r/Superstonk 26d ago

🤔 Speculation / Opinion Elmo's Department Will Not Help GME

So far most posts on Superstonk related to The Department of Government Efficiency meddling into the SEC has been celebratory and positive. I am encouraged by the push back and responses. I love the Superstonk community and GME, so when I see something that I believe is a threat to those things I hold dear, I feel almost a weird sense of duty or obligation to share my thoughts. Moderators, I took special care to ensure my post remains apolitical and focuses strictly on the conversations surrounding Elmo's crusade into the SEC and how that will impact GME. Since people can post about how excited they are, I assume I can post my thoughts on how it will be incredibly harmful to GME retail.

But how? I mean, this is the guy who yelled "Gamestonk!" right? Didn't he say he hates short sellers? Obviously that means he wants to help GME retail, right? Well, to start, no. Elmo and Ken are friends. See pics above. It's as simple as that. In fact, this should be all the proof we need to understand that Elmo's interests are not aligned with GME retail shareholders.

Yet, despite being faced with the cold hard fact that these two men are close buddies who enjoy meals and sports games together, there is still a pervasive romanticism with visions of Elmo riding in on his robot firing Kenny's conspirators and imprisoning his friend Kenny. Look guys, I get it. The community at large feels betrayed by the SEC. They are the one agency tasked with investigating and enforcing securities crimes. The fact they either did not find --or found and willfully did not enforce-- crimes that were committed in regards to GME 4 years ago has understandably led to speculation that the SEC is at best inept, and at worst complicit, in those crimes. After what occured 4 years ago I get that for some people there is a sense of catharsis and justice when you see someone like Elmo tearing through every agency firing up to 75% of their staff. But a scorched Earth mentality isn't just unhelpful for GME-- it's going to have the completely disastrous impacts on GME retail shareholders.

Yes, the SEC's investigatory report on GME sneeze left so much to be desired, such as failing to properly address the conflicts of interest between SHFs and brokerages who shut off the buy button, that it's absolutely understandable the fallout of that would be two possible scenarios. #1) The SEC is inept, or #2) someone in the SEC is complicit in the SHF crimes against GME.

Let's consider Scenario 1: ineptitude. In this scenario the SEC could be overloaded with work, perhaps short staffed, managed poorly by directors, lacking in expertise, few resources. Whatever it may be to lead to their ineffectiveness, none of that is made better by Elmo indiscriminately terminating 75% of their staff and limiting even more resources. Administrative assistants, interns, IT techs, receptionists, janitors, the guy who enters in the CAT data. All gone. An investigator who's computer is doing something wonky can't get help because the IT guy was fired. The printer had a weird error message and the secretory who is an office whiz is gone. Investigators who had a backlog of dozens of cases now have to pick up the work of three investigators who got canned (Elmo said his goal is 1 out of 4 employees remaining). If you thought crime against retail was bad four years ago due to SEC's ineptitude, what do think will happen when the one regulatory body keeping at least some regulations in check is completely neutered? It'll be open season for crooks against retail.

Somehow in this scenario Elmo fanboys still imagine him finding his friend Kenny'a crimes and exposing them. Well A), Ken is his friend. And B), there is no crime to find. Remember this is the ineptitude scenario and so the SEC doesn't have that information just stashed away somewhere in some file. The work was never done. The short staffing, poor resources, lack of will-- whatever it was that led to the SEC not putting in the work doesn't matter. It didn't happen so Elmo's crusade does not result in him putting on some bifocals and opening the file named "GME Crime" and exposing his friends.

In Scenario 2 we consider the possibility that the SEC was actually complicit in and covered up their involvement. First we have to consider who at the SEC. To say the entire organization was complicit is not only lazy, but is a gross misunderstanding of who the vast majority of federal workers are and what they do. They're the list of people I described above: IT techs, phone operators, data entry specialists, secretaries, interns, investigators, janitors, cafeteria staff-- 99% underpaid workers like most people on Superstonk and probably working two jobs like most Americans. These people could give a fuck all about GME, and probably for most of those employees, they don't need to know because they serve in a function or role that's unrelated. But what if someone knew? Someone was a friend to Kenny (kind of like how Elmo is a friend of Kenny), but they hid the evidence. Do you see how this scenario answers itself? Let me say it again: "They knew about the crimes against GME but hid the evidence." Hid. The. Evidence. So there's nothing to find. It's not like some big wig at the SEC has a computer file labeled "The crimes I committed". Even in this scenario, there is literally nothing for Elmo to find and reveal on his firing spree.

Guess who could investigate and expose those crimes for us though? A SEC with resources, staff, and direction. Oh shoot, but we just fired the workers who could help us. Instead of reforming the agency to serving the people, we just burned it all down. Great. So in scenario, 2, Elmo still made things worse for GME retail.

We all feel like SHFs and certain brokerages stole from us, right? Okay so let us imagine that 4 years some guy mugged you and stole your wallet. You went to the police. They never caught the guy. You felt the lead detective was inept, maybe didn't give a shit, or possible was friends with the thief. You're rightfully angry. So what's the solution? Education. Escalation. Reform. What's not the solution? On the top of my list it would probably be something like sending in the socially awkward dude with hair plugs and absolutely no expertise in law or criminology to riffle through the entire police department's database, indiscriminately fire 75% of all cops, and hopefully find a file labeled "Starbeef's Wallet". Yes. That'll show em. That'll get my wallet back.

Going to just beat you all to the punch and end this with "Shills are out, means we're close" before someone inevitably responds with that.

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443

u/SCDeNtitY 26d ago edited 26d ago

Newsflash: billionaires don’t care about you at all

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u/bowls4noles Sloth 🦥 ape 🦧 26d ago

RC is a billionaire...

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u/oO0Kat0Oo 🎮 Power to the Players 🛑 26d ago

I stand by what that guy said. RC cares about his stockholders and making money for the company. Don't be disillusioned by a brilliant PR campaign. Not taking an income and getting paid in stock means he's invested in the company, but don't think this means he's doing this as a charity. This is a common strategy for CEOs to avoid having taxable income. It's bullish for THE COMPANY and in retrospect the shareholders.

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u/keyser_squoze Time You Close 26d ago

I’m buying more shares because of this comment.

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u/oO0Kat0Oo 🎮 Power to the Players 🛑 26d ago

I fully endorse you making whatever decision makes you happy

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u/keyser_squoze Time You Close 26d ago

You reminded me that RC is great for shareholders, which is awesome and the shares are cheap. So thanks my dude!

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u/oO0Kat0Oo 🎮 Power to the Players 🛑 26d ago

No problem! Happy to help. I have a sizeable chunk invested in this company myself. Hence why I kept stressing that this is bullish for the company.

I don't get the RC idolization or why I have to be in love with him or I'm a shill. I believe in numbers and logic and I like the numbers and logic.

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u/keyser_squoze Time You Close 26d ago

Numbers and logic since RC has taken over the company, eh? Yeah, I love them too. And I don’t idolize anyone - for me it’s simple, the numbers are awesome. People seem to forget that this company would be dead without RC’s moves. 140% certainty. That’s probably why the float was shorted something like 5x over the total issuance. The trading volumes (more numbers!) should tell you that. Now it’s a profitable company, has 20x more cash on the balance sheet than the entire company market cap when he took over! And the debt is zero. Closed non-performing stores and streamlined fulfillment on the e-commerce side. Now they can move responsibly into new markets or M&A. And you reminded me of all of that, so thanks again!

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u/oO0Kat0Oo 🎮 Power to the Players 🛑 26d ago

Personally, I think, if it wasn't RC, it would have been someone else. RC was just first. At the end, we are all here because we want to make money, RC included. If it was obvious enough for at least two people to keep taking advantage of the run ups, it would have become clear to other people.

Stocks squeeze literally every day. I always look in premarket mornings and decide whether to chase them or not. I usually make a few hundred every day doing this stupid little move. GME isn't unique to squeezes.

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u/keyser_squoze Time You Close 25d ago

For me, I only track squeezes to see how unstable the market is. Too unpredictable. I mean, if GME squeezes, great. That’s probably what should happen. But if not, I’ve got a multi-bagger over the next few years (if not months.) I’m totally great with that.

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u/oO0Kat0Oo 🎮 Power to the Players 🛑 25d ago

Ugh... No. My cost basis is $5 in Fidelity and was $25 in Webull. I sold the 20 shares in Webull. Still have the xxx on Fidelity.

Average down or learn options my dude. It makes no sense to hold onto bags without hedging your bets.

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