💰Wall Street💰 vs. 🎮 Gamestop 🎮 vs.🖕Reddit🖕 (#1)
So, what’s all the fuzz about Gamestop about, ape. Apes out there talking some crazy monkey talk…??
Yeah. But please keep in mind, that I am not a financial banana investor or advisor of any sort – I usually just eat them and throw them away, after I like crayons as a treat. . The point being I am just an ape who know´s nothing like ape Snow.
Back in june 2019 Keith Gill, reddit user: u/DeppF***Value and Roaring Kitty on youtube, made his first investment in Gamestop (GME) according to his testimony in the recent hearing (18. feb. 2020).
Keith stated that based on his due diligence he thought it to be undervalued. At that time the price was around 5$. In Keiths opinion the real value could/should be in the range of 20$-25$. For that reason Keith considered his investment to be a long term value play and invested 50.000$ in GME stocks.
In his spare time Keith has a youtube channel where he shared his thoughts and ude diligence for other people to see and comment on his youtube channel. Now usually that doesn’t attract too much attention as that is pretty much was youtube is all about in essence – sharing something on your mind and for others to see.
So what happened?
Some reddit users discovered that GME had been shorted around 140% which is unusually high and as a rule of thumb everything more than 20% is considered to be high. so 140% seems like a… lot.
Now, though there are a lot of retards, apes and other tin foil primates out there on reddit, but there is in fact also some apes who eat steroid bananas (or similar). The quality of some of the available public due dilligence on reddit can easily go toe to toe against the Wall Street equivalent according to Chamath Palihapitiya, CEO Social Capital and early member of Facebook.
So, what happened after was, that redditors (so-called apes, retards and diamond hands) started buying a lot of stocks which put a lot of pressure on whoever held short positions at the time. The GME stock had days in a row rising more than 100% and topping in 480$ a share starting from around 5$ when Keith Gill got onboard. According to screenshots he was at one point up with 50mio$ meaning he could have walked away never lifting a finger again. According to rumors he allegedly sold of a bit, around 8mio$, which I guess is hard to hold against him and is probably considered most wisely under the circumstances.
Later on Gabe Plotkin from Melvin Capital – one of the hedge funds with the biggest short positions at the time – revealed Melvin Capital lost around 53% of its net worth, which is substantiel. Citadel LLC, lead by CEO Kenneth Griffin, took at stake in Melvin for 2bio$ which effectively bailed Melvin out when (good) options didn’t seem available at the time.
To be fair Gabe and Melvin is known in these circles as a great money maker, so in no way can anyone blame Citadel for not having a solid point from a strict business perspective.
Timing is everything… just ask Rolex!