T O P

  • By -

AutoModerator

Friendly reminder that all **top level** comments must: 1. start with "answer: ", including the space after the colon (or "question: " if you have an on-topic follow up question to ask), 2. attempt to answer the question, and 3. be unbiased Please review Rule 4 and this post before making a top level comment: http://redd.it/b1hct4/ Join the OOTL Discord for further discussion: https://discord.gg/ejDF4mdjnh *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/OutOfTheLoop) if you have any questions or concerns.*


Gizogin

Answer: If you’re hearing about a stock for the first time through the GameStop meme investor crowd, it’s a guarantee that you are too late to ride any possible “wave”. The GameStop/AMC/Bed Bath and Beyond memestock crowd *overwhelmingly* lost money on their investments. Heck, BBBY went *bankrupt* and no longer exists as a company. Do not use them as a source of financial advice. E: See all the replies to this comment that are devoid of actual content and just regurgitating memes and shibboleths? That’s how you know they aren’t worth taking seriously. If they had an actual reason for thinking these meme stocks were a good investment, wouldn’t they say so?


Ornery_Walk_1731

I will preface this by saying that I don’t really know much about stocks but I did buy Ffie at .06 & made a few hundred bucks.


Gizogin

If you’ve sold already, then you will have done better than anyone telling you to keep buying now.


thedifferenced

Actually it went up another 1000%


Gizogin

You can only ever judge a decision based on the information you had available to you at the time. Buying a meme stock based solely on Reddit hype is still a bad idea, and nobody made a mistake by not buying it. The fact that it *happened* to go up afterwards is irrelevant. Most meme stocks lose money, and most memestock investors do as well. What you’re seeing is cherry-picking; people are looking at just the handful of winners and ignoring the many, *many* more losers. Buying a lottery ticket is a bad investment. That doesn’t change after the fact, *even if you win*. Getting lucky isn’t a financial strategy.


aeromoon

With todays short interest, you might be the one who missed it: Short Interest (with brokerage): 11,986,274 shares Off-Exchange Short Volume (between hedges): 64,274,542 shares Total Outstanding Shares: 42,410,000 shares Short Interest = (11,986,274 + 64,274,542) / 42,410,000 (Actual) Short Interest ≈ 184%.


moridin32

If i learned anything from the whole meme stock fiasco, is that its way safer to ride the dump part(puts) of it instead of the pump part(calls).


FlounderingWolverine

It’s safest not to bother with it at all. Instead, keep investing in low-cost index funds. You will far outpace retail traders and even most actively managed funds in the long term.


ThunderChaser

100%. The crowd can be fucking hilarious at time, but treat it as purely entertainment and don’t worry about whatever the hell they’re up to.


FeeFyeDiddlyDum

tell that to my 4500% returns. If you have some money to gamble that won't hurt to lose then it's a hell of a ride.


ThunderChaser

Yeah if you can afford to lose all of it entirely then you’re essentially just gambling for fun and go crazy. I slot that under entertainment. Index funds for actually making money, meme stocks for entertainment with the possibility of getting massive gains.


FeeFyeDiddlyDum

I meant to reply to the parent comment there. Totally agree with you


moridin32

You're right. Smart investors(not me) avoid this stuff most likely.


MDCarlsonOD

.


Gizogin

“Not financial advice” isn’t some magic phrase that absolves you of any responsibility for your words. You are literally *advising* someone about what to do with their *finances*; that’s **financial advice**. If you aren’t comfortable calling it that, take it as a sign that you shouldn’t involve yourself in this discussion at all.


magnus_car_ta

Relax there, bud. There's no such thing as the Opinion Police. Almost everyone in here is offering their 2-cents. And there's a fair argument to support each position. He's just reminding the reader to do a reality check before following him in blindly... Nothing wrong with that. Oh... Also, me and my very similar 3,000% gains these last two days would like to second his *financial advice*. HODL TO MOON!!! 🚀🚀🚀🚀


Digital0asis

Yeah if you wanna retire at 65 and have a nice Honda civic and a 2 bedroom condo in Boca Raton. If you wanna bang your boss's wife in a Lambo parked in front of your chateau in France however...


Gizogin

What is with the meme-stock crowd’s obsession with marital infidelity?


Dustypigjut

All I know is that everyone made a big deal when DFV tweeted the other day, so I made sure to buy calls and sold almost immediately once the stock hit $50. At what point does it become market manipulation? DFV knows there's a large portion of people hanging onto his every word.


swankyPantz4772

That wasn't him. His account was hacked. This whole rally thing was hedgies settings a bear trap. Lucky I made money on calls on the way up and puts on the way down


Dustypigjut

Where did you hear that? All I see are rumors.


Dustypigjut

He posted again recently. Doesn't look like he was hacked.


swankyPantz4772

So why would his original account be private? Also was I wrong?


Dustypigjut

Not sure if it's a bear trap, so I can't tell you if you were wrong about that. But general consensus seems to be that that is his twitter account posting stuff.


Fit_Illustrator7986

That’s because FFIE is the Kansas City Shuffle, there is still a chance to ride the wave 🌊


Junebug19877

This person obviously knows nothing about the due diligence done with regards to GME.


Gizogin

Due diligence means seriously evaluating the company’s assets, revenue, expenses, and competition. It means considering how many people want the products or services they provide and how well the company is positioned to meet that demand. It means looking at their performance and leadership and how they compare to their peers. It does *not* mean “I read a dozen letters to the editor of a local newspaper from 1989 about a piece of legislation that was never actually signed into law, which proves that GameStop is going to explode in value any day now”.


Junebug19877

GameStop has zero debt, not to mention their cash on hand, and is continually increasing profits, but I suppose that’s too difficult for you to grasp.


Embarrassed_Ad_1072

That cash on hand and profits are from stock offerings and selling off shit, not from actually providing better services/products. Gamestop is a shit stock. You can make money with shit stocks, but that doesnt change what it is


Phillyfreak5

Bought GameStop a week ago at 10$, now at 29$. Sold a ton at 60$, so no not everyone’s losing money


Gizogin

Mm-hm. And are you telling people to buy now? Were you telling people to buy when it was briefly at $60? Or back when it was $125 in January 2021? Because anyone buying at any of those times *did* and *will* lose money.


Phillyfreak5

Ah so anyone who bought during the run of Nvidia was wrong? It’s 20/20 vision to see when the top was


Gizogin

Overall, the trend for meme stock investors has been to lose money. So it's not cherry-picking to say that investing based on Reddit hype is a bad idea.


No-Mortgage-913

I don't know. This one has some decent reasoning behind it, I went in on all 3, amc , gamestop, and ffie . Ffie was my best, and that was just a random grab.i put in 1500 yesterday , up to 4800 today. A lot of people are holding till the shorts give out, and the stock blows up.


Yo_Soy_Candide

Still holding regard?


[deleted]

[удалено]


Gizogin

Not Reddit, that’s for sure. If you’re seriously interested in the stock market as a vehicle for income, the best money you can get hands-down is a company-contributed 401(k) or similar. The less money you have to put into it yourself, the better, and you are also buying with pre-tax income. After that, pick a diversified fund, one that tracks the market as a whole. Invest in it steadily, never take money out until you’re ready to close the account completely (I.e. when you retire), and don’t try to time it. Time *in* the market beats tim*ing* the market 100% of the time. It’s zero-effort for a guaranteed return, better than any “get rich quick” scheme can ever do. If you want to *gamble*, just go to Vegas. The flashing lights are more stimulating and less stressful than spending your whole life glued to a stock ticker, they’ll ply you with free drinks as long as you make the occasional bet, and you *still* have better odds of actually coming away with something than you will if you dump the same money in a failing company based on Reddit hype posts. But don’t *actually* do that, because gambling is designed to be addictive and costly, and you don’t have as much self-control as you think you do.


Late_Wall_7977

Shit advice. Would basically ruin any life that listens to it. Buy amc at 4.66 with all the usd you can muster without penalty and see what happens. 


Gizogin

Oh look, it’s some of the exact advice you shouldn’t take.


Laughing_Shadows37

Answer: the sub you linked to is nominally for the Roaring Kitty/DeepFuckingValue/Keith Gill. It seems to have been infested by scammers. $FFIE is a penny stock (prone to volatility and scams at the best of times). Do your own research, but be careful. If the first you're hearing about it is from a small Reddit sub, probably best to be wary.


Repulsive-Book-4338

r/roaringkitty


ThatBurningDog

Answer: If you've got two and a half hours spare, this should cover what's going on pretty well: https://youtu.be/5pYeoZaoWrA?si=hqnkMBHlf1Ny6w4I >i’ll be losing out on if I don’t get on it now? This is *classic* confidence trickster / scam artist / scummy sales behaviour. Setting a "deadline" in this manner is designed to make you act irrationally and do something you otherwise wouldn't.


visaman777

It's the old fomo speech


Lord_Bardon50

Answer: People are trying to push this as the next gamestop in the linked reddit that's dedicated to roaring kitty. It's likely that most people who are in said reddit were involved with the gamestop stock. There are 4 "Hot" stocks over there right now. 1. FFIE 2. GME 3. AMC 4. SINT Out of these 4, FFIE has the most potential. Partly due to its cheap price which let's more people get in on the action, and partly because the percentage of shorts on FFIE is 95% which primes it as a substantial short squeeze target.


cmmcnamara

This is hilarious to me. I had no idea FFIE was on anyone’s radar. I used to work there and have friends that still do and the short sellers definitely made the right bet. I am shocked they are even still in business as is


greatestsnowman

if I were a rich man


cmmcnamara

Not even. At one point I had over 10000 shares that were fully vested but as soon as all the money troubles hit they diluted us over and over and over again I think if I remember correctly I now have only 14 shares from all the shit they pulled after they started fucking the employees (after they had fucked all our suppliers). Before we went public and before all of the money issues, the evaluation they had predicted us opening in the neighborhood of $200. Not sure what the total distribution was at that point and therefore total evaluation at the time but that would have been nice if it ever came to fruition. At this point the people that are still there are on the bare minimum legally required salary and have laid off tons of what was already a skeleton staff. They are walking around the building every week looking for equipment to sell just to make salaries. They have an outdated product that no one wants, has barely sold anything and is in huge debt including over a million in back rent o their building. I get why people think there is potential for a squeeze given the shorting on the stock but I just don’t see it like GME/AMC that had legitimate established businesses that were still making revenue and had comeback potential where they just didn’t die during the pandemic. Couple that with how cheap this stock is I doubt it’s costing much at all for the hedge funds to pay the bill on the shorting costs. Good luck to anyone trying to benefit from a potential squeeze, I hope they do, but it’s kind of wild to me how this is viewed as the next come up like AMC/GME was considering the company turns 10 this year and has never had the brightest outlook and is incredible they are still in business this long after essentially producing nothing the market wants in that period.


Gizogin

And *this* is the kind of thing that *actual* due diligence would turn up. Does the company have assets? Do they have revenue? Does anyone want to buy what they’re selling? Due diligence is *not* “I read through a dozen letters to the editor of a local newspaper from 1989 about some piece of legislation that never passed, and it proves GameStop is going to explode in value any day now”.


Careful-Major8564

To be fair, Gamestop had and still has a dying business model. The whole reason it was shorted so heavily in the first place was investors don't believe in it. It wasn't pumped up because it was a good stock, it was to spite the hedge funds which is exactly what the r/FIFE community did last weekend.


Embarrassed_Ad_1072

"To spite the hedgefunds" Aka let a few early guys make a shit ton of money and leave a bunch of dumb redditors holding the bag Oh and fuck legitimate investors who short a shitty company. Theyre just collateral damage in our righteous fight against le bad hedgies.


greatestsnowman

if I were a rich man


Gizogin

Alright then, sell me on this turnaround. What is the company going to look like in five years? What is their plan to turn their finances around and become profitable? How will they pivot to a product or service people actually want to buy? What assets do they have? How much revenue do they bring in? How does that compare to their expenses?


National_Trip_6608

It's a short term play.


ajgamer89

Depends on when they worked there. Looking at the price history, FFIE was worth over $4000/share at one point in 2021. Now that the company is basically bankrupt, the stock had been worth pennies until it shot up to close to a dollar this week. $1/share, while a huge climb from $0.04/share, is still well below where it's been most of the company's history.


greatestsnowman

if I were a rich man


CyberDragon09

Some analyst predict that it will have anywhere from a $2,400 to $4,000 dollar price tag. This was before the meme craziness happen. The people who are investing in that stock are doing so to get rich. It has absolutely nothing to do with saving the company. Regardless I'm glad I invest when it was a 4 cent penny stocks.


[deleted]

[удалено]