Weekly Digest - 1/24/2021

Sh*t You Should Know -

World News

Alexei Navalny

The saga of Alexei Navalny continues - after being arrested by Russian police on his arrival at Sheremetyevo airport at around 1 PM on January 17, 2021, Navalny was ordered to be jailed for 30 days.

Navalny was returning to Moscow from Germany, where he had spent the prior several months receiving treatment for a suspected poisoning attempt in late August, 2020. He was arrested on his return for violating the terms of his 2014 conviction of money laundering and corruption in the Yves Rocher Case (a conviction that was annulled by the European Court of Human Rights).

In response to Navalny's arrest, massive protests broke out throughout Russia on January 23, with over 3,000 protesters having been arrested (one of those arrested being Yulia Navalnaya, Alexei Navalny's wife).

Spycraft, assassination attempts, and a disgruntled Russian government vs Alexei Navalny
Alexei Navalny, prominent Russian government detractor, is arrested on his return to Moscow after being poisoned on a business trip several months ago. Both side claim wrongdoing... Navalny of Russian government involvement in the poisoning, and the Kremlin of Navalny’s criminal activity.
Ivan Parra-OrlandoniSh*t You Should Know

Bobi Wine

Ugandan Presidential challenger Bobi Wine has been under house arrest since January 15th. A prominent contender to incumbent President Yoweri Museveni, who has been in power for over 30 consecutive years, Bobi Wine has claimed widespread election fraud, claiming an election victory even after votes counted on January 16th found Pres. Museveni the victor in the election.

Authorities are limiting Wine's ability to leave his home due to alleged fears that he threatens public safety, as protests leading up to the election had a death toll of over 50 Ugandan citizens.

Bobi Wine - Uganda’s “Ghetto President”
Bobi Wine, a prominent hip-hop artist, is challenging President Yoweri Museveni. In an election marred by violence, death, and allegations of government misdeeds (such as internet blockage and voter fraud), Pres. Museveni carries a clear lead in the polls, while the opposition cries foul.
Ivan Parra-OrlandoniSh*t You Should Know

Finance

GameStop short squeeze, and Reddit vs. institutional investors

Gamestop shares halted trading briefly on Friday after a ~69% spike in share price, ending the day at $65.01 per share. This is the latest development in a battle that sees GameStop as an unwitting battleground between organized retail investors and institutional investors.

Billed as a financial David vs. Goliath story, substantial numbers of members of various financial forums (most prominently the subreddit /r/WallStreetBets) have taken long positions in GameStop, thwarting billions of dollars worth of short position taken by various institutional investors. With hedge funds like Melvin Capital losing billions after closing short positions on GameStop, groups of seemingly loosely organized retail investors are fueling the fire contributing to a short squeeze situation on GameStop's stock, which essentially zeroes the value of institutional short positions while driving GameStop's stock price up to astronomical new highs.

How retail investors caused GameStop’s stock price to skyrocket
Gamestop’s (GME) 1500% price increase is the result of sparring between Reddit’s WallStreetBets community and established institutional investors. WSB investors organized to drive GME’s price up, causing institutional investors to lose billions, and turning a meme into an actual market event.
Ivan Parra-OrlandoniSh*t You Should Know

Interesting Sh*t

Remembering Hoover UK, and a little flight promotion that thought it could

In 1992, Hoover messed up big-time. They offered a promotion promising two international flights (a 600£ value) in exchange for a 100£ purchase. Ultimately, Hoover incurred tens of millions in debt, fired several executives, lost their Royal Warrant, and divested their European business to Italy's Candy SpA. Read the full story below.

How a travel promotion nearly killed Hoover
In 1992, Hoover messed up... with a promotion promising two international flights (a 600£ value) in exchange for a 100£ purchase. Ultimately, Hoover incurred tens of millions in debt, fired several executives, lost their Royal Warrant, and divested their European business to Italy’s Candy SpA.
Ivan Parra-OrlandoniSh*t You Should Know