My kid (25) voted for Qidan. I respected his right to choose. Then he bought GME after following “DeepFuckingValue” on Reddit. He panicked when it dipped and sold 90 of his 100 shares and (only) doubled his investment in a month. He was bummed. He was angered when the powers that be stopped people from buying. First we talked about protecting your capital is the #1 rule. Then we talked about the forces at work and the battle for hearts and minds. He took a few red pills. I explained my red pill was 911. Who bought millions of dollars in puts on the airline stocks the week before? They made billions! Plus the free falling twin towers not to mention the 3rd building (hardened for a nuclear strike) going down several days later. I lost friends over that. They could not stomach the red pill. I asked him if he saw the irony in someone named DeepFuckingValue buying a junk company like GME. The only deep value is knowing a huge short squeeze is coming. Then, I really baked his noodle when I asked him, “who do you threw the billions at GME to force that short squeeze?” That was a killer whale taking out the apex predator sharks (hedge funds). Do the math. No way millions of little guys outgunned the hedge funds. He said wow Dad that’s a lot to think about. Then he said, do you always notice stuff like this? I said, my job is to leave the world a better place then I found it for you and all those I love. So yes, I do.
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Who is the killer whale? I assumed it was millions of retail investors the world over
I don’t know who the killer whale is but it could be Trump led coalition of investors or even a US agency.
So how much do you actually know about the GME squeeze? Because DFV has been on top of this from a literal value perspective for at least a year now. It wasn't until September~October time-frame of 2020 that people started to see the writing on the wall with the shorts. If you go watch DFVs YouTube videos, he LITERALLY bought in because he believes that GME still has value since people still really like physical games. He bought in around 4.50 per share, expecting it to climb back up to 10-15 range, he never expected this short squeeze beyond saying "I mean the potential short squeeze is there, you have to acknowledge it, but im still looking at this from a fundamentals perspective."
I know next to nothing about the GME squeeze. I know A LOT about short squeezes, after having made and lost many thousands of dollars playing the market from 1999-2002. Go read deepcapture.com if you want an education. I was waaay long until March of 2000 then went waaay short. I’ve bought calls and puts and seen how the pricing varies based on time and volatility.
I made friends with a hedge fund manager who ran a “fund of funds”. When a fund wants to go long, they slowly build their positions over time. They do not buy all at once. The more they control the harder it becomes to out-perform because just getting the $$ deployed moves the market.
But, I know enough of the story from what I’ve seen here and from talking to my son to know the general story is not true. I also know a lot about financial analysis of a business to know that GME is absurdly overvalued. They would be lucky to do an IPO and raise capital but in reality the insiders will all dump their shares at the next opportunity for insiders to sell.
Cool, I'll give it a look. I recommend doing the same by actually going to reddit.com/r/wallstreetbets and do a little sleuthing around to fully understand this is not insider trading in the slightest. Some other funds, like Blackwater, have taken advantage of this situation, and I'm sure there are others, but seriously, do the research on this one to understand how this is WAYYYY different than any other squeeze in history. This is much more 99% vs 1% than a lot of media is putting on.