This could be the greatest transfer of wealth in the opposite direction. We the people are the winners and the 1% have just had their pockets picked. To those hedge funds who have lost millions just google : FOOD BANKS. The tables have turned and we the people are just getting started... You fuckers on Wall Street have no idea what's coming as our Investment Club of Patriots is growing by the thousands per day.
Comments (79)
sorted by:
I’ve been calling for this for years.... accept I think we need to be UNIONIZED... This way we have more than just assembly rights. Unions have some special rights that are interesting!
woah, i did nazi that coming
Anyone Scared yet.
Just call yourself an "Activist Investor"...
Social Justice Investors
Big Pharmo will have them do it to keep down a new cure for a disease. I've seen it happen.
I’m a little confused but excited. Happens a lot, I’m a woman lol, are there links anyone can drop me to help a ladypede out? I’ve never invested in anything in my life personally but will to help take these fuckers down.
You and me both. Some Explain like I'm 5 how gamestop stock doing really well hurt hedge fund managers or wherever. They bet against gamestop in some way? I don't get how this works at all.
Edit: Some helpful explanations below but this does a good job with background.
https://www.cnet.com/personal-finance/reddit-and-elon-musk-sent-gamestop-stock-soaring-why-amc-and-blackberry-are-next/
Some hedge funds had a big short on Gamestop. When the stock price exploded, they were forced to sell, either due to margin calls or unavailability of stock to borrow.
I do not 100% understand but I think I can put it in a way for you to understand When someone "shorts" a stock what they are doing is borrowing a stock from someone, for this example lets say 100. What they will do is borrow these 100 shares and sell them. Lets say right now 1 share is worth $10, they sell the 100 shares for $10 each and they net $1,000. The shares were not theirs, they were just borrowing it, they still owe the original person the 100 shares back. What they are betting on is that the price will drop lower than the $10 it was when they sold it. If it drops down to $5 a share, they can buy back the 100 shares at $5 which cost them $500 and return the original borrowed stocks back to the owner. The result is they borrowed 100 shares, sold it, bout it back cheaper and returned the stocks while making $500 to put in their pocket. What is happening here is people are squeezing them, what t his means is more and more people are buying and driving the price up. The hedge funds are required to buy the stocks back at whatever price the share is at the time that the call is made for the original stocks. The people that loaned the stocks need to get them back, so the hedge funds will have to pay whatever price the stock is at so they can do that.
So if this hedge fund loses let's say 2 billions that goes into gamestop?? Because if so this could give the company the chance to bounce back and do some great things
It does not go to Gamestop unless they were buying back their stocks. This is why the r/wallstreetbet people are making money. They are buying shares that keep going up in price. They KNOW the hedge funds will have to buy them back at whatever price they are at when the purchase is made. I do not know the exact ins and outs but there is a certain time frame that the borrowed stocks have to be returned.
Wow so if the stock go up to $500 that hedge fund has to pay $500 for every stock o they are so fucked lmao and thanks for the explanation brother 😁
When stock prices go up it makes the company more valuable and can leverage better loan terms and borrow more money. Even though this is a short term squeeze play that artificially inflated the stock it's still going to be good for the company. They were getting fucked repeatedly by the vicious stock traders who kept shorting them. This is a beautiful comeuppance!
One important piece that I gleaned from another comment I read is that there is a time limit to how long they have until they have to return the stock they borrowed. Once that time limit is up, every day they don't return the stock they have to pay interest on it. Some of these funds are paying tens of millions of dollars per day in interest, and they STILL owe the actual stock they originally borrowed.
I kinda understand the concept of the gamestop situation. People have bought more stocks than are actually available. If they all sell at once the company is dead because they don’t have the funds to back up the loss of paying out to everyone at once. Investing and numbers have never been my strong suit. I can grasp the overall concept but as soon as figures come into play my brain short circuits. Was hell in school. I could get the correct answers but couldn’t show my work, so would always fail. Can’t explain it. Was told it’s a type of dyslexia. Always tested off the charts in those bi yearly tests they gave us, but was a drooling idiot in math classes lol.
So basically if we keep doing this to companies we can slowly kill off all these piece of shit companies?
It seems possible to me, but I am completely retarded in this realm
I'm kind of literate in Stocks, but I would think they would have a "bank account", some sort of reserve of money that would allow them to pay you guys off.
I don't think so at all. I think those hedge funds are way too over-leveraged. I don't think there's any reserves at all.
What in God's name does being a woman have to do with investing?
I’m one and don’t know shit, there’s that. Anecdotally, I don’t know any women interested in it or know anything about it. Women generally are more suited to creative aspects less than technical aspects, our brains are wired differently. There are always exceptions, of course.
Ok, respect. I thought it odd because I know more women traders than men. I almost always think of women being better with numbers. My wife (God rest her soul) was an accountant and took care of our finances. She was awesome with investing. I know a quiet librarian who retired at 50 because she did so well with the stock market. On the flip side I had some day trader drinking buddies. They were impulsive and would be up or down hundreds of thousands a day. One ended up killing himself and the other was living under a boat in DC last I heard.
That’s ok, we all have different experiences. I did know one woman now that I thought more about it, from years ago. She was an accountant/investor and money just seemed to magically come to her, lol. She would go to a casino and win a hundred grand and call it pocket money. She was amazing. By and large she was a proverbial unicorn. I can’t think of another woman I’ve known who was interested in investing, worked with numbers, etc. I have known lots of women who were amazing seamstresses, quilters, bakers, crafters, etc. My dad worked with wood, though and was a stay at home dad because of illness, so was the exception. My condolences on your loss, fren.
Thanks for the condolences.
Well this is going to be exciting for us to all help each other. I'll DM you something. I just started today with Robin Hood and put in $1000. They say it takes 1 to 5 business days to get approved to trade. I'm chomping at the bit to get that AMC while it's still relatively cheap.
Good luck with your trades!
AMC, NOK (Nokia), and BB (Blackberry). https://www.nasdaq.com/articles/stock-alert%3A-amc-entertainment-surges-to-new-52-week-high-2021-01-27
Those are three I have on my wish list. I'm still waiting for my application to be approved to be able to trade.
Thanks for the tips, much appreciated!
They've already taken down the hedge fund guys. But they're not out. They'll be fine. Those who will ultimately lose are those who bought the stock at an insanely inflated price. I have no love or hate for GameStop, nor have I ever held any positions in the company. But looking at the financial data on Yahoo Finance, it looks like a company with some real financial challenges.
Is this a process that can be repeated over and over or is this a unique situation? Gamestop as a company has been on the brink of financial disaster for awhile. They had just announced they hired the ceo of Chewy, a pet food online only company. That ceo hates brick and mortar. Gamestop thrives off of brick and mortar because of trade ins and people buying used games, which is their life blood. They announced the closure of 100’s of stores for the first quarter. There’s no conceivable way anyone saw this company surviving past this year. It’s also hated broadly. That’s why it was suffering to begin with.
And that is one of the reasons why hedge funds saw it as such a safe stock to short. I suspect doing something like this again would be harder, because the hedge fund guys would be on the lookout.
That makes sense to me. I’m learning. Thanks to awesome frens like yourself, thanks! I just commented to someone else that I’ve learned more from pedes than I ever have on my own from dry textbook sites or videos. Really appreciate that. It’s like learning to walk for me, lol.
They repeated it again today with AMC. But, yeah, I suppose they can repeat this a few times. However, there will definitely be a point where the little guys are going to run out of crash to throw at these endeavors. Those folks who pushed GameStock to $350 will want to sell at some point and it might be at $0, given GameStock really is having financial trouble. But, perhaps if enough people feel that losing $300 or $1000 is worth it to stop these short-sellers from killing stocks, fine. I have seen these short-sellers utterly destroy companies before and it's really sad. Those who have been playing these games for decades usually make millions of dollars by shorting and then somebody (maybe even affiliates) buys the carcass for scraps and use the trademarks or whatever to make even more money. It's pathetic. Personally, I'm glad to see the little guy take a stand, but I do not see this as sustainable. (I wish Congress would ban short selling. That would solve a lot of problems.)
I wasn’t aware they did this to AMC, also. I’m all for sticking it to vampires. And if it makes Congress get off their lazy asses and actually earn the cushy paycheck we afford them, even better. We can be antiheroes all day, everyday if need be. They made the mistake of giving us too much free time to come up with ways to fuck with them and of pissing us off.
I have so many questions. How do you bet against a stock and make money?
Betting against it is "shorting" a stock. The simplistic explanation is basically this:
Suppose you see a stock you think it likely to go down (like GameStop). You "sell" it for, say $10, even though you not own it. You are holding that $10 and hoping it goes down. If it goes down to $2, you "buy" it for $2 and you are left with a $8 profit. It's very risky, though, because if the stock goes up to $300, you have to buy it for $300, effectively losing $290. And that is what this group of people did to stomp on the hedge fund.
Previously, these hedge funds really would make money doing that. And they have actually forced prices down artificially with their tactics. That's what I was complaining about: sometimes they hurt companies and individual investors with these games. Stock prices, like everything else, is based on supply and demand. If people want to buy the stock and few people want to sell, the price rises. If people sell and there are few buyers, the price goes down. When hedge funds short millions of shares of a stock, it artificially pushes down the price. That is compounded when normal people (not knowing what is happening) then go sell their shares to cut their losses. Now, you have big institutions and little people selling, further driving down the price. The little guy almost always takes a bath, but the hedge fund rakes in lots of cash from the panic sells by buying up the stock it "sold" (that it never owned), profiting all the way to the bank.
And I do hope this might help to put an end to short selling. I think it's a horrible practice. People describe the stock market like a gambling casino. I do invest, but never with the intent to gamble. I buy solid companies that pay dividends. I absolutely hate those companies that manipulate the market by shorting stock.
Thank you so much for the explanation! I absolutely love this community, it’s people like yourself that make it great. I remember ages ago when I tried educating myself on the market the point was to invest in stocks that would give you good dividends and hold value. Then, I think it was towards the late 90’s it just all went to hell. It’s hard to wrap my brain around why such a practice would even be allowed at all.
I do buy dividend stocks and I invest in the market sanely. I never sell when there is panic, because the market always rises again. Of course, sometimes there are dud stocks you need to unload, but I don't sell stocks unless I know the specific company has issues. (Then again, I don't usually buy such companies.) Over the long run, investing in the stock market works with a conservative strategy, because even the rich people want to make money, too. It's just this short-selling and similar practices that should be banned, as it is truly just gaming the system, IMO.
During ~2008 when the market tanked, many people sold. I just waited. I did not lose a penny. In early 2020, we had another big dip. Again, I sold nothing. Sad thing was I just persuaded my son to start investing in January. It wasn't a bad lesson for him, though. I told him not to worry about it. It will go back up. And, it did.
The one truth about the stock market I always tell people: if the stock market crashes, we're all eating dirt. The entire economy revolves around the health of the stock market. If it collapses, the dollar will have no value and we'll all be in bread lines as businesses close and we have mass unemployment. The only ones who will be spared are those who divested their wealth in things like property and gold, but even those will not be too helpful if everyone is poor. Thus, even wealthy people do not want to be in this situation, so you can be sure they will do everything to keep the market afloat.
it's called a short squeeze.
Hmmm, I like that idea, pickpocketing the elites....I really like that idea.
If there was a buy/sell signal and everyone bought/sold even a share or two the same day, it would be earth shattering in whatever direction we chose. Why did no one think of this before?
So just start a hedge fund with a minimal opening account being 10 dollars, and no real expectation to make any real return. Then use the masses funding to obliterate all the Elites stock shenanigans.
Call it the Mainstreet Wrecking Ball Fund
We don't need Trump we have all of us and if we can get all of us on the same page we will own this country in no time flat. They'll be begging for Trump to come back in hopes that will placate us
Can we get a .winwallstreetMAYHEM?
Don't worry, we have the first female Treasury Secretary in history!
Jesus H Christ, this is stock market manipulation.
https://www.sec.gov/news/press-release/2019-216
It's only stock market manipulation when we do it back to them...
Someone should tell them they can learn to code
BB, AMC, NOK TOO THE FUCKIN MOON!!!!!!!!!
Nakd too! 🚀🚀
Not enough of these beautiful bastards! 🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀
The Gov will just bail them out.
I don't think they can just refuse to pay.
Yes the thing about gamestop is they shorted 140% and must cover eventually or keep paying interest. I think it's actually shorted to 300% because the hedges double down. So they have to buy. I think they have short options that must be paid Friday.
People will be selling their stock to the hedge fund.
Who knows. If you go over to that sub on reddit they are exploding and people seem very optimistic and really are not buying for gains but to fuck over the hedge.
They have 3.9 million followers now.
1% are working shmucks too, just with fancier toys.
Not sure if I'm happy for any reddit normies
You all understand that this shit show is only a quick pump and dump and it will collapse very soon, don't you? All those reddit sjw will end up holding the bag after redistributing their wealth to a few new rich among them. Isn't it the whole idea they are fighting fiercely against? Also "greed of rich", "greed of wall street"... While putting every last dollar to ride the wave. Oh irony.
Are you under the impression people don't understand that this is got a short lifespan and isn't something that's going to keep going up for weeks right? Hold until Friday when the shorts are called.
Yes. I really think there are a lot of stupid people that think this is "their time" and they will be able to wait and quit their jobs.
Especially among those stupid sjw on reddit.
This does not mean there are a lot of those who knows it's all fake shit.
The ones I've seen talking about realize they're risking their money on it, and are willing to do so.
WOW. Good Job
The banks' reserve requirement is only 10%.
I just started a trading account today and I'm really excited!
So, can someone give me the lowdown on this? Game stop, stocks and hedge funds. That's all I got.
Let’s say you expect the share price of Company X to drop from $100 a share to $50 a share over the next three months, and wish to make a profit from this.
You don’t buy shares, because you expect them to drop in value. Instead you borrow shares (let’s say 10 shares) from Shareholder A, pay them a fee for borrowing their shares and promise to return their 10 shares to them in three months time. You immediately sell the 10 borrowed shares at the current market price of $100 each (giving you $1000), with the intention of buying them back in three months at only $50 each ($500 to buy back the 10 shares, which you HAVE to buy because you need to return them to Shareholder A, leaving you with the remaining $500 as profit). This is what the hedge funds etc. were trying to do with Gamestop.
But now let’s say the share price doesn’t drop as you expected over the three months. Let’s say the share price instead rises to $1000 a share. You still HAVE to buy 10 shares back no matter what the price is, because you HAVE to return them to Shareholder A by the agreed upon date. So you now not only have to spend the $1000 you received from selling them in the first place, but an additional $9000 out of your own pocket. What if it’s $3000 a share? Now you have to pay the $1000 you received when you sold them plus an additional $29,000 out of your own pocket, and you were only trying to make a profit a fraction of that amount at the start of all this.
Now, maybe this unexpected share price rise happened for a genuine business reason. Maybe during those three months, Company X discovered a cure for cancer and it’s profits are about to go through the roof, so everyone wants shares, which forces the share price up.
But how else could it happen, if the business itself is still just slowly failing like before? Well, let’s say other people know that you have just put yourself in a position where in three months you HAVE to buy 10 shares no matter what the price is. Those people could start buying shares, and telling their friends to buy shares, and their friend’s friends, and all this time the share price is rising because so many people want the shares, because they know that you HAVE to buy them back by a certain date no matter how high the price is.
Now let’s imagine you (the hedge fund) didn’t borrow and sell 10 shares at the start, but you borrowed and sold 100,000 shares, and some other big investors also did the exact same thing you did. You and they are watching the share price start to rise and begin to get spooked. One of you loses your nerve and decides it’s better to buy back the shares you HAVE to buy now and take a small loss, rather than wait any longer and take an even bigger (potentially unlimited) loss. This only drives the share price higher still. The share price no longer has anything to do with Company X itself or how profitable or productive it is in the real world, but is fueling itself. This is unsustainable of course and the share price crash (back to being based on reality) is inevitable; it’s only a matter of how much the first group of speculators (the ones gambling that the share price would fall) end up having to pay to buy back the shares they borrowed.
The hedge fund managers should learn to code.
basically a license to kill?
World wide mafkas all pointed at globalism.
"You'll find a new job"
Do I look up Investment club of patriots?
Maybe they could learn to code?
If this can be pulled off, it will be the greatest downward shift of wealth in human history that wasn't precipitated by war or disaster.