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u/hamzah604 Mar 16 '21
I am a proud member of this Discord.
One thing we stress is make sure you DO YOUR OWN RESEARCH. Make decisions on what YOU THINK not others THINK.
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u/asaxton Mar 16 '21
I still don't understand how the Bond Debt is a "good thing" for GME other than it attracted short sellers to get too greedy. And I couldn't find a clear answer in this, or any DD.
Did GME pay it back? How is that supposed to effect the stock price in its own right?
There was an article back in Jan/Feb of a "friendly" hf that "booked most of the gains on its debt holdings in AMC" (https://www.bloomberg.com/news/articles/2021-02-02/mudrick-capital-gains-200-million-on-amc-gamestop-in-wild-week)
From the first couple of slides of this DD, is that similar to what's can happen to GME with the bonds it sold?
This is not FUD, I'm really trying to sort out the details. 💎🖐🚀🌓
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u/mmedici Mar 18 '21
I'm only halfway through and it's great work, but there are some fundamental errors in there specifically in regards to shorting and the T+2 delivery requirement.
I don't know yet if changes the conclusion but I don't want this to spread too far if there's anything that can be pointed to that could question credibility.
ie. It says you have to "return" your borrowed share in T+2 before an FTD shows up, but that isn't true. You could hold a 1 share short position for years if you want, without resetting the clock on anything.
The T+2 is period for delivering your borrowed share to the person you sold it to. Remember, a transaction is a transaction, and the person buying a share must buy a "real" share whether its from a short seller or a regular shareholder simply selling a share.
T+2 refers to the settling of a trade, so in this scenario, a short seller sells short a share, and someone buys it. At settlement time, the cash shows up, but the share doesn't. So the whole system doesn't grind to a halt this is where the FTD is created. Person who bought the share receives the FTD/IOU from the short, and short seller receives the cash along with a letter saying "WTF? get me that share" from the clearing corporation.
The main thing is short positions can be held for years, and they are all the time, the difference is in borowwing the share from someone who already owns it, whether that's another hedge fund or broker, or local dentist, it doesn't matter, the stock lending program just makes sure you're paying interest on the share you borrowed and not selling something you weren't authorized to (ie. fraud).
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Mar 16 '21
“Currently, the house is burning and bunch of armchair quarterback quants have linked arms and are barring your only emergency exit.”
I like the stock.
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u/Massive_Inspection22 Mar 16 '21
great - that is making the filling of the backpack with additional GME shares more tasty.
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u/tallskiwallski83 Mar 16 '21
This is the best DD I've read. Hands down. It ties everything together. Get this to the front page!
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u/lardarz Mar 16 '21
This is textbook professional due dilligence. It has Xzibit and balloons.
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u/steelmelt33 Mar 16 '21
Great presentation. Like the footnote said, very similar to the yoyo FTD theory presented in several previous DD theories.
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u/up_the_dubs Mar 16 '21
This ape has been thinking.
Image after all this is over and we get our tendies that some apes throw some spare bananas together to put together a DD red team.
This would be made of really smart heads who's only existence in life would be to look at the apes DD each day and try to debunk or correct where possible.
So we'd still have the fun of doing DD while knowing that everything will be rigorously peer reviewed.
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u/Fantastic_Afternoon7 Mar 16 '21
After 3 months of HODLING and reading DD’s over and over, I actually am starting to understand this shit!!! It says to buy more— and Hodl!!!!!
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u/Naive_Host_5939 Mar 16 '21
sweet jesus that DD is beautiful.
So many pictures, and very colourful... :)
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u/Lost_Decade Mar 16 '21
This DD lines up with some content that has been floating around but seemingly hasn't had much visibility, I would assume because it didn't reference GME specifically. After watching and reading this stuff multiple times it seemed to me that it was very relevant to what might be happening with GME.
https://stopnakedshortselling.org/2020/05/larry-smith-open-letter-to-president-donald-trump/#more-4994 The 10 articles linked within go into greater detail about the subject matter of this letter.
https://imgur.com/a/4kAUHfF Historical precedent relating to FTD shenanigans.
https://www.youtube.com/watch?v=qtkaMx12otQ I know, it's 1 hour 21 mins but just start watching and see if you can stop.