Keith Gill, also known as “Roaring Kitty” and “DeepF-Value,” hosted a livestream on YouTube today (NASDAQ:GOOGL) (Nasdaq:GOOG) where he shared his thoughts on GameStop (NYSE:GMEGill said investing in the video game retailer is a bet on Ryan Cohen’s ability to turn things around, and he thinks that will take time.
He made it clear that his investment thesis is based on intuition, not hard data, and warned that his aggressive style could lead to huge losses, so he urged viewers not to blindly follow his trades.
Still, Gill noted that while it’s not uncommon for companies to try different strategies until they find one that works, it’s less common among publicly traded companies.Furthermore, while commenting on GameStop’s announcement today that it may sell up to 75 million shares, he said this would give the company billions of dollars to carry out its turnaround.
How to avoid legal trouble
It is no secret that after Gill was back in the spotlight, regulators reopened the debate over market manipulation. In fact, ETrade was considering banning him from their platform. As a result, perhaps to avoid legal trouble, Gill joked during a live stream, revealing that he was just a regular guy who was betting a lot of money on GME.
This included showing up nearly 30 minutes late while wearing a sling around his arm and pretending to be injured, and joking while having beers with viewers about wishing there was an escape button when the stock price was falling, which seems to suggest that while he may have some influence over the price of GME, he doesn’t have the ability to manipulate it like regulators would like to believe.
How much money does Roaring Kitty have in GameStop?
Roaring Kitty has since published a portfolio consisting of just two positions.
- Bought 5 million GME shares at an average price of $21.274 per share.
- 120,000 GME options with a strike price of $20 and expiry date of June 21st.
This comes with more than $29 million in cash.
Is GME stock a buy?
Since GME’s pricing isn’t based on fundamental factors, the stock is not covered by Wall Street analysts. However, traders who rely on technical indicators can make use of TipRanks’ technical analysis tool. Interestingly, looking at the overall consensus (below), GME is considered a buy, with 14 bullish indicators and 4 neutral and bearish indicators.
