Robinhood is going to fold IMO.

[Pekelo]

fuck cuban, that big headed douche that got lucky..

His option defense of his deal was genius. Most people would have lost the paper gains, not him.

Also, most people don't recognize when they get lucky and lose it back thinking they have a skill set.

Anyhow, Cuban had an interesting POV today about non-dividend stocks. He said they are not part ownership of a company just a right to sell them higher. That is probably true.

 

[Cuddles]

Thats the info I was looking for. I wonder how many to TDA.

I mean we're talking serious amounts of cash if these pissed off guys figure this out and want to crush RH.

TDA also imposed similar restrictions as did IB. Most were fleeing to non-restricting brokers; Fidelity's the only one I'm aware of didn't.

 

[Overnight]

Ah OK. Same.

Actually, they are quite different.

 

[Overnight]

...
Anyhow, Cuban had an interesting POV today about non-dividend stocks. He said they are not part ownership of a company just a right to sell them higher. That is probably true.

I saw that interview/phone call today, and disagreed. They are the exact same thing as owning a company that pays dividends. You still have voting rights, like any other company you own shares in.

 

[athlonmank8]

TDA also imposed similar restrictions as did IB. Most were fleeing to non-restricting brokers; Fidelity's the only one I'm aware of didn't.

Yup. Someone on here told me they didn't but they did.

 

[Pekelo]

They are the exact same thing as owning a company that pays dividends. You still have voting rights,

Sure thing. 100 million outstanding shares, you own 100. So 1/millionth of the company. Let's say Tesla, where Elon can outvote you (or anyone else) anytime. Same with FB where Zuck has A stocks and you can own B ones with no voting rights. Do you feel respected or in power?

Cuban was right. With such a small amount of ownership the only thing you can hope for is to find a bigger fool...

 

[Overnight]

Sure thing. 100 million outstanding shares, you own 100. So 1/millionth of the company. Let's say Tesla, where Elon can outvote you (or anyone else) anytime. Same with FB where Zuck has A stocks and you can own B ones with no voting rights. Do you feel respected or in power?

Cuban was right. With such a small amount of ownership the only thing you can hope for is to find a bigger fool...

What does that have to do with the difference between a company that pays dividends, vs. a company that does not? There is no difference!

 

[Specterx]

Anyhow, Cuban had an interesting POV today about non-dividend stocks. He said they are not part ownership of a company just a right to sell them higher. That is probably true.

Companies can always introduce a dividend, declare a special dividend, or buy back stock - as many do nowadays due to the arbitrage in issuing ZIRP debt (with deductible interest!) to buy back much higher-yielding stock, as well as superior tax efficiency from the standpoint of the investor.

Rising markets are all well and good, but investors collectively can't withdraw more than companies collectively earn. At some point, holding treasuries even at near zero yields will indeed be preferable to holding the S&P 500.

 

[TrailerParkTed]

News was they upped GME limits but that wont help.
https://www.cnbc.com/2021/02/02/rob...ustomers-can-buy-100-gamestop-shares-now.html

The increase in limits is most likely to try to bring in/keep customers. With the number of people pissed off theres no way they can service the withdrawls when the dust settles.

Mark came on CNBC and said use a different broker.

13 million accounts.
Lets say 500k (4%) of those withdraw a measly $1k. They'll need $500 million, but eventually billions. I saw $43 million in cash (not sure if they have reserves).

This broker is toast guys.......

RH is built like a video, the other brokers don’t have Mario jumping up and down collecting the gold Tendies. RH is a fun app for most to use because it’s geared to gratification. Most don’t have enough to open at LighSpd, SpdTrader and IBKR is not game like enough. JMHO after seeing many traders remain at terrible brokers for years. The ones who left were asked to leave after complaining or yelling at the CSR.

 

[JSOP]

Unless they pulled an MF global, they have plenty of cash to service withdraws

IF they are going to pull a MF Global then it's all the more urgent to get the money out of RH NOW if your $GME shares are still worth $$$ !!! Cuz once they are under, the max. you can get from SIPC is $500K.

Better cash in the chips now, get your money out of RH and go into Fidelity or other brokers that did not restrict trading and start buying $GME and $AMC again! Just because the price came down doesn't mean shorts should be allowed to cover. Lower price just means we can buy more shares at a lower price and start the squeeze again!!

What killed this rally is really the restricting of shares by RH so the price stalled. When the price stalled, everybody started to sell and that's how the price came back down. WSB just needed to change broker and start buying again the price will go back up.

It aint over until the fat lady sings!