David Faber is reporting a massive 45m share block of Viacom is being offered, as part and parcel of the new paradigm of heavily leveraged hedge funds blowing the fuck up and investment banks simply dropping market orders worth billions. The net result is HAVOC for retail plebs, toiling away inside the fields of Wall, attempting to extricate themselves from being poor.
Carnage in $VIAC may not be done. Hearing another $2b block of shares being shopped tonight as liquidation of one or more hedge funds continues.These were the buyers sending $VIAC and $DISCA up over these last 2 months. Buying on swap, using enormous leverage and somehow unknown.
— David Faber (@davidfaber) March 29, 2021
For weeks as $VIAC and $DISCA went parabolic and seemingly outpaced all fundamentals I struggled to find out who the buyer was. Even the companies did not know. Now it seems possible more than 10% of $VIAC stock was owned by one fund on swap and not reported.
— David Faber (@davidfaber) March 29, 2021
45m $VIAC for sale tonight as liquidation of one or more hedge funds continues. How this enormous position could have been amassed without any disclosure is a mystery. But one mystery solved: now we know where all the buying was coming from.
— David Faber (@davidfaber) March 29, 2021
Also and possibly related, Japan’s heavy weight bank Nomura is down 14% tonight on news of a SURPRISE $2b loss, due to one of its fucking clients. I wonder if said client looks like this?
Fucked
Nomura Holdings Inc. said it may have incurred a “significant” loss arising from transactions with a U.S. client, sending its stock tumbling the most in more than nine years.
The estimated amount of the claim against the client is about $2 billion based on market prices as of March 26, the Japanese brokerage said in a statement on Monday. It didn’t name the customer.
Nomura is evaluating the extent of the possible loss and the impact it could have on the group’s results. The Tokyo-based firm also canceled plans to sell dollar-denominated bonds.
Shares of Nomura fell as much as 15% on Monday morning in Tokyo, the biggest intraday decline since November 2011.
The potential loss would blemish a bumper year for Japan’s biggest securities firm, which has benefited from a boom in trading and investment banking during the pandemic. Nomura’s profit jumped to the highest in 19 years in the nine months ended December.
Chatter on the street says there’s another $20-30b of Archegos yet to unwind. But one can never be sure and I would be very skeptical about trusting any rumors, since they are designed to enable profit for the one’s spreading them. One thing is for sure, both VIAC and DISCA are fucking cheap and any decline due to highly leveraged funds being forced to sell should be bought, in my opinion. The boogie man is the amount of CONTAGION out there, meaning who the fuck else followed Bill into these stratagems? Are those funds to be liquidated in kind too? Is this the shock to the system to cause a massive resentment amongst the retail investor class and cause them to sell? My hunch says no, since most retail traders are idiots and will pile right the fuck into whatever Bill Hwang sells. As a point in fact, I am sure the morons at Reddit WSB are scheming to eat his lunch right now, as we speak.
But one must be mindful of Hunger Games mentality and how killing Bill might spread to Killing Cathie and then we have a problem. For now, NASDAQ futs are tepidly down 85 and I am long both VIAC and DISCA and will never sell for a loss. I will fucking buy those cock suckers with every last cent that I have until I realize a profit.
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I am with you on that Doc! Bravo.
That dude is wearing standard issue USMC birth control glasses.