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I first thought the article was a joke when I saw its length. Their sympathy for Melvin Capital despite said “fund” seeking to make money by sinking American c
by cfitz 6y ago
I first thought the article was a joke when I saw its length.
Their sympathy for Melvin Capital despite said “fund” seeking to make money by sinking American companies into the ground via massive “short” positions, as with GameStop, is just disgusting.
You don’t have to put others “down” to be “up”. There’s a way for us all to win. We certainly don’t need hedge funds to help us accomplish that.
EDIT:
“How they did it”:
Melvin Capital purchased substantial volume of short positions (many billions), collaborated with Wall St on how to best design the downfall of a business employing thousands during a pandemic, and even put out fake news articles & tweets to fool the Reddit mob out of fooling themselves. Did not work out in the end.
(No, I do not agree with Reddit’s current valuation. It is merely a remnant of the whole GME fiasco.)
- ryan93 6y agoGameStop is incredibly overpriced. Incredible waste of capital being poured into it.
- midasuni 6y agoThat’s your view. A thing is worth what someone will pay for it, be that gamestock, tesla, a gallon of gas, bitcoin, an NFT, or a kilogram of rice.
- samatman 6y agoIf it were as simple as that, speculation wouldn't exist, because no one would ever buy anything thinking that it's worth more than the price on the table. He's saying he doesn't think the market price for GME will hold, a position I happen to agree with. Might be more juice left in the rollercoaster, but I'm not buying it.
- fakedang 6y agoGamestop was also incredibly underpriced when Melvin was shorting it.
- gruez 6y ago>Their sympathy for Melvin Capital despite said “fund” seeking to make money by sinking American companies into the ground via massive “short” positions, as with GameStop, is just disgusting. Can you elaborate on how this is done? Did Melvin driving the stock price down empty GameStop's coffers or something?
- deleted 6y ago[deleted]
- valuearb 6y agoNope. Short sellers are the white knights of the market. They take on incredibly difficult and dangerous trades, and keep market prices honest. Without them the market would be nothing but a lair full of pump and dump longs, like a certain Reddit forum we all know. And I haven’t seen any evidence Melvin did anything unethical either. They got too deep into their position and paid a huge price for it. It’s about time Redditers stopped taking victory laps over Melvins mangled body.
- MrMan 6y agoI love shorts the markets would be terrible without them