At the time of writing, BBBY has lost ~19% value (4.25 dollars) worth of value in after market close-.
Why is this important?
First, the after hours drop provides compelling evidence of outside forces putting influence on the value of BBBY. Such forces also may help offer an alternative explanation of the stocks decline, compared to, “People sold because RC did XYZ”. If, in fact, outside forces are pushing the value of BBBY down sharply, it is unlikely that these forces can maintain a significant downward pressure on the stock for long. This implies the stock will regain value readily, as the underlying fundamentals which make BBBY a good purchase are still true.
Second, the after hour drop shows that at least some within the financial industry are actively working against accurate BBBY valuation. How far do these efforts go? It’s hard to say. During the GME saga, an article which described a catastrophic GME stock crash was published minutes before the crash. Thus, one can logically infer that at least some parts of the media are also conspiring to lower the value of BBBY. As such, a person would benefit from critical evaluation of any media pieces which discuss the potential future of BBBY. Notably, one of the most powerful weapons of the media has at it’s disposal is Fear, Uncertainty and Doubt (FUD). FUD pushes us apes to doubt one another, FUD tells us that we will lose everything, FUD weakens our resolve to turn proud diamond hands to regretful paper hands.
I have little doubt that tomorrow, multiple news outlets will publish pieces which describe the fall of BBBY as irrefutable evidence that the “Meme frenzy” responsible for driving the value of BBBY has ended as suddenly as it started. As a veteran of the GME Saga, I have a different perspective.
In World War II, as England was bombed by German planes which took off in the then occupied France, Winston Churchill addressed the besieged English nation over the radio. A gifted speaker, Winston Churchill told the people, “This does not mark the beginning of the end, but the end of the beginning”. And we find ourselves in a similar scenario. I suspect the artificial drop in value marks the end of the beginning for BBBY’s saga. In the near future, we will be bombarded by media pieces which attack almost every aspect of this subreddit. From the population composition, language use, beliefs, almost everything is fair game. Ultimately, the goal of these efforts is the same: Make us apes sell. The institutions which have shorted BBBY know that we can, and do have the power to bankrupt them. The economist John Maynard Keynes once quipped that, “Markets can stay irrational longer than you can stay solvent”. Put another way, by banding together we can lock up the majority of unaccounted shares, which will put immense financial strain on these companies. In the GME saga, multiple elite financial institutions were destroyed because of similar financial strains. The literal millions of shares of BBBY which were shorted by hedge funds promises to drain the coffers of hedge funds across the industry and threatens not just an institution’s profits, but their existence.
So, with a sense of what awaits us on the horizon; a slew of media pieces aimed to plant FUD, attacks on our judgment and character, scorn from experts and social pressure to sell… How should we react? For myself, I chose to double down on our plan to hold as much stock as we can afford. I encourage myself to take the view that the decline of value is a discount on future stock purchases. I remind myself that the unrealized losses from tumbling value are unrealized, and will remain so until I sell. We know, from both market data and the strength of this coordinated strike that those on the hook for shorting BBBY are, rightfully, terrified. We hold the financial sector accountable to the obligations which were made when the financial institution shorted millions of shares. We rebuke their efforts to bankrupt BBBY. We remove stop losses on BBBY shares. We use direct registration to prevent shares from being loaned out without our knowledge or consent. We hold. We are apes. We are strong together.
Tl:DR – Shorts r fukked, hedgies are *already* pulling out all the stops to scare us apes so we sell our shares. Be nice to each other, because these next few weeks are going to be a bumpy trip to the moon.
Submitted August 18, 2022 at 08:22AM by Magnus56
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