Atobitt made some great DD. House of Cards 1-3. Everything Short. Classics. However, part 2 and 3 of HoC felt incomplete. No offense to the man, no offense to the data. I think it is spot on, i think we all know what to do. HODL.
But, I am here to add this, somewhat controversial, somewhat illuminating piece of information. I hesitate to post this because I don’t want to insinuate there are other plays. There are not. i want to be clear- this is in no way intended to diminish, nor will it, your desire to do nothing more but BUY AND HODL. Ready for it? it’s not even much of a surprise…
its not just GME.
Several Hedge Funds like Citadel, Melvin, Highfields, etc… develop a significant position in certain companies they like. The big boys. Now, when Atobitt said it was the Everything Short he fucking meant it is the EVERYTHING SHORT. So for the sake or brevity, i will only focus on a select few. namely,we are going to be discussing some rather interesting connections between amazon, netflix, target and GME and the like. This is going to be a bit of a swim, so please bear with me. let us dive in
Recently, Netflix has been rumored to be entering the video game industry. https://www.polygon.com/22447410/netflix-executive-games-expansion-the-information-report
And, as you know, Amazon recently purchased MGM studios. https://www.cnbc.com/2021/05/26/amazon-to-buy-mgm-studios-for-8point45-billion.html
Now i am sure it doesn’t take a few crayons to see our big boy GME is in the video game industry, and little brother AMC, is in the movie biz. Okay. I see that connection. Let’s divert a bit and look into some other connections. i turn your attention to Kevin Turner https://en.wikipedia.org/wiki/B._Kevin_Turner:
“Kevin Turner is an American businessman and investor who is currently the chairman of Zayo Group and the vice chairman of Albertsons/Safeway .He previously served as the COO of Microsoft from 2005 to 2016. Prior to joining Microsoft, Turner was the CEO of Sam’s Club and the CIO of Walmart. He is also the former Vice Chairman of Citadel LLC and CEO of Citadel Securities “
wow okay, citadel connection, sure. but what’s Zayo Group? From: https://finance.yahoo.com/news/were-hedge-funds-flocking-zayo-190533381.html
“The largest stake in Zayo Group Holdings Inc (NYSE:ZAYO) was held by Senator Investment Group, which reported holding $205.5 million worth of stock at the end of September. It was followed by Citadel Investment Group with a $162.9 million position. Other investors bullish on the company included Kensico Capital, Zimmer Partners, and Hunt Lane Capital…. [most] stocks had an average of 21.25 hedge funds with bullish positions and the average amount invested in these stocks was $365 million. That figure was $1248 million in ZAYO’s case.”
Okay! that’s a fine connection there. Who is Senator Investment Group, though?
” VICI Properties Inc. (NYSE:VICI)[https://viciproperties.com/about-us/]. At Q3’s end, a total of 37 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -37% from the previous quarter. .Soros Fund Management with a $419.8 million position. Other investors bullish on the company included Senator Investment Group, Citadel Investment Group, and Point72 Asset Management. total hedge fund interest was cut by 22 funds in the third quarter.”
Okay, im going off the rails a bit. My point is, all of these Hedge funds are obviously connected. And all of them, have their fingers in a few different pots. Now lets get back on track. Now senator Investment group has large holdings in Amazon and Five Below. https://whalewisdom.com/filer/senator-investment-group-lp, among many others. I started looking into their competition and found something odd.
Now i apologize, i will be referencing a lot of charts, so please google them yourself. Look at the chart for FIVE stock- it has had significant growth year after year but has followed GME chart inversely, every spike for GME correlates with a dip. This will be true for many, many other stocks. I started looking into other Brick and Mortar Companies and comparing charts. i found quite a few. Again, for sake of brevity, i will be focusing on a few.
FIVE, AMAZON, Walmart, Dollar Tree- their competition is other retail brick and mortar stores. CVS, Rite Aid- their competition is pharmacies. however, target recently partnered with CVS pharmacy in 2015 for their own stores. Amazon recently wants to enter into brick and mortar pharmacy or add them to whole foods. https://www.cnbc.com/2021/05/26/cvs-walgreens-shares-fall-on-report-that-amazon-may-open-pharmacies.html.
target and CVS was interesting to me, because check Citadel’s institutional ownership of CVS over the years-. https://formthirteen.com/filers/0001423053-citadel-advisors/holdings/126650100?quarter=2020-12-31. Notice the spike in 2015 prior to Target announcing CVS agreement?
Citadel has also created a bunch of call/put LEAPS throughout the years on Rite Aid- CVS competition. https://fintel.io/so/us/rad/citadel-advisors-llc. Citadel is also very bullish on Amazon. https://finance.yahoo.com/news/billionaire-ken-griffin-bumps-stake-123655840.html. Griffin even stated at one point he was considering moving Citadel’s headquarter’s because of Amazon https://www.cnbc.com/2019/03/14/ken-griffin-says-hes-less-likely-to-move-citadel-to-nyc-after-amazons-heartbreaking-exit.html.
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edit- further info i forgot to add from CVS
https://www.hstong.com/news/detail/20090104245156133 ” Of the funds tracked by Insider Monkey, D. E. Shaw’s D E Shaw has the number one position in CVS Health Corporation (NYSE:CVS), worth close to $218.8 million, comprising 0.3% of its total 13F portfolio. Sitting at the No. 2 spot is Cliff Asness of AQR Capital Management, with a $218.6 million position; the fund has 0.4% of its 13F portfolio invested in the stock. Some other professional money managers that are bullish encompass Ken Griffin’s Citadel Investment Group, Phill Gross and Robert Atchinson’s Adage Capital Management and Ken Griffin’s Citadel Investment Group. “
https://www.fi-desk.com/chang-reported-to-leave-aqr-for-citadel/ ” Citadel has confirmed that Isaac Chang, the head of trading at AQR Capital Management since 2016, will join the Citadel hedge fund in September as the firm’s first head of execution trading for fixed income. Chang’s work history combines trading on the buy-side, sell-side and high frequency trader (HFT) market making, via his position prior to AQR as global head of fixed income, currency and commodities (FICC) at HFT firm KCG, now Virtu, and in US interest rates electronic trading at Goldman Sachs..
VIRTU Financial is a marker maker similar to citadel. if you google virtu and “fined” you will find many violations, one for this in particular- https://www.financemagnates.com/institutional-forex/brokerage/finra-slaps-175000-fine-at-virtu-for-not-offering-best-execution/, something our good friend Robinhood recently got in trouble for https://www.sec.gov/news/press-release/2020-321
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Now, Amazon bought Whole Foods a few years back. Whole Foods largest competition is Albertson’s. What’s interesting is Albertson’s was going to merge with Rite Aid until the deal was killed after immense pressure from a certain hedge fund, Highfields Capital. https://www.forbes.com/sites/brucejapsen/2018/06/27/a-big-investor-opposes-rite-aids-albertsons-deal-amid-flat-pharmacy-growth/?sh=55f37f9c37fe
Some more connections here: https://www.businessinsider.com/amazon-deal-for-whole-foods-true-genius-hedge-fund-2017-7. “genius move” they called the acquisition. Remember when They killed the Rite Aid deal, and Target bought CVS?
[https://www.wallstreetoasis.com/forums/7-best-long-term-stock-picks-by-morgan-stanley](Currently, Target’s shares are trading at $51.70 and are expected to reach $64 by the end of 2012….Jonathan Jacobson’s Highfields Capital Management doubled its stake in TGT during the third quarter to nearly $300 million.) TGT is in the top 50 of Citadel’s holdings. https://docoh.com/company/1423053/citadel-advisors-llc
Now, Look at the stock charts for Rite Aid (RAD), and compare it to GME. Interesting.
Now, more digging led me to find these same connections with Lowes/Home Depot. As well as BBBY and Walmart. DLTR. All of these charts, and dozens and dozens of others have the same chart patterns as GME or inverse if they are insider owned by hedges. Look at 5 yr charts and see the changes over time. Also, Circuit city was acquired and tanked by Highfields. And many, many others are currently involved. Literally, EVERYTHING that stands in the way of a long bet by these hedges are SHORTED.Wanna know what’s even scarier? All of the money maker stocks connected to these hedges only started printing cash AFTER the 2008 crash- almost as if they pivoted their strategy to this.
WHAT THIS MEANS
TLDR: What appears to me, is that several hedge funds have placed large bets on their precious money making stocks, and have over the years been systematically bankrupting, manipulating, and sabotaging the competition of the acquisitions being made for their babies. Target wants a pharmacy? destroy rite aid, place calls on CVS. Netflix wants gaming? Short GME. Amazon wants to buy movie studio? short the movies. Amazon bought a grocery chain? prevent their competition from ever growing. Rinse, repeat.
GME is the one that stood against them and is fucking them up royally. However, what this means is that there is not one bomb. There are dozens of mini-GME’s littered around the market. If GME goes off, the systematic margin calling will cause mini-short squeezes all over on these stocks. If you check recent SEC ownership filings, these hedges have been reducing or closing their positions in these shorted stocks like Rite Aid and Lowes (and many, many others). They are disarming these mini-bombs before the big one goes. The longer we hold, the more we buy, the closer they get a cluster bomb. We have not one Asteroid called GME heading to the Earth, but a meteor shower of smaller rocks following quickly behind.
We will not have an entire market implosion. if the GME squeeze is an event that occurs over weeks, we will have the long-manipulated stocks experiencing a sudden boon with these squeezes like GME and AMC have and have benefitted from, breathing new life into these failing companies through the expense of banks, hedges, and the US Federal govt.
Through their destruction, we shall have creation. Ragnarok is upon us.