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Stock Thread (16 Viewers)

Dumb question - would GME the company itself be able to issue stock to take advantage of this runup?  Hoe long does that usually take?

I am sure it's unrealistic but sorta fun to think they could take advantage and actually strengthen the company's position for real :lmao:

Thx

-QG
Lol. Good question. Flooding the market with more shares would probably pop the balloon because it would make a lot of shares available to shorts trying to close their positions which I think is part of the issue not being able to find shares to buy to close the short positions. 

 
Lol. Good question. Flooding the market with more shares would probably pop the balloon because it would make a lot of shares available to shorts trying to close their positions which I think is part of the issue not being able to find shares to buy to close the short positions. 
Right - but curious if there was a sorta tactical amount that they could infuse w/o upsetting the apple cart too much.

-QG

 
Everything including BTC is unless it’s one of the companies identified as having lots of shorting. I mean everything. I own a couple preferred stocks like FUBO, but everything else is bright red including the indexes.
Thanks.  I sold the other day a bunch and am free rolling now🙌

 
I am trapped between fear and greed.  I keep selling chunks of GME and it keeps going up.  Sure the insanity wont last forever, but how far will crazy push it up...This is bananas.

 
Somehow both mine and my g/f's accounts are green - FLGT is in beast mode, AMC obviously helped, ABNB doing ok, and for her DKNG, U, MSFT, and GDRX pulling their weight.

 
What happens when these hedge funds that were caught in the short squeeze go insolvent?

Are the hedge funds liquidating their "good" assets to cover their short calls that got blowed up by Redditeers?  Is this a chance to buy "quality" stocks at lower than typical prices?

What is the purpose to society / economy of hedge funds shorting the crap out of stocks?  Just to move a company to bankruptcy faster than it typically would?
This is my thinking too. Looks like quality stocks will be discounted. Most everything is red.

 
This is my thinking too. Looks like quality stocks will be discounted. Most everything is red.
But it gets me back to my other question: What is the purpose to society / economy of hedge funds shorting the crap out of stocks?  Just to move a company to bankruptcy faster than it typically would?

 
But it gets me back to my other question: What is the purpose to society / economy of hedge funds shorting the crap out of stocks?  Just to move a company to bankruptcy faster than it typically would?
Tons of reasons, but it's called a market for a reason.  There are buyers and there are sellers.  Short sellers would argue that they offer liquidity to these markets.  You don't have to drive a company to bankruptcy to make money as a short seller.  If you see a company that you think is vastly overvalued, well, you make a sale instead of a buy.  If you see a company that is undervalued, you buy instead of sell :shrug:   Pretty simple really.  

 
But it gets me back to my other question: What is the purpose to society / economy of hedge funds shorting the crap out of stocks?  Just to move a company to bankruptcy faster than it typically would?
Companies are not correlated to value you can't short a stock to bankruptcy.  A hostile takeover is better accomplished fee wise just buying 51% of a company through stock purchase at a premium than the premiums associated with shorting 100% of the float.

The flipside of this are those that point out that tesla is valued at about 600k per car delivered so far.  Valuations and short carry interest is more complex.  

Shorts exist as a gamble, and should in part provide a ballast and stability to the market as a whole.  Leveraged options are far more dangerous, tbh.  You can move a lot more money around without money you even have on hand.

 
LUB is the owner of Fuddruckers know for its venture into things like ostrich meat and has been closing restaurants all over the place.  Strong buy right?

-QG

 
Tons of reasons, but it's called a market for a reason.  There are buyers and there are sellers.  Short sellers would argue that they offer liquidity to these markets.  You don't have to drive a company to bankruptcy to make money as a short seller.  If you see a company that you think is vastly overvalued, well, you make a sale instead of a buy.  If you see a company that is undervalued, you buy instead of sell :shrug:   Pretty simple really.  
Liquidity is overrated if all it does is exacerbate the wealth divide in the country / world.

Why not just wait until the price is low enough for the stock to be of value?  Why trade negative shares at all?

 
Shorts exist as a gamble, and should in part provide a ballast and stability to the market as a whole.  Leveraged options are far more dangerous, tbh.  You can move a lot more money around without money you even have on hand.
People want to gamble, fine.  Do it in a casino or online book.  Don't extract wealth from people that actually work and produce things and labor.

 
Somehow both mine and my g/f's accounts are green - FLGT is in beast mode, AMC obviously helped, ABNB doing ok, and for her DKNG, U, MSFT, and GDRX pulling their weight.
ABNB has been a superstar for me. I got lucky and timed my purchase at the bottom right after the IPO.

 
Liquidity is overrated if all it does is exacerbate the wealth divide in the country / world.

Why not just wait until the price is low enough for the stock to be of value?  Why trade negative shares at all?
If all there are is buyers, there is going to be little to no downward pressure.

Short sellers are not evil (most of them). 

People want to gamble, fine.  Do it in a casino or online book.  Don't extract wealth from people that actually work and produce things and labor.
I think you need a better understanding of how efficient markets should work

 
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I mean I assume Tootsie Roll stock is surging because people are confused how that can just be its own company instead of a small part of a big conglomerate right?  Is Milk Duds a stock too?

-QG

 
If all there are is buyers, there is going to be little to no downward pressure.

Short sellers are not evil (most of them). 

I think you need a better understanding of how efficient should markets work
I care less about efficiency and more about adding real value to the world. 

It might take a while for the price to come down, but I'm sure it would, eventually.

 
I care less about efficiency and more about adding real value to the world. 

It might take a while for the price to come down, but I'm sure it would, eventually.
It seems your question is less about the economic reasons of a short seller, but rather the ethical reasons and to that I cannot speak.

Without short sellers the market would not nearly be as efficient, imho, and this will add value as it also opens opportunities to bullish investors.

As the old adage goes, bulls make money, bears make money, pigs get slaughtered.

 

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