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Reddit shares close near record after two-day rally driven by meme stocks
PUBLISHED TUE, MAY 14 20244:08 PM EDTUPDATED 55 MIN AGO
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Ashley Capoot
KEY POINTS
Reddit notched its second-highest close since its IPO in March after retail traders kicked off a meme stock frenzy on Monday.
“Roaring Kitty,” the man who inspired the meme stock mania of 2021, resurfaced online this week.
Shares of GameStop and AMD more than doubled in the past two days.
https://www.cnbc.com/2024/05/14/reddit-shares-close-near-record-after-two-day-meme-stock-rally.html
Nice typo by CNBC. lol.
Well no, it started long before there were any Congressional hearings. Sad to say, it seems many Congressmen don't understand this stuff any better than unhappy message board posters do.
Thing is, the last time round quite a few of them made obscene amounts of money. Unfortunately, that made them think they were right.
But of course that only applies to the ones who had the sense to take profits. I think many didn't, because they actually believed GME shares would become an international currency, worth $500,000,000 each.
Most likely not.
Nevada law (NRS 78.315) allows companies to forgo annual meetings of shareholders if more than 50% of the voting shares provides consent. It doesn't matter if the BOD owns those shares or not. Just as long as the person or persons who do consent in writing to such an action.
I think they are insane. Along with people who bought NFTs and virtual real estate.
Well, the APES worship him. So what he says can make a difference and has done in recent days.
Question: you have a public company under Nevada state law.
That is an immediate red flag.
"It's not based on any fundamentals.
It never was. After Cohen made his millions on Chewy he targeted GME as a company to invest in and the crowd went wild. And during the runup GME was dumping stock to improve their balance sheet. I believe they issued 2 batches of stock at the time.
He certainly has turned the company around and the website looks a lot like Chewy but caters to kids.
I may have to dig out my son's Pokemon cards to see what they are worth. lol.
LOL. Please not the APES. IMO they are just plain stupid. Apparently Roaring Kitty is a real person and I suspect he is the one who posted on X.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174415992&txt2find=gill
Although GameStop fervor reached its peak in early 2021, it had been months in the making. Keith Gill, aka Roaring Kitty, had been posting about his bull theory for GameStop since the summer of 2020, and mentions of GME in the subreddit r/wallstreetbets started growing in the second half of 2020.
So we are two
Answer- I-don’t-know
Question: you have a public company under Nevada state law. There were no annual shareholder meeting. Bylaw requires a 1% quorum. Now my question: BOD owns less than 1% of OS, does it mean the company is acting against law and bylaw by not doing an official annual shareholder meeting because quorum requirements aren’t meet? Thx
I think he is just bragging about what he pulled off. Interesting he posted that on X where he doesn't post much.
I think that's actually a good way of putting it.
I'm trying to persuade the GME people to read this:
https://www.sec.gov/files/staff-report-equity-options-market-struction-conditions-early-2021.pdf
But I'm pretty sure none of them will. We can't have them contaminating their minds with knowledge.
A new use of the word "resonance".....
The meme rally that sent shares of GameStop Corp. soaring this week will likely peter out in a couple of days, says Dan Raju, the CEO of cloud-based financial-services provider Tradier. "This is short-term baseless frenzy," he told MarketWatch. "It's not based on any fundamentals. It's based on social resonance around a few securities." He added: "I think this will fade out in a day or two."
We shall see.....
As I said, I'll bet the SEC is taking notes.
And many, perhaps most, of the APES--if they still think of themselves as APES--are utterly uninformed. They just make shit up, as I discovered on a foray to the GME board. They've decided that Jay Clayton is a lobbyist--or, as they put it, a shill--for Citadel. He isn't. But they don't care.
And that's just the start.
I look at it as he is full of himself by screwing the shorts again. He certainly does have an ego.
CTNT infested with robots today, price is up 300% to $5.50 a share, volume is over 4X's the O/S, and they'be announced an offering for 62 cents a share that more than doubles that O/S.
Bet those who are getting stock for 62 cents a share turned those robots on and are happily shorting against their anticipated buy in.
Yes. "We have a signal now. For when I'm needed."
He should be careful. I think that's a bit too explicit. Seems to me he's coming close to securities manipulation. We'll see, but probably the SEC is taking notes.
The surge in GameStop may bring back memories of early 2021, but today's investment landscape is fundamentally different:
GameStop is back on the menu.
Shares of GME opened on Tuesday at $60.38, less than a month after trading around the $10-mark in mid April. Over the past two sessions, shares were up 141%. With a surge this dramatic, it's hard not to be brought back to the heady days of GameStop in early 2021.
But 2021 was three years ago. We are no longer in the height of the COVID-19 pandemic, inflation has gripped the American economy and life feels very different than it did back then. So before explaining away the 2024 surge in GameStop (GME) as a repeat performance of 2021, it's important to note that the investment landscape is fundamentally different than it was back then, both for the general public and the most faithful GameStop investors.
"Retail traders are not just sitting at home with little to do aside from trade stocks. The Federal government has not just air dropped trillions of stimulus money. Yes, we're sure that we will hear more about meme stocks in the weeks to come, but not with the same fervor as 3 years ago," said Nicholas Colas, Co-founder of market analysis group DataTrek Research.
Although GameStop fervor reached its peak in early 2021, it had been months in the making. Keith Gill, aka Roaring Kitty, had been posting about his bull theory for GameStop since the summer of 2020, and mentions of GME in the subreddit r/wallstreetbets started growing in the second half of 2020.
Part of the GameStop bull theory by Roaring Kitty in 2020 was that it was a potential short squeeze play. Short interest was over 100%, meaning that shares had been lent out, shorted and lent again until more shares had been shorted than the available number of shares. When the intense buying pressure for GME came in 2021, short sellers lost billions of dollars. As of May 9, short interest stood at only 24.1%-more than most other companies but not nearly as high as 2020 or 2021-so that same pressure isn't there.
But as Colas mentions, other factors went into the meme-stock surge too. Over 10 million retail investors opened accounts in 2020, according to estimates. Collectively, retail investors accounted for around 19.5% of market activity in 2020. There was an appetite for trading that had taken hold of retail investors in 2020, and that helped set the scene for the memestock boom in the months to follow.
The 2024 GameStop bump hasn't quite seen those levels of retail participation yet. The average retail share of GME turnover was roughly 7% for the past five trading days, according to Vanda Research, which is lower than it was in 2021. Vanda points out that quant and hedge funds are better positioned to take advantage of retail surges than they were in 2021, which is a key difference between now and then.
However, that's not to say that retail investors have gone away. A key driver in GameStop's explosion in 2021 was the buzz online, and since 2021 there have been online communities of retail investors solely dedicated to talking about GameStop. Subreddits like r/GME and r/SuperStonk have 398,000 and 950,000 members, respectively, and rank in the 1% of most subscribed to subreddits. There, talk about GameStop never stopped, and posts frequently get thousands of upvotes or end up on Reddit's front page (r/all).
For further evidence of the influence that these online communities hold, just look at the DRS movement. GME's most enthusiastic retail investors, self-dubbed "apes," have coordinated efforts to directly register shares under their individual names instead of the names of their brokerages.
In today's investment landscape, directly registering shares under an individual's name is more often done by company insiders who own large portions of equity. But to the apes, DRS'ing GME is a sign of proud ownership. According to GameStop's March 26 10-K filing, around 75.3 million shares have been directly registered, representing about 25% of the company's shares outstanding.
Despite the stat that retail turnover registered roughly 7% in the past five trading days, data shows that there have been a few recent episodes of elevated retail turnover in the past year, pre-dating this week's boost.
Having this many retail investors waiting on the sidelines, primed to trade GME is something also fundamentally different from 2021. In 2024, GME already has the name brand recognition among retail traders, and many are willing to jump back in on the action - or maybe they never left. -- Marketwatch
He is rubbing it in to the shorts.
Just one reason not to buy in PM. Buying at that price is total insanity. I'm sure RH traders are now suffering from buyers remorse.
And Roaring Kitty just posted another cryptic message:
— Roaring Kitty (@TheRoaringKitty) May 14, 2024
Yes, I think that could work.
It was up to $80 in pre market. As someone posted PT Barnum was right. But I like my idea and should have done it earlier.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174411851
Then just sit back and wait.
GME has a full 50% haircut from the highs now $40 was at least at 80 PM.
I'm quite sure the SEC will be reviewing the trading in GME.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174412467
This has happened before to GME and AMC when they were heavily shorted and no harm nor foul was discovered. And both companies benefited financially by selling stocks into the run up.
Hello Kitty is pumping while the company is dumping. No harm no foul. lol.
Trouble is, he's not being specific enough, I think, for him to be charged with securities manipulation.
Agreed. If people are buying then let them just dump more stock making enough to continue existing.
It's a classic pump and dump with a catch.
Hello Kitty is pumping while the company is dumping. No harm no foul. lol.
They shouldn't stop selling stock as long as people are buying it. Both of those companies should dump in whatever's left of the A/S and live off the proceeds as long as it lasts.
Should the regulators get involved? I really don't know. I'm not sure what they can do.
“It is gambling,” fund manager Cole Smead said Tuesday of the reignited meme stock craze.
I disagree. It isn't even that. There's some method to gambling. This is just stupid.
Both GME and AMC are really stocks that deserve shorting. But I don't think it's the SEC's job to protect the shorts. What they can do is look at the trading in both stocks to see if they can smell a rat.
AMC completes $250 million stock sale during meme rally, shares jump 100% in premarket
PUBLISHED TUE, MAY 14 20247:50 AM EDTUPDATED 34 MIN AGO
https://www.cnbc.com/2024/05/14/amc-raises-250-million-in-stock-sale-during-mondays-meme-rally.html
AMC has done this at least twice before.
As for GME I wonder how much Cohen from Chewy fame was involved in promoting Hello Kitty on their website.
https://www.gamestop.com/toys-games?prefn1=franchise&prefv1=Hello%20Kitty
Because someone meticulously wrote this whole story, that does not make the details true.
A simple post from user Roaring Kitty, followed by a series of memes from movies that amount to a hype video like the ones used by football teams before big games, galvanized the long-dormant army of retail investors and sent shares of GameStop and AMC into the stratosphere.
I don't day trade or have multiple monitors tuned to different websites to catch these when they start to run. That said I have a plan,
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174411851
Last night was disappointing. lol.
Well they are Chinese stocks afterall.
I wonder how much he front-loaded?
The stock run up was well orchestrated needless to say.
And at the same time AMC is running and they just dumped another $250M in stock.
https://www.cnbc.com/2024/05/14/amc-raises-250-million-in-stock-sale-during-mondays-meme-rally.html
Jay Clayton , former SEC head, questions whether the government should allow what's happening with GME right now.. @SquawkCNBC
— Jim Cramer (@jimcramer) May 14, 2024
Interactive Brokers founder and chairman Thomas Peterffy says that meme stocks such as AMC can reach “unimaginable highs.”
Warning short sellers to resist temptation, Peterffy told CNBC in a recent interview that the value of meme stocks could easily soar. “It is extremely tempting to short these stocks, please try to resist the temptation because these prices can go to unimaginable highs before they settle down to a reasonable valuation, and you may have to cover on the high point,” the chairman of Interactive Broker says.
GME at 65 is a full triple from 17 FRiday close lol AMC up 100% PM so its over a triple from Friday close.
ON a tweeted picture
"The meme stock phenomenon appears to have been reignited by a recent social media update from “Roaring Kitty.” The man, whose legal name is Keith Gill, posted a picture on the X platform of a video gamer sitting forward on their chair — a meme used by gamers to indicate they are taking the game seriously.
"It marked Gill’s first post on the platform since 2021, and it has since been viewed more than 23 million times. Gill has followed up his return to the X platform with a series of posts of short videos from popular TV shows and movies, although the meaning behind them was unclear.
"Gill is a former marketer for Massachusetts Mutual Life Insurance. Also known as DeepF------Value on Reddit, he drew an army of day traders who cheered each other on and piled into the brick-and-mortar video game stock and in GameStop call options between 2020 and 2021." -- CNBC
It only took one tweet to revive the meme stock rally of yesteryear.
A simple post from user Roaring Kitty, followed by a series of memes from movies that amount to a hype video like the ones used by football teams before big games, galvanized the long-dormant army of retail investors and sent shares of GameStop and AMC into the stratosphere.
Obviously, this unexpected blast from 2021 raises questions. First, why is it coming back? It isn't just for nostalgia. There's a certain targeted ruthlessness in which stocks get chosen, and it's most likely related to how much short interest there is on the shares. If lots of hedge funds are betting against a stock, that makes it a good rallying point for meme investors.
Second, why is it happening now? There's no obvious answer here, though GameStop had already rallied from April lows before this week. Perhaps the meme investors have returned when we least expected it. Interest rates are much higher than they were back in 2001, there's a lot less pandemic savings sloshing around in bank accounts.
However, note that the timing of the new meme rally comes right after crypto assets fell back heavily after hitting record highs. Perhaps there's an overlap between those who buy Bitcoin and GameStop.
Third, what does it all mean? Well, a couple of things. It suggests there's still resentment against the investing establishment -- those hedge funds that were shorting the stocks. Also, it shows regulators are probably powerless to prevent this kind of uncoordinated action in the market. It's hard to call it manipulation when it's a hive mind that's pulling the strings.
There could be wider implications. The Federal Reserve probably won't like it. It suggests financial conditions are still too loose, and that interest rates need to stay even higher for even longer. That's not what the market wants. -- Marketwatch
On another note..."oh my"....back down in your neck of the woods. No need to reply ..don't want to piss off anyone that hates what I am talking about :) On the puck low...lol.
But it is rare to see DD on scams anymore. I am following two $$$billion dollar Chinese mergers,,,,,,,,,,, No one cares.
Years ago the rush would be onto bust them.
Umm...hey!...I thought I responded as well...lol.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174397008
I expect an apology from you :) ..jk.... Currently .46 Cents away from a penny label. I also did not know they charged the Parent Company as well. It's done now...or at least gonna' have some major changes like a divi' kill to start with.
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Another place to read some of nodummy's research:
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Great Website for basic information about the laws surrounding penny stocks
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Stock Dilution Scam:
A share dilution scam happens when a company, typically traded in unregulated markets such as the OTC Bulletin Board and the Pink Sheets, repeatedly issues a massive amount of shares into the market for no reason, considerably devaluing share prices until they become almost worthless, causing huge losses to shareholders. Then, after share prices are at or near the minimum price a stock can trade and the share float has increased to an unsustainable level, those fraudulent companies tend to reverse split and continue repeating the same scheme.
Pump and Dump Schemes:
"Pump and dump" schemes, also known as "hype and dump manipulation," involve the touting of a company's stock (typically microcap companies) through false and misleading statements to the marketplace. After pumping the stock, fraudsters make huge profits by selling their cheap stock into the market.
Pump and dump schemes often occur on the Internet where it is common to see messages posted that urge readers to buy a stock quickly or to sell before the price goes down, or a telemarketer will call using the same sort of pitch. Often the promoters will claim to have "inside" information about an impending development or to use an "infallible" combination of economic and stock market data to pick stocks. In reality, they may be company insiders or paid promoters who stand to gain by selling their shares after the stock price is "pumped" up by the buying frenzy they create. Once these fraudsters "dump" their shares and stop hyping the stock, the price typically falls, and investors lose their money.
http://www.sec.gov/answers/pumpdump.htm
The key is understanding
The key is understanding that pink sheet stocks are not investments - 99% of them will lose value over the long run and never accomplish most of their forward looking pumping statements they put in press releases or on their websites. Never believe the hype - always be skeptical of everything you hear.
The people mostly making money with pink sheet stocks are promoters, front loading pumpers with big followings they can dump on, crooks, some of the flippers, and sometimes the very lucky.
Pumpers only tell you to buy stocks that they already own. Pumpers only tell you to hold stocks because they want to make sure you hold longer than them.
They make money by pumping the stock and getting other people to buy then dumping their shares on the followers.
If you really want to take the risk of trying to make money trading pink sheet companies then you have to understand how the game works and never ever hold long term - take profits when you can. Pump and Dumps dominate the IHUB forums.
Trading pink sheet stocks is a sick game full of lies and deceit where people take advantage of the inexperienced and naive stealing away their life savings for their own personal gains.
Very little respect or morals exist in stinky pinky land.
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