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Wally Fairway

By Wally Fairway
in Business and Markets

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Hank_Hill
Hank_Hill

Haven't mentioned it because didn't need naysayers because it is stupid, but I'm a med student doing this almost purely on my student loans while they're at zero interest. I've made +$20k since Decemb

Hank_Hill
Hank_Hill

The real treasure is the friends we make along the way

BradInATX
BradInATX

As long as 700% APR payday loans exist, you can fuck right off with "protecting people from themselves".

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hayden_horn

hayden_horn 11362

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regarding robinhood: i've come a bit around on their limiting shares. am i understanding it correctly that many of their users were buying dips after selling other things, and therefore before those sales cleared into liquidity for rh? so with all the buys into gme, it was the equivalent of a 1930s run on the bank, without the benefit of george bailey standing there convinced people to just take what they needed?

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Trey3216

Trey3216 15345

Posted
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5 minutes ago, hayden_horn said:

regarding robinhood: i've come a bit around on their limiting shares. am i understanding it correctly that many of their users were buying dips after selling other things, and therefore before those sales cleared into liquidity for rh? so with all the buys into gme, it was the equivalent of a 1930s run on the bank, without the benefit of george bailey standing there convinced people to just take what they needed?

That’s the easy way to put it, but yes.   

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MonkeyDoughnut

MonkeyDoughnut 10230

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3 minutes ago, hayden_horn said:

what if gamestop issues more stock on monday? will that wipe everyone out?

no, just means it will create an exit door for some current shorts (GME can name their price) while creating huge amounts of cash inside the firm.  I would have to think it would also create a huge regulatory inquiry into the company and the recent trading of anyone associated with the firm.

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52-80

52-80 19147

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2 hours ago, cam4mav said:

So let's assume a whole bunch of short options just closed/are due.

They buy back that stock monday morning or afterhours or how does that work?

I haven’t held too many options through expiration but sometimes I see exercise/assignment on Saturday, sometimes on Monday. 

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Fudge Nuggets

Fudge Nuggets 19189

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5 hours ago, MonkeyDoughnut said:

It's being cut because Robinhood is being forced by its clearers to post a lot more collateral for these volatile stocks. It doesn't have the collateral to allow its traders unlimited trading in these type stocks. It could up everyone's collateral/deposit requirements but is choosing this route instead.

So cash is no longer considered a good source of collateral?

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Wally Fairway

Wally Fairway 5541

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4 hours ago, Cheeseweasel said:

That would be foolish. Why would they want to dilute their shares?!?

To get a ton of cash - although I'd think it would be hard to price an offering; but hell Hertz tried it, GME should try to sell 1MM shares a week, and give 25% of the proceeds to the reddit autists and let them buy more calls to push the gamma squeeze past infinity

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The Royal We

The Royal We 3068

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Posted (edited)

Well, if this is accurate, it's a little shocking to me. 

It also makes me think this thing is going to pop quick, fast, and in a hurry when it finally pops; the funds with access to much faster trading platforms are going to bail before the remaining retail bros ever have a chance to react. 

Edited by The Royal We
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TheFlyingBoat

TheFlyingBoat 906

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1 minute ago, The Royal We said:

Well, if this is accurate, it's a little shocking to me. 

It also makes me think this thing is going to pop quick, fast, and in a hurry when it finally pops; the funds with access to much faster trading platforms are going to bail before the remaining retail bros ever have a chance to react. 

Isn't the obvious answer to that the fact for 40% of the week buyers were heavily restricted? It makes sense that some paper hands get shaken out on Tuesday after they are quite happy with big gains but then see a drop that scares them. If unmanipulated by brokerages, I would expect to see buy/sell behavior closer to Monday than to Tuesday.

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woohorn

woohorn 1131

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what if gamestop issues more stock on monday? will that wipe everyone out?
That would be foolish. Why would they want to dilute their shares?!?
To get a ton of cash - although I'd think it would be hard to price an offering; but hell Hertz tried it, GME should try to sell 1MM shares a week, and give 25% of the proceeds to the reddit autists and let them buy more calls to push the gamma squeeze past infinity
AMC already has...

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GRHorn

GRHorn 105

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5 hours ago, Cheeseweasel said:That would be foolish. Why would they want to dilute their shares?!?

They’d want to because it would provide them a shit load of cash. but...

5 hours ago, hayden_horn said:what if gamestop issues more stock on monday? will that wipe everyone out?

I don’t work in financial services, just follow the market, but typically secondary offerings have to be priced at a certain amount per share. My understanding from people in the industry is that no investment banks will price out secondary offerings on stocks that are this volatile. The entities that they help secure the stock could get burned badly. What if the stock is $50 on Tuesday? Bad business. They could do an ATM offering. At the market. Basically saying they will sell stock “from time to time depending on market conditions”. But my understanding is that is also less likely due to volatility. We’ll see. 

 

The most pressing concern over the weekend is probably RH finding liquidity, apparently. Basically that’s why they’re restricting lot sizes even in unrelated stocks. 

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Loch Ness Monster

Loch Ness Monster 3533

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19 minutes ago, TornACL said:

This whole episode has such an idiocracy feel to it, and I think we're only like 2 years away from a social media app / brokerage firm named STOCKFUKRZ where ladies get two free shares of Powerade stock if they upload a pic of their tits.

Reddit found out hedge funds were in over their heads and punished them. Usually the billionaires end up okay though.

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B00M

B00M 6414

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39 minutes ago, TornACL said:

This whole episode has such an idiocracy feel to it, and I think we're only like 2 years away from a social media app / brokerage firm named STOCKFUKRZ where ladies get two free shares of Powerade stock if they upload a pic of their tits.

It never happens if the SEC did it's job so... Yeah I guess there is some idiocracy feel to it. 

HF bros, dumb AF.

SEC, uselessly dumb.

Retards, smartest in room.

We are fucked

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We’reTexas

We’reTexas 1473

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48 minutes ago, GRHorn said:

They’d want to because it would provide them a shit load of cash. but...

I don’t work in financial services, just follow the market, but typically secondary offerings have to be priced at a certain amount per share. My understanding from people in the industry is that no investment banks will price out secondary offerings on stocks that are this volatile. The entities that they help secure the stock could get burned badly. What if the stock is $50 on Tuesday? Bad business. They could do an ATM offering. At the market. Basically saying they will sell stock “from time to time depending on market conditions”. But my understanding is that is also less likely due to volatility. We’ll see. 

 

The most pressing concern over the weekend is probably RH finding liquidity, apparently. Basically that’s why they’re restricting lot sizes even in unrelated stocks. 

No way they can get an ATM program in place in time, they can’t even be S-3 eligible. 

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pantone159

pantone159 719

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47 minutes ago, Wally Fairway said:

I thought I'd read it was convertible debt that converted, but either way it makes their balance sheet and cash flow better off. 

https://www.wsj.com/articles/silver-lake-converts-amc-debt-to-equity-as-cinema-chains-stock-price-soars-11611842367

Isn't converting debt exactly the same as issuing more shares?

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DonkeyCigars

DonkeyCigars 144

Posted
Posted (edited)
24 minutes ago, GRHorn said:

This is why I’m holding a bit of $gme. I have to be a part of this. This shit is gonna get real. 
1-AA70-A96-709-F-4-BCF-804-C-F9-DBB09-AE

 

This post you quoted here is unhinged mental illness, but I guess in any massive, grassroots demonstration you are going to attract a handful of nuts along the way.

Edited by DonkeyCigars
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UTGrad98

UTGrad98 2271

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Wouldn't this gme squeeze be a stupidly easy way for foreign entities to screw over the us markets? The hedge funds who are doubling down have thought about this right? It's not just timmy from Czechoslovakia and his .11 of a gme share they think they are up against now right?  Putin is going to have a field day with this. 

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