I don’t personally know Melvin/Plotkin, and I don’t know if this is true, but if it is, it would partly explain why @StevenACohen2 backed him earlier this week. Not to mention that Plotkin probably made a lot of money for Cohen over the years.
So I totally get the people who have pointed their knives at Steven Cohen over past grievances/rivalry. I even get the wider public scrutiny over Robinhood & Citadel. What I don’t get is how Steven Cohen is getting blamed for the Robinhood/Citadel nonsense. What am I missing?
I get that he invested in Melvin Capital / Plotkin earlier this week. That’s not a “bailout”, there’s no public funds at risk. Risk is risk. He’s buying low, hoping to sell high. He will lose if this goes lower. I for one like investors who back me when I’m down; wouldn’t you?
Look I’m sure there’s a lot I don’t know here. Also, I don’t believe in getting in the middle of other peoples’ fights. And surely billionaires can stand up for themselves. That all being said, I’m not seeing how @StevenACohen2 is connected to Robinhood/Citadel’s possible wrongs
As I said, the knives have been coming out. This is not my fight. The irony of the below observation/accusation is that one of Cohen/plotkin’s most vocal critics has done the same thing:
Notable how 'Cham the scam' doesn't address inequality between ordinary income vs capital gain tax rates (don't get me started on the inequality versus HF/PE 'carry').
If you're serious, you address reducing ordinary income, or at least eliminating differences between these.
Long $GME was a synthetic short Melvin position just until about Tuesday as of this week. It’s morphed into a short Robinhood position.
Exactly, it’s currently more like a macro knife fight, speculators vs speculators. Those citing revenue multiples, valuation, etc are either missing that or willfully omitting it.
“Casino-like swings in stock prices of GameStop reflect wild levels of speculation that don’t help GameStop’s workers or customers and could lead to market instability.”
The inconvenient truth is that should GameStop issue capital, this false as it would help workers + customers
And actually, my assessment was way too conservative: actually, the skyrocketing stock price has given the business free publicity, which benefits the company, its employees, and customers. I think the $30 billion question is why the company hasn’t issued equity yet.
So as counterintuitive as it may seem, the massive losses for short sellers has benefited the company, and may permanently alter its trajectory in a manner that benefits employees and customers. We shall see.