Tuesday, February 2, 2021

Dave Portnoy Loses '700K-ish' After Selling 'Meme Stocks'

Dave Portnoy

Well, the Barstool advice turned out to be the kind of advice you would expect picking up in a bar from the drunk sitting on the stool next to you.

Tuesday morning carnage in the heavily-shorted r/WallStreetBets squeeze-trades has resulted in Barstool's Dave Portnoy losing around $700k.

Portnoy tweeted around 1000 ET, "I have officially sold all my meme stocks. I lost 700k ish. Vlad and company stole it from me and should be in jail." 

Pretty much everyone who bought last week during the "revolution" has lost big money.


 

Don't say I didn't warn the "revolutionaries."

Last week I wrote:

We are seeing many call this the "little guy" getting back at Wall Street pros...But this is a VERY dangerous game, not "something to believe in."

This is kind-of the Trump stock market (He was all for Fed money printing, he encouraged it!) version of the storming of the Capitol. It is not going to end well for most.

In the  EPJ Daily Alert last week, I wrote:

Playing this game is extremely risky, It is a game of musical chairs where ALL

the chairs are taken away when the music stops. Anyone who plays it better be

prepared to lose all their money. 

As I  wrote, it might have looked like fun at the time, especially when encouraged by many commentators who didn't know any better, but the consequences, like from the storming of the Capitol, are going to be serious for many.

-RW

16 comments:

  1. As someone who made money, and did it with very little risk, just some opportunity cost, thank you Portnoy for being a complete idiot. I also want to thank Mark Cuban, who continues to show that he knows absolutely nothing about economics. Thank you, also, to Elon Musk, who helped push this higher, getting me a put strike price of $370!!!!

    Thank you, thank you. Take your lickings and move on, ladies. Gamestonk STONKED! And no one - except everyone who had studied mob behavior for two whole seconds - same it coming.

    David B.

    ReplyDelete
    Replies
    1. It was very high as one would expect strike but still tremendously undervalued and profitable. I have many shorter time and lower strike puts that will do better on a percentage basis, but those incurred more risk.

      There was a very very easy way to make money off GME. It was from playing the future price, not getting caught up in today's price. It is nobody's fault but Dave Portnoy's that he is ignorant of that.

      David B.

      Delete
  2. Of course long term holding gme was a loser trade...obvious even to an American. The only story here is that brokerages shut off traders ability to trade. Wasn't it just a few days ago you mentioned what mises said constituted a non-socialist society - the ability to buy/sell shares on a stock market? Well cross it off the list...because they'll shut you out anytime they like.

    ReplyDelete
    Replies
    1. In the second half of my podcast on Sunday I explain exactly why Robinhood put limits on the trading of GME, there was no grand conspiracy. It was perfectly legitimate and understandable: https://www.podbean.com/eu/pb-8bnft-f92de4

      Delete
  3. I don't get the podbean and don't want it. Didn't say anything about a grand conspiracy. Couldn't care less what the reasoning was. Either you can freely buy/sell stocks or not. There are no shades of gray

    ReplyDelete
    Replies
    1. I have no objection if you want to remain ignorant.

      And I don't even know what you mean you "don't get the podbean"? You just click on the button to listen

      Delete
  4. Save a slave some time and give me the one sentence reasoning...what color grey is it that justifies the further destruction of free markets?

    ReplyDelete
    Replies
    1. You are angry and lashing out. I have been there and still go there from time to time. I can't recommend enough the book The Untethered Soul by Michael Singer. Very life changing and very important book that can help anyone who is frustrated about the state of the world.

      My advice is free to take or leave.

      David B.

      Delete
    2. I second that book recommendation!

      Delete
  5. Contractor,
    I feel like you’re probably sincere in your recommendation but it is really gaslighting...making me think something I said was angry. I said nothing angry...I only seconded Mises when he said that the ability to buy/sell stocks was the defining issue determining if a country was socialist or not...by that definition, anytime trading is limited it pushes a country further into socialism. It is a black and white issue.

    Mr. Wenzel said there was a great reason to limit trading...and push america further into socialism...there was some shade of gray that made it worthwhile...but wouldn’t say what it was.

    And this is what’s so fascinating about watching american culture being destroyed...there is always a justification, always an excuse to allow the next affront. Always weakness, all the time.
    Men have become so weak that merely standing up for that which is good and beautiful and true – in this case a free functioning stock market - is considered being angry or ignorant.

    ReplyDelete
    Replies
    1. You sound like the dishonest distort machine AOC.

      I didn't say I wouldn't say what the legitimate reason for the halt was, I directed you to where I explained it in detail.

      Your linking it to socialism is absurd. Listen to the podcast.

      Delete
    2. It's all good JR, but I would like to ask, what is the "american culture?" Is that a collectivist expression of shared experience?

      David B.

      Delete
  6. I won't listen to the podcast because your base premise is false. There is nothing that can be said to make up for a false base premise.
    If they stopped the trading of stocks would that be socialism? Per Mises, yes. It doesn't matter if they stopped a few from trading or all - just a little bit of socialism or more.
    My apologies - I'm not trying to be difficult, but only stand for that which I believe to be true. Got lots of other stuff to do so I'm signing off this article, will catch you on the next one.

    ReplyDelete
    Replies
    1. It's nowhere near socialism. I will discuss in this week's podcast.

      Delete
  7. On January 28th, I commented on the EPJ post (https://www.economicpolicyjournal.com/2021/01/blame-trump-and-federal-reserve-for.html#comment-form):

    "But in the end, there are regulations against executing a pump-and-dump, against stock manipulation. And that's what these kids are going to get hammered with. They are going to get government regulation right up their grill. Just like the hivemind kids that participated in DDoS attacks in 2010-2011. Those kids got more government right in their living room when the FBI showed up to confiscate their laptops."

    And...

    "What next? That's a question no one pumping this stock can answer.

    Jail, probably, for a lot of the big players in this stock manipulation, like I said above."

    And what do we see happening? The SEC has been poked to look at wsb. The identity of DFV has been discovered (he's a financial analyst, how great is that), and now the powerful want him to testify before Congress. That'll be a big circus just to score political points, but do you see what's going on here?

    These goofs thought the problem was a lack of regulation. How hilarious is that? Now they're going to get that regulation the same way the Chinese get covid-swabbed.

    And a transaction tax will likely come out of this. Thanks, jerks. Way to fight the man...

    This is the problem with mindless revengelutionaries (I just made that word up). They solve nothing and leave us all worse off (financially.. From a humor perspective they make our lives better).

    David B.

    ReplyDelete