Popular Post TrentVilla Posted January 28, 2021 Moderator Popular Post Share Posted January 28, 2021 Just read the hedge fund that held the original position has declared bankruptcy. Blimey These people have boats to pay for.... 4 1 4 Link to comment Share on other sites More sharing options...
Davkaus Posted January 28, 2021 Share Posted January 28, 2021 Never has this saying been more true: Play stupid games, win stupid prizes There's not a violin small enough to play the incredibly sad song I'd play for that hedge fund manager bellend. Link to comment Share on other sites More sharing options...
Popular Post Mark Albrighton Posted January 28, 2021 VT Supporter Popular Post Share Posted January 28, 2021 I really want to understand all of this but I think I need Margot Robbie in a bath tub to explain it to me. 1 5 Link to comment Share on other sites More sharing options...
fruitvilla Posted January 28, 2021 Share Posted January 28, 2021 4 hours ago, Follyfoot said: I like gold mines and mining stock. Got in very low on some stock called NQ minerals at 2.25p a couple of years ago, currently kicking at 7p so already done very well but they have just applied to get a main listing on the LSE upgrading from the Acquis exchange and if this comes off estimates are in the 15 to 21p range at launch. Put one of my smaller pensions into a SIPP to do this and banged the lot on. Set for a few exciting months I would hope I recall seeing an Economist article probably twenty years ago now, showing that the mining industry had lost some 40% of shareholder value (as a whole) during the 1900s. To open a new mine these days you need to be a) lucky, b) an optimist and c) almost bloody mad. OK c) is bit of an exaggeration. I have been in the mining industry some 40 years ... my advice is buy low, sell high ... blue chip mining companies. When the economy crashes and prices go down ... buy, you may be out of a job and need every penny, but that is time to buy. I suspect 'now' is high. If we look at the US Bureau of Labor Statistics, we can see crashes have been cyclical. 1 Link to comment Share on other sites More sharing options...
villakram Posted January 28, 2021 Share Posted January 28, 2021 (edited) 5 hours ago, LondonLax said: GameStop is falling pretty rapidly now. The ban on buying more seems to have scared enough into selling and a rush for the exit looks like it’s on. Citadel had to bail out the Melvin hedge fund. Citadel has a significant relationship with Robinhood. Rumors that Citadel re-upped their short position prior to having Robinhood shut down trading. This is our democracy in action. Everything rigged for the big guys. Elizabeth Warren et al. showing their true colors. I suppose, at least one representative appears to be aware of the rigged nature of the casino... err market. Edited January 28, 2021 by villakram Link to comment Share on other sites More sharing options...
Follyfoot Posted January 28, 2021 VT Supporter Share Posted January 28, 2021 6 minutes ago, fruitvilla said: I recall seeing an Economist article probably twenty years ago now, showing that the mining industry had lost some 40% of shareholder value (as a whole) during the 1900s. To open a new mine these days you need to be a) lucky, b) an optimist and c) almost bloody mad. OK c) is bit of an exaggeration. I have been in the mining industry some 40 years ... my advice is buy low, sell high ... blue chip mining companies. When the economy crashes and prices go down ... buy, you may be out of a job and need every penny, but that is time to buy. I suspect 'now' is high. If we look at the US Bureau of Labor Statistics, we can see crashes have been cyclical. Hopefully getting in at 2.25p represents the low, should maybe cut and run as already 3x up but the extra liquidity of a main exchange is too tempting, either way do not see me losing on initial investment amount Link to comment Share on other sites More sharing options...
a m ole Posted January 28, 2021 Share Posted January 28, 2021 12 minutes ago, villakram said: Elizabeth Warren et al i like the vibe of your post but Warren is with AOC, so is Ted Cruz. Link to comment Share on other sites More sharing options...
Popular Post LondonLax Posted January 28, 2021 Popular Post Share Posted January 28, 2021 (edited) 57 minutes ago, Mark Albrighton said: I really want to understand all of this but I think I need Margot Robbie in a bath tub to explain it to me. GameStop is a bricks and mortar store selling Playstation/Xbox games. Like all retail they got hammered by the pandemic and their shares dropped in value last year to be worth only a couple of dollars each. At the end of last year a tech investor bought up a bunch of the cheap stock claiming they could switch to being an online retailer and operate like Amazon. This month Hedge Funds massively ‘shorted’ the stock (The fund ‘borrows’ shares while they think the price is high and sell the borrowed shares, taking in the money from the sale. At a later point they have to actually buy the stock themselves to be able to hand back the stock they had borrowed to its original owner. If the price has gone down they can keep the difference, making them money, but if the price has gone up they will have to spend more to buy it back than they actually made selling it, losing them money). The reddit crowd got wind that Game Stop was being massively shorted by hedge funds and spread the word to use apps like Robinhood to buy in and drive up the price. Because the stock had now gone up instead of down all the hedge funds who had borrowed stock and sold it while it was relatively cheap (expecting it to go cheaper) now were in a position where they were forced to buy it back, but it had skyrocketed. Not only that but no one was selling. More and more of their shorted positions were racing away and there was no way for them to buy enough volume back to close their account. This was resulting in them taking hits in the billions of dollars and theoretically no limit to how big the losses could get if the stock value kept going up. However today the apps the reddit crowd were using to buy the stocks and push them higher prevented all new purchases of stock. The reddit crowd were no longer able to buy but were only permitted to sell them off. It seems quite likely that this was a manipulation of the market to give the hedge funds a chance to get out of the worst of their exposure. A number of investors did seem to sell and take their profits out sending the price down but a lot are apparently refusing to sell. We wait to see what happens next. Will more hedge funds have to close their short positions and be forced to offer big money to buy the stock back or did they get out already and it’s just a bunch of reddit kids left holding overpriced stock from a struggling retailer? Edited January 28, 2021 by LondonLax 4 4 Link to comment Share on other sites More sharing options...
Mark Albrighton Posted January 28, 2021 VT Supporter Share Posted January 28, 2021 Just now, LondonLax said: GameStop is a bricks and mortar store selling Playstation/Xbox games. Like all retail they got hammered by the pandemic and their shares dropped in value last year to be worth only a couple of dollars each. At the end of last year a tech investor bought up a bunch of the cheap stock claiming they could switch to being an online retailer and operate like Amazon. This month Hedge Funds massively ‘shorted’ the stock (The fund ‘borrows’ shares while they think the price is high and sell the borrowed shares, taking in the money from the sale. At a later point they have to actually buy the stock themselves to be able to hand back the stock they had borrowed to its original owner. If the price has gone down they can keep the difference but if the price has gone up they will have to spend more to buy it back than they actually made selling it, losing them money). The reddit crowd got wind that Game Stop was being massively shorted by hedge funds and spread the word to use apps like Robinhood to buy in and drive up the price. Because the stock had now gone up instead of down all the hedge funds who had borrowed stock and sold it while it was relatively cheap (expecting it to go cheaper) now were in a position where they were forced to buy it back, but it had skyrocketed. Not only that but no one was selling. More and more of their shorted positions were racing away and there was no way for them to buy enough volume back to close their account. This was resulting in them taking hits in the billions of dollars and theoretically no limit to how big the losses could get if the stock value kept going up. However today the apps the reddit crowd were using to buy the stocks and push them higher prevented all new purchases of stock. The reddit crowd were no longer able to buy but were only permitted to sell them off. It seems quite likely that this was a manipulation of the market to give the hedge funds a chance to get out of the worst of their exposure. A number of investors did seem to sell and take their profits out sending the price down but a lot are apparently refusing to sell. We wait to see what happens next. Will more hedge funds have to close their short positions and be forced to offer big money to buy the stock back or did they get out already and it’s just a bunch of reddit kids left holding overpriced stock from a struggling retailer? Thank you, Margot. 3 Link to comment Share on other sites More sharing options...
bickster Posted January 28, 2021 Moderator Share Posted January 28, 2021 Link to comment Share on other sites More sharing options...
fruitvilla Posted January 28, 2021 Share Posted January 28, 2021 21 minutes ago, Follyfoot said: Hopefully getting in at 2.25p represents the low, should maybe cut and run as already 3x up but the extra liquidity of a main exchange is too tempting, either way do not see me losing on initial investment amount I just looked at the nq website. Interesting ... I've looked at the Hellyer site before in a past life. Being more on the extractive metallurgy side of things the Barnes project looks interesting, but very early days, a bit small and just starting the environmental process. But nickel and associated metals are interesting. nq ... definitely a junior ... with the attendant risks. So long as this is play money for you. 1 Link to comment Share on other sites More sharing options...
Awol Posted January 28, 2021 Share Posted January 28, 2021 16 minutes ago, LondonLax said: GameStop is a bricks and mortar store selling Playstation/Xbox games. Like all retail they got hammered by the pandemic and their shares dropped in value last year to be worth only a couple of dollars each. At the end of last year a tech investor bought up a bunch of the cheap stock claiming they could switch to being an online retailer and operate like Amazon. This month Hedge Funds massively ‘shorted’ the stock (The fund ‘borrows’ shares while they think the price is high and sell the borrowed shares, taking in the money from the sale. At a later point they have to actually buy the stock themselves to be able to hand back the stock they had borrowed to its original owner. If the price has gone down they can keep the difference, making them money, but if the price has gone up they will have to spend more to buy it back than they actually made selling it, losing them money). The reddit crowd got wind that Game Stop was being massively shorted by hedge funds and spread the word to use apps like Robinhood to buy in and drive up the price. Because the stock had now gone up instead of down all the hedge funds who had borrowed stock and sold it while it was relatively cheap (expecting it to go cheaper) now were in a position where they were forced to buy it back, but it had skyrocketed. Not only that but no one was selling. More and more of their shorted positions were racing away and there was no way for them to buy enough volume back to close their account. This was resulting in them taking hits in the billions of dollars and theoretically no limit to how big the losses could get if the stock value kept going up. However today the apps the reddit crowd were using to buy the stocks and push them higher prevented all new purchases of stock. The reddit crowd were no longer able to buy but were only permitted to sell them off. It seems quite likely that this was a manipulation of the market to give the hedge funds a chance to get out of the worst of their exposure. A number of investors did seem to sell and take their profits out sending the price down but a lot are apparently refusing to sell. We wait to see what happens next. Will more hedge funds have to close their short positions and be forced to offer big money to buy the stock back or did they get out already and it’s just a bunch of reddit kids left holding overpriced stock from a struggling retailer? While being egged on by Elon. Link to comment Share on other sites More sharing options...
HanoiVillan Posted January 28, 2021 Share Posted January 28, 2021 4 minutes ago, LondonLax said: GameStop is a bricks and mortar store selling Playstation/Xbox games. Like all retail they got hammered by the pandemic and their shares dropped in value last year to be worth only a couple of dollars each. At the end of last year a tech investor bought up a bunch of the cheap stock claiming they could switch to being an online retailer and operate like Amazon. This month Hedge Funds massively ‘shorted’ the stock (The fund ‘borrows’ shares while they think the price is high and sell the borrowed shares, taking in the money from the sale. At a later point they have to actually buy the stock themselves to be able to hand back the stock they had borrowed to its original owner. If the price has gone down they can keep the difference, making them money, but if the price has gone up they will have to spend more to buy it back than they actually made selling it, losing them money). The reddit crowd got wind that Game Stop was being massively shorted by hedge funds and spread the word to use apps like Robinhood to buy in and drive up the price. Because the stock had now gone up instead of down all the hedge funds who had borrowed stock and sold it while it was relatively cheap (expecting it to go cheaper) now were in a position where they were forced to buy it back, but it had skyrocketed. Not only that but no one was selling. More and more of their shorted positions were racing away and there was no way for them to buy enough volume back to close their account. This was resulting in them taking hits in the billions of dollars and theoretically no limit to how big the losses could get if the stock value kept going up. However today the apps the reddit crowd were using to buy the stocks and push them higher prevented all new purchases of stock. The reddit crowd were no longer able to buy but were only permitted to sell them off. It seems quite likely that this was a manipulation of the market to give the hedge funds a chance to get out of the worst of their exposure. A number of investors did seem to sell and take their profits out sending the price down but a lot are apparently refusing to sell. We wait to see what happens next. Will more hedge funds have to close their short positions and be forced to offer big money to buy the stock back or did they get out already and it’s just a bunch of reddit kids left holding overpriced stock from a struggling retailer? I think that's mostly right, but I don't think you're right in the penultimate paragraph, the line about 'manipulation of the market'. It's worth taking the time to watch this interview with the CEO of WeBull (Robinhood rival): He makes clear that the issue is that clearing firms cannot afford to settle the trades, and hence that's why they had to limit people taking new positions. 2 Link to comment Share on other sites More sharing options...
chrisp65 Posted January 28, 2021 Share Posted January 28, 2021 Lock ‘em up? Drain the swamp? Link to comment Share on other sites More sharing options...
bickster Posted January 28, 2021 Moderator Share Posted January 28, 2021 22 minutes ago, HanoiVillan said: I think that's mostly right, but I don't think you're right in the penultimate paragraph, the line about 'manipulation of the market'. It's worth taking the time to watch this interview with the CEO of WeBull (Robinhood rival): What he's saying for WeBull is probably correct but part of the issue with RobinHood is that its been selling its trade data to Citadel and that relationship appears to be what has prompted their change (on the surface anyway) 2 Link to comment Share on other sites More sharing options...
LondonLax Posted January 28, 2021 Share Posted January 28, 2021 26 minutes ago, HanoiVillan said: I think that's mostly right, but I don't think you're right in the penultimate paragraph, the line about 'manipulation of the market'. It's worth taking the time to watch this interview with the CEO of WeBull (Robinhood rival): He makes clear that the issue is that clearing firms cannot afford to settle the trades, and hence that's why they had to limit people taking new positions. Yes that is the official explanation. Although the fact that their main clearing firm (Citadel) were also the ones bailing out the hedge fund who were getting screwed on the stock in question somewhat muddies the waters 3 Link to comment Share on other sites More sharing options...
HanoiVillan Posted January 28, 2021 Share Posted January 28, 2021 Just now, bickster said: What he's saying for WeBull is probably correct but part of the issue with RobinHood is that its been selling its trade data to Citadel and that relationship appears to be what has prompted their change (on the surface anyway) Their line is exactly the same as WeBull: Link to comment Share on other sites More sharing options...
LondonLax Posted January 28, 2021 Share Posted January 28, 2021 Robinhood’s whole business model is a bit of a scam for the big players really. Quote Given that Robinhood is playing a central role in retail investors pumping dark horse stocks, it’s worth examining once again how it makes money: namely, by selling user’s trades to other large firms before they are actually executed. Those firms make money by effectively seeing what the retail investors on Robinhood are going to do before they actually do it, and acting accordingly. https://www.google.se/amp/s/www.vice.com/amp/en/article/qjpnz5/robinhoods-customers-are-hedge-funds-like-citadel-its-users-are-the-product 2 1 Link to comment Share on other sites More sharing options...
HanoiVillan Posted January 28, 2021 Share Posted January 28, 2021 (edited) 2 hours ago, LondonLax said: Robinhood’s whole business model is a bit of a scam for the big players really. https://www.google.se/amp/s/www.vice.com/amp/en/article/qjpnz5/robinhoods-customers-are-hedge-funds-like-citadel-its-users-are-the-product As the article suggests, if you don't pay for a service then you are the product. If people just want to own Gamestop stock, they can buy it the old-fashioned way with no trouble at all. Edited January 29, 2021 by HanoiVillan Link to comment Share on other sites More sharing options...
a m ole Posted January 28, 2021 Share Posted January 28, 2021 2 Link to comment Share on other sites More sharing options...
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