Looked at NOK, seems good. Have not pondered hope to approach the beast yet.
BB seems we might be late.
Ditto BBBY
Why were we messing around with bitcoins?
Had we been premised on investing in social network effect, BB, BBBY, GME ... were far better wagers
barrons.cmail20.com
GameStop Stock Won’t Stop Climbing
Bearish investors are—or were—heavily betting GameStop stock would fall. But news that Chewy co-founder Ryan Cohen was buying GameStop stock, combined with an army of retail traders predicting gains on message boards and Twitter, pushed GameStop shares up more than 275% over the past five trading days.
Short selling data provider S3 Partners estimates that GameStop bears have accumulated $5 billion in losses so far in 2021.
The squeeze isn’t over. GameStop shares are up another 65% in premarket trading to about $243 a share. GameStop stock traded at $4 a share six months ago.
The losses are so big that GameStop’s run might be causing problems for other, unrelated, stocks. Hedge funds can, in extreme circumstances, be forced to sell holdings as borrowing costs in shorted stocks rise and losses mount.
The GameStop situation counts as an extreme situation.
Melvin Capital’s 15 largest long positions in companies with market capitalization less than $100 billion are down more than 4% on average over the past week. Only one of the 15 stocks is up. The S&P 500 over the same span is basically flat.
Investors will have to brace themselves for other, strange, impacts as the fallout from the GameStop squeeze spreads.
—Al Root
*** Examine the wealth gap and how to address inequities in criminal justice, education, health care and more at a Barron’s event today at 12 p.m. EST. Speakers include Emerson Collective’s Arne Duncan, Rockefeller Foundation’s Dr. Rajiv J. Shah, and others. Sign up at barrons.com/wealthgap
***GameStop Trading Draws Attention From State RegulatorThe unprecedented rise of GameStop’s stock has caught the attention of a top securities regulator in Massachusetts.
William Galvin, the Secretary of the Commonwealth of Massachusetts, said in a statement to Barron’s that he’s been watching the stock, adding, “This is certainly on my radar. I’m concerned, because it suggests that there is something systematically wrong with the options trading on this stock.”GameStop stock is up 685% in 2021 alone, a rise that’s had Wall Street analysts scratching their heads. Experts point to speculative options activity, exuberance from the WallStreetBets forum on Reddit, and the stock’s sky-high short interest. Tesla CEO Elon Musk sent the stock soaring even more in after-hours trading last night, after he posted “GameStonk” on Twitter with a link to the WallStreetBets Reddit page. Investor Chamath Palihapitiya said he placed a relatively—for a billionaire—small bet on the stock via options.What’s Next: Stocks that soar so much on relatively no news from a company rarely hold up. Michael Burry, of The Big Short fame, announced a stake in 2019 when it was trading below $4. Now he says, “what is going on now—there should be legal and regulatory repercussions. This is unnatural, insane, and dangerous.”
—Connor Smith
***
*** Examine the wealth gap and how to address inequities in criminal justice, education, health care and more at a Barron’s event today at 12 p.m. EST. Speakers include Emerson Collective’s Arne Duncan, Rockefeller Foundation’s Dr. Rajiv J. Shah, and others. Sign up at barrons.com/wealthgap
***GameStop Trading Draws Attention From State RegulatorThe unprecedented rise of GameStop’s stock has caught the attention of a top securities regulator in Massachusetts.
William Galvin, the Secretary of the Commonwealth of Massachusetts, said in a statement to Barron’s that he’s been watching the stock, adding, “This is certainly on my radar. I’m concerned, because it suggests that there is something systematically wrong with the options trading on this stock.”GameStop stock is up 685% in 2021 alone, a rise that’s had Wall Street analysts scratching their heads. Experts point to speculative options activity, exuberance from the WallStreetBets forum on Reddit, and the stock’s sky-high short interest. Tesla CEO Elon Musk sent the stock soaring even more in after-hours trading last night, after he posted “GameStonk” on Twitter with a link to the WallStreetBets Reddit page. Investor Chamath Palihapitiya said he placed a relatively—for a billionaire—small bet on the stock via options.What’s Next: Stocks that soar so much on relatively no news from a company rarely hold up. Michael Burry, of The Big Short fame, announced a stake in 2019 when it was trading below $4. Now he says, “what is going on now—there should be legal and regulatory repercussions. This is unnatural, insane, and dangerous.”
—Connor Smith
***
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