There was a thread yesterday about Jim Cramer and Gamestop (GME) stock.
Although I disagreed with just about everyone in that thread, it did cause me to do a little digging.
I found this lecture by Patrick Byrne. He explains how Goldman Sachs creates FAKE shares of stock that do not exist, and this is how their company is so profitable.
The problem is, it has caused massive leverage in the system, and could be one of the reasons for a stock market crash (the money printing by the Federal Reserve is the other reason).
Goldman Sachs and the other prime brokers are THE SOURCE of ALL fake shares in the marketplace (and basically, all the fuckery in the marketplace).
The part where he explains HOW they create the fake shares is about 10 minutes of the presentation, and starts at about 3:00 (then, he goes on to talk about how to solve the problem with blockchain):
https://www.youtube.com/watch?v=COQvMsbb-Cw
- Almost 100% of the profits of Goldman Sachs comes from their "Securities Lending" operation
- That operation is focused mostly on "hard to borrow shares"
- They identify stocks that people want to short, then they lend those shares out
- They do NOT have to actually own the stock when they lend it out
- This allows GS to lend out shares that do not exist
- Since they are also a prime broker, most of this lending is necessarily to hedge funds, which are the investors who are shorting stock that does not exist
Goldman Sachs and the other 5 prime brokers are the SOURCE of all the fake shares out there.
This is EXACTLY the same as the "money changers" from centuries ago, when they created more money certificates than were actually backed by gold on deposit. Same exact scam, just with stock instead of gold.
It is always good to know the names of the criminals to prosecute. Now, it's just a matter of finding the prosecutors and getting them into office.
Provide a quote or data to back this claim?
YoY sales are on fire, company has $0 debt, and stock price is still 400%+ from last year.
Lets see some of this READing you've done
I just made a post about it in this thread.
LIE. The YoY sales are DOWN, and they have been DOWN each of the past 3 years. See my post.
LIE. The company has current liabilities that it will not be able to pay. Someone can claim that it is not "debt" but the important point is that they have money to pay out THIS YEAR that cannot be paid with the (a) liquid assets (cash) they have now, minus (b) the LOSSES they will incur at the rate they are going.
They will be OUT OF MONEY soon, if they do not either turn the company around or get a cash infusion.
Depends on what day you are talking about. It spiked last January to $483.
It is currently at $115. That is a LOSS of 80%, not a gain of 400%.
2020$5.16 B
2021$5.87 B
YoY sales up 13.89%.
What liabilities do they possess that are going to magically bankrupt them, exactly? 3/4 bil leasing obligations? Cool. So do all retailers. They have a lot of money, and are making more year over year. They have closed 1000 stores in underperforming areas and have stockpiled inventory. They are leaner than ever and are working on reducing logistical overhead costs.
While that other person didn't specify the time table very well the stock price is up from
40.69$ on 2/18/21 to
119.00$ today 1/16/22.
So, the stock price is ~300% up from 11.5 months ago.
The stock was also 4.01$ 7/31/2020.
So, the stock price is up ~3000% from 18 months ago.
You aren't very well researched so you wouldn't know this- the price is in fact not real. It didn't hit 483 then 40 then 350 then 120 then 170 then 90 then 115 because of price discovery from retail trading for a dying brick and mortar. It likely has a billion synthetic shares shorted getting rolled over through FTDs and deep ITM calls among many shenanigans keeping the price down.
Saying what the price is in relation to the gamma squeeze that was turned off artificially by brokers/MMs last year is a small and inaccurate way of looking at the price over time.
They also have a chairman who built chewy from the ground up into billions of dollars and ate into amazon market share big time.
They also have brain drained the whole fucking market for 100s of top executives, program leaders, and coders to roll out all the awesome shit they are doing right now.
I haven't even gotten started on the fact that they are going to be foundational for NFTs, the metaverse, and blockchain technology.
In April 2021 they did their first share offer and raised $551 million In June 2021 they did the second and final share offering and raised $1.13 billion. The 1.681 billion they raised put them way net positive in terms of assets to debt/liabilities ratios.
Try to at least look at the facts or do some research before writing with such confidence. Embarrassing.
What is your source?
Because this source says different. Says sales are DOWN 21.28% (YoY):
https://finance.yahoo.com/quote/GME/financials?p=GME
Current liabilities exceed cash. And they are losing money.
They have less in cash than current liabilities. $1.4B cash, $1.5B current liabilities.
And they ain't "making money" (i.e. profit), they are losing money every year/quarter. And the rate of losses is increasing.
No matter how you look at it, operating loss, cash flow loss from operations, whatever. Around $400M per year in losses.
Gee ... I wonder why.
Well, that is good news, and you are the first person in two long threads who actually mentioned this, or anything that might help the company turn around.
If they can turn it around, you have a shot.
I have my doubts, though. We will see who turns out right.
So what? That's just an arbitrary date, as is any other date. I can also say it is down from $483. We are both right. So what?
And it's down 80% from its high. Why not sell in the $300's? $200's? And buy back in later?
The fact that it has been a rollercoaster doesn't really mean anything other than it has been a rollercoaster. Anyone who bought under the current price is up. I get it. But I would bet that does not apply to most people around here. Just a hunch.
And it would not apply to anyone who is thinking of buying now, based in part on what people around here and on Reddit say. That is the big issue to me.
The company is dog shit, based on its financials. The naked short story is no longer valid, unless it is "hidden naked shorts" which looks more like a wet dream than anything substantive.
Let's put it this way: Were there real people who bought it around $450 through their broker, and the broker took real cash out in exchange for the shares? $400? $350? $300? $250? $200? $150?
Did real people pay real money to buy those shares from a real broker, or are you saying it is all an illusion? If they did, then they got SMOKED due to the pump and dump story that is STILL a pump and dump ... UNTIL PROVEN OTHERWISE.
That's a plus. Chewy looks like a decent company. A little tight on the financials, but the revenue growth is impressive, and that means they will attract capital infusions when needed.
That is not the case with GME. Maybe he can turn it around.
Good move, potentially.
Maybe. Have you seen all the "electric car companies" that are just puffing smoke up your skirt lately? Electric cars, blockchain, cyrptocurrency are all "hot" right now. This is a negative sign to me. We'll see if they actually do anything.
Biotech stocks are constantly pushing the next great "cure." Lemmings jump on board, stock shoots up, professionals and insiders take their profits, and he stock crashes back to the ground, where it belongs.
Happens ALL THE TIME. Same with the "hot" new stuff.
Talk is cheap. VERY CHEAP -- but also VERY profitable, for pump and dumpers. Let's see how they roll.
Yes, I saw that they got a capital infusion recently, of $1.5 billion. If they didn't they would have gone bankrupt already.
But that money is not helping much. It's just enough to keep them floating a little longer ... until either then next infusion, or bankruptcy.
The "hot" story is most likely their attempt to find the next sucker ... err, I mean ... investor to float them some more money sometime this year.
Maybe they pull it off, BUT ... burn rate and current liabilities. That is what the CEO is thinking about every night when he goes to bed. Guaranteed.
Now, see there? Here I was, gonna say something nice about you FINALLY coming in and providing this kind of response to my challenges, when nobody else would, and then you have to be a dick about it.
Let's clear up one thing. You provided ZERO SAUCE for your claims that GME's revenues are up (rather than down) and that they are profitable (when, in fact, they are losing money).
My sauce:
Yahoo Finance:
https://finance.yahoo.com/quote/CHWY/balance-sheet?p=CHWY
Securities and Exchange Commission:
https://www.sec.gov/cgi-bin/browse-edgar?CIK=0001326380&owner=exclude
BTW, the numbers from both sources match. And why wouldn't they? Yahoo is taking the data directly from the SEC.
Check it out. GME revenues are DOWN, not up. They are LOSING money, not making money.
What is YOUR sauce that claims otherwise? Strange that you didn't provide any.
(Embarrassing, even.)
Didn't think i needed to post a source since its all over the internet and incredibly easy to find.
GameStop revenue for the quarter ending October 31, 2021 was $1.297B, a 29.05% increase year-over-year.
GameStop revenue for the twelve months ending October 31, 2021 was $5.879B, a 13.89% increase year-over-year.
https://www.macrotrends.net/stocks/charts/GME/gamestop/revenue
You were being a dick, and you are wrong about most things you've said. So i'm being a dick back. You are wrong. You lack foresight. You are inflammatory. You are annoying. Im done.
My guy, it was like 5$ a share at the end of 2019 LOL.
"REEEEEE it'll be back to 20 dollars in no time!" - financial "experts"
Over a whole damn year later still over $100...Yea so anyways gonna keep buying and holding.
Yeah, down 80% instead of 95%. Congratulations.
And the Green Bay Packers lost by 3 instead of 20.
They still ain't goin' to the Super Bowl.
Hey, if you REALLY bought at $5, good for you. You should have sold already, and put that money somewhere else, though.
No thanks. How does it feel constantly being wrong like the fools on TV ala Jim Cramer? Feeling very "expertish?"
You clearly haven't investigated the topic as deep as you think if you don't understand why people still continue to buy and hold this stock.
Horrible analogy, like embarrassing really.
Feels like you just read the Cliffnotes version of Stocks for Dummies.