/r/wsb autists taking on a wallstreet hedgefund. Elon musk involved as always / wallstreetbets / gamestop - Gamergate 2: financial boogaloo

Gimmick Account said:
Is there anything redeeming for AMC besides meme energy? Genuine question. I know there's a lot of wishful thinking since it was a cheap entry point and people are still insisting it has some kinda link with GME even though that hasn't tracked for a couple of weeks. Didn't they just have an earnings report or something which was pretty much "we're fucked" and they have a fuckload of debt compared to other chains so they aren't gonna get bought out like people are hoping either.
I'm still fond of it (I made a bunch of money) but I don't get it.
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They sold a bunch of stock when it was at $15 to pay off 2/3rds of their debt. Also renegotiated prices for movies with holywoood (who isn't as happy with the netflix model of business). A lot of criticism toward AMC bullishness is that there is not much to watch and the revenue is paying off debt rather than investing in growth.

It's a similar short squeeze play, but if it doesn't squeeze (I think it will) it is expected to go back to normal stonk price which is over $30 a share.

Here is a video from a data scientist that explains where we are at currently with some of this AMC/GME madness

Gimmick Account said:
I guess if the memery gives them a shot that could happen if they really get their shit together and people are jonesing for the cinema experience... as opposed to further losing the huge chunk of people who have only figured out how to stream movies in the past year, Because AMC was already declining badly before covid, they were only doing like $100m/year.
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This is correct, however this issue has happened more than once. Durring the Obama years they had record lows, they blamed pirating, then
when half way decent movies came out in theaters suddenly there were record box office earnings. Prices for a movie ticket in a metropolitan city were at $18 a ticket (which is entirely driven by what holywood charges as movie theaters make all money on consessions).

When Hollywood is pumping trash in theaters, theaters are empty. When good movies are in theaters, people pack the theaters.

There is an easy way to up revenue for theaters.... Sell alcohol. Even if people sneak in alcohol they will usually still buy consessions to not draw attention and blend in. Alcohol has been a win for all theaters I've gone to. Arcade stuff I've seen pay off well for a lot of theaters but not every theater can make that kind of a change and I wouldn't trust boomers to not just buy $1 a continue ports of popular smart phone game shit instead of the timeless fun stuff like skee-ball and air hockey.
 
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I think the play with amc is to continue to sell puts until you get assigned laddering up the price. Its less risky than owning the stock as you only lose money if it nosedives hard for a weekplus. Otherwise its “free money” taking premiums as it escalates up. Obviously with 2020 vision youd have made more money if you just bought but the risk has been huge.

edit: ive made about 3k selling 10 contracts a week for the last 6 weeks. Never owned a share.
 
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Gimmick Account said:
I think there's a lot cinemas could do to fix their decline (I had a business class on this before the pandemic), but they were too fucking stupid before all this to remember how they used to do things (when the industry took off while people also had no money) and seem stuck in the current model.
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In those days the movie industry was run by gods among men. I agree that very smart, very driven people could make money on movie theaters no matter how broke everyone is, but the problem here is that the modern equivalent of those people are busy making money on the cheap entertainment devices everyone has at home and in their pockets.
 
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HOMO FOR LIFE said:
GMC is collapsin
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That autistic feeling when you are genuinely happy to see the stonk price go down because you made back your initial investment already and slowly bought slivers back in to your original share number.

Hell, let them keep crashing and pumping it. Even if it never goes TO DA MOON you can buy on the cheap and sell when it goes to $300. At this point I will just keep skimming profit and increasing share ownership, and if it ever finally goes to da moon..... well that'd be nice.


Doom post time

So appearently the dooms day scenerio is when Melvin goes bankrupt the mass selling of all assets still doesn't cover the price of buy back it triggers an insurance policy with the clearing house (I forget which one, the major one that handles everyones stuff). If the clearing house takes a major financial hit then we have a massive problem, and this is possible because of the brutal nature of the short squeeze.

They shorted more shares than available so not only do these people have to return the borrowed shares, they have to buy back the shares they just returned it to BACK and on top of that there are people that explicitly have said they are NEVER going to sell, and they very well may hold a share or two forever. What can happen in this case is daddy gov can step in and do one of two things....

1) Force sale at a fixed price which can cause further issues in the stock market because it reduces faith the market and rewards moral hazard (ya know that thing we bailed out banks on to not just pay off the mortgages owed in the 2008 crisis cause the borrowers should of known better). Crashes the stonk market and people cashing out will be taking their earnings out of the stock market, then there are problems with trading companies paying out there users. Smart users will buy other stocks than pay the fee to transfer to somewhere like BlackRock to cash out, but this will lead to other issues and DOOMS DAY BEGINS.

2) Bailout that would go right in the pockets of GME holders, however this would almost guarentee hyper inflation because this is a lot of retail investors getting a shit ton of money that is fresh off the printer while. Everyone will be hurt, and media will try and blame all those crazy internet kids. DOOMS DAY BEGINS!

A potential way I can see how to avoid dooms day is Gov squeezes the cap at the limit of the value of the short selling firms total value, allow those companies to sell EVERYTHING to pay the debt, Caps the insurance policy to cover, claims some sort of eminent domain to buy back and explains enemies were seeking to collapse the economy through a bailout and it will not be allowed to happen. Then say as punishment all companies involved in this are being forced into bankruptcy.

There is a 3rd option, SEC and Gov basically say "yeah, they don't have to pay back the shorts and we don't give a shit if your shares or money got stolen despite our laws. Buyer beware, should of sold at $300 lol"....
 
$GME trying to find a floor. Opened at $203, now at $195.30. Bouncing all around.
Short interest was lowered to 25.84%.
$AMC falling as well. Opened at $13.62, Currently at $12.86.

Redditors must be distracted with a new MU announcement or Switch offering.
 
NyQuilninja said:
crypto is taking a shitdive right now Make sense game stock would be as well
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Meanwhile it consistently does the opposite of the rest of the market which is very unusual and implies a link. Speculation (boomer lore not reddit) is hedge funds are doing the hedge thing with literally everything else they own.

Sucks that I'm too busy to watch the entertainment live cause tomorrow should be a fucking battle.
 
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Gimmick Account said:
Meanwhile it consistently does the opposite of the rest of the market which is very unusual and implies a link. Speculation (boomer lore not reddit) is hedge funds are doing the hedge thing with literally everything else they own.

Sucks that I'm too busy to watch the entertainment live cause tomorrow should be a fucking battle.
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It's a run by A.I Algorithms and is only as valuable as people are willing to pay. Crypto back up though thanks to B.A.T
 
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NyQuilninja said:
It's a run by A.I Algorithms and is only as valuable as people are willing to pay. Crypto back up though thanks to B.A.T
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You mean crypto or the stock market? In the latter case (well, both) it's still humans making the high-level strategy decisions when it comes to high-profile handles, and they aren't all the same side so it's a matter of what cancels out what with those automated tools up against one another. It's like a wizard battle.
 
Gimmick Account said:
You mean crypto or the stock market? In the latter case (well, both) it's still humans making the high-level strategy decisions when it comes to high-profile handles, and they aren't all the same side so it's a matter of what cancels out what with those automated tools up against one another. It's like a wizard battle.
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I was watching a documentary about how the stock market is run by advanced computer algorithms and a fractions of a second could mean billions lost or gained. Just think what will happen once quantum computing takes hold
 
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DeadFish said:
Why not sell weed edibles in movie theaters?
Seriously. That way all movies can be crap and people won't care
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Weed butter popcorn is genius. They could put a little dispensary in the lobby like those supermarkets that have a liquor store in one corner that has a different name and is totally a different business but really isn't because you can checkout your groceries at the counter and piss off everybody else in there. ie sell tickets with the bud.

Edit: plus edibles take about a movie to kick in, so charge cards until you check out instead of traditional single tickets so everyone winds up floored and spends all day watching spider-mang 10 six times.
 
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Gimmick Account said:
Weed butter popcorn is genius. They could put a little dispensary in the lobby like those supermarkets that have a liquor store in one corner that has a different name and is totally a different business but really isn't because you can checkout your groceries at the counter and piss off everybody else in there. ie sell tickets with the bud.

Edit: plus edibles take about a movie to kick in, so charge cards until you check out instead of traditional single tickets so everyone winds up floored and spends all day watching spider-mang 10 six times.
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Edible comes in many forms. Powder in your drink, pills, wax, oils. Maybe I should have said consumables. Doubt a movie theater will be happy with smoking
 
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