In light of the news for Gamestop last night, seemed premature to get rid of the other discussion thread.
(also seems like a shame to lose the rest of the discussion regarding analysis)

So does anyone following GME think it has a chance to recover in the foreseeable future, and if so, how?

Otherwise, do you think it is going to finally buy some of itself back at a "huge discount"?

Seems like it may be on a rapidly tightening spiral toward eventually getting delisted entirely.


EDIT: for those not aware of "the news" on this one -- GME completely eliminated their dividend after-hours last night, currently sitting at being down nearly 30% pre-market

In before deletion

Consider me out of the loop.

Begs the question what happened to the other thread?     
 

In terms of GME stock discussions, Gamestop got rid of their dividend after-hours yesterday.

Their dividend was a potential "dividend trap" (i.e. too good to be true) by having reached a 20%+ dividend at the current stock price.
Classically a dividend trap is when they clearly "cant afford it", though the curiosity in Gamestops case was that they appeared to be able to.

Regardless, they decided to kill the dividend to save themselves a bunch of money, leading to an overnight drop in the stock price of 26% or more.
Total damage remains to be seen today.

That puts them down almost 50% for the year.


Jonebone's old stock thread had a lot of discussion on Gamestop during its ups and downs, but mysteriously disappeared this morning after I bumped it.
 

My guess is someone just wants to stick their head in the sand in hopes others forget his cockiness in said deleted thread. 
 

Interesting what happens when people who believe they are always right and smarter than everyone else turn out to be wrong.....Also lol, in before the deletion.

I trashed the thread because the only discussion was bumping and trolling of my positions. Sorry I don't have patience to argue today and I'm really handling a multitude of life issues at the moment. But yeah, let's troll a guy when he's down on his stock positions too, thank you.

You know what they say about assuming.

Also, nice mis-use of your mod powers. "I don't wanna be triggered today so delete"

Please.

Come now...  GME was a major part of the discussion in that thread.

Bumping on big news for them is not "trolling", it is genuine discussion about what that means for them both short and longterm.

That is the whole point of a stock discussion thread.


I'm genuinely curious how the news changes your plans for it, as a case study on individual stock trading and technical analysis.


And it does seem like a bit of an abuse of your mod powers to nuke your own years-old thread when you don't like the current direction of things -- one thing to "lock it", another entirely to NUKE it -- there was a lot of discussion in there that "wasn't yours to delete".

 

Honest thoughts on GME, I'm stuck in a long position at this point and like that the earnings actually beat expectations. I also think slashing the dividend was already priced in, obviously 20% wasn't going to hold and a new CEO was a high risk of changing the strategy. It gives them longterm survivability at the expense of near term bleeding.

They aren't going bankrupt and the current valuation is silly. You'd be a fool to sell here if you had been holding going into earnings.

It certainly doesn't SEEM like losing the dividend was clearly "priced in" if losing the dividend caused such a big move overnight.

Though I agree that losing the dividend SHOULD have been priced in fully, if it wasn't already, since a 20% dividend is silly for any publicly traded company, let alone a video game retailer.



And yes, as a company, I agree that saving the money on dividend payments lets them survive and that the stock price doesn't really impact the viability of the company itself -- though I suppose at some low valuation it eventually makes them a takeover target (though i don't know what big player would be interested in it)


 

Good luck Jone with everything you got going on, NA should be the least of it I hope. Gonna be a good Wednesday folks, hopefully wrapped up with a great Finals game!

since when does a mod delete a thread that's years old with a ton of information and discussion? Because you're wrong about one thing? so what! It's the market- an ungovernable, unknowable machine that is both a financial instrument and a cog in other instruments!
Trolling your position? You mean Nate asking questions or asking 'what if?' you presented yourself as the stock SME, so expect questions and challenges. in fact, those pressures should be welcome, giving you an opportunity to re-evaluate positions and strategies!

if you're handling life issues then why are you stalking a stock thread? and why are you back to answering questions you deemed trolling? This is the behavior that goes against the spirit of NA- mods can come in, give their opinions, deliver a sick burn, give a warning, whatever- still be human, but they should NOT be deleting threads pages and pages long.

Quis custodiet ipsos custodes, ya'll?

It's back, but locked.

200% agree with you, too.

Nothing is deleted it is merely archived and I told an admin to reinstate it. Frankly I'm honored to see if people genuinely care about the stock discussion. We can get that fixed.

But let me explain the analogy for you. When you're down a substantial amount on a stock and someone bumps with "How about that stock? What's your exit strategy now?" how would you respond? To me it's like your dad passing away and a buddy coming up and saying, how about his power tools? What you doing with those? Not exactly the best time, place or delivery of that question.

You're looking way too hard to be offended at something. Nobody was trolling you.

no analogy needed. lock it and say -hey guys, i'm having a tough time- go easy.

also, i'm genuinely sorry yr having a bad run

As someone who's dad died earlier this year, you losing $12k, or whatever, on a bad stock pick is in no way, shape, or form something similar.

I get that your financial loss made you sensitive to commentary in a way that you read it as trolling, though, even though it wasn't.



If you chimed into the other thread with "yeah, this sucks, but I'm dealing with other stuff right now and don't want to debate the merits of GME" that would have been the end of it for today.




I'm sorry for whatever you're dealing with right now.  I've had plenty of personal loss over the last 12 months to have sympathy and then-some.

But if you're going to shoot from the hip and nuke threads you don't like, just hang up the mod tag and take a break, rather than abuse your privileges.
 

I hope GME can recover somewhat, but their new CEO's new initiatives have went over about as well as a wet fart. It's looking like another Radio Shack, which did have several dead cat bounces over its last few years.

This x10000000000000

Just take some time off from here when personal stuff comes up mang.   There's 19 of you for a reason.

The other thread is back with the relevant info, so I don't want to keep derailing this thread.   

For this thread- I wouldn't have touched Gamestop with a 10 foot pole just seeing how they do day to day business in a way that just hemmorhages money.   I've bought 35 dollars worth of DS games from them before and had them shipped either 2 day or overnight in 8 different envelopes.
 

So all you stock folks - is there any stocks you're currently looking at? Do you ever invest in start-ups, or just go with big/known players?

(1) I'm a big believer in most people being better off invested in low cost index funds that meet the balance they are going for.

(2) Do you mean IPOs? (which aren't really start-ups anymore at that point, since they've gone public)

If you mean investing in ACTUAL "start ups" before they go public, you generally have to be an "accredited investor" (i.e. you have to either have a high enough net worth, or a high enough income, that the SEC rules will let you take those risks)

If you mean IPOs, I generally avoid them. (in big part because I don't bother to trade individual stocks, but secondarily because IPOs tend to have a big initial price increase that you can't take advantage of as a retail investor)

 

Yeah, I meant IPO's.

What's the risk like low cost index funds?

 

Theoretically, index funds are going to track whatever index they are designed to track.

The difference in how well they track, at a minimum, is going to come from their expense-ratio -- hence why you want "low cost" index funds (i.e. you minimize how much you pay in fees to hold the fund -- and those "fees" cover all trading that happens inside the fund)

The reality is a little different, in that index funds can be overweight in specific stocks versus literally owning the entire broad market.
(i.e. a lot of bank of america as a proxy for the entire banking sector, rather than owning some complete blend of all banking stocks)

So to mitigate that, you want to look at the ETF or mutual funds reports and see what their "top 10 holdings" are.
That shows you what they actually own potentially "too much of", and you can decide if you're comfortable with it, or not.


But if you pick an asset allocation that is "reasonable" for your age (i.e. 80/20 stocks/bonds, or even 90/10 with a long time horizon), if you are taking the VERY long-term view on the money, the bulk of the "risk" is that you freak out during a market event and sell when you should have just stayed in over the long term that you were investing for.

Assuming you believe that the market will tend to grow, longterm, at a pace that exceeds inflation.

(the old addage of "time in the market is better than timing the market")

I'm sure there could be very-hard-to-analyze risks as to whether a fund is genuinely holding what it claims it is holding.
But these are pretty heavily regulated financial instruments so that isn't very high on my list of concerns.