It isn’t that astonishing when you get paid 2 percent of committed capital.
What you’re describing would be a solid little business, it would turn a profit, and it would be worth a reasonable valuation. DASH was valued at $100 billion, so that wasn’t going to be the narrative that gave them a chance to maintain that or grow. They needed a taking over the food business and revolutionizing the world narrative, and you’ve gotta hire a bunch of people for that and have them work on like revolutionizing lending to restaurants and optimizing driverless deliveries for the future when it may or may not be a thing. Stuff like that, very serious, very business.
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Gamestop is up 11% on the announcement that they’re going to split their stock 4-for-1. People on reddit seem to genuinely believe–because it’s a stock dividend rather than a stock split–that this means they’re going to instantly have 4 times the number of shares at the same pre-split price.
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isn’t this roughly like asking a toddler which is more money - a $1 coin or 4 quarters? and they inevitably choose the 4 quarters?
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No, you see, the quarters are actually dividends so you have more money.
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It doesn’t take much to raise a 10b company 10% when you got 100k idiots who are bullish on the stock.
I had a friend that went all in on GM stock after it declared bankruptcy and got bailed out. The stock went down to one or two cents and he put his entire bank roll into it, I think about $5000, which was a veritable fortune for two broke 20 year old stoners in 2009. I desperately tried to tell him that those would be worth nothing no matter what eventually but he didn’t listen to me and would only say “ just wait till they get back to $50 I’m gonna be a millionaire”
well they damn near did i’m sure he’s a millionaire right?
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not good at detecting sarcasm and I can never tell what level anyone’s on and I’m sure you know but those are the ones that end up becoming de listed and worth nothing
he never spoke about it again
I can’t quite follow the logic, but I think it’s this:
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In a “true” stock split, the very nature of the existing shares change. If the company has 1,000 shares of $1.00 par value stock, and they declare a formal 4-for-1 stock split, each of those 1,000 “old” shares will be converted into 4 “new” shares of $0.25 par value stock.
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In a stock split via dividend, the company simply issues more shares of the existing stock, in a ratio that results in the same net effect. So a 4-for-1 split in the form of a dividend would have the firm issuing 3 new shares for every existing share, and the par value would stay the same.
Economically, these are both the same thing. And both are very dumb. If you have 100 shares before the split, you’ll end up with 400 shares after the split, and the market price of the stock will drop by 75% so your total dollar ownership (as well as your % ownership of the company) will remain the same. The same is true on the short side. If you’re short 100 shares before the split, you’ll be short 400 shares after the split. But because the stock price drops by 75%, your net short position doesn’t change. This is true regardless of whether it’s a true split or a split via dividend.
What I think they’re saying is this:
Shorting stock means that you’ve sold that stock to someone else even though you don’t own it. If the company were to pay a cash dividend on those shares, you the shorter would be responsible for paying that dividend to the party you sold your shares to. [Which is true.] Same thing with a stock dividend - if you’ve sold your 100 shares to someone else and the stock splits 4-for-1 via a dividend, you’re responsible for providing the additional 300 shares to that person. WHERE ARE THE SHORTS GOING TO GET THOSE 300 SHARES FROM, HMMMMM?
So I think the theory is that the shorts are suddenly going to scramble to buy those 300 shares that they’re suddenly on the hook for. As a consequence, the price will go to the moon.
Spoiler: They won’t have to scramble to buy those 300 shares, and the price isn’t going to go to the moon.
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It’s a joke about how the price is at 32 bucks now… on another IPO sure but whatever.
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oh yea I mean when he told me I was excited too because it was very obvious GM would be fine and bounce back, which made me want to invest as well, til the rational part of my brain asked “wait why isn’t everyone doing this too”
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My aunt did something like this with her student loan money with chrysler in the 80s (I think, not 100% sure on the year) and did very well. That’s the family story at least. So it’s not that crazy.
yea my maternal grandma went literally all in on disney stock in the early 80’s when it was like $1… for no other reason than she was a big disney fan. she’s still got a ton of money over that, lol.
I’m excited about where the Windy meme will take our culture.
I read a Wired article many years ago about Tesla and Elon Musk. It was very much a hype article about what he was working on doing with the company and how he was revered at the time. I was excited about the prospect of a flash looking EV and nearly put 10k of savings into shared, which were $30 at the time.
For quite a while I kept thinking of it as “the one that got away”, but in reality I would have spent the last 5ish years constantly looking at that price and agonizing over whether it had peaked or not, and every chance I would have sold well before the top and then kept on considering how much more I could have made if I stayed in.
I’m sure we all have our stocks that we nearly bought, so nothing really unusual about my story. But it has only probably been in the last year or two that I have started to recognize the mental/emotional value of not jumping on that rollercoaster.
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they’ll really love the announcement of the purge today where they fired a ton of people
Futures instant dropping on relatively good news (job creation exceeded consensus) never fails to make me smile. Capitalism Rulez !!1!1
You need to add the word poor in there but yes, you are correct. The workers need to remain broken with zero inkling that they might have some form of bargaining power.
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