Reddit versus Wall Street

[Ibanez]

AMC at $13.26. Worth buying a few shares?

I’m long in AMC. It probably won’t be a squeeze but the conditions have changed (partially thanks to Reddit) and they won’t be going bankrupt. Lots of new capital and $660M debt was just cleared up. Movies are going to make a comeback. AMC had been falling steadily for about 4 years from a high in the 30s but as soon as COVID is really over, I would anticipate a steady incline. Hold it because you value the company, not to make riches.


Another company to watch is GM. With Biden wanting a EV fleet, GM seems to be well positioned.


I’m looking for an updated Due Diligence on both companies - I’ll post if I find one.

Blackberry has had some news lately. They’re going to be integrated with some mapping software. I don’t have a position anymore but am
Considering jumping back in. Again - it’s not for fast/easy gains. It’s slow, steady investment.

Look at Palantir as well. Love this company, use their products at work. They’ve got some serious potential. I am long PLTR.


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[∞∞∞]

Truth is GME is a very unique situation being shorted at 100+ percent (140% last I saw but I'm sure it's less now).

AMC isn't going to be the same, but it's still heavily shorted and there's a wave of people buying who want to help the movement but can't afford GME. Plus AMC is uniquely positioned to gain as things get better, so there's a solid case for long-term play here.

In the end, I buy into companies and products I believe in. Simple as that, and what I suggest to anyone. Despite what many think of me, I like capitalism and want it to be used for good. I want to invest because it helps a company grow, create jobs, benefits, opportunities, etc. But I want more of the capital made to return back to society because ultimately it's not the investors, but everyday people who made the investment worth it.

Americans work hard and deserve to play hard. Our economy generates massive wealth but it's being horded, neither being reinvested into our people nor paying down our debts. Truth is our nation has enough wealth for everyone to have high living standards: healthcare, education, housing, food stability, etc. We have enough wealth to assist the needy or get the downtrodden back on their feet.

When people call this stuff communism, I laugh. The whole point of capitalism is to improve our world, increase societal benefits, increase standards of living, and create upwards mobility. It did for many years, but we've reached a point where our children have less opportunities, benefits, and upwards mobility. Greed has stalled - even reversed - the gains capitalism made for decades.

Capitalism can be used for good, but it's now being used to siphon money upwards. GME is a visible reminder of this.

Anyways, went on a JSO rant there.

[CAA Flagship]

In the end, I buy into companies and products I believe in. Simple as that, and what I suggest to anyone. Despite what many think of me, I like capitalism and want it to be used for good. I want to invest because it helps a company grow, create jobs, benefits, opportunities, etc. But I want more of the capital made to return back to society because ultimately it's not the investors, but everyday people who made the investment worth it.

Chicken. Egg.

Every investment entails risk. If you limit the reward and increase the risk, the investment is less attractive.

And who's capital do you want to have returned to society?
The company's? Then they will just raise the prices of their products or services; impact unknown.
The investor's? This would require increasing the capital gains tax. The only thing I would agree to here is income and/or profit based capital gains tax brackets. Nothing elaborate. No more than 3 brackets.

Historically, investing is one of the best ways to increase individual wealth. And the sooner people invest, the better it will turn out for them in the future. A flat capital gains tax rate may not be the best way to increase the wealth of the lower level investors, and raise the tax revenue.

[∞∞∞]

^It's not an "egg, chicken" situation in any way. This line of thinking is why conservative economics continues to fail society.

First, I agree the market is the most stable way to build wealth. Second, you're thinking of capitalism as a divide between the investment (owner) class and the worker class. This isn't how it's envisioned by Smith and others: it's envisioned as a system where people are part of both the investment (owner) class and worker class.

However we now have a lower/middle class which is increasingly choosing between basic necessities or putting the money to work. People should have the ability to do both. There is also a larger distinction between people who make a living by working and those who make a living by owning. This happened over 40 years by chipping away regulations which protected against greed inherent to any economic system, all in the name of the "free-market" which is a more libertarian thought than a fundamental economic theory.

The best way - proven - is to regulate the market against greed. You tax higher gains, increase wages, etc. Instead of having vast divides between the investment (owner) class and the worker class, wealth is distributed more evenly and democratized. Money still exists to be reinvested into the market, but it's not invested by a handful of people. It's done in a fairer way which does two things: a) lets more people participate in the market and b) creates more efficiencies by democratizing what society wants to see grow.

The GME/AMC situation is a good example of the last point. A handful of hedge funds and capital venture firms decided to hurt two companies and devalue the stock, siphon money away, and essentially kick them while they were down. That's not how capitalism should work: they should fail or succeed based on merit. The real world effect here is an upwards transfer of wealth and people losing their jobs, benefits, etc.

But that's not what happened: people decided to save Gamestop and AMC. Now if regular people had more money to invest (instead of having to spend it for basic needs), the implications become apparent: jobs are made (or lost) democratically and products and services are more efficiently invested into based on what society wants. "A rising tide lifts all boats."

ps. Also remember, when societies have vast wealth disparities to the point where people are not comfortable anymore, you see more civil unrest. People begin to think democracy isn't the way forward and fascist tendencies rise (whether they realize it or not).

[UNI88]

^It's not an "egg, chicken" situation in any way. This line of thinking is why conservative economics continues to fail society.

First, I agree the market is the most stable way to build wealth. Second, you're thinking of capitalism as a divide between the investment (owner) class and the worker class. This isn't how it's envisioned by Smith and others: it's envisioned as a system where people are part of both the investment (owner) class and worker class.

However we now have a lower/middle class which is increasingly choosing between basic necessities or putting the money to work. People should have the ability to do both. There is also a larger distinction between people who make a living by working and those who make a living by owning. This happened over 40 years by chipping away regulations which protected against greed inherent to any economic system, all in the name of the "free-market" which is a more libertarian thought than a fundamental economic theory.

The best way - proven - is to regulate the market against greed. You tax higher gains, increase wages, etc. Instead of having vast divides between the investment (owner) class and the worker class, wealth is distributed more evenly and democratized. Money still exists to be reinvested into the market, but it's not invested by a handful of people. It's done in a fairer way which does two things: a) lets more people participate in the market and b) creates more efficiencies by democratizing what society wants to see grow.

The GME/AMC situation is a good example of the last point. A handful of hedge funds and capital venture firms decided to hurt two companies and devalue the stock, siphon money away, and essentially kick them while they were down. That's not how capitalism should work: they should fail or succeed based on merit. The real world effect here is an upwards transfer of wealth and people losing their jobs, benefits, etc.

But that's not what happened: people decided to save Gamestop and AMC. Now if regular people had more money to invest (instead of having to spend it for basic needs), the implications become apparent: jobs are made (or lost) democratically and products and services are more efficiently invested into based on what society wants. "A rising tide lifts all boats."

ps. Also remember, when societies have vast wealth disparities to the point where people are not comfortable anymore, you see more civil unrest. People begin to think democracy isn't the way forward and fascist tendencies rise (whether they realize it or not).

Trip, I agree with a lot of what you're saying. I would add that there are also a lot of "regular" people who are choosing not to invest some because they don't know how and others because they have to make their monthly payments on their Escalade and 70"+ TV. We also have political leaders and agitators who demonize the market and/or delayed gratification.

The market has the potential to help a lot of people but we need to do a better job of teaching people how it works and regulating it in such a way that wealthy insiders can't screw over regular investors at a whim. It would also be nice if publicly traded companies were managed by people focused on building great companies rather than meeting short-term market goals so they can get a huge bonus.

[SeattleGriz]

Not very savvy on the topic, but thought this was an interesting read.

https://market-ticker.org/akcs-www?post=241454

[∞∞∞]

UNI - agree with everything you said. We need to teach people how to invest, borrow, calculate interest, budget, etc.

But I want to add that "free-market" theory should not be the fundamental basis of any economic education. If we're going to do it right, we need to have people critically think about different theories: capitalism, socialism, communism, feudalism, corporatism, mixed economies, etc.

It shouldn't be propaganda education for capitalism to further divide classes and siphon money upwards.

[Skjellyfetti]

The point is that the entrenched do not want the masses knowing how to invest, borrow, calculate interest, budget, etc. Their wealth relies on manipulating these ignorances. Apple would be hurt if people didn't upgrade their phones as often or bought budget phones or used phones. Credit card companies would be fucked if everyone started paying off their balance every month. Etc.

"Too much capitalism does not mean too many capitalists, but too few capitalists." -GK Chesterton

[UNI88]

UNI - agree with everything you said. We need to teach people how to invest, borrow, calculate interest, budget, etc.

But I want to add that "free-market" theory should not be the fundamental basis of any economic education. If we're going to do it right, we need to have people critically think about different theories: capitalism, socialism, communism, feudalism, corporatism, mixed economies, etc.

It shouldn't be propaganda education for capitalism to further divide classes and siphon money upwards.

I completely agree. I would add that there is both "conservative" and "liberal" propaganda education and that ideally there shouldn't be propaganda education for anything. The 1619 Project is a good example. It started as a project with worthwhile goals but when the editors ignored the feedback of experts, parts of it became propaganda and not a scholarly work.

We should be teaching kids/students how to think not what to think.

[AZGrizFan]

The point is that the entrenched do not want the masses knowing how to invest, borrow, calculate interest, budget, etc. Their wealth relies on manipulating these ignorances. Apple would be hurt if people didn't upgrade their phones as often or bought budget phones or used phones. Credit card companies would be fucked if everyone started paying off their balance every month. Etc.

"Too much capitalism does not mean too many capitalists, but too few capitalists." -GK Chesterton

Very, VERY few schools and universities teach “capitalist propaganda”. Most are teaching socialism or socialist ideals. Most conservatives/capitalists on campuses have to be very, very quiet about their beliefs lest their grades be affected.

[AZGrizFan]

Truth is GME is a very unique situation being shorted at 100+ percent (140% last I saw but I'm sure it's less now).

AMC isn't going to be the same, but it's still heavily shorted and there's a wave of people buying who want to help the movement but can't afford GME. Plus AMC is uniquely positioned to gain as things get better, so there's a solid case for long-term play here.

In the end, I buy into companies and products I believe in. Simple as that, and what I suggest to anyone. Despite what many think of me, I like capitalism and want it to be used for good. I want to invest because it helps a company grow, create jobs, benefits, opportunities, etc. But I want more of the capital made to return back to society because ultimately it's not the investors, but everyday people who made the investment worth it.

Americans work hard and deserve to play hard. Our economy generates massive wealth but it's being horded, neither being reinvested into our people nor paying down our debts. Truth is our nation has enough wealth for everyone to have high living standards: healthcare, education, housing, food stability, etc. We have enough wealth to assist the needy or get the downtrodden back on their feet.

When people call this stuff communism, I laugh. The whole point of capitalism is to improve our world, increase societal benefits, increase standards of living, and create upwards mobility. It did for many years, but we've reached a point where our children have less opportunities, benefits, and upwards mobility. Greed has stalled - even reversed - the gains capitalism made for decades.

Capitalism can be used for good, but it's now being used to siphon money upwards. GME is a visible reminder of this.

Anyways, went on a JSO rant there.

This concept that hoarding is a “new” thing and that capitalists were altruistic “back in the day” is comical. i agree with most of what you said there, but believe you me, Rockafeller, Vanderbilt, Clark, etc., etc. back in the early days of the US and this capitalism experiment were hoarding as MUCH as they could. There will always be hoarders. And I’d love to see proof of your statement highlighted. The generation you mock (boomers) is dying at a rapid clip. There will be opportunities, benefits, upward mobility, but most folks just don’t want to wait. They’re the “want it now” generation.

[AZGrizFan]

Turns out i was incorrect. The new “GME” is Silver.

Reddit hitting ETF’s today, driving up prices, silver is over $30/oz right now, hasn’t seen those heady days in 8+ years. I’m sitting on about 300 oz that I may liquidate if this thing continues.....

[Ibanez]

Turns out i was incorrect. The new “GME” is Silver.

Reddit hitting ETF’s today, driving up prices, silver is over $30/oz right now, hasn’t seen those heady days in 8+ years. I’m sitting on about 300 oz that I may liquidate if this thing continues.....

Weird...I've been on r/WSB for a while and nobody was pitching or discussing silver. The only people that have started to bring it up are relatively new to the boards and have suddenly taken an interest in silver. Most people that have been in it for the long haul are actually calling them out for not presenting a bull/bear thesis. I don't believe the hype around silver right now - I think it is misdirection.

And you guys know how I don't fall into the conspiracy BS but I don't believe it.

[SDHornet]

Trip, good points on the system. I'd argue that it isn't up to the State to distribute the wealth/gains, but ultimately individuals (and company's) choice to reinvest in their workers and their community via charities. Many do this, some could this more, but whenever the State gets involved all efficiencies are lost and you get to where we are today. More government would not help the situation we are in.

Regarding people not being education on how to invest and handle money in general, I agree. You have to ask yourself who has been in charge of the education system to understand why it is failing so badly.

[SDHornet]

I wonder if jelly gave kimmel this material.

[Ibanez]

a poll was conducted on Reddit - $GMC and $AMC holders - Did you buy $SLV today? Within minutes, there are over 600 responses - 95.1% say no.

[AZGrizFan]

a poll was conducted on Reddit - $GMC and $AMC holders - Did you buy $SLV today? Within minutes, there are over 600 responses - 95.1% say no.

Well, I’m not sure what’s driving it then, but it’s up over 12% today.

[Pwns]

The point is that the entrenched do not want the masses knowing how to invest, borrow, calculate interest, budget, etc. Their wealth relies on manipulating these ignorances. Apple would be hurt if people didn't upgrade their phones as often or bought budget phones or used phones. Credit card companies would be fucked if everyone started paying off their balance every month. Etc.

"Too much capitalism does not mean too many capitalists, but too few capitalists." -GK Chesterton

Very, VERY few schools and universities teach “capitalist propaganda”. Most are teaching socialism or socialist ideals. Most conservatives/capitalists on campuses have to be very, very quiet about their beliefs lest their grades be affected.

One day maybe liberal administrators will realize a good way to stick it to payday loaners and time share sellers and to Wall Street is to put personal finance courses in high school. We can always hope, right?

[Ibanez]

a poll was conducted on Reddit - $GMC and $AMC holders - Did you buy $SLV today? Within minutes, there are over 600 responses - 95.1% say no.

Well, I’m not sure what’s driving it then, but it’s up over 12% today.

Legitimate fake news.

[AZGrizFan]

Very, VERY few schools and universities teach “capitalist propaganda”. Most are teaching socialism or socialist ideals. Most conservatives/capitalists on campuses have to be very, very quiet about their beliefs lest their grades be affected.

One day maybe liberal administrators will realize a good way to stick it to payday loaners and time share sellers and to Wall Street is to put personal finance courses in high school. We can always hope, right?

No shit. It’s an absolute travesty it’s not taught. And it should be mandatory in every school in the country.

[UNI88]

One day maybe liberal administrators will realize a good way to stick it to payday loaners and time share sellers and to Wall Street is to put personal finance courses in high school. We can always hope, right?

No shit. It’s an absolute travesty it’s not taught. And it should be mandatory in every school in the country.

That's a no go - they'd become financially independent and not reliant on the government.

[AZGrizFan]

No shit. It’s an absolute travesty it’s not taught. And it should be mandatory in every school in the country.

That's a no go - they'd become financially independent and not reliant on the government.

[Ibanez]

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[AZGrizFan]

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Could be. I got it from CNN so it was probably wrong.

[SDHornet]

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I'm going with the silver thing as interference/distraction from people going diamond hands on GMS/BB/AMC/etc.

They're scared.