Tag Archives: GameStop


Amateur Day Traders Liberate The Markets-Making The Rich Richer

“Amateur Day Traders” by the tens of thousands who are taking tips from #reddit and #daytrading rebels, and particularly, the financial market anarchists who believe you are inflicting pain on fat cat wall street hedge fund traders by squeezing their shorts and bidding up share prices of distressed or challenged companies (e.g $GME, $AMC and others) to astronomical prices, here’s the new flash: you are all actually making the rich richer.

YOU want to “stick it to the man” (i.e. wall street and hedge funds) by taking your stimulus money and unemployment checks and take it to a gambling casino where you can bid up shares in what any 8- year old would argue are grossly overvalued stock prices. That’s fine, because you think the shares you are all buying in unison is going to create a short squeeze and hurt professional investors who have bet against obscene tulip bulb style speculation.

Notorious Shark Tank Wizard Kevin O’Leary loves you. Elon Musk is cheering you on. Even the progressive politician Representative Alexandria Ocasio-Cortez is in favor of your being able to join the new generation of day traders to compete and bet alongside Wall Street professionals, who have been playing this game for years, but you were “excluded”.

What you don’t seem to get is that while your stock and option purchases are driving up the price, every share you purchase is making “the man” billions. Private Equity lenders-who extend loans to the distressed companies on your ‘short squeeze’ target lists made those loans with their having the option to convert the company debt into shares. So, now they are converting that debt into shares and selling those shares to YOU at grossly inflated prices.

Perfect example: $AMC lender Silver Point Capital (the fat cat capitalist firm run by multi-millionaires living in mansions in Greenwich CT) and the firm that makes high interest loans to distressed companies) made $100million in two days ON TOP OF the principal amount of their loan) thanks to the financial market geniuses who are playing musical chairs. And, thanks to you folks, the movie theater chain that was next to bankruptcy last month, sold $300million in stock at share prices the company had never enjoyed in the very best of their times to YOU! Sure, when the pandemic is over, all of you are headed straight to the movie theaters so you can spend $50 for tickets and a box of popcorn and share the crowdsourcing experience with your peeps. What are you going to do with your 70 in TV screens and your streaming subscriptions? Oh, you’ll keep it all with the profits you made day trading? Sounds good

Don’t believe that your intent to cause pain to the rich wall street fat cats is backfiring a smidge? Try reading the facts.

And, the company executives who own shares in these companies are now celebrating, as this is their once in a lifetime opportunity to sell those shares to morons who have put nonsensical prices on them… once the Reddit community starts looking at insider share sale activity (when they are reported at end of the quarter), maybe you’ll scratch your heads and ask yourselves “what the f–ck” did i accomplish, other than turn millionaire executives into billionaire retirees?

Think this is nonsense? OK, Chewey.com founder and recent Board Member for GameStop made $3.6 BILLION in four days this past week–all thanks to the folks who are hoping to “stick it to the man” and other millionaire “capitalists” in some kind of “Occupy WallStreet 2.0” initiative.

Perspective: GameStop’s CEO George Sherman, who Ryan Cohen had said was “out of touch with the new movement toward e-commerce” and proceeded to buy 10% of the company at $7 in November and joined the board in effort to help them pivot), made $400mil this past week. The guy who is out of touch made $400 million in three days, thanks to the RobinHood and Reddit Day Traders Rebellion. Meanwhile, GameStop stores remain shuttered, hundreds of furloughed employees remain out of work, and video gamers are stepping up their purchases at alternative online stores-or buying direct from the manufacturers.

GameStop does not make electric cars, they don’t manufacture magic mushrooms, they are a 30 year old retail store. Ok, when the pandemic is over, one hundred million redditers are going to flock to those stores and buy new stuff. Sure you will.

On behalf of all of the fat cat private equity firms and distressed lenders who have made really big bets on distressed companies with bleak futures, you are to be thanked for making them even richer.

“Creative Designer” for Crypto Fraud Firm Seaquake.io”https://www.linkedin.com/in/selen-katz-0043821a0

Now you should get sucked into a real scam..Click on left image..Go ahead!

When the music stops (meaning when the prices of the shares you bought at wildly inflated prices) fall back inside of 10 seconds to realistic prices that make sense (based on the real value of the company; as measured by sales, profit margins, net income, and assets vs. liabilities), all of you crusading day traders who were determined to screw the establishment will inevitably lose your money in this “occupy wall street v.2.0” campaign folly.

Or, you will have unloaded your shares on the way down to another “comrade in arms” and “believer in the cause” who is as misguided as you. Ever heard of the “greater fool theory”.

Not a very altruistic thing to do to a fellow comrade in arms, but you really don’t care, do you?

Because you are not a crusader, you are not aligned with a movement, you merely want to be included in the new generation of maverick day traders and turn a quick profit so that you can invest in another fractional bitcoin.

BTW- anyone who has the notion to join a mob and storm the SEC building in Washington to protest trading halts when share prices move to extremes, you should ask your parents (or your baby sitter, or your parole officer) whether that makes any sense.

Good luck and God Bless the next generation of ‘online traders’ whose objective is to screw the establishment. Remember, GREED IS GOOD!

When you discover first hand that your behavior left you down and out, you can hope that those fat cats will have a job for you to clean their back-up swimming pool in their 3rd luxury home.

Or MarketsMuse will be happy to hire you to post to their financial industry news platform


GameStop Stock Surge Explained

GameStop Corp (NYSE:GME) $GME share trading during the past days has, if you’ve somehow not heard, proven that an un-coordinated assembly of day traders, enabled and empowered by social media platforms Reddit and WallStreetBets can accomplish what the mob that attempted to take over the capitol in Washington DC could only dream about. Financial Market Anarchists will be the new normal.

By banding together in chat rooms, online forums and Twitter, thousands of novice gamblers have partied together and encouraged each other to buy shares and stock options in GameStop, a company that has merely 70 million shares outstanding and one that has typically reported operating losses for the past 8 quarters, including the most recent, in which the company reported a loss of $63million on $1billion in sales. Despite the anemic business results, the stock price has soared from its Jan 11 price of $20 to over $365 in after-hours trading Jan 27.

ponzi scheme gamestopHysteria? Stock Manipulation? Irrational Exuberance? Pump and Dump Scheme? Ponzi Scheme? Collusion? There are dozens of adjectives being used by the universe of long-time stock market investors, so-called Wall Street research analysts, and the many pundits appearing on CNBC. “The crazies have taken over the lunatic asylum” according to skeptics who can’t fathom the notion that GameStop, which has traded at $1billion-$2billion market throughout the past 10 years, can become a $35billion market cap inside of two days. The stock is up 3500% within the past 12 months

That said, GameStop, which has a 35 year operating history and first came public in 2002 is a Fortune 500 company. It is best known for operating a chain of 5000 retail stores that sell video game devices and other paraphernalia for video gamers is, according to some people, poised to get to the other side of the grueling hit to their business inflicted by the Covid-19 pandemic by shifting to a full-scale digital business model.

Yes, two weeks ago, the company brought on Chewy Inc (NYSE:CHWY) CEO Ryan Cohen to serve as board member. Cohen took his pet food company public 18 months ago at $35 per share and his company’s stock has soared to over $100 in recent trading.

This is good news for GameStop, we suppose. We can also suppose with 100% confidence that GameStop will exploit the current mania for its stock by selling many millions of shares at the recent inflated prices. Wall Street traders are guessing that GameStop could float 10million shares without impacting the recent price, and take in several billion dollars of cash into its treasury. They could pay down the entirety of their outstanding debt (approximately $1billion) and have several more billion to play with. In fact, the company could start to manufacture tulip bulbs and its likely they will sell billions to their old and their newest fans.

Does $2billion in cash on their balance sheet, and operating losses predicted for the next few quarters equate to an enterprise value of $30 billion? Why not? The stock market has been over-run by GenZ day traders whose only concept of investing is following the herds on social media and perhaps more important, banding together to prove the Wall Street analysts and short-sellers know nothing and deserve to be humiliated. 

Unlike down and out scammers such as crypto criminals Andrew Katz and Matt Krueger (profiled here previously), anyone who believes the SEC can stop online forums for serving as the military headquarters for what seem like bandit stock and option traders is wrong. Hell will freeze over before regulators can try to stop what is taking place in the financial markets. Get out of the way dinosaurs, if you’re a short-seller, you’ll be extinct before this party comes to an end.