Forbes has published an article titled, “GameStop’s New Outlook,“ and while it does not go nearly as in-depth into the RC Ventures takeover as we do, any constructive fundamental talk about GameStop is always appreciated.

GameStop’s fundamental expectations are improved. The key ingredient is the enhanced focus on a growth strategy, spurred by the new, committed board members and fostered by new management additions capable of improving on a known brand name. 

Isn’t it crazy that it’s news when the media finds out what we’ve been covering for months? At least they’re beginning to get it.

The article also covers some different views of GameStop’s stock action, starting with a monthly chart from 2007 (logarithmic scale) and a daily chart from July 2020 (logarithmic scale).

Source

Founder and Chairman of Interactive Brokers Thomas Peterffy joins ‘Closing Bell’ on CNBC to discuss what would have happened to GameStop’s share price had brokerages not stepped in.

We have come dangerously close to the collapse of the entire system and the public seems to be completely unaware of that including Congress and the regulators.

On January 26th GME closed at $77/share, the following day it closed at $148, the following morning on January 28th the stock opened at $355 and traded up to $480.

At the same time, GME had 50M shares outstanding, and the short interest of 70M shares. In addition, there were about 1.5M calls, which would call for 150M shares.

When the longs repay their margin loans, and exercise the calls, their brokers would have been obligated by the rules as they are today to deliver to them 270M shares while only 50M shares existed.

When the shorts cannot deliver the shares, the broker representing the longs, must, by the rules of the system, go into the market and buy the shares at any price, pushing the price into the thousands.

Source: CNBC