 
     |
| Checkout what's going on with Gamestop. (Page 2/4) |
|
Hudini
|
JAN 28, 09:45 AM
|
|
What is an "un-ethical" hedge fund? It's not a facetious question nor directed at earlier posters.
Is it short selling in general? Is it short selling GameStop? Is it something else?
|
|
|
|
sourmash
|
JAN 28, 10:03 AM
|
|
|
What is "Unethical hedge fund"? Redundant.
|
|
|
|
maryjane
|
JAN 28, 11:58 AM
|
|
The Squad is seemingly overjoyed with these events.
| quote | Thread
See new Tweets
Tweet
Alexandria Ocasio-Cortez
@AOC
·
19h
Gotta admit it’s really something to see Wall Streeters with a long history of treating our economy as a casino complain about a message board of posters also treating the market as a casino |
|
| quote |
Rashida Tlaib
@RashidaTlaib
·
1h
This is beyond absurd.
@FSCDems
need to have a hearing on Robinhood's market manipulation. They're blocking the ability to trade to protect Wall St. hedge funds, stealing millions of dollars from their users to protect people who've used the stock market as a casino for decades. |
|
There is a huge risk factor here for both the overall market, the equities involved and the reddit short traders themselves.
|
|
|
|
sourmash
|
JAN 28, 12:24 PM
|
|
That sorta reads as though the system as it has existed isnt flawed and hasn't been defrauded by major players. I'm sure you don't mean that but it can be read to imply that.
Yes, quite risky for longs and there is great reward there too. Guys are killing it.
|
|
|
|
Blacktree
|
JAN 28, 12:57 PM
|
|
|
Long story short, the vultures are getting upset because somebody messed with their meal.
|
|
|
|
MidEngineManiac
|
JAN 28, 01:45 PM
|
|
|
|
|
theBDub
|
JAN 28, 02:16 PM
|
|
| quote | Originally posted by Hudini:
What is an "un-ethical" hedge fund? It's not a facetious question nor directed at earlier posters.
Is it short selling in general? Is it short selling GameStop? Is it something else? |
|
I can’t answer the question directly because I don’t think it’s unethical to aim for the most profit for your clients and investors, but I will suggest that this is not the first “meme-fueled” hike, and investors looking to play in the market and take short positions need to factor that in with their risk assessment.
Shorts are meant to hedge risk, but they aren’t really used that way today. They just lost to the river card after betting on a great hand.
|
|
|
|
maryjane
|
JAN 28, 02:25 PM
|
|
Risky for short traders as well.
The risk or downside for the company(s) being targeted are that it hamstrings the company in attracting serious long term investors because the P/E ratio gets so out of kilter, and even causes problems with the company in making business and financial decisions very far in the future. GME's P/E right now is a -4.25 and a realistic P/E target is somewhere just above +12. Their forward looking P/E is a whopping -34.41. This, is detrimental to the company's ability operate with much financial stability.
Because of what has happened in the last few days, this is what this company is looking at:
Forecast P/E Growth Rates
label...............................value
Growth 2021...............-1040.91
Growth 2022................97.1
P/E Ratios 2021..........-167.88
P/E Ratios 2022..........-5791.83
This, is an American company, basically small potatoes in the bigger scheme of things, but what happens if (for instance) if a foreign entity or consortium decides to play havoc with any of this countries more necessary businesses? A Putin or Chinese led consortium could easily crap a big pile of volatility on GM, Walmart, Lockheed Martin, Boeing, etc. This kind of volatility is good for no one in the long run.
I understand the whole question regarding why hedge funds are allowed to do it and now there are limits in place on short traders, but there is such a thing as burning a house down while trying to smoke out a few roaches.
I also realize this is a type of sjw game for many on reddit, but it can also have real world consequences as well for the broader investment market and even everyday people's retirement portfolios.[This message has been edited by maryjane (edited 01-28-2021).]
|
|
|
|
sourmash
|
JAN 28, 03:22 PM
|
|
|
In this case everybody knows the situation so I don't expect it to confuse anyone. If it becomes normal to do this, it just reveals amore of the game. It will just create another situation to consider and prepare for, which an actuary can do.
|
|
|
|
maryjane
|
JAN 28, 03:34 PM
|
|
It will not 'become normal' to any significant extent.
In the end, there are just too many easier ways to be profitable in the market than this.
|
|
|
