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This is solid work. 

 

I think the quality of that video is about as good as it gets for the purpose. We don't have this level of stuff for WoWS, do we? 

Edited by Herr_Reitz

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6 minutes ago, Herr_Reitz said:

This is solid work. 

 

I think the quality of that video is about as good as it gets for the purpose. We don't have this level of stuff for WoWS, do we? 

Can you educate those of us who are not in the world of gambling or wall-street... What was the whole issue with Gamespot this week ?

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10 minutes ago, Navalpride33 said:

Can you educate those of us who are not in the world of gambling or wall-street... What was the whole issue with Gamespot this week ?

As a meme, r/Wallstreetbets decided to raise the value of GameStop on the stock market, a store that's basically like Blockbuster but with video games. In doing so (and turning GameStop into a Fortune 500 company in the process), they've completely turned Wall Street upside down, and the one percent has gotten very unhappy about it because their hedge funds have been hemorrhaging money as a result.

I don't know all the details, but this is the best that I've been able to ascertain. Hope it's helpful. 

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21 minutes ago, Navalpride33 said:

Can you educate those of us who are not in the world of gambling or wall-street... What was the whole issue with Gamespot this week ?

Several hedge funds have been making big short sell attempts on GameStop. That means they were borrowing shares of the company on a promise to return them at a later date. They are betting that the stock value will go down and be lower than their purchase price at the time they have to return the shares. They sell them immediately when they buy them, at, say $20 and re-buy them if/when the share price goes down, say to $15, and pocket the difference in value, $5, as profit. However, this requires them to promise to return the shares at a fixed date, meaning they will have to re-buy those shares when their short sell option expires, regardless of the market price. If the price goes up, they lose money.

Some people on Reddit saw the hedge funds doing this, and decided they didn't like it, and here was an opportunity to group together as small investors and buy up all the GameStop stock they could get their hands on. That sent the price shooting through the roof (at one point GameStop's stock value made it more valuable than Delta Airlines!).  Their goal was to move the market for this stock in a way that when the hedge funds have to re-buy their shares, the market price is well above what funds originally sold the stock for.

The hedge funds that were betting on the share price going down (before the brouhaha it was trading at about $15-20 a share) instead saw the share price skyrocket to hundreds of dollars a share. 

This really screwed them hard because they'd bet on a share price drop and have to repay the shares they borrowed in their short sell attempt at a fixed date. So they need to re-buy the shares they sold at the normal market price, but now the price is $150+ per share, so they are taking huge losses. Imagine they attempted to short GameStop at $20 a share, thinking it would drop to $15, and with a one-week duration. At the end of the week they would need to give those shares back, but instead of making a $5 profit per share, Reddit has driven the share price up to $150+, meaning that the hedge funds must buy at $150 to fulfill their short sell option, losing $130 instead of gaining $5 per share.

I'm not saying that short selling is inherently predatory, but when you're a huge hedge fund and you can short-sell small-cap stocks, your actions make waves in the market because of the size of your investment portfolio. So just shorting a small company when you're a gazillion-dollar hedge fund can make your stock price go down just by itself. That's not really making a gamble on what the market will do to a company's value, that's making that gamble and then stepping on the market's foot so that it does what you were betting. That's pretty scummy in my book.

Reddit felt the same and realized because of the inherent risk of short selling, they could really pound the heck out of some vulture funds.

Edited by RainbowFartingUnicorn
  • Cool 5

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2 minutes ago, 1Sherman said:

 

I don't know all the details, but this is the best that I've been able to ascertain. Hope it's helpful.  

Keep me informed when more details are available... I am fascinated but at the same time oblivious as to the context of whats going on...

I feel like an outsider/onlooker, looking in on the club 22 at Disney. With no clue as to whats going on..

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6 minutes ago, RainbowFartingUnicorn said:

Several hedge funds have been making big short sell attempts on GameStop. That means they were borrowing shares of the company on a promise to return them at a later date. They are betting that the stock value will go down and be lower than their purchase price at the time they have to return the shares. They sell them immediately when they buy them, at, say $20 and re-buy them if/when the share price goes down, say to $15, and pocket the difference in value, $5, as profit. However, this requires them to promise to return the shares at a fixed date, meaning they will have to re-buy those shares when their short sell option expires.

Some people on Reddit saw the hedge funds doing this, and decided they didn't like it, and here was an opportunity to group together as small investors and buy up all the GameStop stock they could get their hands on. That sent the price shooting through the roof (at one point GameStop's stock value made it more valuable than Delta Airlines!). 

The hedge funds that were betting on the share price going down (before the brouhaha it was trading at about $15-20 a share) instead saw the share price skyrocket to hundreds of dollars a share. 

This really screwed them hard because they'd bet on a share price drop and have to repay the shares they borrowed in their short sell attempt at a fixed date. So they need to re-buy the shares they sold at the normal market price, but now the price is $150+ per share, so they are taking huge losses. Imagine they attempted to short GameStop at $20 a share, thinking it would drop to $15, and with a one-week duration. At the end of the week they would need to give those shares back, but instead of making a $5 profit per share, Reddit has driven the share price up to $150+, meaning that the hedge funds must buy at $150 to fulfill their short sell option, losing $130 instead of gaining $5 per share.

Oh wow! Now my question from a math and human psychology POV...

This must of been an unprecedented movement for a stock (or any stock for that matter) in a what one week period? In your opinion, who was behind this unprecedented event ?

How much capital would you guesstimate,  to pull this off ?

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I just find the whole situation hilarious (BTW thanks @RainbowFartingUnicorn for the explanation on shorting stocks, clearest explanation I've ever heard). What I find just as funny is that now Reddit is getting mad because Wall Street is responding by making moves to lock small investors out. What did they expect? You might annoy the big boys by messing up their game for a minute, but it should have been totally predictable that this would be the response.

Still, will be interesting to see what the regulatory response is, this indicated a shift in how things can work and it'll be interesting to see how things shake out.

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1 minute ago, Navalpride33 said:

Oh wow! Now my question from a math and human psychology POV...

This must of been an unprecedented movement for a stock (or any stock for that matter) in a what one week period? In your opinion, who was behind this unprecedented event ?

How much capital would you guesstimate,  to pull this off ?

In some ways it's a bit of a perfect storm.

The Reddit board had a big enough group of small investors to make a critical mass enough to actually change the share price, which is basically the same thing the big hedge funds do. GameStop is a small-cap stock with relatively few shares out at a relatively low price (The Reddit group couldn't do this with GE or Wal-Mart or some huge company with gazillions of dollars in stock). Lots of people were willing to jump on with small amount of money because a hedge fund acting like a vulture and picking over a small brick-and-mortar chain during a pandemic when their business is already down because of the online game competition is a really tempting target. 

Individuals are able to group plan like this because of social media, and able to buy thanks to all kinds of free trade apps. 

The people on Reddit who posted the tip were knowledgeable enough to identify what the hedge funds were doing. 

The hedge funds kept doubling down on their short sell options. 

I am no expert on psychology or the stock market, but it's so fascinating what's happening!

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18 minutes ago, RainbowFartingUnicorn said:

I am no expert on psychology or the stock market, but it's so fascinating what's happening! 

Considering to alternative,, you're good enough to educate us..

What I meant by the psychology side of whats going on with the game stock event.. I was referring to

  • What drove this event into fruition?
  • Can it be replicated again (since you stated it was a perfect storm I am incline to think maybe not)
  • What other factors we can identify, would affect the stocks normal behavior..

I'll give you an example, way back when... When I first started in math, statistics with human behavior (in the late 90s).. I was task to observe the behavior of not humans, but stocks..

At the time, it annoyed me.. I lack the know how of observation... Then I noticed trends in say the price of crude.. Year after year the price would be cheap in the winter and super expensive in the summer (not during these times I haven't kept track).

In your opinion, in the gamestop event.. Was it a fluke or can the "perfect storm" be replicated with any other stock ??

Edited by Navalpride33

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22 minutes ago, Navalpride33 said:

Considering to alternative,, you're good enough to educate us..

What I meant by the psychology side of whats going on with the game stock event.. I was referring to

  • What drove this event into fruition?
  • Can it be replicated again (since you stated it was a perfect storm I am incline to think maybe not)
  • What other factors we can identify, would affect the stocks normal behavior..

I'll give you an example, way back when... When I first started in math, statistics with human behavior (in the late 90s).. I was task to observe the behavior of not humans, but stocks..

At the time, it annoyed me.. I lack the know how of observation... Then I noticed trends in say the price of crude.. Year after year the price would be cheap in the winter and super expensive in the summer (not during these times I haven't kept track).

In your opinion, in the gamestop event.. Was it a fluke or can the "perfect storm" be replicated with any other stock ??

Reddit is going crazy right now looking for other hedge funds who have big vulnerabilities on short sale options. 

I think the market will correct its correction in a way. I think what Reddit is doing is practically a public service, but eventually I think fewer hedge funds will take these kinds of semi-predatory risks. And also we are seeing the impact of crony capitalism. Robinhood, one of the trading apps widely used by small day and hobby traders, recently shut down purchasing of GameStop stock. You can still sell. You just can't buy. 

Coincidentally one of the biggest backers of Robinhood is also one of the hedge funds that has lost the most money out of this. 

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2 minutes ago, RainbowFartingUnicorn said:

Reddit is going crazy right now looking for other hedge funds who have big vulnerabilities on short sale options. 

I think the market will correct its correction in a way. I think what Reddit is doing is practically a public service, but eventually I think fewer hedge funds will take these kinds of semi-predatory risks. And also we are seeing the impact of crony capitalism. Robinhood, one of the trading apps widely used by small day and hobby traders, recently shut down purchasing of GameStop stock. You can still sell. You just can't buy. 

Coincidentally one of the biggest backers of Robinhood is also one of the hedge funds that has lost the most money out of this. 

Due keep me in the loop.. This is an interesting event in stocks.

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Heck, were I the vultures I would have thought Gamestop a fair short risk, too.

1 hour ago, RainbowFartingUnicorn said:

GameStop is a small-cap stock with relatively few shares out at a relatively low price

Wild card:  Has the share price become so attractive now that it will squeeze more shares out of the company.  Any info on who controls it?

 

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4 hours ago, Navalpride33 said:

Can you educate those of us who are not in the world of gambling or wall-street... What was the whole issue with Gamespot this week ?

The kicker is: once the wall street and filthy rich types saw themselves losing money AND numpty plebians gaining literally millions, they decided to force major trading firms like td@mrtrde to litterally block people from buying gmstp and other stock.

but seriously the gains on this have been astronomical like 1600% i check on Tuesday stock was 34. Yesterday 340! But when the rich stop gaining and the poor start winning— the rules get changed.

this has major implications for capital markets because shorting is an essential process for prices to accurately reflect value. Blocking it and or blocking short squezing gives further sense that the market should only go up, it will, but when it falls it will come down harder than it should have.

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4 hours ago, Navalpride33 said:

Considering to alternative,, you're good enough to educate us..

What I meant by the psychology side of whats going on with the game stock event.. I was referring to

  • What drove this event into fruition?
  • Can it be replicated again (since you stated it was a perfect storm I am incline to think maybe not)
  • What other factors we can identify, would affect the stocks normal behavior..

I'll give you an example, way back when... When I first started in math, statistics with human behavior (in the late 90s).. I was task to observe the behavior of not humans, but stocks..

At the time, it annoyed me.. I lack the know how of observation... Then I noticed trends in say the price of crude.. Year after year the price would be cheap in the winter and super expensive in the summer (not during these times I haven't kept track).

In your opinion, in the gamestop event.. Was it a fluke or can the "perfect storm" be replicated with any other stock ??

They’ve already done it with blackberry BB and nokia nok check the tickers looking at 6 month history. Very frothy

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9 minutes ago, monpetitloup said:

his has major implications for capital markets because shorting is an essential process for prices to accurately reflect value. Blocking it and or blocking short squezing gives further sense that the market should only go up, it will, but when it falls it will come down harder than it should have.

I stumbled into this as I was looking around.. Apparently one solution is to apply a "one day trading" rule (I am not in the know so I am in the clueless but fascinated phase).

This will better gauge the market value instead of working the system

Edited by Navalpride33

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The explanation given above is pretty accurate.

Note the Redditors broke no law, just enraged the bigwigs in Wall Street 

Now Redditors are going for Silver, alleging the Silver price is artificially too low.

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This is sort of a "laws for thee, not for me" story. It is also perhaps eligible for the title "Retribution". What the group of people on Reddit decided to do was exactly what Wall Street brokers have been doing for some time. Some might argue the stock market does not actually function as those of us on the  outside thought it worked, that is, a free market based on supply and demand. 

You know, a stock price reflecting the value of the company, its products and the strength and commitment of its management and workers. 

It has now been revealed as another rigged human game, a market and means of making the wealthy wealthier. Someone said when many of the people diametrically opposed in Washington DC get together on a subject, you know something's up. 

The Redditors are simply playing the game the way the game has been played but they are outside WS. Their actions are putting the hurt on those "big boys". Last I read/heard, the estimate was a potential around $50 billion. 

Reactions to this are being declared by many as criminal. A company (Robinhood) was apparently working both sides of the street, WS versus the small investors. A class action lawsuit has dropped against them because they literally would not allow anyone using their service to purchase any more GS stock! They would allow you to sell it, but you could not purchase it! Totally, completely illegal it seems. Yeah, most folks would tend to agree. 

So Robinhood it seems was sacrificed on the altar of protecting the street. 

People hate rigged games. Fair is fair, right? But what most people did not know who have had their savings invested into the stock market for retirement purposes is pretty straightforward now: There's a stock market for thee, then there's a stock market for us. You only make what we allow you to make. 

The best comment I have seen so far has to do with the Redditors. "WS is playing a game against a new generation of investors. A generation who have grown up learning how to game the game, how to break the game so they win." (paraphrased). 

It could potentially get very ugly in the next couple of weeks. But who doesn't like a real David versus Goliath now and then? 

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5 hours ago, alexf24 said:

The explanation given above is pretty accurate.

Note the Redditors broke no law, just enraged the bigwigs in Wall Street 

Now Redditors are going for Silver, alleging the Silver price is artificially too low.

I am pretty conservative, so I am not planning on jumping on the bandwagon, but I would be very cautionary because the bandwagon is great for the first few people on, but after it gets to its first destination, it tends to run amok without brakes.

2 hours ago, BasedCoomer said:

Truly and epic gamer move. Hope they find more and bleed them dry. 

POWER TO THE PLAYERS. 

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8 hours ago, alexf24 said:

Now Redditors are going for Silver, alleging the Silver price is artificially too low.

I recall a couple of Hunt brothers making a move on silver back in the Stone Age.

Boy, did they shake things up!

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I don't know anything about the stock market but news about this spread pretty slow, and then it blew up.  I lurk on Imgur a lot and there's nonstop memes about it.

 

"Me disguising myself as a hedge so I get funds."

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"The world is waking up to the fact that a free market is not a fair market."

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QzOH6YA.jpg

 

"Screw you, Citadel and Marvin, you didn't care when my parents lost their house in 2008, I don't care if you lose your yacht today."

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https://www.mediaite.com/news/bullsht-hedge-fund-billionaire-leon-cooperman-rages-over-gamestop-surge-rips-small-investors-for-having-no-idea-what-theyre-doing/

 

I hope these people lose even more money.

  • Haha 1

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