More pain for novice GameStop, AMC buyers

[calguy]

Both stocks tanking heavily pre market this morning following yesterday's sell off. The pump 'n dump play is now complete for the originators of this scam. They sold their positions last week, leaving millions of newbies holding the bag. It's a hard lesson for many who thought that somehow this was a "cause", and are now realizing it was a scam.
It's not everyday you get the opportunity to pay $300 for a $10 stock.

[AllaN01Bear]

1. i thought i smelt a rat.

these hedge funds have got to go. they caused a # of recessions and the great depression 2.0 with their nasty speculations .

[Lucky Luciano]

4. This was caused by the retail pumpers that are dumping now.

[Act_of_Reparation]

7. Not really.

We're not talking about a mosquito bite here. There were several antecedent events leading to this point.

[Hav]

2. 40% down and still looking for the bottom...

Even if there'd be a miraculous rise again, I guess many still wouldn't get out while their losses are kind of acceptable.
It's sad reading the accounts of those putting their last savings, college funds or retirement money into this while still believing in this, encouraged to hold by others in their echo chamber. The market manipulation they despise is happening to them, in their own forums. The way that goalposts are getting moved and excuses are made, it's getting close to Qanon cult like behavior.

It's obvious that some actors are making much money out of this. All for the cause as well, I assume.

[MissB]

22. I really hope

that people weren’t actually putting their college savings and retirement funds in GameStop stock.

[Happy Hoosier]

3. Anyone who buys on the bubble is an idiot.

Imma guess that some of the folks who bought early and made a killing are gonna make more of a kill as the price falls by shorting the stock

[RAB910]

5. It's funny how people can't figure this out

the reality is that any scheme that works to artificially manipulate the price of stocks is bad. Doesn't matter who the perceived victims are. It's just another scheme where those behind it get rich at the expense of everyone else

[Act_of_Reparation]

8. It isn't funny.

Wall Street survives on making investing/trading as incomprehensible as possible to the average person. I'd have a little more sympathy for them.

[RAB910]

11. The workings of a modern automobile is incomprehensible to the average person

Complexity isn't by design but rather by necessity and that is true about the stock market. I knew very little about the markets myself until I read a few books and since then regularly listen to podcasts on finance. I am hardly an expert but I know enough to invest myself and understand what investment options are.


If you don't understand the markets best to let a professional guide you. If you are not willing to invest a considerable amount of time to become an expert or spend time monitoring investments best to invest in mutual funds or ETFs and let them do the investing for you.

[Act_of_Reparation]

19. Good plan.

Let's sit around waiting for people to be the better angels of themselves, and if they don't we can scold them for not being as smart as you and me.

[RAB910]

21. You realize there are quite a few laws governing the stock market

and a whole agency, the SEC, regulating and overseeing them, right?

If I am mistaken and you were referring to the expert doing the investment on your behalf, make sure they are a fiduciary which legally binds them to act in your best interest.

[JCMach1]

6. Classic pump and dump with a modern twist

A lot of people will learn how NOT to invest

[Klaralven]

9. The social media mob's contagious enthusiasm also makes it like Tulip Mania

https://en.wikipedia.org/wiki/Tulip_mania

[whttevrr]

10. Every time I put my cursor on $AMC to buy, the price starts dropping again

I almost bought $AMC a couple times this morning but the range is tight and moving in the wrong direction. It's the same with silver ($SLV). Doesn't seem to be bouncing back up at all. I want to buy, but "want" is not a trading strategy.

$AMC should be a buy again at $1? $5? $7? I don't know. 🤷?♂️ About 450 Million shares are in play, so market cap is pretty high right now.

I could not touch $GME over $95. I was waiting for the dip for re-entry and just ended up standing there slack jawed and watching it rocket up.🚀

Crazy January!

💲🤑💲

[calguy]

12. Look at the price of these stocks BEFORE they started to rise

That is the price the stock is worth. I've never followed gamestop but I've followed AMC for about a year. Before the pump began AMC was worth between $2 - $3 and that's what it's still worth today because it's same company losing big money showing movies to empty seats.

[whttevrr]

14. The people who bought at 8.88 @8:24 could have made a 10% return in 30 minutes

Sometimes the price a stock is worth, is irrelevant.

[Lucky Luciano]

18. AMC converted a large amount of convertible debt to stock...

Or I should say that Silver Lake Partners converted the debt to 44.4 million shares and they sold it all at the inflated prices. Now there are a lot more shares of AMC out there to hold the price down!

AMC’s debt also was reduced by $600M by doing this.

[BlueTsunami2018]

13. The people I know who did it got in and out.

They all made out fine. Better than fine really, the kid I work with picked up $15k in three days. Not a bad deal.

[calguy]

17. Yup. There was easy money for some

that easy money came out of someone else's account.

[BlueTsunami2018]

25. Some short seller.

When I see the hand over fist money these hedge fund guys and short seller creeps make from doing nothing at all, I’m not going to feel too bad when a working class guy gets a little easy money too.

[whttevrr]

15. $GME already Halted. $AMC will probably be halting today too.

[calguy]

16. The exits get mighty crowded once everyone realizes they got played

[chriscan64]

20. I have no expertise in this field.

The impression I get is that the plan did not have a next step. Individuals see the opportunity to cash out and seem to be doing so. Admittedly conjecture on my part.

[fishwax]

24. it's been very much like the old south park joke

But collecting GME stock instead of underpants ... the missing step, obviously, is selling GME stock, but the timing of that is tricky, and there were some who were (are) committed to just skipping that step entirely

[fishwax]

23. AMC is actually getting back close to what it's probably worth ... GME has a long way to fall still

AMC is now down to what it was right before the pandemic, but they've managed to pay off a lot of debt from this run.

[gulliver]

26. Yep, a total, complete screw-up on the part of the redditors.

They'll lose a ton of money. Also, if the hedge funds who were supposedly squeezed were smart, they kept their short positions and bought more. They would then get a windfall profit at the expense of the squeezers.

I hope the SEC is doing some serious investigating. This self-scam by the redditors could just have happened coincidentally, but it sure does stink.

[brooklynite]

27. I invest in a set of Indexed Mutual Funds...

Every month with a fixed amount of cash.

Every two weeks in my Agency's 401k plan.

Every year in my IRA.

If the market goes up, my previous shares are worth more.

If the market goes down, my new shares cost less.

The only exception was buying (and holding) shares in Apple, which I had the technical skill to identify as a worthwhile long-term opportunity.

[cbdo2007]

28. I would let it play out over the next couple of weeks before passing judgement.

This is like calling the ball game in the 3rd inning where both teams are 7-7.

They are following a pretty solid model at this point of what happened with VW a number of years ago, and all the shorts are still in their positions with no place to go and many GME buyers are not able to buy so volume of this huge drop is super low. Usually in a big drop like this volume would be high as well.

Now when it does shoot up like they are expecting, they all need to get out quick because there should just be one more huge rally (probably 3 x times what the first max was) before it craters back down to normal value levels.