Prudent Capitalist
5 days ago
It may be somewhat higher than that depending on how you factor in the debt on the balance sheet Slim. GME raised $4 Billion in cash through dilutive share sales, and it appears that may have grown to $4.6 Billion as of the latest quarterly reports. Even if GME paid off all of its debts and liabilities with the cash, it appears it would still have around $9 per share in cash, even with the much larger share count as a result of the dilution. However, you are correct in terms of the failing nature of its actual retail business, and GME shares still look seriously overvalued, albeit it not down to $5.00 as you suggest.
Prudent Capitalist
2 weeks ago
Hedge funds bet billions on market crash in Trump’s America
Hedge funds have bet billions of dollars against Donald Trump’s America amid fears of a market crash.
Data from Goldman Sachs show there has been a surge in “short” bets against US stocks, meaning traders will make money when they fall in value, in a sign of growing concerns about the market.
In January, investors have placed 10 times more bets on US stocks falling than equivalent bets that shares in leading American companies would rise, the investment bank said. It suggests many traders are sitting on huge profits from the chaos earlier this week, when shares in big tech stocks slumped following a panic over the success of rival Chinese AI DeepSeek.
The increase in short bets marks a major turnaround in sentiment from November, when hedge funds piled into long bets on US stocks, predicting they would rise.
Hedge funds ploughed billions into so-called “Trump trades” in the immediate wake of the US election in November, on expectations the new president’s tax cuts and tariff policies would boost America’s economy.
A surge in clients giving their money to the funds in the wake of Mr Trump’s victory helped lift the amount of money managed by the industry to all-time highs of over $4.5 trillion (£3.6 trillion). . . . .
Mr Trump subsequently appointed hedge fund manager and Republican Party donor Scott Bessent as his treasury secretary. Mr Bessent started his career at George Soros’s hedge fund in the 1990s before launching his own investment fund Key Square Group in 2015.
Ken Griffin, who founded Citadel in 1990, later also came out in support of Mr Trump in December, having held back from financially supporting the Republican candidate’s campaign. Mr Griffin, who has donated millions to various Republican candidates and political, had earlier described Mr Trump as a “three-time loser.”
Speaking at the DealBook summit in December, Mr Griffin said Trump’s victory posed an opportunity to end the “regulatory and litigation-induced paralysis” of the Biden era and “bring America back to a nation of principles, of strength, of prosperity and possibility,” according to Politico.
https://www.msn.com/en-us/money/savingandinvesting/hedge-funds-bet-billions-on-market-crash-in-trump-s-america/ar-AA1yc0qr?ocid=entnewsntp&pc=LCTS&cvid=d2f1c214507149d3a15b2880194418e9&ei=21