GME Story 2021

Jan 2021
Price: $17-$483

Squeeze & Halt 🤑🤬

2021 starts off with a ton of events in January.

• Jan 1-11 relative calm
• Jan 12-14 stock almost doubles from ~$20 to ~$40
• Jan 22 closes at $65, high of $76
• Jan 27 peaks at $483
• Jan 31 closes at $325

Meaningful Events
1️⃣ Jan 11 Announcement that Ryan Cohen and two former Chewy colleagues (Jim Grube, COO and Alan Attal, CFO) added to Gamestop board (WSB post) and (clean version Gamestop)
2️⃣ WSB tone is very much about buy and hold and to the moon 🚀🚀🚀. They like to repeat that they like the stock. DFV posts showing a total unrealized gain of $31 million. (insane!)
3️⃣ On Jan 22 & 27 trading of GME was halted on trading platforms including Robinhood which many WSB people used.
• WSB summary of Jan 27
• CNBNC interview about trading on Jan 27
‍4️⃣ Hedge fund Melvin Capital loses billions on shorts in GME. Receives $2.75 billion from Citadel, a hedge fund and market maker. CNBC reports that Melvin Capital sells out of Gamestop. (here and here).
5️⃣ Citadel Securities is a market maker for Robinhood, essentially a middle man. When Citadel gave money to a hedge fund that lost money on GME trades and stopped executing orders on Robinhood, people cried foul, especially WSB.
6️⃣ 🚨🚨🚨 Trading volume on Jan 22 (a day trading was halted) reached 197,157,946, roughly 3 times the number of shares that exist.🤔 It is very unlikely that every share was bought or sold 3 times. It is more likely that deliberate manipulation occurred.
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Definitions

A trading halt is a temporary suspension of trading for a particularor securities at one exchange or across numerous exchanges. Trading halts are typically enacted in anticipation of a news announcement, to correct an order imbalance, as a result of a technical glitch, or due to regulatory concerns. When a trading halt is in effect, may be canceled and still may be exercised.

A trading platform is the software that enables investors and traders to place trades and monitor accounts through financial intermediaries. Oftentimes, trading platforms will come bundled with other features, such as real-time quotes, charting tools, news feeds, and even premium research.

Robinhood is a trading platform that doesn't charge fees per transaction.

Hedge funds are the way rich people invest in the market. They are less regulated.

A market maker is a firm that quotes both a buy and a sell price in a tradable asset held in inventory, hoping to make a profit on the bid–ask spread, or turn.

Citadel Securities is a market maker.

What is happening?

There are various possibilities. What do you think?

Feb 2021
Price: $40-$225

Gamestop COO✌️

• 🚨🚨🚨 Feb 2 Post on WSB mentions that FINRA data shows more than 50% of shares have been sold or sold short in last 5 days. This is unlikely to happen under normal (not corrupt) market circumstances. Some of those shorts are probably what is called naked shorting. That is illegal. Regulation after the 2008 financial crisis was supposed to ban naked short selling. It likely has been ineffective because fines are low and FINRA takes years to call them out.
• Feb 18 Congress has hearings where GME major players testify. Lots of lawyers and mostly dull answers. Keith Gill is an exception. Vlad and Keith look very similar. They are different people. This included:
😹 Keith Gill - DFV from WSB (won big on GME)
Robinhood CEO, Vlad Tenenv
Gabriel Plotkin, CEO of Melvin Capital (lost big on GME)
Ken Griffin, CEO of Citadel
Steve Huffman CEO of Reddit
• Feb 19 closed at the lowest for the month of $40
• Feb 23 GME COO resigns. WSB speculates like crazy that this means Ryan Cohen and his team are taking over soon. And they love that idea as it most likely means much brighter future for Gamestop and their profits on GME.

Mar 2021
Price $120-264

A second halt

Buying the dip. I like the stock. Buy and hold. These 3 phrases are now repeated often on WSB now. The tone is to be i

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💎🙌 WILL THE APES HODL? IS IT A HOUSE OF CARDS?

Sep 2019
Price: $4-5 range

A quiet beginning

Gamestop stock is GME. In Sep 2019 the stock was trading below $5. The future was uncertain.

Keith Gill is a value investor. He goes by deepf***ingvalue (called DFV onward) on Reddit and roaringkitty on YouTube. He posted in the group WallStreetBets (WSB). He showed his trade activity in GME stock. (On WSB on Reddit, there is lots of swearing and slang.)

People told him he was going to lose money.

When asked about his reasoning, he responded with "A variety of factors. I can go into greater detail when/if the trade works out."

Side note, he referenced Dr. Michael Burry in the title of his post. Dr. Burry was a key figure in the book & movie, The Big Short. He saw the housing crisis coming way before others and made $800 million for himself and his company. Dr. Burry and his company would come to own over 5% of GME before selling in Dec 2020.

Definitions

Value Investor - Value investing is an investment strategy that involves picking stocks that appear to be trading for less than their intrinsic or book value. Value investors actively seek stocks they think the stock market is underestimating.

Keith Gill = DFV= Roaringkitty

July 2020
Price: $3-4 range

Short squeeze mentions start

On Youtube Roaringkitty mentions the possibility of a short squeeze. He says it's not important to him (at this point). He likes the company and thinks other people are too negative on the future of GME.

The same month on WSB in response to a post by DFV

Definitions

A short squeeze is an unusual condition that triggers rapidly rising prices in a stock or other tradeable security. For a short squeeze to occur the security must have an unusual degree of short sellers holding positions in it. The short squeeze begins when the price jumps higher unexpectedly.