Dear Linus and your 50k contribution to GME

[Forestgreen]

Just watched second half of your WAN show and just want to let you know a few things. First I'm one of the OG GMErs on WSB, I've made off like a bandit bought at 15$ a metric ton of shares. I've been following GameStop like a hawk and talked with DFV on his streams and he does reply back to my thesis. I know you are afraid but hear me, I still haven't sold a large stake on it simply because I believe (90% conviction) that you won't lose money, it will go up but you need 1 thing. Sadly that is patience and diamond hands. 

I did, and so many others got into GME not simply for the short squeeze we got it because its an investment into the company itself. If you need more reassurance I can write up or point resources or due diligence that will put ur heart at ease.

 

Welcome to the fight. HOLD!

[Quackers101]

Hold what fort, can we reroll the dice?

[Dinglesplat]

I'm holding, along with my AMC as well.

[oahbpn]

 

[Rugg]

He better buy it. Not because I believe he will profit. I think 90% of this is a sham and will collapse at any moment.

However, he said on livestream that he would do it, and so many people only donated because of it.

[Letgomyleghoe]

to all of you people holding, good luck, I would be watching that shit like a hawk ready to sell at any moment, if I hopped on the stonk bandwagon.  seems like a dumpster fire waiting to happen. 

[themaniac]

1 hour ago, Letgomyleghoe said:

to all of you people holding, good luck, I would be watching that shit like a hawk ready to sell at any moment, if I hopped on the stonk bandwagon.  seems like a dumpster fire waiting to happen. 

oh it absolutely is, but theres a chance that you can make a few hundred but that also requires you have have a few hundred for the stock now

[LogicalDrm]

-> Moved to Off Topic

 

While this might related to LTT content, it still isn't about tech, and we are mainly tech forum.

[dalekphalm]

Obviously the stock price has to crash, hard, sooner or later. There's absolutely no way that GME is worth $20+ Billion on a long term basis - in the last 2 years, they've lost over a billion dollars in net revenues. I don't think GME is necessarily going bankrupt anytime soon (though it's a distinct possibility), but brick and mortar video game shops like that simply aren't as popular as they used to be, with the advent of steam, digital purchases on consoles, and online retailers such as Amazon, etc.

 

All I can say to anyone who is putting money into GME:

Only put money in you can afford to entirely lose, because one of these days you might wake up to a share price that's less than you paid by a significant margin.

 

I was tempted to jump in on the short term but the trading platform I use has a 3-5 day wait period for fund transfers into the account, and on top of that, by the time it made news, it was already way overvalued.

 

At this point, it's just gambling on how long it'll take before it crashes.

[Forestgreen]

4 hours ago, dalekphalm said:

Obviously the stock price has to crash, hard, sooner or later. There's absolutely no way that GME is worth $20+ Billion on a long term basis - in the last 2 years, they've lost over a billion dollars in net revenues. I don't think GME is necessarily going bankrupt anytime soon (though it's a distinct possibility), but brick and mortar video game shops like that simply aren't as popular as they used to be, with the advent of steam, digital purchases on consoles, and online retailers such as Amazon, etc.

 

All I can say to anyone who is putting money into GME:

Only put money in you can afford to entirely lose, because one of these days you might wake up to a share price that's less than you paid by a significant margin.

 

I was tempted to jump in on the short term but the trading platform I use has a 3-5 day wait period for fund transfers into the account, and on top of that, by the time it made news, it was already way overvalued.

 

At this point, it's just gambling on how long it'll take before it crashes.

This is where the hedge funds analyst got you conditioned to think that. The problem is that your looking backwards without considering the circumstances which bought it where it is. First it was only last year a new management came in and cleaned house noticed how all other retailers are needing to do stock offerings to save themselves while GME does not(if you mention shelf offering, please listen in the Q3 earnings call, they don't need it that question was asked specifically), second the at the end of a console cycle people will  hold out their purchases and  was exacerbated by the closure of stores due to covid. 

 

Saying its not worth 20b and then comparing it to DoorDash or Airbnb which makes as much money as GameStop COMBINED yet they have a combined market cap of 170b is totally ok. Hell NKLA motors doesn't even make money is trading at 8b market cap.

If you want to actually hear what someone with a bias or short position, look at HedgeEye. They even responded to Citron claim and suggested that GameStop is easily worth over 100$+ with Ryan Cohen on board without even getting any news of their turn around plan.

 

PS. GameStop will soon be opening PC hardware stores themes something like miniature MicroCenters. Where did I get the rumors, Redditors simply called up GameStop locations and talked with the workers and confirmed it.

[dalekphalm]

43 minutes ago, Forestgreen said:

This is where the hedge funds analyst got you conditioned to think that.

Hedge fund analysts have never spoken to me, nor have I ever read any of their blog posts, etc - particularly involving GME, so you're gonna have to back up the assertion that they've conditioned me in any sort of manner.

43 minutes ago, Forestgreen said:

The problem is that your looking backwards without considering the circumstances which bought it where it is.

We look backwards because no one can see into the future. We can predict, based on many factors, but that's little different ultimately from those very Hedge Fund analysts you speak poorly of above.

43 minutes ago, Forestgreen said:

First it was only last year a new management came in and cleaned house noticed how all other retailers are needing to do stock offerings to save themselves while GME does not(if you mention shelf offering, please listen in the Q3 earnings call, they don't need it that question was asked specifically), second the at the end of a console cycle people will  hold out their purchases and  was exacerbated by the closure of stores due to covid. 

I don't think console sales themselves are the driving profit of GME (or really any games retailer). Yes, they're important, and a new console generation will definitely breathe new life into a games retailer, but I would be shocked if Games weren't the primary area of profit (and possibly collectibles as a growing market).

43 minutes ago, Forestgreen said:

Saying its not worth 20b and then comparing it to DoorDash or Airbnb which makes as much money as GameStop COMBINED yet they have a combined market cap of 170b is totally ok.

Who's comparing GME with DoorDash and Airbnb? You? Some Hedge Fund Analyst? I certainly never mentioned them.

 

Also, obviously, DD and ABNB are overpriced too almost certainly. But their markets may have larger room for growth by comparison (guess only, I have not looked into the matter since I didn't bring it up).

43 minutes ago, Forestgreen said:

Hell NKLA motors doesn't even make money is trading at 8b market cap.

Yes, but that market value is based on the prospective earnings of a company that has some potentially very lucrative deals - if those deals fall through, or they repeatedly failed to deliver a product, their stock price will also fall drastically.

43 minutes ago, Forestgreen said:

If you want to actually hear what someone with a bias or short position, look at HedgeEye. They even responded to Citron claim and suggested that GameStop is easily worth over 100$+ with Ryan Cohen on board without even getting any news of their turn around plan.

Worth over $100 per share? Perhaps. If they fix their previous financial issues, and are able to adapt to the changing Gamer market (less physical sales, more digital sales).

 

Of course, their stock price is sitting at $325/share right now, so yeah. $325/share is not anywhere comparable to $100/share.

 

Even if it does settle down to $100/share, pretty much the vast majority of people who invested during this spike will lose a large amount of money.

43 minutes ago, Forestgreen said:

PS. GameStop will soon be opening PC hardware stores themes something like miniature MicroCenters. Where did I get the rumors, Redditors simply called up GameStop locations and talked with the workers and confirmed it.

Has this been confirmed by a real source?

 

Even if it's true, that's not exactly inspiring. Computer hardware brick and mortar stores have razor thin margins and can be very expensive to operate (particularly with the cost of holding product in stock). They'd have to sell pre-built pre-configure machines and/or very select products with minimal or no choice in selection to make that work well, I'd think.

[manikyath]

it doesnt take more than a slice of common sense that the current stock trend of gamestop is a bubble. it is not based on anything that the company has done, it is simply caused by an explosive interest into the stock, based on an explosive interest into the stock, based on... (repeating..), eventually based on an idea that started on reddit.

anyone who tells you it's not gonna bomb hard is either not being realistic, or has some financial interest in it continuing to skyrocket.

 

now... how far it's gonna keep going up, and when it's gonna fall down.. that's uncertain. it's essentially like that first enormous bitcoin spike. the longer you hold on, the more profit there is to be made... but the more chance you're gonna be part of the crash. that's essentially the 'game' you play on a stock market.

 

i'm backing the "dont spend any money you cant afford to lose" argument, most notably because i feel like at this point the biggest amount of profit has already been made.

if you bought in at 20 bucks, and are now cashing out at 350 bucks (today's highest point so far), you're making a 1500% profit.. if you cash in at 250 bucks (today's lowest point so far) there's only maybe a 60% profit to be expected, seeing that even in the past 2 days we've seemingly reached a ceiling, and a pretty volatile one at that.

 

it's a hilareous middle finger to the stock brokers getting stupidly rich based on other people's misfortune... but we need to remember that there is nothing more than just that about this. At this point it's a market of jokesters doing it 'for the meme' and people waiting for a spike to shovel off their profits.

 

i suggest anyone who has interest in the gamestop bubble to look into what happened about 15 years around penny stocks, spam e-mails, and 'pump and dump' schemes. This is essentially just a decentralized, crowd-funded pump and dump scheme. i'm not saying dont get into it, i'm saying to inform yourself before you make the dive.

[dalekphalm]

On 1/30/2021 at 3:54 PM, manikyath said:

it doesnt take more than a slice of common sense that the current stock trend of gamestop is a bubble. it is not based on anything that the company has done, it is simply caused by an explosive interest into the stock, based on an explosive interest into the stock, based on... (repeating..), eventually based on an idea that started on reddit.

anyone who tells you it's not gonna bomb hard is either not being realistic, or has some financial interest in it continuing to skyrocket.

 

now... how far it's gonna keep going up, and when it's gonna fall down.. that's uncertain. it's essentially like that first enormous bitcoin spike. the longer you hold on, the more profit there is to be made... but the more chance you're gonna be part of the crash. that's essentially the 'game' you play on a stock market.

 

i'm backing the "dont spend any money you cant afford to lose" argument, most notably because i feel like at this point the biggest amount of profit has already been made.

if you bought in at 20 bucks, and are now cashing out at 350 bucks (today's highest point so far), you're making a 1500% profit.. if you cash in at 250 bucks (today's lowest point so far) there's only maybe a 60% profit to be expected, seeing that even in the past 2 days we've seemingly reached a ceiling, and a pretty volatile one at that.

 

it's a hilareous middle finger to the stock brokers getting stupidly rich based on other people's misfortune... but we need to remember that there is nothing more than just that about this. At this point it's a market of jokesters doing it 'for the meme' and people waiting for a spike to shovel off their profits.

 

i suggest anyone who has interest in the gamestop bubble to look into what happened about 15 years around penny stocks, spam e-mails, and 'pump and dump' schemes. This is essentially just a decentralized, crowd-funded pump and dump scheme. i'm not saying dont get into it, i'm saying to inform yourself before you make the dive.

Current price is now $114/share. Anyone who bought in on Monday Morning or Friday Night just lost half their money or more. 
 

Granted? I guess it could go back up still. 
 

I think the rollercoaster will continue for some time until the Reddit folks get bored, then itll

settle back into a normal Price. 

[wall03]

6 minutes ago, dalekphalm said:

Current price is now $114/share. Anyone who bought in on Monday Morning or Friday Night just lost half their money or more. 
 

Granted? I guess it could go back up still. 
 

I think the rollercoaster will continue for some time until the Reddit folks get bored, then itll

settle back into a normal Price. 

You forgot this:

Bottom is volume. Should the small amount of volume put the stock at the low price it is? No!

[dalekphalm]

7 minutes ago, wall03 said:

You forgot this:

Bottom is volume. Should the small amount of volume put the stock at the low price it is? No!

Can you elaborate on what you’re talking about here?

 

Volumes are lower compared to the peek but still far above normal. What’s your point?

[wall03]

6 minutes ago, dalekphalm said:

Can you elaborate on what you’re talking about here?

 

Volumes are lower compared to the peek but still far above normal. What’s your point?

the volume doesn't justify the huge dip of cost

[Twolf]

when it comes to stock market in general: don't invest unless have can afford to lose it. it's just like gambling at a casino (just... more legal). I have investments thru a broker for retirement because well slightly less risky (though there's still risk) but still has better returns than dumping that money into a savings account. plus it's not locked like an ira or something so if I have to dip into it, I can, without having to pay some kind of penalty or something.

 

GME will go down, it's definitely currently way over valued... however, the influx in investors should give them some capital to maybe improve their business ... but that's entirely up to the company. So if they manage to pull some form of miracle to their business model and become profitable again, it's possible that the crash won't be as hard and people may not lose anything... but... odds are against ya on that one. Retail in general is in decline currently because of online sales and the pandemic (online sales were already killing it but the pandemic just kind of exasperated it all).

While I think the idea behind the whole movement was cool (cuz seriously, shorting a stock is just... a rude and nasty tactic), the hype will eventually die. It is the internet after all.. where people's attention spans are about that of a goldfish.

[Blade of Grass]

43 minutes ago, wall03 said:

the volume doesn't justify the huge dip of cost

It's not like you need volume for stocks to gap up or down. Additionally, each start of day/end of day has an auction to determine a clearing price (opening/closing cross), which can cause the stock to be adjust to reflect supply/demand (i.e. finds the middle ground between what sellers vs. buyer think is the right price).

[dalekphalm]

Let's keep a few things in mind about investing in general:

 

1. If you have savings (particularly long term), you SHOULD be investing at least a portion of those savings.

2. Those investments should largely be indexed funds (ETF's, etc), that are well diversified both in geography as well as industries.

3. Those investments should be the "couch potato" kind of passive investments that you simply keep buying and never touch until you need to withdraw money (eg: as retirement approaches or you need to buy a house, etc). This protects you against yourself, because in most cases, the user interfering with their passive investments causes more harm than gain (eg: panicking because of a market dip - or even a major recession, and selling, rather than holding and waiting it out).

4. Companies like GME DO NOT MAKE MONEY when stocks are sold. They only make money when stocks are issued (meaning new stocks are created and sold). When I buy a stock of GME, I'm not buying it from GME, I'm buying it from John the stock holder, or whoever.

 

So people in here talking about "the influx of investors" are either misunderstanding the situation (since the total number of stocks haven't changed, just that the stocks have changed hands), or they're talking about something else.

 

Yes, events like this can lead to new investment in GME as a company, but stock changing hands does not inherently give GME more money to work with (though it does enrich any of the employees that own stocks in GME).