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SVTPerformance's Chain of Restaurants
Road Side Pub
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<blockquote data-quote="Weather Man" data-source="post: 16569141" data-attributes="member: 137766"><p><span style="font-size: 22px"><strong>Robinhood’s 50-stock limit list (with SPACs) makes mass exodus likelier: Alpha Tactics</strong></span></p><p>Jan. 30, 2021 2:24 PM ET<a href="https://seekingalpha.com/symbol/GME?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Csection_asset%3Ameta%7Csymbol%3AGME" target="_blank">GameStop Corp. (GME)</a><a href="https://seekingalpha.com/user/51784941/profile?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Csection_asset%3Ameta%7Cbutton%3Aauthor_name" target="_blank">By: Kim Khan</a>, SA News Editor</p><p>It’s like a bizarro <a href="https://www.investopedia.com/terms/n/niftyfifty.asp?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link" target="_blank">Nifty Fifty</a>.</p><p></p><p>Robinhood (<a href="https://seekingalpha.com/symbol/RBNHD?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link" target="_blank">RBNHD</a>) currently has an expanded list of 50 equities where buying shares and options contracts is limited (see full list below with recent performance). On the list, 35 are limited to one whole share (no fractional trading in these stocks) and 15 are limited to five.</p><p></p><p>And the limit isn’t per order or per day. If you already hold 1 share or contract of any of those 35, you can’t add any more, effectively taking them out of the trading pool for a huge number of Robinhood users.</p><p></p><p>As the company explains (italics Robinhood’s), “these are <em>aggregate</em> limits for each security and not per-order limits, and include shares and options contracts that you <em>already</em> hold.”</p><p></p><p>The list is the result of two days of what certainly appeared from the outside as ad-hoc decision-making when the enormity of the WallStreetBets short squeezes and gamma squeezes became clearer.</p><p></p><p>On Thursday, Robinhood <a href="https://seekingalpha.com/news/3655535-watch-gamestop-amc-as-robinhood-reportedly-locking-out-traders?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link" target="_blank">limited trading in a batch of stocks</a> in the Reddit crosshairs where investors couldn’t add to positions. They also closed out some at-risk positions due to “unprecedented volatility.”</p><p></p><p>On Friday, after <a href="https://seekingalpha.com/news/3656023-robinhood-raises-1b-draw-on-bank-credit-lines-to-reopen-halted-trades?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link" target="_blank">raising $1B</a> from investors and tapping credit lines for a further $500M overnight, Robinhood said it would reopen limited trading in the stocks, leading to <a href="https://seekingalpha.com/news/3655879-robinhood-to-resume-limited-buys-of-squeeze-stocks?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link" target="_blank">after-hours gains</a> in those issues.</p><p></p><p>The limits of <a href="https://seekingalpha.com/news/3656111-robinhood-allows-buying-gamestop?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link" target="_blank">no fractional trading</a> and maximum amounts weren’t announced until Friday and the company was soon on the back foot as complaints increased. It also quickly moved to restrict margin trading in crypto after surge in Bitcoin (<a href="https://seekingalpha.com/symbol/BTC-USD?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link" target="_blank">BTC-USD</a>) <a href="https://seekingalpha.com/news/3656090-bitcoin-shoots-to-37k-on-boost-from-teslas-elon-musk?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link" target="_blank">sparked by Elon Musk</a>.</p><p></p><p>Later Friday, further limits were imposed until most were down to one share and the list had expanded to 50.</p><p></p><p>Robinhood definitely wasn’t the only brokerage imposing limits. </p><p></p><p>Schwab (NYSE:<a href="https://seekingalpha.com/symbol/SCHW?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link" target="_blank">SCHW</a>) and TD Ameritrade, which it owns, <a href="https://seekingalpha.com/news/3654995-ameritrade-restricting-trading-in-gamestop-amc?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link" target="_blank">imposed limits</a> on short-squeeze stocks as early as Wednesday.</p><p></p><p>Interactive Brokers (NASDAQ:<a href="https://seekingalpha.com/symbol/IBKR?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link" target="_blank">IBKR</a>) also imposed limits, <a href="https://seekingalpha.com/news/3655841-why-brokers-shut-down-reddit-wsb-stock-trading-in-gamestop-amc-others?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link" target="_blank">which its chairman defended</a>.</p><p></p><p>Schwab later clarified in a statement that it did not halt the buying or selling of any stock, but did adjust margin requirements and put some limits on options like stopping selling of naked call options “in order to mitigate an unlimited risk situation.”</p><p></p><p>Other upstart platforms like Robinhood did halt trading in certain stocks.</p><p></p><p>Public issued a statement noting that around 11 a.m. ET Thursday its clearing firm <a href="https://medium.com/the-public-blog/a-note-on-access-with-responsibility-e720175eeb58?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link" target="_blank">Apex Clearing said they were halting</a> GameStop, AMC and Koss, Public said it resumed trading in those shares by 2:30 p.m. when Apex removed the halt.</p><p></p><p>Webull Financial told The Wall Street Journal <a href="https://www.wsj.com/articles/gamestop-trading-restrictions-blamed-on-wall-streets-clearing-firm-by-online-broker-11611867105?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link" target="_blank">its halts</a> were also due to Apex’s halt of those three stocks.</p><p></p><p>Where Robinhood diverges is not just that it was the only one to move back to more stringent limits on Friday. The limited universe expanded to stocks that don’t the fit the same criteria as the WSB stocks.</p><p></p><p>For investors in Starbucks, a $114B company with short interest at less than 1% of the float, the move looks arbitrary. If those investors thought the selloff in shares last week, after the company <a href="https://seekingalpha.com/news/3654637-starbucks-falls-after-comparable-sales-miss?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link" target="_blank">missed comps</a> and <a href="https://seekingalpha.com/news/3654697-walgreens-boots-taps-starbucks-exec-as-new-ceo?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link" target="_blank">lost a top exec</a> to Wagreens, was overdone, there was no way to buy on the dip.</p><p></p><p>Robinhood CEO Vlad Tenev stressed in his TV appearances that the limits on Thursday were a preemptive move and there was <a href="https://seekingalpha.com/news/3655987-robinhood-ceo-said-the-firm-had-no-liquidity-problem?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link" target="_blank">no liquidity problem</a> in the company. But the addition of shares like Starbucks, AMD, GM and SPACs raise questions.</p><p></p><p>And the company will be addressing problems from users who may never have heard of WallStreetBets, which could lead to big exodus.</p><p></p><p>Robinhood’s rivals are making the most of the opportunity, with Public waiving portfolio <a href="https://twitter.com/katieeperry/status/1355131683239055364?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link" target="_blank">transfer fees</a>. Webull has already seen a <a href="https://www.bloomberg.com/news/articles/2021-01-29/robinhood-rival-webull-sees-16-fold-jump-in-new-trading-accounts?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link&sref=aQsCj4Jg" target="_blank">16-fold increase</a> in new trading accounts.</p><p></p><p>Inc. put it <a href="https://www.inc.com/jason-aten/robinhood-destroyed-its-brand-in-less-than-a-day.html?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link" target="_blank">bluntly</a> that Robinhood “destroyed its brand in less than a day.”</p><p></p><p>Read how the GameStop <a href="https://seekingalpha.com/news/3654768-what-caused-gamestop-rally?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link" target="_blank">gamma-squeeze rally came about</a>.</p></blockquote><p></p>
[QUOTE="Weather Man, post: 16569141, member: 137766"] [size=6][b]Robinhood’s 50-stock limit list (with SPACs) makes mass exodus likelier: Alpha Tactics[/b][/size] Jan. 30, 2021 2:24 PM ET[URL='https://seekingalpha.com/symbol/GME?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Csection_asset%3Ameta%7Csymbol%3AGME']GameStop Corp. (GME)[/URL][URL='https://seekingalpha.com/user/51784941/profile?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Csection_asset%3Ameta%7Cbutton%3Aauthor_name']By: Kim Khan[/URL], SA News Editor It’s like a bizarro [URL='https://www.investopedia.com/terms/n/niftyfifty.asp?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link']Nifty Fifty[/URL]. Robinhood ([URL='https://seekingalpha.com/symbol/RBNHD?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link']RBNHD[/URL]) currently has an expanded list of 50 equities where buying shares and options contracts is limited (see full list below with recent performance). On the list, 35 are limited to one whole share (no fractional trading in these stocks) and 15 are limited to five. And the limit isn’t per order or per day. If you already hold 1 share or contract of any of those 35, you can’t add any more, effectively taking them out of the trading pool for a huge number of Robinhood users. As the company explains (italics Robinhood’s), “these are [i]aggregate[/i] limits for each security and not per-order limits, and include shares and options contracts that you [i]already[/i] hold.” The list is the result of two days of what certainly appeared from the outside as ad-hoc decision-making when the enormity of the WallStreetBets short squeezes and gamma squeezes became clearer. On Thursday, Robinhood [URL='https://seekingalpha.com/news/3655535-watch-gamestop-amc-as-robinhood-reportedly-locking-out-traders?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link']limited trading in a batch of stocks[/URL] in the Reddit crosshairs where investors couldn’t add to positions. They also closed out some at-risk positions due to “unprecedented volatility.” On Friday, after [URL='https://seekingalpha.com/news/3656023-robinhood-raises-1b-draw-on-bank-credit-lines-to-reopen-halted-trades?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link']raising $1B[/URL] from investors and tapping credit lines for a further $500M overnight, Robinhood said it would reopen limited trading in the stocks, leading to [URL='https://seekingalpha.com/news/3655879-robinhood-to-resume-limited-buys-of-squeeze-stocks?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link']after-hours gains[/URL] in those issues. The limits of [URL='https://seekingalpha.com/news/3656111-robinhood-allows-buying-gamestop?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link']no fractional trading[/URL] and maximum amounts weren’t announced until Friday and the company was soon on the back foot as complaints increased. It also quickly moved to restrict margin trading in crypto after surge in Bitcoin ([URL='https://seekingalpha.com/symbol/BTC-USD?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link']BTC-USD[/URL]) [URL='https://seekingalpha.com/news/3656090-bitcoin-shoots-to-37k-on-boost-from-teslas-elon-musk?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link']sparked by Elon Musk[/URL]. Later Friday, further limits were imposed until most were down to one share and the list had expanded to 50. Robinhood definitely wasn’t the only brokerage imposing limits. Schwab (NYSE:[URL='https://seekingalpha.com/symbol/SCHW?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link']SCHW[/URL]) and TD Ameritrade, which it owns, [URL='https://seekingalpha.com/news/3654995-ameritrade-restricting-trading-in-gamestop-amc?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link']imposed limits[/URL] on short-squeeze stocks as early as Wednesday. Interactive Brokers (NASDAQ:[URL='https://seekingalpha.com/symbol/IBKR?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link']IBKR[/URL]) also imposed limits, [URL='https://seekingalpha.com/news/3655841-why-brokers-shut-down-reddit-wsb-stock-trading-in-gamestop-amc-others?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link']which its chairman defended[/URL]. Schwab later clarified in a statement that it did not halt the buying or selling of any stock, but did adjust margin requirements and put some limits on options like stopping selling of naked call options “in order to mitigate an unlimited risk situation.” Other upstart platforms like Robinhood did halt trading in certain stocks. Public issued a statement noting that around 11 a.m. ET Thursday its clearing firm [URL='https://medium.com/the-public-blog/a-note-on-access-with-responsibility-e720175eeb58?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link']Apex Clearing said they were halting[/URL] GameStop, AMC and Koss, Public said it resumed trading in those shares by 2:30 p.m. when Apex removed the halt. Webull Financial told The Wall Street Journal [URL='https://www.wsj.com/articles/gamestop-trading-restrictions-blamed-on-wall-streets-clearing-firm-by-online-broker-11611867105?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link']its halts[/URL] were also due to Apex’s halt of those three stocks. Where Robinhood diverges is not just that it was the only one to move back to more stringent limits on Friday. The limited universe expanded to stocks that don’t the fit the same criteria as the WSB stocks. For investors in Starbucks, a $114B company with short interest at less than 1% of the float, the move looks arbitrary. If those investors thought the selloff in shares last week, after the company [URL='https://seekingalpha.com/news/3654637-starbucks-falls-after-comparable-sales-miss?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link']missed comps[/URL] and [URL='https://seekingalpha.com/news/3654697-walgreens-boots-taps-starbucks-exec-as-new-ceo?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link']lost a top exec[/URL] to Wagreens, was overdone, there was no way to buy on the dip. Robinhood CEO Vlad Tenev stressed in his TV appearances that the limits on Thursday were a preemptive move and there was [URL='https://seekingalpha.com/news/3655987-robinhood-ceo-said-the-firm-had-no-liquidity-problem?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link']no liquidity problem[/URL] in the company. But the addition of shares like Starbucks, AMD, GM and SPACs raise questions. And the company will be addressing problems from users who may never have heard of WallStreetBets, which could lead to big exodus. Robinhood’s rivals are making the most of the opportunity, with Public waiving portfolio [URL='https://twitter.com/katieeperry/status/1355131683239055364?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link']transfer fees[/URL]. Webull has already seen a [URL='https://www.bloomberg.com/news/articles/2021-01-29/robinhood-rival-webull-sees-16-fold-jump-in-new-trading-accounts?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link&sref=aQsCj4Jg']16-fold increase[/URL] in new trading accounts. Inc. put it [URL='https://www.inc.com/jason-aten/robinhood-destroyed-its-brand-in-less-than-a-day.html?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link']bluntly[/URL] that Robinhood “destroyed its brand in less than a day.” Read how the GameStop [URL='https://seekingalpha.com/news/3654768-what-caused-gamestop-rally?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link']gamma-squeeze rally came about[/URL]. [/QUOTE]
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