I'm flattered to be asked so here's my take.
It's great to see the 'little guys' land a huge shiner on the big boys. The initial power of the Reddit boys made Melvin Capital close their short position on GameStop after losing billions of dollars and possibly facing bankruptcy.
That's incredible and seems to make WallStreetBets a formidable force.
But it seems to me to be a bit like pyramid selling. If you get in at the start, individually you can make eye watering amounts. But as the SP rockets, the later you get in the higher the risks and when the fall happens, equally eye watering losses.
Someone somewhere is sat on huge numbers of shares. And it would seem everyone is now getting out. An hour ago GME was above $470. It is now @$135
Likewise AMC has shed over 40%, however with a more manageable drop in dollars to an individual if they want out.
The investor markets are already trying to control the impact and effect the Reddit 'boys' can make.
For example, this message is shown on my platform on both GME and AMC share dealing.
'Due to BUY restrictions placed by our intermediary, GME & AMC will be placed in close-only mode. New BUY positions can't be initiated, existing ones can be reduced or closed.
For the two companies involved, has this actually helped them? Are their balance sheets healthier, employees safer in their jobs and under less financial stress that started institutional shorting to begin with? No. They are not.
Would you have invested in either before the hype? After researching the companies, for me it would have been a no, as at days end your holding stock no one else would touch.
So, those that started the fightback are unbelievably rich, those that bought in an hour ago for $470+ broke.
Anything that rocks the boat and empowers investors is a great thing, some of the big boys will be rightly reassesing their view of PIs, but I think the boat won't be rocking for long.
Just my tuppence worth.
GLA DYOR
You could have bought RR for 88p yesterday.
And you've missed the bottom of Petrofac as could have bought at 102 last week.
Good luck though, with what ever you to choose to invest in.
DYOR
@alibeme
Did you take yours from your 135 entry point?
You'd have made a tidy sum if you'd sold at 140.
Or did you not buy?
You see, the thing is, I have stated many times I have no personal problem with you.
I just disagree with you.
But thanks for the 'fool cretin and moron'
If you look back through all our differences you'll see I've never disrespected you on an individual basis. Many have blocked you and called you out.
I actually embrace seeing opposing thought provoking points of view.
But alas, whilst our POVs might not match, I'd never call another poster a 'moron' because my investing strategy is different.
So, what is your IAG price at close tomorrow?
Oh, so your thread with a target of 130 today at finish was started by.......
You.
You haven't guessed anything correctly. Every one of your multiple threads have been wrong.
Thankfully without exception.
I'm not angry, why should I be? It's no skin off my nose. So, before the market opens tomorrow, not sat there 20 mins later saying '130 close', (which never happened) what is your prediction tomorrow?
Just a ball park figure
Well, I'm blown away WAMs prediction of days end price would be 130 didn't materialise.
I mean for 8 months every prediction he's made has been proved right.
Oh wait, no they haven't. Not one. At all. Ever. I'm glad this evening he's been gracious enough to bow out, telling us monkeys he's tired of trying to help us and his taking his wealth of advice elsewhere as we just don't listen.
Then we have his sidekick alibeme giving me this nugget yesterday -
'i would sell all of those companies you mentioned especially BP and Tesla'
I don't hold BP, but I do hold Tesla. Up $34 dollars tonight.
Thanks boys, you are both incredibly nuanced savvy investors. I can't wait for your ignored advice tomorrow.
GLA DYOR
No @alibeme you stated that you and WAM were telling me to sell at above the SP now.
These are your words. You also state that if we listened to WAM we would have saved money.
Back up your posts.
Where and when with what investments could 'I' have done that?
Just one investment please.
@alibeme 'Well im pretty sure both WAM and I was telling you to sell at well above the SP now, '
Awww thanks for the personal advice, it must have been lost on the BB. Don't know how I've made money without your kind and heartfelt selfless instructions.
@ WAM 'i will buy a big chunk of iag at 0.75 and RR 0.50 cant wait.'
So you will never own IAG or RR then.
If you'd invested here when we told you what was 'in front of you' you'd have made a mint.
Oh, apart from your JETS and INFA mistakes.
I mean, some guys just can't see it.
alibeme, can you expand and explain how we could have saved money listening to WAM?
Just one example please.
In your own time.
Saved money where?
I've made a lot of money trading IAG.
What money have you saved listening to his advice? Just one example please
You got to ask yourself why, when most investors and traders have spent the day with fam and friends, has an individual and a sad new sidekick post and open multiple threads peddling doom and gloom.
Dredging any negative news often with spurious backing to 'scare' anyone willing to read their agenda dross. Even adding a laughable, 'I'm doing this to help holders'. Pure hogwash.
If these individuals believed what they were posting, they would post these warnings across every BB to 'help investors' sell sell sell. As their predictions would affect every FTSE and DOW listed companies. They are all going to go to sub £1 and sub $1.
Their joint prophecies of covid doom mean so many will be infected, unemployed, dead and therefore have no money mean no one ever moving forward will have a holiday, buy a new car or even food.
So sell all your holdings. Every one. There is no hope. The vaccine is a lie. This from a fool who across EVERY BB he has posted on for nearly a year has never ever once been right. Not once. Not even from the one BB he ramps, INFA.
So when an individual relishes bad Covid news, mutations and is apparently enjoying summer heat somewhere....
Who is delivering his food? Ice and fuel in his cars fuel tank?
When you peddle this amount of doom, you gotta sell BP, Ocado, Astra, Tesco.. Well everything really. And of course Tesla.
There is no hope. We are doomed. Thank goodness he's shown us the way.
IAG may drop tomorrow, but 70p? Really? If not, then when? Apparently in 2021. The most lazy prediction.
I believe that if WAM could write longer sentences than parody pantomime replies to himself 'Oh yes it will' 'See you sub £1' the Guardian would employ him tomorrow.
Are you really going to sell your holding tomorrow because this guy has flooded this board with rubbish for two days?
The moment this goes North, he will disappear again, as he has done time after time after time.
But let us suspend belief, even if you held at 180. Would you not hoover up more at sub £1?
HELL YEAH!
alibeme 'You can't handle the truth'.
If you truly believe the vaccine doesn't work, that there will be a lockdown into next year and uprising against governments and chaos, there will be no FTSE companies to invest in anyway.
So if - ' Ill be buying when the ftse drops below 5000.' you'll be the last man standing.
I wish you nothing but luck with your investing strategy, but it's not one for me.
Wait? Erm, weren't we all told on here that a full travel ban was to be announced and all airports closed?
You mean that guy who advised us all to sell or get our before 5pm this evening didn't actually KNOW or have the ear of COBRA meetings or BOJO?
Please tell me it ain't so sir, I sold every travel share I had..........
I've certainly never predicted nor advocated either of those prices. Either before or after the RI.
WAM always brings a smile to my face. As predictable to arrive on a drop day as night follows day.
I mean, what's it been now? Nearly 8 months he's been splintering into our otherwise pretty quiet door with his axe of doom, shouting 80p like a deranged Jack Nicholson in the Shining.
Dredging all news channels for any sniff of bad news which he then spins into outrageous predictions that over the last 8 months streadfastly refused to happen.
My favourite eye roller today was that the acquisition of AE was somehow a bad deal, which was hailed by most outlets as an excellently renegotiated deal building IAG a new hub in Madrid. If only those morons and monkeys employed at IAG had WAMs detailed insight eh?
And don't worry WAM, if your sub 1 pound prediction does magically materialise, I will be laughing as I'll hoover up as many as possible.
If he had traded this share over the last 8 months he could have made some serious dough.
Oh well. How's your INFA holding doing?
GLA DYOR
Bought more IAG shares yesterday. No Spanish tax paid.
Carnage or an opportunity?
Lots of possible bargains to be had if you have dry powder.
Not sure of your point. Here's some readily available news.
BA has already secured 2 billion pounds worth of support loan from the British government.
Plus a major part of its workforce furloughed with money from the British government.
This is from the Evening Standard in May 2020.
British Airways’ owner IAG on Thursday said it has secured £300 million from the Government’s coronavirus aid scheme, on top of Spanish state-backed loans.
The airlines giant, whose BA division plans to make thousands of workers redundant, has drawn the funding from the Coronavirus Corporate Finance Facility.
IAG recently secured around £900 million of loans backed by Spain to help its Iberia and Vueling airlines.
So, it would seem as well as bailouts for Lufthansa, Air France - KLM, all the big 4 US carriers and now a new deal for the doomed (in my view) Norwegian, what is your point?
GLA
No one can call the bottom. This could drop a penny or two tomorrow, who knows.
But for me, having watched, studied, shared and now traded IAG for a while, it can drop, like today, but rise on opening at a meteoric rate.
I do stress that my IAG strategy is no longer as a LTR, rather an in and out over a few days or even weeks as thanks to Robby, I realised (for me) if you ride the volatility, you can make money.
Previously I was holding my shares and sat on a nicely increasing profit. Which could change almost daily. So thought, why hold this profit thinking a couple of years ahead when I could cash out now (which I did at 170) and then trade it instead.
I've been lucky that the trades I've made since have been profitable (for me) and that I'm also happy to sit out for a few days and don't suffer from FOMO.
Crucially, the money I invest to trade IAG I don't need immediately elsewhere and it's making nowt in the bank.
I do have LTH shares in other companies and understand we all invest in different ways.
So yes, it's good to be back, but in truth, being back in at 156, I'll be out at 163 - 165.
Then wait, sleep, repeat.
Again, this way of embracing risk for results suits me, I am not in any way advising anyone to do the same.
GLA and DYOR
I said on Tuesday that I didn't buy back in at 159 as I thought the price would drop by a few more pence.
Kept my powder dry and had an itchy finger at 157 but held off and I'm very happy with 156.
Let's hope for some movement north.
GLA