The Official Stock Market Thread

[GeechQuest]

Originally Posted by cnewby

So whats the risk in buying this morning, then selling this afternoon? May it fall today?

Nothing is risk free, and I laid out some of the possible scenarios.

I'm into my shares for free after trading swings, so I have no risk and will hold until a squeeze happens. If this drops to $0 a share I still made a decent sum already so I'm in a different boat.

As of right now the Volume on this stock is 35M shares traded. The short shares this morning were somewhere between 60M-70M shares. The company I've been trusting has it at 71M, but obviously they could be wrong.

Even if every single trade was a short covering, they're still underwater and still need to cover. I don't think they've even begun to cover as I watch the bids come in. No gigantic bid is coming in, so for now I think some are just trying to hedge. A lot of the buys and sells are guys just swing trading the dips.

When they do attempt to cover, you will see this thing rocket in price even higher. If they haven't covered by Friday, their short % just became even higher as those shares are allowed to go to the options if the people who placed the "bets" want to exercise.

I would never tell you to buy or sell. We all have different goals in life and different tolerances for risk. I'm the most risk adverse person in the thread, and I'm holding my shares currently and will sell when a real squeeze happens. Right now it looks like it's just brokerages covering the option contracts and preparing for every single contract to finish ITM. I'd just say that from where I'm sitting the squeeze on the shorts hasn't started yet.

We're close to the squeeze though. Currently only 30,000 short positions available at 49.4% interest. Yikes.

[monkeymcgee]

Originally Posted by Links242

See noobs likes me will think a "put" option will be good now. Guess not.

The issue is the implied volatility (IV), which is priced into the premiums. You're at a risk of a serious IV crush once this stops moving so dramatically, which will result in you potentially losing money even if the stock drops quite a bit.

Most discussion about that is around earnings, but it would apply in situations like this with such crazy movement.

Think of IV as an incentive for people to still write put contracts when the price action is insane. It has to be high for them to risk it. When that risk diminishes, no one is going to keep funding that "bonus".

[finfangfan]

Crazy day so far. My loss is 1/4 of what it was shortly after open and now it just looks like a normal run of the mill down day.

[monkeymcgee]

Originally Posted by finfangfan

Crazy day so far. My loss is 1/4 of what it was shortly after open and now it just looks like a normal run of the mill down day.

Yeah--very nice recovery. I wonder if there was any algo selling earlier due to impacts from the meme stocks (selling to cover new margin requirements or shorts) that caused the big dip.

[LCM1223]

My baby CVM having a day

In at $1.80 over 2 years ago

Should’ve 10x my position when it fell to $0.83 a couple months later like I considered doing



Halted for the 4th time this morning

[finfangfan]

Now my trading account is in the green. AI, DKNG, And UTZ all solidly greens and VGAC now showing positive 4.5% gain when it was in the negative 4.5% at open.

[patchgenie]

Originally Posted by LCM1223

My baby CVM having a day

In at $1.80 over 2 years ago

Should’ve 10x my position when it fell to $0.83 a couple months later like I considered doing



Halted for the 4th time this morning

do you know when they will release trial results?

[LCM1223]

Originally Posted by patchgenie

do you know when they will release trial results?

That’s the almighty question


5th halt


6th halt


7th halt

[finfangfan]

Wow... VGAC had a crazy run. It spiked to +17% at one point and now back down to -4% on day.

[JMarchand1981]

Originally Posted by monkeymcgee

And just to tack onto GeechQuest's post, dilution (issuing new shares) would be a smart move for GME's board to consider to take advantage of the price action to add funds to their books. In theory, this could relieve some of the pressure on shorts but probably not enough to make a material difference.

Cost of capital would be insanely cheap. I mean, just absurdly cheap. Issue today, wait for it to dip the inevitable 99% that it will dip when this is over and then just do a share repurchase.

[LCM1223]

Originally Posted by LCM1223

That’s the almighty question


5th halt


6th halt


7th halt

8th halt on it’s way back down

Sorry 9th halt. So many I missed one

[patchgenie]

geerty may have the record for longest running trial. CVM is one of the old scam bios.

[GeechQuest]

Originally Posted by JMarchand1981

Cost of capital would be insanely cheap. I mean, just absurdly cheap. Issue today, wait for it to dip the inevitable 99% that it will dip when this is over and then just do a share repurchase.

Wouldn't that crush your stock price and your new valuation? You'd essentially give a win to the guys who want you to go under and will profit on you doing so.

Why not just issue a few million? Your stock price still rises as the shorts are still underwater by a ton.

5 Million shares issued right now would be swallowed in a heartbeat. Even if you clipped the stock down to $200, the shorts are still underwater in total and you just raised $1B in capital.

It would be smarter to leak shares this way until you find an equilibrium between shorts/longs, now you've got a new valuation for your company and have raised so much money that you're driving towards the future.

[mike1498]

Originally Posted by GeechQuest

Wouldn't that crush your stock price and your new valuation? You'd essentially give a win to the guys who want you to go under and will profit on you doing so.

Why not just issue a few million? Your stock price still rises as the shorts are still underwater by a ton.

5 Million shares issued right now would be swallowed in a heartbeat. Even if you clipped the stock down to $200, the shorts are still underwater in total and you just raised $1B in capital.

It would be smarter to leak shares this way until you find an equilibrium between shorts/longs, now you've got a new valuation for your company and have raised so much money that you're driving towards the future.

I'm not saying this doesn't make sense but do we actually believe that this can sustain as a long term business? I understand why they are causing this short squeeze but why not do it for a company that will have a future. I'm sorry but GME is literally Blockbuster for videogames. I'm willing to bet most kids do not buy their games in stores anymore. Really the only thing you have to buy in stores is the physical console. I usually get a discount (like 10%) for downloading the game right through my console. It actually makes sense for the company who makes the game to give discounts for game downloads because they don't have to make the disc, sell the game at wholesale to the retailer and pay for the logistics. I don't think consumers care if they have a physical disc if it means they can save 10-20% on the game.

If GME was to take advantage of this, how can they possibly pivot?

[finfangfan]

Originally Posted by finfangfan

XSPA having a great morning... up 19% to $2.08/share.

XSPA keeps chugging along... up to $2.40/share this afternoon.

[monkeymcgee]

Originally Posted by mike1498

I'm not saying this doesn't make sense but do we actually believe that this can sustain as a long term business? I understand why they are causing this short squeeze but why not do it for a company that will have a future. I'm sorry but GME is literally Blockbuster for videogames. I'm willing to bet most kids do not buy their games in stores anymore. Really the only thing you have to buy in stores is the physical console. I usually get a discount (like 10%) for downloading the game right through my console. It actually makes sense for the company who makes the game to give discounts for game downloads because they don't have to make the disc, sell the game at wholesale to the retailer and pay for the logistics. I don't think consumers care if they have a physical disc if it means they can save 10-20% on the game.

Adding Ryan Cohen (Chewy) to the board is thought they will be pivoting to a more digital forward approach. They also have an agreement with Microsoft now to get a piece of digital purchases on consoles bought through their stores. So there is some hope.

[Boo]

Originally Posted by mike1498

I'm not saying this doesn't make sense but do we actually believe that this can sustain as a long term business? I understand why they are causing this short squeeze but why not do it for a company that will have a future. I'm sorry but GME is literally Blockbuster for videogames. I'm willing to bet most kids do not buy their games in stores anymore. Really the only thing you have to buy in stores is the physical console. I usually get a discount (like 10%) for downloading the game right through my console. It actually makes sense for the company who makes the game to give discounts for game downloads because they don't have to make the disc, sell the game at wholesale to the retailer and pay for the logistics. I don't think consumers care if they have a physical disc if it means they can save 10-20% on the game.

Agreed, if I was in GME or AMC, I'd be selling everything and not looking back. Could they go up more, sure. Will they? Who knows.

[finfangfan]

Originally Posted by mike1498

I'm not saying this doesn't make sense but do we actually believe that this can sustain as a long term business? I understand why they are causing this short squeeze but why not do it for a company that will have a future. I'm sorry but GME is literally Blockbuster for videogames. I'm willing to bet most kids do not buy their games in stores anymore. Really the only thing you have to buy in stores is the physical console. I usually get a discount (like 10%) for downloading the game right through my console. It actually makes sense for the company who makes the game to give discounts for game downloads because they don't have to make the disc, sell the game at wholesale to the retailer and pay for the logistics. I don't think consumers care if they have a physical disc if it means they can save 10-20% on the game.

I think the fact that GME is now being run by the guy who made Chewy the “Amazon for pets” and plans to make GME the “Amazon for video games” also plays a part in the belief that GME has a shot to reinvent intself. Chewy was able to successfully carve out its niche to compete with Amazon... people are banking on GME doing the same. Not going to be easy, but it looks like it’s not as ridiculous as it might have seemed 6 months ago.

[xbignick]

Sold 66% of my AMC shares, not at the top due to the Charles Schwab problem.

Planned to add some ARKK this morning on the dip with profits but same problem.

[jcardstore]

What the hell is happening to NOK? Is it part of this WSB short squeeze thing? If so that makes me happy. I've had this thing forever my cost basis is $3.74.

Load fidelity to see it's up 44% today. I like that

[JMarchand1981]

Originally Posted by GeechQuest

Wouldn't that crush your stock price and your new valuation? You'd essentially give a win to the guys who want you to go under and will profit on you doing so.

Why not just issue a few million? Your stock price still rises as the shorts are still underwater by a ton.

5 Million shares issued right now would be swallowed in a heartbeat. Even if you clipped the stock down to $200, the shorts are still underwater in total and you just raised $1B in capital.

It would be smarter to leak shares this way until you find an equilibrium between shorts/longs, now you've got a new valuation for your company and have raised so much money that you're driving towards the future.

This valuation is junk. It's shrewd corporate financial management. The company itself is not gaining anything from the stock price being where it is. Just remember that.

Issuing shares right now would be the prudent thing to do. As for share issuance, you don't "leak" shares. That just isn't how it works.

[GeechQuest]

Originally Posted by mike1498

I'm not saying this doesn't make sense but do we actually believe that this can sustain as a long term business? I understand why they are causing this short squeeze but why not do it for a company that will have a future. I'm sorry but GME is literally Blockbuster for videogames. I'm willing to bet most kids do not buy their games in stores anymore. Really the only thing you have to buy in stores is the physical console. I usually get a discount (like 10%) for downloading the game right through my console. It actually makes sense for the company who makes the game to give discounts for game downloads because they don't have to make the disc, sell the game at wholesale to the retailer and pay for the logistics. I don't think consumers care if they have a physical disc if it means they can save 10-20% on the game.

If GME was to take advantage of this, how can they possibly pivot?

I would never do DD on a company as I can see the bear and bull thesis for Gamestop before the squeeze (which hasn't yet occurred). I subscribed to the bull thesis even before Cohen was onboard, more so when he jumped on, and now the bull thesis seems like an inevitability over the next 5 years. The Blockbuster comparison just seemed too surface level from my vantage point.

It should be obvious now though that Gamestop is sitting on a boatload of capital that makes a pivot a little bit easier. If nothing else, they've gotten a lifeline for a long time should Cohen and the rest of the company decide they want to give the company a facelift for the future.

Currently, I'm just in it for the squeeze and will exit my positions when I believe the squeeze starts. Reassess long term outlook when the dust settles.

[MIRRABB]

Originally Posted by jcardstore

What the hell is happening to NOK? Is it part of this WSB short squeeze thing? If so that makes me happy. I've had this thing forever my cost basis is $3.74.

Load fidelity to see it's up 44% today. I like that

yeah it is. great position for you at that cost lol

[GeechQuest]

Originally Posted by JMarchand1981

This valuation is junk. It's shrewd corporate financial management. The company itself is not gaining anything from the stock price being where it is. Just remember that.

Issuing shares right now would be the prudent thing to do. As for share issuance, you don't "leak" shares. That just isn't how it works.

Ok. I trust you on that last part as I honestly didn't know.

[JMarchand1981]

Originally Posted by GeechQuest

I would never do DD on a company as I can see the bear and bull thesis for Gamestop before the squeeze (which hasn't yet occurred). I subscribed to the bull thesis even before Cohen was onboard, more so when he jumped on, and now the bull thesis seems like an inevitability over the next 5 years. The Blockbuster comparison just seemed too surface level from my vantage point.

It should be obvious now though that Gamestop is sitting on a boatload of capital that makes a pivot a little bit easier. If nothing else, they've gotten a lifeline for a long time should Cohen and the rest of the company decide they want to give the company a facelift for the future.

Currently, I'm just in it for the squeeze and will exit my positions when I believe the squeeze starts. Reassess long term outlook when the dust settles.

The bolded is incorrect. How do you figure they are sitting on a boatload of capital? WHere is that capital from??