Michael J. Burry of the ‘The Big Short’, and former GameStop investor, has put out a tweet seemingly condoning the price action on GameStop Corp. shares.

If I put $GME on your radar, and you did well, I’m genuinely happy for you. However, what is going on now — there should be legal and regulatory repercussions. This is unnatural, insane, and dangerous.

While an investor in GameStop, Burry wrote to the board of directors in late July calling on them to buy back $238 million of their stock to complete the $300 million worth of repurchases they authorized earlier that year.

By reducing the amount of shares available on the market to this magnitude, Burry effectively loaded the gun that shot the shorts in the face. 

While Burry is said to have sold his remaining GME position long ago, we appreciate what he accomplished for us shareholders.


Benzinga’s new fan favorite Rod Alzmann is back on the air.

In this clip from Zingernation Power Hour on January 26, 2021 leading GameStop analyst and GMEdd contributor Rod Alzmann discusses his his choice to buy back his covered calls as GameStop’s market cap continues to rise. 

Early Senior Executive at Facebook and renowned tech venture capitalist Chamath Palihapitiya has disclosed his purchase of Feb $115 calls on $GME this morning on Twitter. Chamath placed his bet after widespread encouragement from his Twitter followers, in response to a tweet asking what he should “throw a few 100 k’s at.”

We’re hoping that Chamath’s bid of confidence in GameStop catches the eye of other Silicon Valley giants, who may begin to research the fundamentals behind the GameStop e-commerce play thesis.


Low and behold, just minutes after we published our  Research Report & Financial Model, Zhiyuan Sun at The Motley Fool posted 3 Wildly Undervalued Stocks to Buy for 2021”  – and listed GameStop as #1!

We’re so glad that not only does Motley Fool agree with the severe mispricing of GameStop shares, but their own valuation is inline with our ‘base case’ scenario (value of $80 per share).

Oh, and remember the Citron fools who were supposed to smash the short thesis wide open today? Retreating. Apparently, they’re so smart to know and see more than everyone else in the market – but made the 1st year analyst mistake of booking a meeting without checking everyone’s calendars first…

Reddit user FatAspirations is killing it with a multiyear look into GameStop’s potential value in comparison to Chewy.

TL:DR; You need to think about GME differently. Not as a trader. Not as an investor. You need to think like a venture capitalist. This is an unprecedented opportunity, and the first time I’ve gone all-in – I’m more bullish now than when the stock was trading sub $15. If you’re in GME you need to get in with conviction otherwise you’re going to lose by selling when it drops.

You must read this.

Rad Ballzman going off on Twitter with the GME story and a valuation model.

Check it out on Twitter here.


Here’s the full text version:

GameStop (GME) closed Friday at $35.50, up 1000%+ from its all-time low close of $2.80 on April 3rd, 2020. The company had been de-rated to below liquidation levels. The enduring mainstream/sell-side narrative has been that GameStop is a rudderless ship without a sail; dead/dying, Blockbuster 2.0, a relic B&M retailer of a bygone era whose legacy physical gaming software based business is mere years from obsolescence, and there is no hope. Talking heads like Jim Cramer are asserting that the rapid price re-rating that occurred last week (~+100% on the heels of a Sunday settlement with RC Ventures (Ryan Cohen’s [Chewy Co-founder and e-commerce savant] investment vehicle) is malarkey and going so far as to call up the company BEGGING them to issue shares.

I have heard this story for years. Personally I began investing in GameStop with 100 shares @ ~$19/share in 2017. Fast forward to August 2019 and as I averaged down it became my largest position. Today GameStop remains by far my largest investment holding, and I have no intention of selling before the stock reaches fair market value. And FMV is not nearly upon us.

On behalf of a loose shareholder collective representing 4.0% of GameStop’s shares outstanding I contacted RC Ventures amid the recently resolved activist fight, lending our support behind the direction they laid out in their  November 16th letter  to the board. While the direction of Ryan’s vision largely aligned with that of the existing management team, his proven track record of delivering delightful digital experiences through what his team built at Chewy resonated deeply with myself & other members of the shareholder community. Ryan, Alan, and Jim’s appointments to the further refreshed GameStop board truly change the game.

And so tapping into the thousands of aggregate hours that this loose shareholder collective (and let me be clear, I disclaim all beneficial ownership beyond my small personal ownership stake. It’s simply easier to speak with one voice for the many) has spent analyzing GameStop across every facet of its business, we have decided to put forth this thesis articulating why GameStop’s future remains far brighter than the FUD campaigns, talking heads, and short parties would have you believe.

There are assumptions that underpin any transformation. In our view, the general themes of the GameStop Reboot strategy laid out by legacy management have borne fruit. Married with the accelerated pace of implementation that can be expected by an entrepreneurial ego like Cohen’s, new ideas and business models building off the successful base reboot can be enacted at breakneck speed. Metaphorically I put it like this, the ship is built (the legacy business, supplier/customer relationships, etc.) and GameStop is upgrading from a wooden boat at risk of the wind (console cycle) to an asset lighter hovercraft that retains the core competencies but expands beyond and gains a powerful e-commerce rocket engine that it would’ve otherwise never had. We appreciate that our timing, estimates, and assumptions may prove inaccurate. In our view, given the expected retrenchment to a North American entity, continued domestic store closures, expanded advertising tech platform, Microsoft revenue sharing , etc., the reinvented business offers the following bear, base, and bull valuation targets using an exit multiple on forecast 2023 EBIT:

    • Bear: $39.87/share, $2.8B market cap; 9x $411M EBIT in 2023, discounted at 10%
    • Base: $87.16/share, $6.1B market cap; 12x $674M EBIT in 2023, discounted at 10%
    • Bull: $169.420/share, $11.8B market cap; 15.4x $1,017M EBIT in 2023, discounted at 10%. Note the anticipated Tylee the teacup poodle multiple expansion from 15x to 15.4x EBIT.

We’ve attempted to be tempered in our valuation approach. You can find further detail at GMEDD.com, but we will tease the following bull case highlights:

    • $1B in G&A savings through decreasing store count to 2,000 by 2023
    • Advertising technology platform—each PowerUp Rewards member represents ~$25 annually in customer acquisition cost to advertisers; yielding an incremental ~$700M in revenue @ ~45% gross margin
    • E-Commerce; achieves ~45% of total revenue by 2023, with much of the growth incremental to the B&M business model