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The people losing their shirts are probably mindlessly following others, putting all their money in and/or doing options contracts. There still is potential for

by matt_s 6y ago

The people losing their shirts are probably mindlessly following others, putting all their money in and/or doing options contracts. There still is potential for short and long term wins with GameStop. The company is starting a transformation so buying and holding shares isn't like buying lotto tickets. There still is a situation brewing for possible quick wins, maybe not life-changing money but even if it doesn't happen you still hold stock. The January event piqued my interest into trading as a hobby so I've done a fair amount of research. My thinking around it is investing could be side-hustle kinds of profit without the customer support, marketing, and other non-engineering parts of doing a technical side-hustle like building apps, doing freelance work or building a SaaS product. Like any engineer, I want to understand how things work (aka over analyze everything) and there are a lot of forces at play in the GameStop situation which make it a fun problem to look into. There is a massive shortage of stock available, surging interest from retail traders and thousands of options contracts in the money every week creating more buying pressure. I could bore you with a lot of detail on these things. People say don't invest anything you can't lose, but the market is not a slot machine. Properly researching companies, buying stock and tracking it is not that risky. Especially not if you have an exit strategy to minimize losses and maximize gains.

chevill 6y ago
>There still is potential for short and long term wins with GameStop. The potential is the current volatility. If you're buying GME for $200 there's no long term potential unless they turn into a completely different business than they are today, potentially having nothing even to do with gaming. Which I suppose is possible but I think its unlikely. All of the suggested pivots I've heard don't sound viable to me. People want them to be tournament organizers and make money off of that. Doesn't seem to be profitable unless you're a game dev company with at least one massive hit or a streaming platform, or one of the established players. People suggested they focus on digital distribution of games, so how does one accomplish that? Either with a store or a launcher. They already have a store that sells digital game codes and its getting killed by bigger and vastly better competitors. If you want to make a successful launcher, once again, you have to have at least one big hit that makes people actually want to install yet another launcher. People suggested they get involved with luxury gaming goods like peripherals, chairs, etc. The GME name isn't exactly synonymous with a luxury experience so I'm not sure how that works out either. Before it became a meme and a bunch of /r/wsb guys started pretending they thought it was a good company they were universally hated for shitty customer service, shitty treatment of their employees, and for giving people like $5 for a used game and then turning around and selling it for in some cases like 50 cents below retail for a new copy. For people that think they are going to transform, what in your opinion can they do to actually become profitable? Also, note that when deepvalue started promoting GME he didn't believe it could turn around and thought that the industry's transition to digital was going to be slower than most thought (based on an extensive analysis of their fundamentals and history of sales). He basically bought in because he thought they had a few good years left before the decline. Now he is saying he thinks its a good company that will survive. I just don't see it.

by matt_s 6y ago

chevill 6y ago

>There still is potential for short and long term wins with GameStop. The potential is the current volatility. If you're buying GME for $200 there's no long term potential unless they turn into a completely different business than they are today, potentially having nothing even to do with gaming. Which I suppose is possible but I think its unlikely. All of the suggested pivots I've heard don't sound viable to me. People want them to be tournament organizers and make money off of that. Doesn't seem to be profitable unless you're a game dev company with at least one massive hit or a streaming platform, or one of the established players. People suggested they focus on digital distribution of games, so how does one accomplish that? Either with a store or a launcher. They already have a store that sells digital game codes and its getting killed by bigger and vastly better competitors. If you want to make a successful launcher, once again, you have to have at least one big hit that makes people actually want to install yet another launcher. People suggested they get involved with luxury gaming goods like peripherals, chairs, etc. The GME name isn't exactly synonymous with a luxury experience so I'm not sure how that works out either. Before it became a meme and a bunch of /r/wsb guys started pretending they thought it was a good company they were universally hated for shitty customer service, shitty treatment of their employees, and for giving people like $5 for a used game and then turning around and selling it for in some cases like 50 cents below retail for a new copy. For people that think they are going to transform, what in your opinion can they do to actually become profitable? Also, note that when deepvalue started promoting GME he didn't believe it could turn around and thought that the industry's transition to digital was going to be slower than most thought (based on an extensive analysis of their fundamentals and history of sales). He basically bought in because he thought they had a few good years left before the decline. Now he is saying he thinks its a good company that will survive. I just don't see it.