Linus should stop his $GME "Investment"

[Jay427]

This guy doesn't know how to invest in the future.  Linus plans to build his very own Chimp Eden on the moon

[TempestCatto]

1 hour ago, SparkShot said:

His money, yes. However announcing it to the world before doing it could land him in some hot water.

It can't though? There's no law that says he can't invest his own money into GME. Only hot water he'd be in is with his wife for wanting to spend so much money. Where the fuck do you guys get your ideas from anyway?

[MChrisp]

On 30.1.2021 at 3:53 AM, Dtx1 said:

Okay guys, we all had fun at the WAN Show right now, especially seeing Linus squeal. He thought he'd be in for $10K at most and could ride it out as a meme. $50K is not chump change and who knows if this publicity stunt he just accidentally did couldn't be construed as market manipulation.

I don't think it's funny anymore and I would accept a "OK, I fucked up" from Linus, followed by a more reasonable donation to a charity. I don't want to see LTT or Linus get F-ed by some oversight body he didn't know existed and I would still enjoy his content and believe in his integrity if he bowed out of this mess. There are real jobs, real people, real lives involved and as much as i want to stick it to the big hedgefond guys i don't find it funny to see LTT or Linus get sucked into this.

You are totally right. I know, I'm a little late, but even at that point on Friday he will not do any good to anyone and actually do not harm the people he intends to...

[Donut417]

On 1/29/2021 at 9:53 PM, Dtx1 said:

Okay guys, we all had fun at the WAN Show right now, especially seeing Linus squeal. He thought he'd be in for $10K at most and could ride it out as a meme. $50K is not chump change and who knows if this publicity stunt he just accidentally did couldn't be construed as market manipulation.

I don't think it's funny anymore and I would accept a "OK, I fucked up" from Linus, followed by a more reasonable donation to a charity. I don't want to see LTT or Linus get F-ed by some oversight body he didn't know existed and I would still enjoy his content and believe in his integrity if he bowed out of this mess. There are real jobs, real people, real lives involved and as much as i want to stick it to the big hedgefond guys i don't find it funny to see LTT or Linus get sucked into this.

1) You dont think Wall Street manipulates the market? Because they do. 

2) The people that run Wall Street have no conscience. They deserve what they get. They caused the Great Depression. They caused the Great Recession of 2008-09. They cause the housing market bubble, they caused people to loose their retirement. They are the reason the banks and car companies needed a bailout. If Wall Street expect sympathy from me they can find in in the dictionary between the words Shit and Syphilis. 

3) For far too long has the 1% shit all over the 99%. The 99% are striking back in the only way they know how. On the 1%ers turf. I doubt the Reddit group will be able to sustain this, but if they cost a few Billionairs/Hedgefunds a few billion dollars, it would have been worth it. 

[AdmiralKird]

12 hours ago, TempestCatto said:

Only hot water he'd be in is with his wife for wanting to spend so much money

It's not just that. Most wives will also be upset at having their family finances put up for bidding on social media, Linus for even thinking that was acceptable, calling her during the middle of a stream to discuss family finances - the company CFO no less, and putting her publicly on the spot and ignorantly potentially setting her up to be seen as 'the enemy' if they didn't do it. If he wasn't put in boiling water this weekend it was because Yvonne was merciful.

[TempestCatto]

5 minutes ago, AdmiralKird said:

It's not just that. Most wives will also be upset at having their family finances put up for bidding on social media, Linus for even thinking that was acceptable, calling her during the middle of a stream to discuss family finances - the company CFO no less, and putting her publicly on the spot and ignorantly potentially setting her up to be seen as 'the enemy' if they didn't do it. If he wasn't put in boiling water this weekend it was because Yvonne was merciful.

Man you're really over-analyzing this ain't ya?

 

Was it a dick move putting her on the spot like that? Yeah. But at the end of the day, Linus could just back out. People would mock him on social media, but it would certainly not harm him or his reputation. They also didn't discuss family financing per se. They did talk about the investing, and putting their own money in. But they didn't really talk it through either. More or less just "hey are we able to if we wanted to?" kinda thing. She said they'd talk later, and I'm sure they did. That talk they had was way more in depth than what we heard on the WAN show. That talk would have included all kinds of personal info and what-not, Linus isn't stupid, he would not talk about that stuff on camera in that magnitude. Also, even if she said "no frigg off" no one in the community (except for some real assholes who's opinions don't matter anyway) would be mad at her. They'd be disappointed, sure, but they wouldn't fucking disown her either. What is it with you people?

[Quackers101]

if it was life savings into a bet, that would be horrible.

But yeah, he should maybe not have put 5x the amount, if he did.

It would be interesting if he did and what he does with that investment.

[EldritchMoose]

On 1/30/2021 at 8:40 AM, Amias said:

This little memef***about has guaranteed over 14,000 gamestop employees job and secured the future of that company.

Weirdly, this is the thing that upsets me most about this: I'm really happy that hedge funds are sweating and thousands more arent's added to the unemployment pool in an uncertain economic time, but why did Gamestop of all game-related companies get to be the one that benefits?

 

Like, couldn't they have waited for a nice company to nearly topple?

 

Aside from that, all this talk about potential legal issues seems to be predicated on the notion that LTT does not have any form of a legal department which might inform Linus of any potential issues. Hell, for all we know Linus ran this idea past a lawyer before he enacted it on the WAN show.

[LAwLz]

15 hours ago, TempestCatto said:

It can't though? There's no law that says he can't invest his own money into GME. Only hot water he'd be in is with his wife for wanting to spend so much money. Where the fuck do you guys get your ideas from anyway?

The "it's his money he can do whatever he wants" logic works when you're 10 and want to buy a game your parents won't let you buy, but things are actually different with the stock market. 

 

I am not a lawyer so I am not sure if limits can land in hot water for this and honestly I don't care. He is filthy rich so he will be fine even if he were to lose everything or gets investigated for market manipulation. I'm not even worried about him. In my eyes it seems like Linus is doing a "hello fellow kids" since it's kinda late to join in. 

I just think "it's his money so he can do whatever he wants" is both an immature and naive way of looking at things. That's not how the adult world works. 

[Loki0111]

15 minutes ago, EldritchMoose said:

Weirdly, this is the thing that upsets me most about this: I'm really happy that hedge funds are sweating and thousands more arent's added to the unemployment pool in an uncertain economic time, but why did Gamestop of all game-related companies get to be the one that benefits?

 

Like, couldn't they have waited for a nice company to nearly topple?

 

Aside from that, all this talk about potential legal issues seems to be predicated on the notion that LTT does not have any form of a legal department which might inform Linus of any potential issues. Hell, for all we know Linus ran this idea past a lawyer before he enacted it on the WAN show.

Gamestop specifically is benefitting because of how much it was shorted. It was initially shorted somewhere around 140-160% (its now somewhere around 90%). That means there where significantly more outstanding shorts then there where actual stocks to cover them. The reason hedge funds do that is they target specific companies already having trouble then profit by running them into the ground.

 

There is currently a run on other businesses that are also being shorted heavily but nothing was close to the scale of shorting Gamestop had going on.

[Spotty]

1 minute ago, EldritchMoose said:

but why did Gamestop of all game-related companies get to be the one that benefits?

It's because major investors shorted the stock - They bet against it to lose.

 

ELI5 explanation is they borrowed shares, then sold the shares they didn't own. Now they are hoping that the share price drops so when they have to return the shares they can buy shares at a cheaper price, and pocket the difference.

 

Example: You have 1000 shares of LMG. I ask to borrow those shares from you, you agree and say I can borrow them but I must return to you 1000 shares in 12 months time and I must pay 10% interest. I borrow those shares from you and then I immediately sell them at their current market value (let's say $10 per share). I have $10,000. I wait a few months and hope the share price drops, and let's say by the end of the year it drops to $5 per share. I then buy back 1000 shares at $5 each, costing me $5,000. I return those 1000 shares I borrowed from you plus 10% interest of $1,000. I then pocket the $4,000 that's left over.

But, if the price of the shares goes up I would still need to buy back shares so I could repay you. Let's say the share price increases to $20 per share. I would then need to buy 1000 shares at $20 each, costing me $20,000. I would lose $10k.

 

All the major investment groups that shorted gamestop when the share price was (compared to now) very low would eventually need to buy those shares back at the now much higher price, costing them billions to do so.

 

You can't just buy shares in a random company to "stick it to the man". It needs to be one that they've shorted and where they will be forced to buy back large amount of stock in at some point, this way everyone who bought the shares will have someone willing to buy them.

 

 

Also I'm not really sure how much Gamestop is actually going to benefit from all of this.

[EldritchMoose]

4 minutes ago, Loki0111 said:

Gamestop specifically is benefitting because of how much it was shorted. It was initially shorted somewhere around 140-160% (its now somewhere around 90%). That means there are significantly more outstanding shorts then their are actual stocks to cover them. The reason hedge funds do that is they target specific companies already having trouble then profit by running them into the ground.

I think you misunderstand my comment. I know why they are benefitting, I just don't like that they are. I don't like Gamestop is all.

[Loki0111]

1 minute ago, EldritchMoose said:

I think you misunderstand my comment. I know why they are benefitting, I just don't like that they are. I don't like Gamestop is all.

Well I mean you are entitled to your personal view like anyone else about the company. I don't actually have an issue with Gamestop myself, its just another gaming retail chain to me.

 

But the fact Gamestop is the company benefitting is entirely circumstantial.

[YellowJersey]

[Amias]

20 minutes ago, EldritchMoose said:

I think you misunderstand my comment. I know why they are benefitting, I just don't like that they are. I don't like Gamestop is all.

You sound sore and jealous.

[Quackers101]

39 minutes ago, LAwLz said:

I just think "it's his money so he can do whatever he wants" is both an immature and naive way of looking at things. That's not how the adult world works. 

Maybe so, but would still think it's his choice in this situation.

[Kisai]

58 minutes ago, EldritchMoose said:

Weirdly, this is the thing that upsets me most about this: I'm really happy that hedge funds are sweating and thousands more arent's added to the unemployment pool in an uncertain economic time, but why did Gamestop of all game-related companies get to be the one that benefits?

 

Because the situation was that Gamestop was shorted in a way that made no sense to the fundamentals. Literately these evil hedge funds were trying to destroy it, and betting that it would.

 

And when interest rates to short a stock are in the 30% per day range, you really want to unwind that position as quickly as possible, regardless of the book value of the stock you can't return.

 

Shorts are still in GME at the same level they were back on the 19th the best that I can make out. It's more likely we'll run out of people willing to buy it at any price because of the current valuation is out of most people's ability to buy (generally any stock value in triple digits is difficult to buy since if orders are "all or nothing" they will usually be in lots of 100, meaning you need between USD$18000 and $34000 to purchase one lot.

 

Robinhood (which is just one of many DIY brokerages) is still limiting people from buying, so there is no liquidity, but if you also look at who owns it right now, I'm sure a bunch of the intuitional investors would like to get out as well at this valuation, but they know if they drop 9 million shares on the open market, they're not going to get $300+ for each one. 

 

[LogicalDrm]

5 hours ago, AdmiralKird said:

It's not just that. Most wives will also be upset at having their family finances put up for bidding on social media, Linus for even thinking that was acceptable, calling her during the middle of a stream to discuss family finances - the company CFO no less, and putting her publicly on the spot and ignorantly potentially setting her up to be seen as 'the enemy' if they didn't do it. If he wasn't put in boiling water this weekend it was because Yvonne was merciful.

So this is something you might say without knowing the history. Yvonne, before been shown more in front and in videos, was seen as "the bosses wife who just walks around the office acting like she owns it". Which is a meme by itself of the old days. While really being the absolute truth. She's the bosses wife, she owns part of the company, and at the time of those comments, was their only accountant (Windows TV vlog series if you are interested).

 

As for talking about family business, and how they conduct certain things publicly. Pretty much all they said in that short clip is already known publicly. And those parts which aren't, like having small account for investing to stocks, bonds and funds. is something middle income family/business's bank will recommend them for "security and savings". As those usually grow faster than just having regular savings account, and bank can use them as part of their capital.

[Zodiark1593]

7 hours ago, AdmiralKird said:

It's not just that. Most wives will also be upset at having their family finances put up for bidding on social media, Linus for even thinking that was acceptable, calling her during the middle of a stream to discuss family finances - the company CFO no less, and putting her publicly on the spot and ignorantly potentially setting her up to be seen as 'the enemy' if they didn't do it. If he wasn't put in boiling water this weekend it was because Yvonne was merciful.

Probably a little extreme here. Nothing that was mentioned on the ill-fated stream wasn’t already known or inferred by long-time viewers. Well, besides the fact that Linus is well on path to becoming this guy. 
 

https://en.m.wikipedia.org/wiki/Oil_futures_drunk-trading_incident

Putting Yvonne on the spot out of the blue was also pretty reckless on Linus’s part, but probably forgivable given the world of  he had already dropped himself in, he was already feeling the heat and likely not even really thinking by that point. 
 

I feel no need for the forums to censure him. Pretty certain Yvonne has that covered. And of there’s a big legal monster that arises out of this incident, that’s what witchers lawyers are for. 

[LAwLz]

8 hours ago, Quackers101 said:

Maybe so, but would still think it's his choice in this situation.

I think you missed the point of my post.

I am not saying "it's irresponsible" or "he is throwing his money away" or anything along those lines. My point is that buying stock is not like buying a gaming console, car or whatever. There are strict rules and regulations about how you're allowed to talk about it, how you're allowed to buy it, how you're allowed to sell it, etc.

Doing things like taking donations to buy stock, encouraging people to donate etc could potentially be illegal. I am no lawyer so I don't know, but my point is that "it's my money I can do what I want with it" is just not true. It's true when you are a child, but not when you are an adult, and especially not when you are dealing with heavily related things like the stock market.

[Loki0111]

Lol, he did it. Welcome to the club!

 

 

[TetraSky]

Meanwhile, the stock lost 70% its value in the last few days. This whole Gamestonk meme thing, it was never going to fly much further, especially not once RobinHood and others started limiting purchases to protect their Hedge Fund overlords. Anyone smart enough about, it, would've pulled out before the end of January 29.

[Loki0111]

If you were investing in GME to make money you were probably an idiot to begin with. That train largely left when the stock broke $30 and definitely was long gone when the stock broke $200.

 

It was an FU hedge funds throw away stock for me since the beginning. I got in when the short squeeze got pointed out and only bought in with what I could easy afford to lose. My plan was always to stay in until the shorts dropped below 50% of the total stock, then pull out whatever was left.

[papajo]

The plan is not to sell eventually the hedgefunds will have to cover their shorts and then they will buy back even if ask price is high. 

[Roswell]

17 minutes ago, papajo said:

The plan is not to sell eventually the hedgefunds will have to cover their shorts and then they will buy back even if ask price is high. 

They already covered, they’re not going to compound losses holding positions for weeks paying stupid amounts of interest, that’s not how it works.