar closed-end funds, as hedge funds generally invest in relatively liquid assets and are generally open-ended, meaning that they allow investors to invest and withdraw capital periodically based on the fund's net asset value, whereas private-equity funds generally invest in illiquid assets and only return capital after a number of years.[2][3] However, other than a fund's regulatory status there are no formal or fixed definitions of fund types, and so there are different views of what can constitute a "hedge fund".

Although hedge funds are not subject to many restrictions that apply to regulated funds, regulations were passed in the United States and Europe following the financial crisis of 2007–2008 with the intention of increasing government oversight of hedge funds and eliminating certain regulatory gaps.[4]

Although most modern hedge funds are able to employ a wide variety of financial instruments and risk management techniques,[5] they can be very different from each other with respect to their strategies, risks, volatility and expected return profile. It is common for hedge fund investment strategies to aim to achieve a positive return on investment regardless of whether markets are rising or falling ("absolute return"). Although hedge funds can be considered risky investments, the expected returns of some hedge fund strategies are less volatile than those of retail funds with high exposure to stock markets, because of the use of hedging techniques.

Why would they? Bailed out and at best get a slap on the hand. Everyone else pays for the bailout for the next decade.

Melvin Capital play dead only, maybe waiting price die down then cash out minimal losses

I get that interest is being paid, and ideally that shares brokered on a short position would need to be paid according to current share price
I'm looking at it ominously / bodoh view, such that eventhough publicly they declare that they are in deep shit, but whos to say that they didnt beg/cut a deal with their broker to hold off on closing the position first, but play dead to the public hoping that they run out of steam to the share price at least normalizes a bit.

also when u see certain billionaire lose their temper on live news you know how much its hurting em 

Hahaha, the genius who thought of the plan "hey, why not just short it till the price is $0 so we don't have to pay anything at all?" deserves to be a case study of wall street idiots in school textbooks.

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Yesterday Friday, NY time, GME/Gamestop share closed at around US$325 each. Are those who bought at this price, the Hedge Funds covering their short-sells or Retail investors hoping to cash in at coming prices of >US$500 to US$5k.?
....... What if the price does not increase above US$325 on Monday but instead crashes back to US$10 in the next week or two.?
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https://markets.businessinsider.com/news/st...21-1-1030020684 - short-sellers-sitting-on-19-billion-of-(paper) losses-on-gamestop-data-shows - 6 hours ago
... Melvin Capital and Citron Research both said this week that they had closed their short positions, but they did not disclose any losses incurred. ....

What if most of the affected Hedge Funds have already closed most of their short-sells on GME/Gamestop at about US$300 per share yesterday, Friday.? If so, the price will likely crash next week or two.
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On Thursday, 28 Jan 2021, GME/Gamestop share price dropped 44% to US$197 after many online brokerage, eg Robinhood, stopped the buying of very-shorted GME and other shares. It can drop again. Will Retail investors who bought at >US$300 per GME share, be catching the falling knife.?
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https://markets.businessinsider.com/news/st...21-1-1030020684 - short-sellers-sitting-on-19-billion-of-(paper) losses-on-gamestop-data-shows - 6 hours ago
... Melvin Capital and Citron Research both said this week that they had closed their short positions, but they did not disclose any losses incurred. ....

What if most of the affected Hedge Funds have already closed most of their short-sells on GME/Gamestop at about US$300 per share yesterday, Friday.? If so, the price will likely crash next week or two.
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This.

I believe the forum already been infiltrated and there are  distraction campaign going on.

Their main goal is only GME.

To the moon 🚀🚀🚀🚀🚀🚀🚀🚀

in order to pull down a few hedge funds, many small retail investors will burn in the process. stupid and inevitable.

i'm just saying price of gme is overblown. is that fair market?

i did. and i don't think it's a good idea to invest in an overvalued stock.
i tell you a wise sage, invest in undervalued stock only.