short squeeze

In markets, there are few principles considered more important by traders than the idea that when a commitment to a deal is made, it should stand come what may.

So, there was uproar in the commodities market last week over the London Metal Exchange’s decision to bring the global nickel market to a halt and cancel futures trades because of a “short squeeze” on a Chinese tycoon facing potential billions of dollars of losses.

In one of the most controversial moments in its 145-year history, the LME cancelled an entire days’ worth of trades after a near doubling of the price of nickel, a metal used in stainless steel and electric vehicle batteries.

The rally, partially sparked off by Russia’s invasion of Ukraine, had left Xiang Guangda, the tycoon behind Tsingshan Holding, China’s leading stainless steel and nickel manufacturing group, unable to meet demands for extra cash on a huge bearish bet that backfired. The LME believes that if had it forced the settlement of the trades, it would have bankrupted some of its smaller members and its decision was “in the interests of the market as a whole”.

In today’s video we look at what happened in the nickel market and how it is working itself out.

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Two months after Reddit day traders took GameStonk ( $GME ) shares to surprising heights in a massive short squeeze, the video game retailer is finally trying to cash in. On Monday, it announced plans to issue up to 3.5 million new shares worth $650m via an “at-the-market” offering, or ATM.

The structure allows the issuer to raise cash bit by bit over the course of months or years. This is reasonable opportunism. Despite a pullback, GameStop shares are still up 900 per cent this year.

If successful, the share sale will equate to 5 per cent of outstanding stock. For the army of diamond handed faithfuls, the dilution is a small price to pay in exchange for turnaround plans. Ryan Cohen, co-founder and former chief executive of online pet supply retailer Chewy (The new Pets.com), is leading the push to transform the brick-and-mortar retailer into an online-first operation.


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Statistics For The Trading Floor:  https://amzn.to/3eerLA0
Derivatives For The Trading Floor:  https://amzn.to/3cjsyPF
Corporate Finance:  https://amzn.to/3fn3rvC

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Visit our website: www.onfinance.org
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Today, Amy Walls of Thimbleberry Financial sits down with Jon Gay to explain the ubiquitous story of day traders on Reddit and Robin Hood driving the stock of GameStop through the roof, much to the chagrin of Wall Street Hedge Funds.

When investors believe a stock is about to fall, they can bet against it by "shorting" it - they profit when the value falls.  But they also lose when the value rises.  Tough times for a brick-and-mortar video game retailer had been well documented and Wall Street assumed the stock price would fall.   Then the investors on Reddit jumped in, buying up the stock so quickly it shot the share price from $18 to $347, costing hedge funds $5 billion by some estimates.

The Robin Hood app temporarily stopped day traders from  buying up the stock, not because of collusion with Wall Street, but to meet their financial obligations as an RIA. 

The bottom line - investing in short-term fads or trends is dangerous.  Retirement planning should be a slow, long-term cautious approach that won't be affected by momentary market swings.

Resources:

Thimbleberry Financial Website: https://thimbleberryfinancial.com/

Thimbleberry Financial Phone Number: 503-610-6510

To get in touch with Amy and her team at Thimbleberry Financial, call 503-610-6510 or visit thimbleberryfinancial.com.

Today's episode centers on the recent investment mania surrounding GameStop.  Before jumping in to explain the story to listeners - detailing investment developments, correcting misinformation, and sharing implications - Casey sets the tone well: this story makes him feel like an adult watching the antics of a group of wealthy toddlers!

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This podcast was produced by Wiser Wealth Management. Thanks for listening!

Alex Hollingsworth is a banker by day, podcaster by night. We appreciated him taking the time to explain the Gamestop and r/Wallstreetbets to us. The founder of Crossover Media, Alex is working to bring independent and minority voices to the forefront of podcasting. 

r/Wallstreetbets | https://bit.ly/2O7K7dH
GameStop Mania Reveals Power Shift on Wall Street—and the Pros Are Reeling - WSJ | https://on.wsj.com/2MbZils
Twitter Thread Explaining Wallstreetbets | https://bit.ly/2N34mZg
Crossover Media | https://crossoverpodcast.com/

No doubt you've read or heard about the insanity around GameStop stock lately.  The popular brick-and-mortar video game chain saw stock prices skyrocket, driven largely by day traders on Reddit and Robin Hood.

Today, Keith Mooney of Mooney Lyons joins Jon Gay to walk through this entire phenomenon and clear up any misconceptions around it.  We explain some of the terms (short sale, short squeeze, and more).  

Keith speaks to how the stock was devalued, then driven up in value, then had the Robin Hood app step in.  Turns out this is much more than a David vs Goliath battle between day traders and Wall Street.  Yes, hedge funds lost billions.  But if individual investors are careless during a craze, they will lose too.

Finally, Keith looks at the long term implications of the GameStop craze - what do regulators have to evaluate when thinking about what changes, if any, they want to make.

For more information on this trend, or to look at a plan for your individual future, reach out to Mooney Lyons at https://mooneylyons.com/

Securities offered through Triad Advisors, LLC. Member FINRA/SIPC. Advisory Services offered through Triad Hybrid Solutions LLC, a registered investment advisor. Mooney Lyons Financial Advisors and Triad Advisors, LLC are not affiliated.

Veja aqui a explicação de como WallStreetBets fez um Short Squeeze nas Ações Gamestop

We're talking Game Stop Stock and the reddit groups who have taken Wall Street by storm. We take you through the ins and outs of this news story that is one part Robbin Hood and one part get rich quick schemes. We try and fill you in on exactly what's going on and we don't over complicate things. Don't take this as investment advice!

Financial markets have been thrown into turmoil over the last week by retail investors using social media chat groups such as the Reddit forum Wall Street Bets and low-cost investment platforms to drive up shares in GameStop, a US video game retailer.  In what is called a “short squeeze”, the share buyers are putting intense pressure on hedge funds such as Melvin Capital and other institutional investors, who bet that these equities would fall.

GameStop is a struggling bricks-and-mortar video game retailer in a world that is rapidly moving online. The stock had been languishing for six years, and many hedge funds were betting on a terminal decline. This weeks Podcast explains what is going on in the GameStop short squeeze, whether any laws are being broken, and how things are likely to work out with this trade.

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Statistics For The Trading Floor:  https://amzn.to/3eerLA0
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Join David and Brent as they discuss the acreage debate, farm economy, and what GameStop and the Piggy Wiggly have in common.

Sign up for a free 14-day trial to AEI Premium: https://aei.ag/premium/.  

• StashAway now has US$1 billion in assets under management [00:18]
• GameStop’s short squeeze, r/wallstreetbets versus hedge funds  [00:59]
• Will the bullish trend from the start of 2021 turn into a bubble?  [04:16]
• Monitoring environmental metrics on investments  [07:23]
• Value versus growth in a post-crisis environment [09:30]

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On this episode of AI: Decodes the System, AI breaks from her regularly scheduled program to talk about how a thread on Reddit called Wall Street Bets (which was recently banned by Discord and moved over to Twitter) helped take Game Stop from less than 40 dollars to over 300 in just five days. This increase happened because users used social media to rally young people around buying stocks that matter to them. The most notable being Game Stop. Access to apps like Robin Hood also helped make these stocks easier to purchase.  As a result, the thread helped contribute to billions of dollars in losses for hedge funds and thousands/millions made for everyday people, and even billions for investors who owned a substantial amount of shares in Game Stop stock. Short squeeze.

Edit: This podcast was recorded before Robinhood banned users from buying Game Stop. 

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