Hey GMEdd family,

We’re so thankful for all the feedback we’ve gotten and the way the community has rallied around GME. While Friday’s close was above the fair market value of our bull case, we advocate for active price discovery by all market participants.

As it’s become clear that some participants are being excluded from the market – which breaks every norm of free & fair exchange upon which our society is built – we wanted to highlight some other community sites that have spun up to cover other elements of the GME story:

  • wherecanibuygme.com – Pretty straightforward. Real time blogging covering the few retail brokers that have not betrayed their customers and are maintaining a commitment to free markets.
  • isthesqueezesquoze.com – Daily updates on short interest and share availability, and a narrative of recent events.
  • welikethestock.com – Do you like the stock? We like the stock.

Happy Sunday, and may happiness & profit find us all everyday.

Michael J. Burry of the ‘The Big Short’, and former GameStop investor, can’t stop tweeting about GME. Despite his initial spite of the price action, it seems he’s changed attitudes and is referring to it as “a uniquely perfect set up.”

There really can’t be another GME. Nothing else is/was even close to as shorted (100+% of float), so small (microcap) and so hated/ignored/dismissed prior to the #thebigshortsqueeze. It was a uniquely perfect set up. There won’t be another like it. Much like #thebigshort.

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In this clip from What’d You Miss? on Bloomberg TV, GMEdd.com Contributor Rod Alzmann discusses how GameStop soared 400% this week even as brokerages including Robinhood Markets clamped down on retail trades that burned short sellers and hedge funds. Rod Alzmann also shares about his investing commitment to GameStop that traces back to 2017. 

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In an unexpected turn of events within a sea of unexpected events, the SEC has issued a statement that appears to side with retail investors, condoning platforms that “unduly inhibit their [investors] ability to trade certain securities.”

The Commission will closely review actions taken by regulated entities that may disadvantage investors or otherwise unduly inhibit their ability to trade certain securities.

The SEC also states that they will “act to protect retail investors,” which alleviates some concerns that trading of GameStop Corp. was on the brink of a 10-day trading halt.

In addition, we will act to protect retail investors when the facts demonstrate abusive or manipulative trading activity that is prohibited by the federal securities laws.

Read the entire Statement here

 

This is a Squawk Box squabble you don’t want to miss. 

In an interview on CNBC, Kevin O’Leary debated with Massachusetts Secretary of State William Galvin over GameStop’s volatility and massive retail investor interest. O’Leary argued that all investors should be allowed to speculate freely — regardless of whether hedge funds and other short sellers get slammed.

I think this is fantastic what’s going on. Leave it alone. It’s a great thing that’s happening here.

When challenged on how he feels about new, retail investors who may be losing money on the first trades, O’Leary reminds Galvin that every investor loses.

They’re learning about the risks of the market. … We forgot to educate them in high school, so let them learn in the real world, which is even better.

While the Secretary of State is repeating his point about the lack of certainty caused by “wild speculation based on nothing,” O’Leary seems to pull the GameStop investment thesis out of thin-air.

How do you know that GameStop executives aren’t going to take advantage of the situation and build a brand and make a pivot just like Netflix did when they were shipping out CDs in the mail? You don’t know.

The Secretary of State demonstrates a complete lack of knowledge over GameStop fundamentals as he states that there is no evidence to support that.

Because they’ve shown no evidence of that… they haven’t even raised any capital.

No evidence at all? Did he bother to check any news regarding GameStop before this interview? Of course not.

It is comical that these are the people in power.

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Listen to the Odd Lots podcast with GMEdd.com Contributor Rod Alzmann here:

Everyone is talking about GameStop. The physical games retailer that was left for dead has been one of the hottest stocks of the year, surging well over 50x since its lows in late 2020. But how did it come about? Why GameStop? And what was the role that social media played? We speak with Rod Alzmann, the proprietor of GMEDD.com, which collects the fundamental bullish argument for the stock, about how it all happened.

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A Massachusetts man who goes by “Roaring Kitty” on social media helped fuel the frenzy around GameStop. His $53,000 investment in the company briefly reached $48 million in value.

Retail brokerages such as Robinhood, Interactive Brokers, and Webull, have restricted trading on GameStop to Sell Only, citing, “significant market volatility.”

In a statement , Robinhood said it was “restricting transactions for certain securities to position closing only.” Other trading platforms, including TD Ameritrade and Charles Schwab, took similar steps to restrict trading. It remains unclear how long the restrictions on each platform will last.

Changing the rules in the middle of the game.

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Wall Street analysts say the appointment of Ryan Cohen, the co-founder of Dania-based online pet store Chewy, to Texas-based GameStop’s board of directors Jan. 11 was a key element in sending the game retailer’s share price from about $21 at the end of 2020 to a closing price of $347.51

Ryan Cohen is expected to be under Securities and Exchange Commission quiet-period rules given his recent board appointment to GameStop Corp. As a result, Cohen has yet to speak with any media since the recent price action, but felt the need to respond to a request by the Miami Herald, as it is his local publication.

In an email, Cohen told the Miami Herald, “As you can imagine, I can’t comment at this time,” without elaborating. 

As much as we want to say, “Thanks for nothing, Cohen,” we’re glad to hear anything from him, even if it is, in fact, nothing.

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Chamath Palihapitiya joined Scott Wapner on CNBC’s Halftime Report  to serve Wapner a dose of reality on his recent purchase of GameStop options. This is an interview you don’t want to miss.

A lot of people are doing some incredible fundamental diligence on companies [GameStop], trying to think of long term value, and in my opinion, many of them are doing as good, and frankly, a better job than a lot of hedge fund analysts.

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