Comments by "TheThirdMan" (@thethirdman225) on "The Plain Bagel" channel.

Trying to punish Wall St by overvaluing a stock doesn't make you a smart investor and doesn't help anyone. The company is grossly over-valued, which is why short sellers are involved. In trying to punish them, they end up punishing everyone. Not smart. *Edited - see below.
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@dennisthemenace567 Sorry: typo. Should say, "the company is grossly over-valued". Thank you for pointing it out. I have edited it to reflect this.
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@dennisthemenace567 Well, again, I don't know who this helps, other than those who got in when it started a couple of years ago. Shorting, as you know, is a risky strategy that can expose investors to virtually unlimited losses. But it's not just rich investors doing it; a lot of people's pension funds have skin in the game too (not necessarily Gamestop but other shorted stocks). In the end, I see this as probably surviving in the medium term but as a business, I'm not sure what Gamestop offers that is worth the price. JMHO.
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@dennisthemenace567 Product of an unregulated or inadequately regulated market. Watch The Big Short if you haven't already. That's who you're dealing with. There are other examples, like Volkswagen in 2009 when hedge funds got it in the neck. Ultimately, that didn't do anyone any favours either but coming, as it did, during the wash up from the GFC, there was a certain amount of Schadenfreude involved.
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@dennisthemenace567 If the SEC was better funded, it would get better results. It could raise more cases, etc.. You can probably join the dots from here. "...shorting synthetic shares which are promptly ignored because its nothing compared to how much cash they make shorting shares of stock that do not exist driving price down further." Ah yes,! Reminds me of the whole "synthetic CDO" scene. A CDO of a CDO... We're not supposed to understand this.
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@dennisthemenace567 I'm more or less out until the global economy recovers from Covid. I don't short. I don't understand it well enough and don't have the time to invest in it. We're also seeing another alarming sign of impending trouble: high debt levels due to an excess of cheap credit.
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@specimen-ch7zi Yes but stock is usually valued on potential share price growth or profit. Gamestop is a bit of an anomaly because it's a bricks and mortar shop that is still kind of operating as though it was still 2005. The only reason its holding so high is because people want ti to in order to punish Wall St. Growth is unlikely to be a factor because it's a dinosaur operation and the only reason it's so highly valued is that there are millions of investors who don't like Wall St. So how much would anyone expect it to grow? How much profit does it make? All investors do those kinds of analyses. They make their decisions based on profit or growth and Gamestop probably doesn't represent either. Since organisations like your superannuation fund are also in the business of shot selling and a lot of people have already been burnt by Gamestop, it's likely that your own investments have been affected without you knowing.about it. Worst of all, if your fund has bet against Gamestop then they could have been exposed to potentially limitless losses. I don't like Wall St either but trying to punish them hurts everyone.
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@specimen-ch7zi No, it seems you don’t get it. No point lecturing me on primary school market theory, man. I already know that. Man. There have been hedge funds which have bet against GameStop and lost epic amounts of money. If you think that only affects rich people then you’re one of the suckers born every minute. It’s not only rich people who have their money in those kinds of funds either. There are all kinds of investment portfolios which can be seriously exposed in this. If you want to cut off your nose despite your face then be my guest. The ones who got in early will be fine. The rest are seriously exposed. Man.
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@specimen-ch7zi _Ad hominem_? I was replying to you in precisely the same spirit you used on me. Let me tell you something about investing: nothing has changed. Revenge investing is, in this case, a new thing but it doesn’t change the basics of how the market works, even with millions of people behind it. Everyone thinks this is somehow different and that it won’t change and that GameStop will continue to grow as it has done over the past couple of years. Well, sooner or later, unless GameStop radically alters its core business, the growth will stop. Sooner or later, key investors will offload it for something with more growth that returns a profit - basic investments.
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