Holding "GAMESTOP Stock" is the new BitCoin !, page-7

  1. 31,527 Posts.
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    It's creepy that this guy can't manage to take his black gloves off. He can't afford a screen to blank out his background of children's toys?
    Is this supposed multi-tasking supposed to give him some kind of inverted snobbery cred?

    On content: he takes a ridiculous amount of time to explain concepts so basic they don't need explaining.
    Like prices increase or decrease according to demand.
    Even the most uneducated person understands this. It's so obvious it doesn't bear demonstrating.

    More complex concepts like shorting and short covering are better conveyed using a whiteboard or graphics. So the concepts are accumulated and applied.

    Especially the time frame that you must close short sales within a specified time, eg. 30 days. And then how you're forced to buy the stock at whatever the asking price is, and most importantly with Gamestop you have VERY unmotivated sellers. Only a few drips of the stock are being sold at astonishing prices.

    The sellers are on strike! This is a basic analogy that he doesn't use and it's central to the whole thing.
    Nobody has noticed the irony of the company name Gamestop!
    These reddit guys are stopping the game! They won't play!
    A VERY well chosen stock to apply this principle. But it's not being noted. OK.

    He does explain the manipulation of the big end of town well though. They're used to being in charge. and AGHAST at not being able to manipulate the market like they usually can.

    Because no visuals not enough emphasis on the problem of the over 100% of the stock being shorted which is being exposed. To short you must borrow the stock from someone who holds it. It's illegal to pretend you have a deal with the actual holder of a stock, in order to short it. That's naked short selling and it's a practice that these guys are exposing.

    The tide has gone out, and the naked shorts are being exposed. It's important to give meaning to these expressions so people can recognise them when they're being used.

    Annoyingly, he uses special purpose jargon of the reddit group that's been developed for this purpose of exposing naked shorts, without explaining properly
    Diamond hands obviously means the opposite of weak hands which sell, it means they're going to hold on and on. It means they aren't going to be scared by a low share price and a herd fear mentality, that usually divides and drives retail shareholders to sell against their own interests.

    Overall though he mostly understands what's going on. Just doesn't communicate well.

    Except he hasn't understood that most of these guys don't care to cash out. They're doing this to expose and for the principle. Many have nothing left to lose. They're behaving supposedly irrationally and call eachother 'retards' and apes monkeys etc using in jokes at their rejection of conventional investing norms and metrics. In doing so they're sowing the seeds of what they hope is a shareholder revolution, for the little guy sick of being smashed by a manipulated market.

    It will be very interesting indeed to see what the response of the regulators including SEC will be on Monday.

    My guess is they're working on this overtime because the risk is that the losses of the hedge funds are going to continue until all the shorts are settled.

    The hedge funds are now saying that all shorts have been closed. Is this truly the case? Or is it a bluff? Perhaps they will wait until all the shorts have been settled and let it burn itself out. Robinhood fund which uses a clearing house like CHESS has made desperate attempts to stoop the SP from escalating further this by disallowing buying of Gamestop. The price did dip and now it's recovered. The issue is have the shorts been settled or not?

    BUT the diamond hands are stating they will hold out until the SP goes to the Moon to enable the shorters to settle their trades. That is, ask the shorters for such high prices they're going to be unbelievable.

    In other words, they have no interest in selling.
    If they don't say they want others to do this they are just giving their own opinion of the stock and that they just like the stock.

    If the regulators intervene and decide to litigate the members of this subreddit group for conspiracy or similar to manipulate the SP, then it will create a furore because of the blatant hypocrisy of allowing the manipulation of the short sellers particularly of the naked short selling.

    This is incendiary stuff and it's amazing the boards of HC aren't blazing with it.











 
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