GameStop (GME) Hits over $150 a Share

Trying2SaveABuck on 27/01/2021 - 22:23
Last edited 30/01/2021 - 13:12 by 2 other users

Thought this might be interesting to talk about

Essentially the reddit group r/wallstreetbets has taken on some of the big fund managers

Anyone who is a international investor will know this is the biggest David v Goliath battle in ….well ever!

Literally one guy invested is up around the 22m (which hit 53m at the last opens high)

this is crazyyyyyyyyyyyy

Anyone got any thoughts?

Anyone else got rich from the madness?

For those who dont know this is essentially a dead company not to different to EB games here in Australia thats share price was $3 5 months ago and has rocketed to over $150 for pretty much no real reason other then a way for millennials to stick it to the rich pricks on wall street

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Comments

        • Donaldhump on 29/01/2021 - 02:58
          +6

          I’m still holding my tulips

    • Trying2SaveABuck on 28/01/2021 - 10:42
      +1

      Some people (will have got rich) - it will be the ones up millions like DeepF****Value who walk away with a lot of money but once they start to pull out all the smaller time investors will trigger a massive sell off

      Most people will who got in >100$ will probably lose big you might see it happen tomorrow as as it looks like GME is about to drop a f**k tone of value based on the after hours trade numbers

    • cannedhams on 29/01/2021 - 01:39
      +5

      The diehards who will hold the stock forever arent concerned about losing their money, they didnt buy their single share to make money, they bought it to stick it to the man.

      Ive considered buying the stock for the same reason. I realise its going to come crashing down imminently, but by golly I love seeing those smarmy little prats howling in pain on CNBC. Music to my ears.

  • [Deactivated] on 28/01/2021 - 10:41

    r/wsb has gone private. Wonder what's happening behind the scenes.

    • Trying2SaveABuck on 28/01/2021 - 12:12

      It looks like it is back!

    • cybapete on 31/01/2021 - 06:57

      /r/wallstreetbets/ is still up for me

  • garetz on 28/01/2021 - 10:43

    Alot of people are going to lose alot of money.

  • [Deactivated] on 28/01/2021 - 11:16
    +8

    It's so fascinating watching the vulture become the hunted:

    "MILAN (Reuters) - Evotec rose sharply on Tuesday amid market speculation that Melvin Capital Management was unwinding its positions in the German drugmaker after some of its investments turned sour.

    Evotec’s shares jumped 10% at one point on Tuesday with three traders saying the move was likely linked to Melvin Capital closing out its shorts following losses on GameStop and other investments.

    Battery maker Varta surged for a similar reason, a German-based trader said, while shares in Polish videogame firm CD Projekt also saw strong demand. Over the last two sessions Varta and CD Projekt shares have both risen nearly 20%.

    As of last Friday, nearly 70% of Evotec’s shares available to borrow were already out on loan, data from FIS Astec Analytics showed. "

    Haha CD Projekt will be a popular one around here.

    • Telios on 28/01/2021 - 13:29
      +1

      What even more crazy is that technology ETFs with less than <2% holdings in GME are being swung by 10+% on a single stock.

  • Drakesy on 28/01/2021 - 12:05
    +1

    I think the big wigs on wallstreet who are shorting this will have the last laugh when it eventually pops (if it does), PE ratios of over 1000 seem to be the norm these days.

    • coffeeinmyveins on 28/01/2021 - 12:10

      It has to and will pop. I don't want to sound like one of those guys who said BTC would never go above $100 but gamestop is totally a pump and dump at the moment.

  • [Deactivated] on 28/01/2021 - 12:20
    +7

    The latest development is the claim Melvin Capital falsely told CNBC they had closed their positions. There is some evidence that they did lie to depress the price…alternatively redditors might be trying to keep the hype going and the dream alive.

    This is precisely what Wall Street 2.0 should have been.

    • whooah1979 on 28/01/2021 - 12:34

      https://www.nasdaq.com/articles/hedge-fund-melvin-capital-ha…

      "Melvin Capital has repositioned our portfolio over the past few days. We have closed out our position in GME (GameStop)," the spokesman said in a statement.

      • [Deactivated] on 28/01/2021 - 12:38

        Just a note that while the link is Nasdaq, that is the syndicated original reuters story run last night that is a financial journalism story rather than a Nasdaq filing.

        • whooah1979 on 28/01/2021 - 12:40
          +3

          The SEC would be all over MC like white on rice if they issued public statements to manipulate the price.
          https://www.sec.gov/tcr

          • coffeeinmyveins on 28/01/2021 - 12:42

            @whooah1979: I was going to say… If they did that to manipulate the price then they're going to jail.

          • [Deactivated] on 28/01/2021 - 12:53
            +2

            @whooah1979: But aren't they cooked? They got a US$2.75 billion lifeline, owed $3 billion? more before closing their GME position possibly in the $300-350 range. Trying to find a ballpark total of their loss on GME alone. Every other short position they held is getting major publicity and investment. They denied being bankrupt…but aren't they?

            WSB claims regarding MC:

            $175 is game over, 100% loss.
            Back at $103.46, $2.75 bill bailout to cover losses + $3.2 bill further extra losses.

            The most interesting one is for every $11.95 rise in share price, MC loses a billion.

          • [Deactivated] on 30/01/2021 - 20:00

            @whooah1979: They really, really wouldn't. The SEC doesn't investigate when big firms wipe out small investors, only if little guys do something to wipe out big firms.

      • coffeeinmyveins on 28/01/2021 - 12:41
        +1

        If that's true then aren't the guys over at WSB who are holding just holding onto something that is a complete lie, there's no shorts to be fulfilled at the end of the week?

        These guys on the subreddit are legit thinking this stock will go to $10k and they're going to retire at 20.

  • Bid Sniper on 28/01/2021 - 12:42
    +2

    Anyone in on this, what platform you guys using?

    Seems lot platforms are down and people cant login

    • whooah1979 on 28/01/2021 - 12:53

      You could use a CFD platform or a derivatives DEX, but only if you're an experienced trader.

    • vee124 on 28/01/2021 - 16:14
      +3

      Stake

      • coffeeinmyveins on 29/01/2021 - 10:33
        +3

        Stake is experiencing "technical issues" with signing in. Bullshit. I reckon they are connected to RobinHood somehow and are halting trading.

        • vee124 on 29/01/2021 - 12:42

          Same holding company, so yeah.

          • coffeeinmyveins on 29/01/2021 - 13:14

            @vee124: wait what, really . haha

            • vee124 on 29/01/2021 - 15:32
              +3

              @coffeeinmyveins: Sorry, i should say they aren't the same company, but Stake uses DriveWealth (same as Robinhood) as their broker digital tech, which is owned by Point72 who has shorted GME and helped bail out Melvin.

          • Bubba on 29/01/2021 - 15:10
            +1

            @vee124: Oh s***, that explains why my trade just disappeared and didn’t go through yesterday. Days to transfer funds, weird outages and no communication or record about my trade. Fishy stuff.

            • vee124 on 29/01/2021 - 15:32

              @Bubba: Sorry, i should say they aren't the same company, but Stake uses DriveWealth (same as Robinhood) as their broker digital tech, which is owned by Point72 who has shorted GME and helped bail out Melvin.

              • [Deactivated] on 30/01/2021 - 22:23

                @vee124: Robinhood does not use DriveWealth. In order to make it possible for them to make that sweet sweet cash by selling order flow to Citadel Execution Services (whose parent, Citadel Securities, also tipped in cash to bail out Melvin Capital) who can then front run trades (it's illegal, they've been fined for it before, but the $10m fine is less than they actually profit from it so…), Robinhood built a clearing platform and founded Robinhood Clearing to clear their trades - they connect directly to NYSE/DTCC.

    • Bren20 on 29/01/2021 - 14:13

      CMC worked for me this morning

  • EightImmortals on 28/01/2021 - 14:20
    +8

    Lols, pathetic how the crooked system closes ranks to protect it's own.

    https://www.theepochtimes.com/organized-small-investors-plan…

    "The New York Stock Exchange halted GameStop trading several times but that didn’t do much. The exchange may eventually resort to a longer suspension.

    Government regulators could also look into whether the GameStop rush was fueled by spreading false or misleading information, which would be illegal.

    The U.S. Securities and Exchange Commission said in a statement on Jan. 27 it was “actively monitoring” market volatility."

    • whooah1979 on 28/01/2021 - 14:23
      +8

      The top 1% play by different rules to the remaining 99%.

      • EightImmortals on 28/01/2021 - 14:32
        +3

        Apparently even the White House is keeping an eye on this one, can't let the slaves have a win now can we?

    • DogGunn on 28/01/2021 - 14:54
      +3

      Ahh yes, Epoch Times. Where I go for my "news" that Trump somehow won the election he lost, COVID-19 is exaggerated and now for financial news.

      Excellent source you got there.

      • EightImmortals on 28/01/2021 - 15:00
        +1

        So what is your complaint about the info that I posted? It wasn't CNN? Plenty more outlets reporting the same info so feel free to find one that doesn't pull your trigger. :)

        • DogGunn on 28/01/2021 - 15:06
          +6

          CNN for financial news? Nah.

          But you linking the Epoch Times explains your nutty point of views in other threads.

    • [Deactivated] on 30/01/2021 - 22:26

      You know those halts are nothing to do with screwing the retail investors right? Any move more than a certain percent in any direction causes a five minute "speeding ticket" suspension to try and cool off overexuberant investors and give the exchange a chance to assess whether they need to pause trading longer term and send a "please explain" to the company to find out if it has news it hasn't disclosed to the market. The issue is that the instos know this, so they deliberately engineer a "Short Ladder" attack that moves the price too far in one direction to trigger a halt, then rinse and repeat to stop retail investors getting into the mix. It's the rule being exploited by unethical participants.

      We have the same rule on the ASX too.

  • OSA on 28/01/2021 - 15:43
    +7

    So the question is can ozbargain community pull off something like this? lol

    • Stopback on 28/01/2021 - 15:50
      +7

      we ruin companies, like bunnings,etc

    • [Deactivated] on 28/01/2021 - 15:53
      +13

      No chance at all. This one requires everyone to hold tight and not sell early for selfish profit taking.

      The clever, safer play would have been to buy the Australian miner GME which has risen due to people buying thinking it was American GME.

      • Baysew on 29/01/2021 - 16:04

        The story gets funnier at every new turn. Alan Kohler on ABC news made mention of the rise of the local miner.

        • [Deactivated] on 30/01/2021 - 20:02
          +5

          The miner actually gave a statement to the the AFR that kind of went "Yeah, we're not surprised. But while you're here, we would encourage you to actually look closer at our business, we just struck nickel and prices are going up so yeeeeah…"

  • Ghost47 on 28/01/2021 - 16:36
    +1

    Been wondering when this would pop up on Reddit. I caught wind earlier this week, was just perusing r/stocks or something and saw talk about GME. Got in on Monday. Waiting for the squeeze LFG!

    • AustriaBargain on 29/01/2021 - 18:38

      You rich yet?

      • Ghost47 on 29/01/2021 - 23:25

        No :( Hopefully by next Friday!

        • TurkishDelight on 30/01/2021 - 00:46

          Where do I buy from Australia? Can we buy from Commsec?

          • Ghost47 on 30/01/2021 - 00:49

            @TurkishDelight: If you don’t have an account set up anywhere it’s unlikely you’ll be able to trade when market opens in 40 mins I’m afraid.

            Ideally you’d have an account and USD ready to go right now. I don’t know how you can get skin in the game at this stage.

            CommSec works. Selfwealth has a US trading platform. Schwab and Stake are free. But yeah, all takes time to set up (usually like 1-3 business days) and transfer money to trade with :(

            • TurkishDelight on 30/01/2021 - 00:53

              @Ghost47: Does it take time on Commsec if you have an account with them? Worth the fuss to get in now?

              • Ghost47 on 30/01/2021 - 00:55

                @TurkishDelight: Do you have international trading activated? If you transfer AUD to USD it probably takes some time to go through, I don't know how long. You can risk it if you want, you might lose some based on FX conversion or any transfer fees, but if you're desperate to get some might as well try? I probably would.

                • TurkishDelight on 30/01/2021 - 01:32

                  @Ghost47: It begings, starts at 390+, enjoy the gains man. Fcking missed it.

                  • Ghost47 on 30/01/2021 - 02:08

                    @TurkishDelight: Don't worry man. This isn't as easy as it seems. Platforms are playing up, Stake is a joke. Can't set limit orders properly, slow, I could probably lose a lot of money now. I shouldn't have expected it to be easy lol.

            • cybapete on 31/01/2021 - 07:26

              @Ghost47: GME is too high right now but the redditors are also hitting AMC entertainment which is a cinema chain
              their shares are trading at $13.46 at the moment

          • tikei on 30/01/2021 - 11:12

            @TurkishDelight: I set up an account on IG trading within 10 minutes

  • Caped Baldy on 28/01/2021 - 17:19
    +15

    I read this comment which makes sense to me but most of the existing GME stocks are actually owned by large institutions like blackrock and vanguard.

    The great irony of all this and what most of Reddit doesn't get that is that the big winners here are the biggest players on Wall Street. Blackrock alone made $2.4 Billion from GME today. The institutional ownership (including synthetic longs) is now at 119% of the float. The largest shareholders of Gamestop are the megacap managed funds like Blackrock, Vanguard, Fidelity. These are multi-trillion dollar players, Vanguard alone has $5.7 trillion AUM. Citroen Research and Melvin who lost with their short positions are low/mid-tier niche funds with a few billion in management.

    In fact while Redditors may have started off the pump, it was largely big movers making this play out. For those who have access to Level II ARCA order flow data on NYSE, you can see that it was large orders (way above what an average Redditor would be able to afford), that drove the short squeeze. For all the talk of (profanity) and his $50K early bet turning into millions and a few other redditors making six figure gains, this is a drop in the bucket. The billions in market cap that will be liquidated soon will be captured not by Redditors, but by Blackrock and Vanguard selling these shares to Redditors.

    Its the Vanguards and Blackrocks that created the synthetic longs that were leveraged for short contracts and that drove the >100% short ratio, they are the ones who loaned the stock to these smaller hedge funds to short, it was them who picked up huge margin fees and it will be them who will now receive massively inflated GME stock back (for all of them the average acquisition price was in the single or teen digits) and they will now sell it at $300 to the clueless retail shrimp reading about this on Reddit/Twitter and jumping onto their Robinhood app to go on a crusade to stick it to Wall Street by buying GME.

    • Trying2SaveABuck on 28/01/2021 - 17:26
      +7

      It is a huge farce in the end the people on reddit pumping it are pumping it becuz the are trying to make a quick buck

      the guy up almost 50million has been pumping da faq out of GME - i have almost no doubt he will sell out without warning leaving the sheep in the dust

      But nothing illegal is happening, no one is forcing anyone to buy GME so people are free to make/lose there money at there own will

      Note: I thought bitcoin was a scam and it has turned out to be one of the most profitable investments in history for DYOR

      But i do feel like this wont 'end well' for the large majority of retail investors

      • Caped Baldy on 28/01/2021 - 17:30
        +6

        I still think bitcoin is a bit of a scam. And it can a great money maker too though.

        From what I understand the short sellers/hedge funds will be forced to buy stocks at those inflated prices when the options close and must be fulfilled. So most retail investors will be fine and make quite a bit of coin.

        Edit: I think the situation is hilarious and I regret not jumping on board. I hope WSB stays open through all this as they haven't done anything illegal. The autists are amazing.

        • xX69Obi1Kanobi69Xx on 29/01/2021 - 10:57
          +1

          Why do you think BTC is a scam?

          • Caped Baldy on 29/01/2021 - 11:04
            +1

            @xX69Obi1Kanobi69Xx: For the majority of people it doesn't have real world uses. I get that there are a number of uses though it is limited. This might have changed in the time since I looked into it.

            The main driving factor behind the value is demand and people simply buying more of it. I suspect the huge rise a couple years ago was a few big players that artificially hyped it up and sold off a large share when it peaked.

            • lnq on 29/01/2021 - 15:11

              @Caped Baldy: 😳

            • Mr Haj on 29/01/2021 - 16:09
              -1

              @Caped Baldy: … the huge rise a couple years ago??? lol it just hit its all time high this month…

              • Caped Baldy on 29/01/2021 - 22:06

                @Mr Haj: It was $1k at the start of 2017 and hit $25k at the end of 2017 and then was $5k a year later.

            • Mistredo on 29/01/2021 - 20:58
              +1

              @Caped Baldy: With this mindset a lot of investing is scam.

              • lnq on 30/01/2021 - 04:01

                @Mistredo: he confused, lol, who is the scamer?

              • [Deactivated] on 30/01/2021 - 20:03

                @Mistredo: Take a look at what's happening with Gamestop… you might be closer to the truth than you think!

      • gromit on 29/01/2021 - 12:14
        +3

        Actually you may find the guy doing the pumping ends up being charged with market manipulation, all the while telling others to buy he has started to offload his options. I think he will end up with a visit from SEC.

        • Caped Baldy on 29/01/2021 - 13:13
          +2

          The value of his stock dropped like $20 mil usd yesterday. He's got diamond hands and the semi cult at WSB is still holding.

      • AustriaBargain on 29/01/2021 - 18:39

        Why wouldn’t the guy up 50 million just sell right now just in case? How many tens of millions does one man need…

        • HN Professional on 30/01/2021 - 20:23

          You don't enter the Valhalla halls of WSB for rational decisions.
          WSBers are weaponised autism, in this instance, aimed squarely at short-selling hedge funds. This will end in tears for most bar the likes of u/deepeffingvalue et al, but for one brief shining moment, the little guys have reached up and landed a bloody nose on the Wall Street bullies. Bask in their guts & glory…

    • bman20 on 29/01/2021 - 15:05
      +1

      There is little irony in that, though.

      Vanguard, Fidelity and Blackrock are 3 of the largest investment managers in the world and have clients of all shapes and sizes. They are open to retail investors via managed funds and ETFs. As a result, it is everyone who has benefited from these funds making gains. There are moms and pops all over invested in these funds, in particular a large amount of Australian super is invested via them. It is also worth noting, that the vast majority of Vanguards AUM is in passive index tracking funds, unable to capitalise on GME.

      Melvin Capital are a hedge fund. They dont have mom and pop clients. They are run by the elite, for the elite.

      • hayne on 30/01/2021 - 03:04

        They are run by the elite, yes. For the elite? Not so much. Biggest investors in alternative asset classes like hedge funds are super funds and university endowments.

      • hayne on 30/01/2021 - 03:05

        Your comment on Vanguard, Fidelity etc. is correct though

    • [Deactivated] on 30/01/2021 - 20:07
      +2

      If you actually check the filings, you can see exactly why those massive funds own their stocks. BlackRock, for example, owns roughly 18% of Gamestop in their "iShares Core S&P Small Cap ETF". BlackRock cannot sell those stocks until rebalance date (at which point they have to, since at this value Gamestop is actually now Mid Cap). Vanguard owns it for the same reason. These fund managers cannot capitalise on the price rises, and they will not be selling them to redditors, or anyone else.

  • [Deactivated] on 28/01/2021 - 17:50
    +3

    This is from WSB very recently:

    "Now, IF this happens, then it's not gonna take Melvin Capital 1 hour to cover all their shorts, but DAYS. Meaning if Melvin capital starts covering FRIDAY, it will take them at LEAST 5 DAYS to fully cover, which means ALL of next week, the price will keep increasing and increasing! So realistically I'd say Weds or Thurs next week might be peak sell time, IF the covering starts Friday. No need to panic sell. No need to worry about a top that lasts for minutes. It will LAST FOR DAYS!!!!!"

    For balance, Melvin Capital claim they are out already and I am just schadenfrauding.

  • RMX on 28/01/2021 - 20:07
    +22

    I'd personally like to thank a couple of OzB users, they are 'fuudrizzle' and 'Jimothy Wongingtons'. Through your posting on OzB, I've benefited nicely.

    In December I registered for Stake on a deal posted by 'fuudrizzle' where you got a ABNB stock from their IPO and either a Nike/Dropbox or GoPro Stock.

    The Air BNB stock is +27% since I was given it and worth $96.60 USD, all for free.
    The Dropbox share I got hasn't moved, but it's still worth $24.26 USD - Again, "free" after the initial deposit.
    At this point, I'm up over $150 AUD after registration and transferring funds thanks to OzB and fuudrizzle.

    Further down in the thread, 'Jimothy Wongingtons' made a comment that browsing WSB on the toilet isn't equal to due diligence (and it definitely isn't!).
    I'd been on the sub previously but not for awhile as I had primarily been trading Aus stocks and Forex. I was reminded of it by JW and in mid-December after reading plenty of WSB and others sources, along with looking at the GME financials and how heavily shorted it was I also saw an opening with GME and bought in at $15.78 USD per share on December 18th.

    This isn't a measuring contest and I'm not here to brag, but as of close last night (8am this morning) I'm over +2000% return on investment.
    Thanks OzB, you're not just saving me money but you've made me a chunk as well!

    • Telios on 28/01/2021 - 21:07
      +5

      Don't forget your capital gains tax if you cash out :D

      • mizx on 29/01/2021 - 00:19
        +2

        Don't need to worry about CGT if you don't cash out!!!

        • kaleidoscope on 29/01/2021 - 08:58
          +2

          whats the point if you dont cash out?

      • Ghost47 on 29/01/2021 - 10:38
        +1

        The way it’s going, even if he cashes out and pays CGT he will still be WAY up.

    • Serapis on 28/01/2021 - 22:46

      Can't stop

    • Ghost47 on 29/01/2021 - 10:32
      +3

      Congratulations! This is a UNICORN event. Never has a stock been shorted this much and found out. Even the VW squeeze of 2008 only had 13% of shares shorted.

      You’re going to have life changing money even after taxes. This is just (profanity) amazing. It’s just amazing. Seriously has to be the largest transfer of wealth in recorded history!!!! I’m just (profanity) blown away!!!!! I can’t get over my excitement on this!!!

      • gromit on 29/01/2021 - 12:17
        +1

        Seriously has to be the largest transfer of wealth in recorded history!!!

        not even close, Melvin in the scheme of things is tiny. Most of the transfer of wealth will be from retirees out of their 401k plans invested with Melvin. basically you have a relatively well off group in the reddit investors screwing over a relatively small Fund manager and a huge amount of retirees. The only victim that arguably deserves it is the Fund manager, but the largest hit will not be to them.

        • Ghost47 on 29/01/2021 - 12:28

          Exactly what happened in 2008. Stupid people got greedy and that cost people money. This event is monumental.

          • gromit on 29/01/2021 - 13:12
            +1

            @Ghost47: The event is exciting opportunity for some, but in greater perspective it is a relatively tiny blip affecting a small fund. The greater implications of which will be SEC and perhaps legislation changes to try and prevent this in future as destabilizing the market is not good for anyone long term.

        • whooah1979 on 29/01/2021 - 15:59

          Accredited investors aren't allowed to flip stocks like retail investors. Many of them are locked in for days of not months at the time. Pumps like these are over by the time their sell button turn from grey to red.

        • Scrooge McDuck on 29/01/2021 - 16:40
          +4

          Most of the transfer of wealth will be from retirees out of their 401k plans invested with Melvin.

          Do you have a source for this?

          Retirees shouldn't be invested in shorting nor leveraged hedgefunds unless they have enough capital to afford taking on large risk, i.e. enough for their lifetime expenses plus a lot more.

          • hayne on 30/01/2021 - 03:10

            @Scrooge McDuck: Super funds typically put 8-15% of their funds under management into alternative investments which include hedge funds as one of their asset classes.

    • AustriaBargain on 29/01/2021 - 18:41
      +2

      I'm up over $150 AUD after registration

      The Milky Bars are on you!

    • Ghost47 on 30/01/2021 - 02:09
      +2

      I hope Stake is working for you. Since your buy price is so low you'll very likely get out with a profit easy, even if the order takes a while to go through.

      • RMX on 30/01/2021 - 02:15
        +2

        I've already taken a healthy profit a few times and I bought again in the dip last night and if I sold out right now, even that is +100% ROI.

        I haven't slept for a few days, but this is legitimately going to change our lives.

        • Ghost47 on 30/01/2021 - 02:19
          +1

          Congrats!! Please pray for the others who probably could lose money because brokerages take too long to place orders :(

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