Price is what you pay in the market and value is what something is worth...clear difference.
Some people with in a group who hold a view does not mean the entire group holds that view.
In this game, I believe retail investors feel like they are winning now but ultimately many will lose money when the price comes down. In my view the price is not sustainable....
how much is a $20 USD bill worth to you? Its a penny or less of cotton.
obviously its not sustainable, we are entering a short squeeze. But capping at $4 a share shouldn't have been either, I think $60-$80 is a really reasonable assessment, it will spike, and rightly so, as the too greedy naked short sellers get screwed over and forced to cover their positions
A $20 USD bill is worth US$20 to me. That one is easy. My point still stands with regards to price vs value and that is how I invest. I buy stocks I think are undervalued and hold.
On GME, I have read r/WSB and the most of the posts/comments are emotional in terms of reasoning. When I’ve lost money investing it has been because I made decisions based on emotions. Often I wanted something to be true and I wasn’t able to face up to reality.
I believe short selling has a place in the market if done correctly. Don’t get me wrong, I’m against market manipulation. the buying or selling of shares by rational parties allows for true price/value discovery. My fear for WSB retail investors is that they are not rational and eventually the price of GME will come crashing down to a more realistic level in line with its future prospects and cash flow/earnings yield.
Under all the WSB bravado, I believe there is greed in that they all want to make big bucks. In that sense they are no different to the hedge funds. It’s really many small greedy fish vs a few large greedy fish....who will win? .... I’d rather avoid this fight and play a game where I’m more confident of winning.
Some people with in a group who hold a view does not mean the entire group holds that view.
In this game, I believe retail investors feel like they are winning now but ultimately many will lose money when the price comes down. In my view the price is not sustainable....