Do y’all still think gme is undervalued? With an upcoming collapse of financial institutions with the MOASS and whatnot? Or you meming a long dead meme? I don’t know what to make if this community.
Video attached I thought was a very good explanation of the whole ape mindset.
Disclaimer: I have not watched “This is Financial Advice”, so if I miss something that’s covered there, my bad. Maybe I’ll have time to watch it someday, but that day is not today.
Your skepticism is understandable. However, my expectations around future GME (the security) prices are not fundamentally about expectations around GameStop (the company). All GameStop needs to do is not go bankrupt (which they are doing quite well based on their cash on hand), and any future business success / profitability is just icing on the cake.
Rather than betting on some unimaginably successful 1,000x business transformation, I am betting against Wall Street. Fundamentally, valuation of securities works on the assumption that shares are fixed in quantity (or only created/destroyed by equity-preserving events by the issuer). With the ubiquitous rise of online brokerages, security entitlements, high speed trading, and a derivatives market that far eclipses the value of the underlying assets, that assumption is flawed and regularly abused by Wall Street to extract huge sums of wealth from investors and issuers. At the same time, Wall Street is laxly regulated and hugely greedy, and has no qualms about putting itself in risky situations for short term profit with the assumption that problems will be fixed down the road. Unfortunately for them, that situation has been threatened since the events of January 2021. Since then, all the evidence I’ve seen suggests that the financial institutions, many of them mutually liable for each others failures under the DTC or other organizations and settlement agreements, are regularly engaged in kicking the can down the road and perpetuating net short positions. However, since 2021 investors in GME have started removing their shares from Wall Street, meaning that eventually accountability will be required for naked short positions and then true price discovery can occur. Until then, price fluctuations only matter to help me understand how many more shares I can acquire.
I understand that but especially in this situation of untethered corruption in the financial sector, why do you see the chance of MOASS in case the financial sector implodes?
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As if the implosion of untethered corruption weren’t reward enough!
In more words: there are a spectrum of possible outcomes, but I do think there is a significant possibility that in attempting to deliver the underlying securities and thus closing out net short positions, the market price would go astronomically high, and that some of that could be paid for by liquidation of other institutional assets. I don’t have enough confidence in capitalist financial institutions to assign high probability to “full” payouts at MOASS market prices, but even “merely” the destruction of exploitative wealth hoarding necessary for a partial payout would result in more financial equality and less financially-driven social dysfunction, which is motivation enough for me. (Also worth keeping in mind that the exposure is not limited to individual short parties, but also to all members of the relevant clearing/depository organizations, pursuant to the rules of those organizations and their own individual self interests.)
Do we have information about the current short positions against GME? In all the time that passed it’s entirely possible that they clandestinely got rid of that nuke under the rug of all the fuckery that went on.
I do think it’s got value. If you read the quarterlies, they’re getting very close to profitability, which was scant years ago a completely forgone conclusion. I think it’s not crazy to think price action has been totally disconnected from how shareholders actually value the company.
Cool, that’s pretty much what I think too. The company might still have some legs, but the stock price is completely in left field.
You can’t let price action tell you, post-hoc, if you were right or wrong in your thesis, in a market where price discovery is broken and nothing trades on fundamentals. It’s been structured as a casino through PFOF and things like Citadel Connect, which is a dark market that isn’t even as regulated as a dark pool. This explains why the conversation has shifted away from simple buy + hodl and towards actually talking about market reform. Jon Stewart agrees with us about all that (I knew a guy who actuall discussed it with his verified Reddit account), and did a piece about it on his Apple TV series. The GME saga does have its dipshits and foibles, but I still view it as a story about market reform and basic property rights.
My personal opinion is that GME is undervalued however I don’t necessarily expect that to change any time soon. The video you reference contains several errors which this community has discussed in previous threads.
Thanks, I looked around and didn’t see the video posted, I guess it was a while ago.
While it’s not the prettiest website by any means - pretty much looks like it was quickly put together for minimal cost - I’d recommend you take a look at https://marketliteracy.org for some background information. It’s chock full of higher quality sources and citations and summarized in such a way as to, in my opinion, make it easily understandable, and where many in this community may be coming from in terms of understanding some of the more basic issues around the stock market and financial system.
In so many words, the larger Wall Street network has proven time and time again and again … and again … and again to be deceptive and of a more habitual criminal mindset. If you tie in the obvious issues we have with lobbying and corruptive influences corporations and moneyed interests have on government and regulation, it becomes pretty apparent that there’s a good chance much of “Wall Street” is rife in corruption and even outright theft. :/
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