Read? Melvin Capital, hedge fund targeted by Reddit board, closes out of GameStop short position
Melvin Capital closed out its short position in GameStop on Tuesday afternoon after taking a huge loss, the hedge fund’s manager told CNBC.
CNBC could not confirm the amount of losses the firm took on the short position. Citadel and Point72 have infused close to $3 billion into Melvin Capital to shore up its finances.
Melvin manager Gabe Plotkin told Andrew Ross Sorkin that speculation about a bankruptcy filing is false.
Hmm .. How? Someone in Singapore starts the lead for an army of Fire Ants for SGX's most hated and shorted stocks?
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Well said! Let's see who will be next target for the army of fire ants. Importantly for u and me, ehrre do we position ourselves!
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ReplyDelete"Most of the short positions are funded on margins. And so when markets run against you, you are stopped out if you are a short seller," said Kaspar Hense, a fund manager at BlueBay Asset Management.
...one of the reasons for the jump in the price of some shares is short-sellers buying back into the stock to cover potential losses - the classic short-squeeze.
https://www.channelnewsasia.com/news/business/the-big-short--gamestop-effect-puts-global-bets-worth-billions-at-risk-14054592
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Powerful fire ants! SG market too small lah, got ants no fire haha.
IN or Dr Wealth to start a new thread called SG Fire Ants? LOL!
Delete[08:22, 1/28/2021] Jacob Ng: GameStop stock surged another 135% on Wednesday to $347.51. The stock is up 788% in the past five trading days, alone. GameStop shares pulled back 9.1% in after-hours trading, shortly after the SEC’s announcement. The action in GameStop stock led William Galvin, the Secretary of the Commonwealth of Massachusetts, to call on regulators to temporarily suspend the trading of the stock.
Delete“There’s no rational basis for this run up,” Galvin said. “And it’s not just a run up, it’s also run down. It’s extremely erratic. Clearly there is a problem here with the way that options are being used in this case. And it needs some regulatory intervention. And I think the most prudent thing is if it’s suspended trading for 30 days.”
Sen. Elizabeth Warren of Massachusetts, citing the frenzy, called on regulators to “wake up and do their jobs.” White House press secretary Jen Psaki also said Wednesday that the Biden Administration was paying attention. “Our economic team, including Secretary Yellen and others, are monitoring the situation,” she said.
Even a former GameStop bull, Scion Asset Management’s Michael Burry, has called for legal and regulatory repercussions. The investing celebrity, whose bet against subprime mortgages was featured in The Big Short film and book, said, “This is unnatural, insane, and dangerous.”
Burry confirmed to Barron’s on Wednesday that he is no longer long in GameStop.
[08:23, 1/28/2021] Jacob Ng: Burry confirmed to Barron’s on Wednesday that he is no longer long in GameStop
CW,
ReplyDeleteThe last time STI got excitement of "similar" kind was the trio of Asiasons, Blumont, and Liongold.
US really exciting times for youths who don't know what cannot be done ;)
There's Tesla, Bitcoins, and now GameStop.
China had their tech run until their big daddy reminded everyone who's in charge!
Oh well, at least Singapore got our own million dollar HDB resale bull run excitement ;)
Let's see whether in my lifetime we can see HDB 3 room resale sold at beyond $1 million?
Which means at that time, all HDB flat owners are potential "millionaires"???
Still no fun in SGX!
DeleteYour next door also millionaires. Next goal to be billionaire. LoL!
DeleteLOL! Possibly the end of the beginning here ... hedgies have been burnt & are now well aware of what to do i.e. control greed. These shortists have been shorting Gamestop for years from $30 all the way to $3 on 5X-7X leverage and still kept hanging on, feeding at the trough resulting in large -ve float of shares.
ReplyDeleteYou all know about bulls, bears, and pigs. r/WSB just took advantage of it -- the first ones started buying call options way back in Aug 2019.
Andrew Left of Citron confirmed yesterday that they had closed their shorts "at a loss of 100%".
Now that the 2 targets (Melvin & Citron) have been whacked, interest from the 'Tards will shift to other left-for-dead stocks. Late & naive longs to Gamestop will likely be left holding the bag.
Well, r/WSB and its merry band of Robinhooders are now a force to reckon with. On a night (S'pore time) when S&P500 dropped -2.6%, a group of 150 of the most shorted stocks was up +7.2%. While S&P500 is flat YTD, this same group of shorted stocks is up +49%. 🤣
Unfortunately I'm not smart enough to play this game! 😩
In his statement Khanna called for “more regulation and equality in the markets” and said that the country needs access and equity “across every sector of our economy.”
ReplyDeleteKhanna said he was fed up with “hedge fund billionaires” who “treat the stock market like their personal playground, then taking their ball home as soon as they lose.”
The end of the beginning ...
ReplyDeleteOvernight, Gamestop dropped -44%.
Other similar stocks also dropped: AMC(-56%), Blackberry(-41%), Express(-50%), Bed Bath & Beyond(-36%), Koss Corp(-27%).
Online trading platforms e.g. Robinhood, Interactive Brokers, TD Ameritrade, banned buying stocks & options of such companies. Can only sell.
Popular China online trading platforms also did the same.
Socialist politicians like Alexandria Ocasio-Cortez are fuming against the move by "Wall Street elites to suppress the ordinary people" when hedge funds can still buy & sell those companies, but man in the street cannot. 🤣