‘You should sell:’
‘You should sell.’
Heard that multiple times the last few days.
Especially from those closest to me.
Gamestop.
The stock I’ve been writing about for years.
One I called the next Amazon.
Another I said is going to be the next big short.
That article I wrote in 2021.
This is 2024.
Yet nothing has changed.
My conviction has only grown stronger.
In the last few weeks, Gamestop has run from ~10/share up to $80/share in the pre-market.
An 8x return in a few weeks.
That’s not normal.
This coincided with the return of Roaring Kitty.
Aka Keith Gill.
The man who explained to the Internet why Gamestop was an undervalued stock.
The man who was put in front of Congress.
Who had a movie made about him - Dumb Money.
Side note - it’s pretty good, even as a fan of Gamestop and someone who doesn’t trust the media. They did a good job.
There was a documentary made about Gamestop called Eat the Rich.
All these media pieces were made alluding to this story being over.
It isn’t.
Far from it.
Why?
Because shorts never closed.
Not covered.
But closed.
Ever.
The SEC report told us that in 2021.
The reason Gamestop got up to 500/share at that time was a gamma squeeze.
Not a short squeeze.
It was due to options.
Not short sellers buying the stock.
So what have they done in the years since then?
Continue to short it.
How?
Derivatives.
ETFs.
Naked shorting.
Dark Pools.
Spoofing.
Some are illegal.
But all are punishable by fines.
Pennies on the dollar.
If you’re the largest hedge funds and market makers in the world, who cares about a few million dollars when you’re making billions.
So what’s happened in the meantime?
The company has turned around.
It’s now profitable.
Ryan Cohen has completely changed the board and management.
He’s cut dead weight.
Gotten rid of debt.
Loaded up the bank with over a billion in cash.
And people have not stopped buying.
In the last year, every single quarter has shown at least 25% of the shares have been directly registered by the shareholders.
DRS baby.
If you don’t know what it is, I’ve explained it before but take a look at DRSGME.org
It’s a way to directly register your shares and take them out of circulation so they’re in your name, not your bank’s name.
Newsflash for everyone reading or hearing this - when you buy shares on a platform, you don’t actually own your shares.
The bank does.
And one day they can come and take it all away from you.
Unless it’s registered in your name with the transfer agent of the company, the shares are technically owned by your bank/broker.
Not you.
Back to Gamestop - all these people in the last few years have bought shares and directly registered them.
Never before in history have I seen or heard about 25% of a company being locked up by retail investors.
So why does this matter?
Why should you care?
Because every day people buy and register more shares is a day where more shares are removed from the market.
If more shares are removed from the market, there’s less available for you to buy as a short seller.
What happens then?
The price goes up.
Way up.
If people think we’ve seen wild swings, just wait.
This is nothing.
Until we see hedge funds fall, the media screaming to sell and billionaires crying on national TV, we haven’t seen anything yet.
This story is just beginning, as I’ve been saying for many years.
Why is this time different?
I don’t know.
But it feels like it is.
More people are knowledgable.
More people have bought in.
More people are paying attention to what’s happening with this situation.
I mean you now have guys like Andrew Tate and Dave Portnoy talking about Gamestop.
That wasn’t happening before.
Just wait till more people catch on.
The best part?
There’s been an entire community documenting all this for the world to see.
As I’ve said before and will say again, NEVER EVER challenge the Internet.
You will always lose that battle.
Hedge funds and some of the largest market makers in the world did.
And they’re about to lose BIG.
Sadly, it looks like they’ll bring down the entire global economy with them.
All in the name of greed and crime.
Just so they could get the extra houses they don’t use and buy more expensive art that collects dust.
So no.
I’m not selling.
Not till I see hedge funds gone bust, bankers in prison and an entire re-shaping of the US capital markets.
Till then, I’ll just wait.
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