Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (167611)	1/27/2021 4:49:50 AM
From: TobagoJack	Respond to of 217734

The professionals reloading ... pissing into the wind, akin to USA, Russia and China fighting over Luxembourg, and all using nuclear weapons and well as little green men Am pondering, that should the SEC pound all the Hooders w/ neutron rays, and wilts the spirit, what might be the consequences none are counting on? No one can know, until and if get to know. Beer? bloomberg.com GameStop Short-Sellers Reload Bets After $6 Billion Loss Katherine Greifeld Despite a punishing two weeks and relentless chat-room taunting, GameStop Corp. haters are showing no signs of surrender. GameStop stock equal to 139% of its available shares has been borrowed and sold short, a bearish position showing mark-to-market losses of over $6 billion year-to-date, according to data from financial analytics firm S3 Partners. That figure is little changed since last Thursday’s 141% short-interest reading, even though GameStop shares have surged roughly 78% in the past two days alone. The still-high level of bearishness indicates that even though shorts are being squeezed out of their positions, new traders looking to bet against GameStop are rushing in, according to Ihor Dusaniwsky, S3’s managing director of predictive analytics. That’s occurring even as the cost-to-borrow shares for the purpose of selling them short spikes -- the stock borrow fee is currently 23.6%, S3 data show. Read More: Matt Levine’s Money Stuff: The Game Never Stops “We are seeing a short-squeeze on older shorts who have incurred massive mark-to-market losses on their positions, but are seeing new shorts coming in and using any stock borrows that become available to initiate new short positions in hopes of an eventual pullback from this stratospheric stock price move,” Dusaniwsky wrote in an email. GameStop shares have surged 285% since activist investor Ryan Cohen and two allies and fellow Chewy Inc. alumni gained seats on the video-game retailer’s board. The news was an inflection point and lit the fuse for retail investors betting the company could undergo a complete digital transformation. Read more: GameStop’s Surge Gives Chewy Co-Founder Cohen a 1,200% Gain The stock’s surge was in part fueled by an army of Reddit-charged day traders who used the website’s WallStreetBets forum to pump up shares and fight back against the eye-popping levels of short interest. Bets by Gabe Plotkin’s Melvin Capital and Andrew Left’s Citron Research have faced a reckoning in the battle with GameStop’s retail fans. Left, who decided on Friday to no longer discuss the company, faced backlash from vocal Reddit users over his critiques of the company on Twitter and in a YouTube video. The noted short-seller referred to actions from “an angry mob” which responded to his argument for shares to “go back to $20” when he said he’d go dark on the stock. Still, even with Citron standing down, the mania has only gained momentum -- and spread to other stocks. GameStop closed up 18% after soaring as much as 145% on Monday and then briefly dipping to a loss. Express Inc., who some on Reddit have speculated will be the next GameStop, jumped 132%. Meanwhile, BlackBerry Ltd. climbed 28% after more than doubling in 2021. That’s piled on punishment for short-sellers, who were already smarting. A Goldman Sachs Group Inc. basket of the most heavily shorted stocks rose as much as 4.5% in New York Monday. That brought its month-to-date return above 30%, the most since at least 2008, as far back as data for the index goes. “What that does is it makes it much harder to run a short book, because the companies with the weaker fundamentals are not realizing those fundamentals the way they used to,” Stuart Kaiser, head of derivatives research at UBS Group AG, said in a Bloomberg Television interview Monday. “If you’re short a stock right now, you’re really running serious risk to your portfolio to be in those stocks.” Another RoundIn the eyes of S3 founder Bob Sloan thinks there’s more pain to come for the short-sellers still targeting GameStop. “Get prepared for another round of short squeeze,” Sloane said in a Bloomberg Television interview Monday. “You are going to see GameStop go way higher.” He added that the people who originally shorted the stock have been “taken out” only to be replaced by new investors who are going to short it again. But action in the options market suggests the tide may eventually turn, according to Susquehanna International Group. The pace of bearish put-contract buying outpaced that of call purchases on Monday, with roughly 500,000 puts purchases versus 275,000 calls. That follows a similar dynamic on Friday, after six consecutive weeks of call volume clocking in higher than put buying. “The GME rally is unlikely to last forever, and investors looking for a sign we are closer to the end could look at the 6 week streak of call volume outpacing put volume finally being broken,” wrote Susquehanna co-head of derivatives strategy Chris Murphy in a note Monday. — With assistance by Sarah Ponczek, and Olivia Raimonde (Updates with comments from S3’s Bob Sloan in the 11th paragraph, closing prices) Before it's here, it's on the Bloomberg Terminal. LEARN MORE

To: carranza2 who wrote (167611)

1/27/2021 9:24:04 AM

From: TobagoJack

Read Replies (3) | Respond to of 217734

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

***