GameStop stocks: US hedge fund pulls out after heavy losses

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Melvin Capital Management had bet on failure of store before small investors sent shares soaring

The army of traders have declared war on the Wall Street companies looking to “short” GameStop, which involves “borrowing” a company’s shares and selling them with the intention of buying them back cheaper when the company’s share price falls, and it has proved to cost them billions.

 

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LIES

It is good to know that asset stripping greedy hedge funds with a organisation can be beaten by the little man.

It's like watching the Big Short in real time but with a different outcome! The little guy wins! 🔥✊🏽

They have not closed their positions. It was shorted 140+%

10) And it’s a perfect opportunity for the SEC to “calm” the markets in a post COVID-19 world. Before 1982, share buybacks were considered illegal and treated as market manipulation by SEC. There is enough evidence 39 years later that tinkering with SEC rules didn’t work...

9/ The top economic priority is to redirect the revenues toward job creation and full employment – and not to make hedge fund managers, rich. If a Government can close cities, states, and countries – why can’t it mandate companies to preserve cash & redirect it toward growth?

8/ “Those profits could be used to fund research and training for workers,” Mazzucato says. So, when the entire world is trying to recover from COVID-19, it’s time to disallow such manipulations of the stock market to allow companies to recover w/o worrying about the hedge funds

7/ “Pharmaceutical company Pfizer, for example, spent $139bn (£112bn) on share buybacks. Apple, which had never engaged in this type of financial engineering under Jobs, started doing so in 2012. By 2018, it had spent nearly one trillion dollars on share buybacks”

6/ According to a study by Mazzucato and economist Bill Lazonick, “between 2003 and 2013 publicly listed companies in the S&P 500 index used more than half of their earnings to buy back their shares to boost stock prices, rather than reinvesting it back into further research”

You guys need better writers. You act like old money didn't start the battle in the first place. How rich are they now?

3/ By trading Options you make a personal bet based on your specific beliefs and understanding of the financial markets. You either win or lose. The net effect is just affecting YOU, not the company. Everything else remains PASSIVE...

2/ When hedge funds equate trading Options to short Selling – the entire stock market is taken for a ride. Perhaps the result will be the same - in FINANCIAL TERMS. But such outcomes were not achieved within a similar context. One is PASSIVE, while the other is EXTREMELY ACTIVE

1/ The fight between the institutional short sellers and the socially organized retail investors behind the GameStop – asks to address the root cause for such a show-down. Question: if short-selling was not allowed, would such a wild-west shootout on the stock market ever occur?

Get rekt

Lol. Melvin hasn't.

oh ... it's from CNBC: So info directly from Melvins manager, but no volume increase, no info on losses. odd, isn't it?

Such a practicing should be punished by the controlling authority. Every company going down means a lot of people without money. It's one thing if they go down because of a lack of business. It's another if they going down because some assholes playing ping pong on the stocks.

Get fucked

repent!! Prepare the way of the LORD!! Messiah is coming !! MegaWednesdayExpo

This is irresponsible journalism. You can’t just take the guys word for it, you need to show paperwork proving the position is closed. These Hedge find a holes will use the dummy journalists to drive the price back down so they can save their ass.

if that info is from a press statement of Melvin themselves, I wouldn't trust this information. There is no increased volume and the short interest is unchanged (0,22% down from last month)

you love to see it

This is like the end of Trading Places, where I clap as the big investor gets screwed, but I haven’t got a clue what’s going on.

Cuando elonmusk está involucrado tiene que hablar nerdcorepodcast de esto Dany_Kino patog7 ramza

And long may attacks on these parasites continue. Hedge funds never invest in hedges nor indeed in any arboriculture.

This is them trying to manipulate the market before Friday so they don't get ****** by the poor come Friday. It's on all the news site and we're not falling for it 😂

This is like dumping money into Yugo.

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