Stephan Graham heeft altijd hele goede research videos:
Uit z'n video: Michael Burry van de film "The Big Short" zag in 2019 dat GME ondergewaardeerd was omdat de aankomende videogame consoles nog allemaal met diskdrive zouden uitkomen en dus dat GME zou blijven bestaan om die schijven te verkopen dus dat de stock price en de hoeveelheid shorts fout waren.
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Stephan haalt dit topic van 5 maanden geleden aan
https://www.reddit.com/us(...)lly_posted_sep_2020/GME short squeeze (originally posted Sep 2020)
This is for all of you who think GME is the next Blockbuster because games are going digital (that's why no one buys physical gift cards anymore, right?). The same geniuses throwing money at companies with no revenue, colors, and companies whose competitors are giving out their products for free. I'm going to tell you why everyone is buying it and why /u/DeepFuckingValue is going to be a multi-millionaire soon.
Short squeeze
GME is one of the most shorted stocks: 55M of 65M shares are short, including >100% of float. Based on average volume, it would take the over 15 days for all shorts to cover. More than half the shorts entered under $7 and are now taking losses. A price spike from good news could trigger a short squeeze and force shorts to cover at higher and higher prices. If only there were good news...
Enter Ryan Cohen
In 2011, Ryan started competing with Amazon, Wal-Mart, and Costco to sell a commodity. Despite historic failures by predecessors, he thought he could prevail by focusing on customer service. He ended up selling his company for $3B, and now it is worth $27B. Since then, Ryan has been very selective about investments, saying no to 99.9% of opportunities and investing only in AAPL, WFC, and... GME?!?
Last Friday, Ryan filed a 13D indicating he bought a 9% stake in GME. The updated filing shows that he bought 415K shares yesterday, including 100K at $6.726, and now owns a 9.6% stake. He might continue buying, but we won't know until after Q2 earnings next Wednesday. Since the filing, GME is up ~40% and short borrowing costs have increased from 3.9% to 8.5%.
But why would he get into GameStop? People are as fanatical about games as they are about pets. He doesn't have to build a company from scratch - he can take the Chewy focus on customer service and Chewify GameStop. He is also joined by James Symancyk, former CEO of PetSmart, who is on the boards of both PetSmart and GameStop.
Ryan's addition changes the whole trajectory of the company, no longer with terminal value 0. Don't forget GameStop owns ThinkGeek and has been shifting into toys and collectibles. But even within games there is an upcoming catalyst...
New console cycle
New hardware is not very profitable for Gamestop, but resales are. A new console cycle means that people will get rid of old consoles via trade-ins, which Gamestop can then sell at healthy margins.
Ryan Cohen is long GME, Michael Burry is long CME, and even the guy who bashes GameStop on Youtube is long GME. GME is still trading below book value. Get in while you can.
$20C 01/15/2021
[ Bericht 13% gewijzigd door slashdotter3 op 29-01-2021 23:23:29 ]