The craze for GME is continuing to be even more crazy every day. It shot up to almost $400 at opening today! Can it go up to $1000? Sure it can as there is no logic that can explain anything that is going on except the crazy FOMOs plus the bloodbath short squeeze!😵
Really scary what is going on as we'll likely see another horrible massacre that is doomed to follow that may kill a lot more naive FOMOs😢 We have already seen a young college student who killed himself a few months ago due to a big loss from his crazy FOMO trading. I hope we won't hear more such tragedies in the days and weeks ahead.
It is a certainty that those value-wise worthless stocks like GME/AMC etc will crash at some point, not if but just when. We saw a similar craze last year and the famed retired hedge fund manager, Whitney Tilson posted a note below about those FOMO stocks that were pushed to moon, followed by decimated crashes in just a few weeks' time. See below his note back then, forwarded by my friend. He is making the same call for the currently short-squeezed stocks. Let's see in a month how this saga goes!
Here's a funny video from 2014 that's just as true today: Buy the Dip.
The bubble over the past week in bankrupt (or near-bankrupt) stocks may be the craziest thing I've seen since the Internet bubble.
Take a look at the gains in these stocks yesterday:
- Extraction Oil & Gas (XOG): 248%
- Chesapeake Energy (CHK): 182%
- Noble (NE): 161%
- Whiting Petroleum (WLL): 152%
- Valaris (VAL): 135%
- Hertz Global (HTZ): 115%
- J.C. Penney (JCPNQ): 96%
- RTW Retailwinds (RTW): 74%
Every one of these stocks isn't just likely to decline… they're all ZEROS!
This insanity is being driven by individual investors day trading and speculating like crazy…
It saddens me to see this because while this bubble (so far, anyway) remains microscopic in size, it's still a few billion dollars that these investors are sure to lose – and I suspect these are losses these folks can't afford during these tough times…
In a little more than five weeks since then, this bubble has completely burst… These stocks are down an average of 74%, as you can see in this table:
Company | June 8 Closing Price | Yesterday's Closing Price | Percent Change |
|---|
Extraction Oil & Gas (XOGAQ) | $1.48 | $0.15 | -90% |
Chesapeake Energy (CHKAQ) | $69.92 | $6.60 | -91% |
Noble (NE) | $0.73 | $0.28 | -62% |
Whiting Petroleum (WLL) | $3.48 | $1.08 | -69% |
Valaris (VAL) | $2.19 | $0.63 | -71% |
Hertz Global (HTZ) | $5.53 | $1.44 | -74% |
J.C. Penney (JCPNQ) | $0.63 | $0.27 | -57% |
RTW Retailwinds (RTWIQ) | $0.41 | $0.09 | -78% |
Don't be tempted to bottom-fish here – as I wrote on June 9, these stocks are all ZEROS!
PS:
I have registered as 深山老林 at SafeChat (SC) (You need to download the SafeChat app first) and have set up a new SC chat group. I'm gradually shifting our major social media interactions to SC instead of WC. If you'd like to join my group, sign up a free SC account easily and search for me and connect me as friends. For friends sharing similar conservatism views, let's come together to form a better chatting group that won't be constantly disturbed and harassed by the insane radical censorship!
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