Tag: Stonks

Ken Griffin Attacks: “Pension Plans Destroyed by Retail Investors”

Ken Griffin on Retail Investors
Market News: Ken Griffin on retail investors

Ken Griffin accused the retail community of destroying teacher’s pension plans by taking down Gabe Plotkin’s Melvin Capital.

Melvin Capital is a hedge fund that was short on ‘meme stocks’ holding a large position in GameStop.

The company is scheduled to shut down in June after it had suffered a 50% loss in 2021, and an additional 20.6% in the first quarter of 2022.

Sources say Melvin Capital has already begun to liquidate its positions to pay back investors in cash.

In this Bloomberg exclusive, Ken Griffin plays a role of the victim, defending Mr. Plotkin and the hedge fund whose mission it was to bankrupt GameStop.

Ken Griffin’s Citadel is also short on AMC Entertainment – the hedge fund lost billions last year betting against retail.

Let’s discuss it.


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CNBC mourns the loss of Melvin Capital

CNBC says Melvin was one of the biggest victims from the meme stock frenzy last year due to its large short position in GameStop.

They say Citadel and Point72 had to provide Melvin Capital with a lifeline to stay above the water.

The hedge funds combined provided Gabe Plotkin with $2.75 billion in capital last year.

However, as things went south quick for Melvin, both hedge funds demanded the capital back.

Something Ken Griffin and his affiliates fail to mention.

Mainstream media has also danced around the fact that hedge funds planned to wipe American companies by overleveraging their short positions during the pandemic.

Success in doing so would delist AMC, GameStop, and other meme stocks from the stock market.

Betting against companies with intention to bankrupt them to the ground is no charity work.

It’s un-American and a nefarious practice that has dragged out for too long.

Ken Griffin blames retail investors

In the video below, Ken Griffin gives his thoughts on retail investors and the entire ‘meme stock’ phenomena.

Ken Griffin takes a jab at the retail community saying retail investors who aimed to bankrupt Melvin Capital also wiped-out pension funds from teachers.

But Ken, retail investors don’t get up in the morning and think to themselves, “let’s wipe out a multi-billion-dollar hedge fund.”

Melvin Capital lost because he went against retail – the first time in history the people fight back corruption in the stock market, and win.

Ken Griffin lost billions shorting AMC stock, the retail community is currently his biggest adversary.

AMC shareholders continue to buy and hold the stock until short sellers exit their positions, which will result in a short squeeze.

Today’s retail investors are armed with education, they understand what they hold and what it’s doing to hedge funds.

While Ken Griffin and affiliates might be pumping a narrative as victims, high profiles such as Elon Musk, Jon Stewart, and Ryan Cohen have stood up against short sellers.

For the first time in history, Wall Street is getting their a** kicked, and these hedge fund managers certainly do not like that.

Hedge funds should prepare for bigger losses

Institutions are about to lose a massive amount of collateral due to executive order 14032 in early June.

This presidential order is prohibiting Chinese securities to be used as collateral starting June 2nd, 2022.

It was responsible for initiating margin calls when AMC Entertainment stock rose to $20 per share in January, and $72 per share in June of last year.

With liquidity drying up in global markets, it’s going to be quite difficult for hedge funds to keep up with margin requirements on heavily shorted ‘meme stocks’.

Massive selloffs in the market have proved just how distressed financial institutions are.

We’re seeing for the first-time hedge funds begin to shut down as they take the lead in liquidity burn.

Retail investors have been the majority of buyers in today’s markets according to Bank of America.

Hedge funds are headed towards a larger train-wreck of disaster they cannot get off of.

As they continue to tank the markets, margin requirements go up thanks to DTCC B16845-22.

Hedge funds have lost control.

But I’m curious to know what you think.

Leave your thoughts in the comment section of the blog below.

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Will GME Stock Split Force a Short Squeeze?

GME Stock Split

GameStop announced a GME stock split late March which should have received more attention than it did.

GME stock surged afterhours when the announcement was made public but failed to maintain its momentum as we’ve seen in the weeks since.

What will this split/dividend mean for shareholders and short sellers alike?

Let’s break it down together.


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GameStop announces stock split in form of dividend

GameStop stock split dividend

Let’s discuss what a GME stock split in the form of a dividend would mean for both shareholders and short sellers.

When GameStop first announced the stock split/dividend news, I published an article breaking down how a stock split and dividend essentially work.

You can read the article here for a more in-depth description on the two.

But no matter how you take it, one thing is certain.

The borrower of the stock is responsible for paying any dividends to the lenders.

Here’s what we can see happen before the split/dividend.

1. Continuous shorting in GME stock

I don’t expect short sellers to ease off shorting GME stock prior to a stock split or dividend.

Afterall, we are in a bear market.

So, the market sentiment overall continues to be on a downtrend.

In a recent article titled, “How close are AMC and GameStop to squeezing?“, I explain how a bull market will trigger massive price action in both these stocks.

Primarily because the market sentiment during this time will be sending share prices upward.

Shorts will have to close to their positions to profit from this bear market, or face riskier bets on the way up.

So, while the GME stock split is bullish in nature, stocks are being kept in line due to the bearish course of the markets in general.

2. Gamma prior to approval of stock split/dividend

GameStop’s stock split/dividend still has to be approved by the board and shareholders.

The game retailer merely announced the move; however, it must undergo the approval process.

You can bet short sellers will be on a ticking time bomb before this process goes into full effect.

You see, the lender is going to want their dividend.

If you short sellers don’t want to pay this dividend to the lender, they’ll have to return the shares they borrowed in the first place.

This is where we can expect to see big gamma occur prior to GME’s stock split becoming official.

What will happen if shorts don’t deliver borrowed shares before stock split?

If GameStop’s price surges, shorts will accrue greater losses and the lender will still require shorts to pay back that dividend.

Any dilution from a stock split won’t necessarily affect short sellers, but if a dividend is approved then shorts will have to pay that dividend to the lender.

The issue of a stock split/dividend has often been seen as bullish.

Shorts betting on this play could be exposing themselves to very big risks.

Will a GME stock split or dividend expose naked shares?

There’s this concept floating around that a GME stock split or dividend yield will expose many more shares are circulating the market than there are in existence.

I can’t speak too much on this, but I would love to know your thoughts on this below.

It’s an interesting concept that would essentially unveil millions to billions of synthetic shares.

The premise behind this concept is to expose the shares and get short sellers to close every single share, resulting in a GameStop MOASS (mother of all short squeezes).

Leave your thoughts in the comment section of the blog.

What will this move mean for shareholders?

GameStop shareholders will be able to vote on this GME stock split/dividend.

A stock split will dilute the float providing shareholders with more GME stock shares at a lower price.

An approved divided will yield quarterly or yearly compensation for holding the stock.

It’s extremely bullish if you’re a shareholder and believe in the company’s long-term vision.

GameStop and Loopring just launched their beta NFT marketplace last month.

The company is evolving into a tech company with its ecommerce foundation and use of blockchain technology, which we will see more of in the metaverse without a doubt.

GameStop is adapting to the use of new technology for the future of gaming and I’m excited to see this space evolve.

I’d love to hear your thoughts.

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Facebook Get’s Turned Off After Several Scandals Rise

Facebook Get's Turned Off After Several Scandals Rise

Facebook and Instagram faced the biggest outage since 2008. Coincidentally enough, this happened just hours after the Bank of America scandal began taking traction on social media.

Journalists who published the “Pandora Papers” also caused a scene.

The AMC community has been a beacon of hope to every retail investor fighting against market manipulation.

What will happen next?

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Welcome to Franknez.com – the blog dedicated to serving the people. Apes have made a RUCKUS.

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The AMC Community Scores A Massive Win

Retail investors are shaking the finance world and I believe a new era is about to begin, but not without a fight.

Citadel Securities took it to Twitter after 9 months of silence, calling retail investors “conspiracy theorists”. However, transcripts of the Citadel scandal have been shared all over investing forums including Reddit’s r/wallstreetbets and r/amcstock.

You cannot hide the elephant in the room. Attempts to gaslight the people in itself is a form of psychological warfare. Something retail investors have seen within the markets one too many times.

Social media has given content creators a medium by which they can spread information and knowledge at scale. Today we experienced a social media shut down.

Why Did Facebook Shut Down?

During a livestream, Mark Zuckerberg mentioned the power of organizations and influence people now have.

Another concern surrounded the spread of misinformation and fact checking information first.

Everything Mark said makes absolutely sense. The information apes have been spreading has been data and facts collected over a period of several months.

If insiders got a hold of this research, do you think the progress for a fair market would surge? Or would it get taken down? Let me know your thoughts in the comment section below.

Everything regarding Mark Zuckerberg’s livestream mentioned people having a voice and the dangers of it.

This genius of a CEO has a way with words. He knows exactly what to say and how to say it.

Whatever type of content Facebook found to be deemed as ‘harmful content’ is the reason why Facebook momentarily experienced a shut down.

“Virality Could Be Dangerous” – Mark Zuckerberg

According to Mark, virality could be dangerous and the content would need to be addressed.

During this social media halt, Facebook was identifying accounts to ensure the spread of information is legitimate and not being spread by bot accounts.

They are also making sure the content is in line with their policies. Fortunately for the AMC community, content we’ve shared should align with these policies.

However, articles published by The Guardian on Pandora’s Papers cannot be found on Facebook anymore.

Some articles regarding the Bank of America scandal have been removed as well.

In my personal opinion, they don’t want the general public educated. I have a strong feeling that all of this information that they want hidden for now will be uncovered at some point in the future.

Facebook Censorship Raises Concerns

The censorship of gathered information by journalists and large communities is rather concerning.

People raise their voice when they want to be heard. We didn’t raise our voice though, more of us simply stood.

So how are the people supposed to defend themselves when our very own leaders cannot communicate with groups and communities in need of their help?

Now the data that’s suppose to protect the people is being censored.

To every problem there’s a solution and this a solution we’ll have to find for ourselves.

Sooner or later someone with bigger access than any of us will get our message through. The fight for a fair market continues.

The People Will Find Their Way

Facebook may have blocked journalism from reaching mainstream media, but I believe people will find their way to this information.

And that’s what ultimately matters.

But to be quite frank, not everyone will win. Self-education is something you do on your own.

And although social media wants everyone to keep living in their own bubble without disruption, they cannot hide the truth.

Facebook is one of many tools. They won’t be the catalyst for change; you will.

So even though it might not feel like it at the moment, the time will come when you realize just how much change we’ve actually made.

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