Bairnardo Posted January 28, 2021 Share Posted January 28, 2021 Bought myself some interest shares in AMC, just to be a part of this hopeful Dark Knight Rises moment...Who will be our Bane..... 0 Quote Link to comment Share on other sites More sharing options...
Lofarl Posted January 28, 2021 Share Posted January 28, 2021 Right signed up to freetrade, once I have my KYC checks done I will spunk about £200 in AMC. 0 Quote Link to comment Share on other sites More sharing options...
strichener Posted January 28, 2021 Share Posted January 28, 2021 On 27/01/2021 at 15:27, Ross. said: The whole Reddit/GameStop thing is absolutely fucking hilarious. Zero sympathy for the hedge funds, I can only assume it was arrogance that made them think they could short it to the level they did without someone realizing there was a scalp to be taken. Fairly sure something similar happened about a decade back with Porsche. Ultimately though GameStop price will crash as the intrinsic value in the company isn't there. The company could be out of business soon or at least in chapter 11 and a whole lot of "investors" will be greeting about not understanding that the could lose their entire investment. 1 Quote Link to comment Share on other sites More sharing options...
Fraser Fyvie Posted January 28, 2021 Share Posted January 28, 2021 Robinhood The exact reason why Bitcoin/DeFi is going to blow up IMO 2 Quote Link to comment Share on other sites More sharing options...
Ross. Posted January 28, 2021 Share Posted January 28, 2021 9 minutes ago, strichener said: Ultimately though GameStop price will crash as the intrinsic value in the company isn't there. The company could be out of business soon or at least in chapter 11 and a whole lot of "investors" will be greeting about not understanding that the could lose their entire investment. No doubt. There will be plenty of folk who made good money, finding the greater fool who lost the lot. The whole thing though shows just how out of touch with reality the markets are, and how useless the regulatory framework is. 1 Quote Link to comment Share on other sites More sharing options...
strichener Posted January 28, 2021 Share Posted January 28, 2021 Just now, Ross. said: No doubt. There will be plenty of folk who made good money, finding the greater fool who lost the lot. The whole thing though shows just how out of touch with reality the markets are, and how useless the regulatory framework is. As someone that works in the industry, you will be well aware that the market is skewed to those that are 'on the inside" (for want of a better phrase). The fact that they are trying to close ranks to protect hedge funds is the real scandal in this. I do think there is a place for shorting shares where an investor believes that these are overvalued and they should, in theory, help regulate the price. TSLA would be a prime example of this where the hype exceeds the value proposition substantially. Personally I keep away from individual stock picking as the market can be manipulated far too easily. 3 Quote Link to comment Share on other sites More sharing options...
Granny Danger Posted January 28, 2021 Share Posted January 28, 2021 2 hours ago, stumigoo said: What I want to know/I’m concerned about is the longer term state of general investing as a result of this (and potentially future similar events). This is probably now a ‘thing’ isn’t it? Or is it just a flash in the pan social media thing? Basically, is this going f**k people, like me and others in here who are just trying to regularly put aside money into ‘safe’ low growth/dividend stocks? I also wonder how, legally, some brokers will be hit by this. I’ve been using Trading 212 for about a year now and have never had any issues but the chat in the last 24 hours has been incredibly volatile given their position (similar to Robinhood etc) to halt GameStop. Not that I was going to get in on the action (I’m all about long, long term growth) but it could have huge knock-on effects to online/app platforms possibly? I’m all for fucking about with some billionaires but I would like to think my retirement/family fund is okay! It’s a blip. -1 Quote Link to comment Share on other sites More sharing options...
Ross. Posted January 28, 2021 Share Posted January 28, 2021 36 minutes ago, strichener said: As someone that works in the industry, you will be well aware that the market is skewed to those that are 'on the inside" (for want of a better phrase). The fact that they are trying to close ranks to protect hedge funds is the real scandal in this. I work in the industry and I am as cynical about it as anyone you will find, but a lot of what is being described as “closing ranks” is probably self preservation. There will no doubt be a few people with connections putting pressure on and calling in favours, but by and large it will be brokers seeing the volatility, expecting it to crash, and not wanting to get left with the hassle that comes after, especially when many of the people trying to get in here will likely never trade again afterwards. 0 Quote Link to comment Share on other sites More sharing options...
welshbairn Posted January 28, 2021 Share Posted January 28, 2021 1 hour ago, strichener said: TESLA*? would be a prime example of this where the hype exceeds the value proposition substantially. Probably, but there was a huge campaign to short it before, including loons trying to crash their test cars. The madness goes both ways. 0 Quote Link to comment Share on other sites More sharing options...
MONKMAN Posted January 28, 2021 Share Posted January 28, 2021 With massive global stimulus coming over the next 12 months, that usually means gold is a good bet. 0 Quote Link to comment Share on other sites More sharing options...
sparky88 Posted January 28, 2021 Share Posted January 28, 2021 1 hour ago, Ross. said: I work in the industry and I am as cynical about it as anyone you will find, but a lot of what is being described as “closing ranks” is probably self preservation. There will no doubt be a few people with connections putting pressure on and calling in favours, but by and large it will be brokers seeing the volatility, expecting it to crash, and not wanting to get left with the hassle that comes after, especially when many of the people trying to get in here will likely never trade again afterwards. It would seem to me then that apps like Robinhood are ill equipped to deal with the place they now have within the financial ecosystem. Robinhood could effectively control the stock market as today has shown. 0 Quote Link to comment Share on other sites More sharing options...
John Lambies Doos Posted January 28, 2021 Share Posted January 28, 2021 Ultimately though GameStop price will crash as the intrinsic value in the company isn't there. The company could be out of business soon or at least in chapter 11 and a whole lot of "investors" will be greeting about not understanding that the could lose their entire investment.Dropped 44% today....Still inflated by a further 98%Wonder how many idiots tried to jump on bandwagon today.Nokia is the next one I think....edit too late, down 28% today... 0 Quote Link to comment Share on other sites More sharing options...
Honest_Man#1 Posted January 28, 2021 Share Posted January 28, 2021 4 minutes ago, John Lambies Doos said: Dropped 44% today.... Still inflated by a further 98% Wonder how many idiots tried to jump on bandwagon today. Nokia is the next one I think....edit too late, down 28% today... I think there might still be twists in this GameStop tale to come. Tomorrow will be interesting viewing. 0 Quote Link to comment Share on other sites More sharing options...
NotThePars Posted January 28, 2021 Share Posted January 28, 2021 3 hours ago, Bairnardo said: Bought myself some interest shares in AMC, just to be a part of this hopeful Dark Knight Rises moment... Who will be our Bane..... What a movie. Most specifically Nolan having to make the bad guys plot a nuclear detonation regardless out of the outcome otherwise people would see the rich being thrown out of their penthouse suites and flung on the ice after a show trial by Cillian Murphy and decide that that looked really cool and a good idea. 1 Quote Link to comment Share on other sites More sharing options...
yoda Posted January 28, 2021 Share Posted January 28, 2021 The Odd Lots podcast on this should be good. 0 Quote Link to comment Share on other sites More sharing options...
Ross. Posted January 29, 2021 Share Posted January 29, 2021 7 hours ago, sparky88 said: It would seem to me then that apps like Robinhood are ill equipped to deal with the place they now have within the financial ecosystem. Robinhood could effectively control the stock market as today has shown. The ill equipped part, maybe, I don’t know what sort of back office support structure these companies have in place, could just be they were caught out by massive numbers coming on board at once, which could happen to a great many on the market who are far bigger than them. You then have the risk aspect. I don’t know how they are set up in terms of funding, but if they have been taking millions from folk looking to get in here and letting them invest it before it has fully cleared(Which most brokers generally do) then they will be worried that the stock crashes and people try to stop or reverse those payments. Cleaning that mess up could potentially finish them anyway. Controlling the market, definitely not, but it would be very easy to manipulate if enough people targeted the same stock or same broker in this way and it got the same publicity. 0 Quote Link to comment Share on other sites More sharing options...
Detournement Posted January 29, 2021 Share Posted January 29, 2021 It's pretty clear that they blocked retail investors from buying to drag the price down and reduce the hedge funds losses. They also sold a lot of GME stock from their users without their permission which was again obviously to bail out the hedge funds. 0 Quote Link to comment Share on other sites More sharing options...
strichener Posted January 29, 2021 Share Posted January 29, 2021 9 hours ago, welshbairn said: Probably, but there was a huge campaign to short it before, including loons trying to crash their test cars. The madness goes both ways. Only it doesn't, the market has rules and circuit breakers to halt falls. No such mechanisms exist for rises, it's almost as if the market is rigged. 1 Quote Link to comment Share on other sites More sharing options...
yoda Posted January 29, 2021 Share Posted January 29, 2021 For the folk who are flinging cash at this now, I have some Beanie Babies that you might be interested in. 2 Quote Link to comment Share on other sites More sharing options...
Ross. Posted January 29, 2021 Share Posted January 29, 2021 49 minutes ago, Detournement said: They also sold a lot of GME stock from their users without their permission which was again obviously to bail out the hedge funds. Most likely they will have something built into their T's and C's which allows them to liquidate client positions in the event of certain circumstances. If any of the clients were leveraged and the value dropped, it could leave the account underfunded and trigger the sell order. Happens regularly with a great many brokers. All that said, at the risk of sounding like a snob, if you choose a broker who offers free trading, you have to expect they are going to be lacking somewhere. Use a broker who isn't dependent on commissions from the market makers and kick backs from other brokers and you won't be as exposed to the threats of market makers and other brokers. 1 Quote Link to comment Share on other sites More sharing options...
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