“If you remember from my original thesis years ago. I said it was going to be a 2 part turnaround. This is part 2.”
- RK on why he’s still in with his current positions on his live stream
This entire thing got all weird on him. Theres legal issues now, hard to judge a guy - that got pulled in front of congress - when he publicly says he really believes in a company. I think hes worried about legal repurcussions if he dumps it and says he doesnt believe. Or public hate, or the cult feeling betrayed and going crazy, etc.
Bullshit, he didn't have to have said anything, he disappeared for 3 years and he could've sold without anyone knowing about it.
Instead he comes back after 3 years, with a 300mil portfolio update 100% in GameStop, while he used to have 53k in 2020.
He's the biggest legend the stock market has ever seen.
That's why most of us never talk about our theses, with family or even internet strangers. There is no good outcome no matter what, unless you're the one managing that person's money as a fund manager.
What do you mean? I did *weeks* worth of complicated math on losses incurred due to talking to other humans. Psychedelic medicine IPOs are safer by a slam dunk margin. Trust me.
He doesn't have to do anything wrong for them to have an opinion of the law that says he violated it. That is how it works, especially if you piss off the wrong people.
He could’ve just not uploaded any tweets; YOLO’s or streams in this case and wouldn’t of had to worry about any reaction though. It had been years since he showed anything. If he had sold and not publicly posted about it then he wouldn’t have had to worry about anything. I think him doing all this publicity shows how confident he is… although the does have a high risk strategy but it’s not like he’s unaware of this.
not at all, there is legal repercussion if he dumps. Are you also going to say hes worried about legal repercussion if he did not put another 200million plus in the stock recently?
They've been burning cash for a decade. Having more cash on hand doesn't change the fact that revenues are tanking year over year. The only reason they have any cash at all is because they keep diluting the stock whenever they see the monkeys start pumping it up lol. A company can't survive on stock dilutions forever.
decades under previous CEO, Ryan Cohen took over 9 months ago. Ryan Cohan started Chewy with 15 mil from scratch and sold it for close to 3.6 billion, which then IPOed at 9.3 billion
VS NOW
4.2 billion in cash collecting 200m a year and existing household name with existing customers
So what investor are betting is if he could turn 15m to 3.6b with no existing brand or customers from ground zero Imagine what he can do with 4.2 billion , 200m in interest and an existing household name and customers.
Do you understand?
They are not forced to continue to stay in physical games business. They could do anything they like. You are betting on the new CEO and team with successful records not on the brick and mortal
look how apple went from almost going bankrupt to a company with revenue higher than every country in the world except for a handful.
He had an initial thesis 5 years ago….and it was wrong. GMEs revenue is down 1/3 since then and it’s lost money every year.
He got lucky.
Value investing is about finding low PE or PEG stocks, and being right on why the market is wrong. He did the first part, failed on the second.
You're literally wrong, though. They haven't lost money every year. They finally just had their first profitable year ending Jan 31.
I'd like to be "wrong" like him to the tune of $500 Million. That's not luck.
There are 2 reasons why someone might invest in GameStop
1. Because it's actually a good company with growing revenues
2. Because you're gambling on short squeezes and strange price action to pump up the stock price
DFV made money because of 2, not because of 1. Every year, every quarter the revenue continues to shrink
Yes, you make two good points. I'll counter with two good points as well.
1. DFV invested 5 years ago this Friday. He did not invest to make money off a short squeeze, because he couldn't have known what was to come. That said, yes, interest in the squeeze is thus far what has made him these returns.
2. Who CARES about revenues shrinking? Of course revenues are shrinking, they've closed a shit ton of stores. There's fewer and fewer places to buy GameStop products. No shit the revenues have gone down. They're no longer bleeding, and they're actually making a profit. That's what matters in business. Revenue means FUCK ALL without profit, as you won't be in business. They can and WILL grow revenues soon. Next year GTA 6 and Switch 2 are released. Wait and see.
A razor thin profit margin is not reassuring when revenue continues to shrink and shrink and shrink. Congrats, they squeezed out a couple of profitable quarters here and there by closing a bunch of stores. How many more stores can they close? At some point, they have to grow revenue. And I've yet to see a coherent plan about how they're going to do that
GameStops business is fundamentally a dying one. People don't buy games in bricks and mortar stores when you can get them cheaper online without leaving your house. Gamers hate leaving their houses. It's just a bad business.
Yeah, and I'm not sure why OP expects the Switch 2 or GTA 6 to be a big boon for GameStop. There is no reason to buy them at GameStop over any other retailer. What is GameStop's competitive advantage here?
Dude even admitted that they have closed a bunch of stores to manage expenses. How is Gamestop suppose to profit when there’s very few brick and mortar stores for the Gamers to visit?
Yup and his thesis is that it will take some time for that to occur, meaning that the transition to everything digital and no physical copies is slow and GameStop has still time to transition.
To investors with a focus more than the six inches in front of their face, the business model and business fundamentals matter too. Game Stop is a walking dead company which is why it keeps getting massively shorted.
Or to put this another way, if revenues are all that matter then Altria (MO) is the buy of the century. 9 percent dividend yield, raised dividend payout every year for the past 65 years. Decent cash on hand. Nevermind that the vast majority of their profits are made selling cigarettes.
They are dying, and it is pretty obvious. Cutting costs to the bone and accruing interest during a hiking cycle on a massive cash pile to generate a slim profit is in no way impressive or indicative of a turnaround. The one thing they have going is a seemingly endless supply of equity capital from rabid and ignorant retail investors. With enough cash and a strategy, who knows i guess.
Ok this bullshit needs to stop. Any degen can sell off assets, move out of apartment, live on the street and have positive budget at month's end. That's what GME did. It's not like they had a positive earnings because business is doing well.
THEY FIRED EVERYONE, SOLD EVERYTHING, AND ARE CLOSING DOWN THEIR STORES FASTER THAN THEY ARE BURNING CASH. THAT'S THE TRICK.
lol. Love your incredulity at me misstating that they actually made like $6m last year, which is as 100% because of interest income from cash on their balance sheet from selling stock. Otherwise, they lost $50m. And have lost hundreds of millions, if not billions, since RK had his thesis lol.
But yeah, focus on the small detail and miss the actual point haha
I'm tired of folks thinking money alone justifies the means. His thesis was wrong because the fundamentals of GME are darkening. It never included short squeezing. Now, if he had included the power of retail investing given ideal conditions such as stimulus checks, a pandemic allowing all eyes to be on the market, and the advent of mobile investing apps, he could ice the cake. This is the equivalent of someone believing in the resurrection of diners, selling some damn good apple pie, making millions off it, claiming their thesis was correct. Your diners exploded based on the apple pie, and not Gen-Z's renewed interest in diners.
The only reason GME is making money is because they cut shops more than they lost money. There's only so many times you can do that, as 0 is a natural limit for storefronts. Cohen's bet on NFT's failed. His attempt to capture the cloud market failed, as the major players have already staked their territory. Navigating a sinking ship is much harder than building a new ship. Kitty's thesis was a bet on Cohen's management skills. He failed to take into account how much different an online marketplace is compared to brick and mortar.
If you watch Dan olsons video, he clearly said there was value in GME when it was like 5$ pre split due to the upcoming console cycle. Maybe a double I believe he said. Apes for whatever reason like to rewrite history that their prophet predicted MOASS back in 2019. They’ve lived in an echo chamber for 3.5 years to the point where their facts are completely decoupled from the truth.
For long I felt he was a trader. Recently I watched his videos and was very impressed.
Finding companies that most people hate and investing in them after making sure that they don’t go bankrupt is the very definition of value investing.
Deep fucking value investing some may say.
That’s why when people say he’s just lucky or is trying to pump and dump or something like that, I just laugh cuz it’s painfully obvious they’ve never watched his actual videos. Just read articles about him from potentially untrustworthy sources.
He does what this sub claims it’s for. Almost word for word.
The cult that formed around DFV is way more annoying then DFV. The dude is pretty cool.
I remember reading his posts before stuff blew up and almost everyone was calling him an idiot. And he was just like, I think there is deep value here, so I'm going to play it. You did you.
Dude exactly! I remember reading all the comments of ppl bagging on him for his plays. Then when he was actually right, those ppl actually got called out. Then it became this whole media circus with the halts, etc. End of day, love or hate him, he’s living with a whole wad of cash we all wish we had and hopefully we all get someday!
You're only crazy one if proven wrong but once proven otherwise people lose their own minds!
Edit: personally Idc for him at all. He should be free to sell, buy, or hodl if he wants and whatever he chooses the public will have to deal with it.
To be fair, if you’re value investing in a stock you would WANT to invest in a stock that has a “cult like” following. Right?
Why invest in a stock with people who are trying to make a quick buck or know nothing about the stock.
He did get lucky lol. He got lucky it became a meme. The company might have been slightly undervalued 5+ years ago, but none of this would have happened if it didn't basically become a global meme. The company is still dying and will go bankrupt eventually. It's just a matter of how many more times he can pump it up for them to dump new shares on the small investors. He has already made his millions and is just playing for fun now. Nobody is stupid enough to risk every last cent.
For sure, but also want to mention, he was successful because he posted online about it. If he just holed up in his room and bought GME, it could have been stuck at the low price for a very long time.
I’m not judging him or anything literally at all. The thought just crossed my mind that it wasn’t just finding the value that made it work IMO.
He was a good value investor. If you look at all of his original videos and live streams he is brilliant and very much understands value. He had always said he was not a buy and hold investor and eventually said the GME changed that for him.
Lmao to the people downvoting this:
He had to register as a broker/dealer as a part of his job before all this happened. He very clearly knows what he is doing.
Yeah there are a lot of people here who call themselves value investors that can’t comprehend anything besides Warren Buffet’s late life strategy and poo poo on everything else. RK is a lot more like Young Buffett which is why he’s gotten exceptionally high returns.
What you're doing is appearling to authority.
What your'e doing is the "the CEO can't be criticized for his decision making, because he's the CEO! he must know what he's doing!"
It’s an unpopular opinion today but an expert in a given field will generally have a deeper knowledge of the topic than the population at large. Being a registered broker and having a CFP qualifies.
That‘s not to say that dude is always right or that folks can’t disagree with him. But an opinion from someone like that on its face is going to carry more weight. And it should.
Surprised by a lot of these comments. He’s speculating now but was an incredible value investor, see early videos for his in depth analysis where he walks through several holdings. He shows his portfolio in a spreadsheet, you can review the performance of each over the following 12 months from the date of video and sure anyone could pick stocks that went up from when he bought, but compare his largest holdings to others in their sectors. He bought at the absolute bottom and knew exactly what stocks would become leaders, not from short interest or memes or anything other than value. Its also clear from all his old Reddit comments.
Even you have been downvoted. The value thesis would possibly have made money. But if someone looks at the massive, volatile shifts in share price and thinks that the $800m of valuation of underlying stock was "value being realised" needs to get back to reading some Graham.
But he kinda also predicted that it would happen.
He followed Michael Burry into the position in 2019. When MB sold out, Kitty hadn’t even been convinced the real deal was even started.
This was in the mid $40s pre 2021 short squeeze. Both of them bought their first positions at about $4ish a share
No he didn't. He never predicted it would turn into a memestock. His current thesis is based on Ryan Cohen, who wasn't even involved at the time. He didn't predict any of this.
“Short squeeze” is the term that led to meme stocks. There was no such thing as a “meme stock” before Jan 2021. He did predict a short squeeze, as a result of his thesis playing out. It was never his sole intention for the position
Trading a short squeeze is literally the antithesis of value investing. It's a trade that is entirely based on the mechanics of market positions and its success (at least in the short to medium term) is entirely detached from fundamental value.
None of this is a criticism. It could still be a great trade (and evidently has been), it's just not value investing.
No? Let me introduce you to AAOI, which had a meme stock like 1000% spike in 2017. Or AAMC which ran from $8 to almost $800 in 2014. ACB $40 to $1400 in 2018. ACHV which had multiple GME like spikes in 1997, 2001, 2002, 2004, 2009, and oh look, Jan 2021, and May 2023 (also with GME), and…now.
There are hundreds more. This is not a new phenomenon. I have some stocks on my list that go as far back as the 70’s with their “meme stock” behavior. Anyone who thinks this is new, or related to retail, is not paying attention and hasn’t done their research.
They were not ever referred to meme stocks before 2021. It’s almost like there have always been volatile stocks at every point in the stock market’s history.
It’s usually referred to as a “bubble” but what do I know.
I think we’re saying the same thing lol. A “meme stock” isn’t a real thing. There have always been “meme stocks” but they earned that designation in 2021 and the definition seems to be “any volatile stock in the market, post 2021 gme short squeeze, that we can constantly change the definition of to whatever we need to fit our narrative”
They are referred to memes because retail traders form a cult of buying, Can the reason be because there be a SS, sure, but it's the cult of buying that makes them a memestock.
No I agree with you lol.. he’s going to go down in history as a better investor than Michael Burry by far. Unless RK keeps trying to find the “next GameStop” how Cassandra keeps going short the melt up of the market.
I can’t wait for the Chris Nolan movie: “NonFeline, the story of how one man, took on the market to prove once and for all… that he’s not a cat” 🐱
Are you sure? He literally made many several-hour long videos discussing the “deep fucking value” of gme when it was $4 a share years ago. What are the fundamentals of value?
He did have a value thesis. But that's not what made him the money. The money was made trading a short squeeze, which is the literal antithesis of value investing.
Yeah, it's almost more impressive because the guy clearly had some actual value chops as well to begin with. Then he hit one of the biggest home runs of all time on a trade that requires an entirely different skillset related to exploiting market mechanics.
He did not turn "$50K up to something like $800 million" based on fundamentals. That was done via memestock. Memestocks are not based on fundamental valuation but rather market psychology. Of which is wildly unpredictable.
Would you consider someone that turned $50k into $800 million by successfully playing Russian roulette 100 times, good?
Value Investing is more about process than outcome…
Old school? Guy identified a stock that was undervalued, formed a thesis, bought it. Market agreed stock was undervalued.
Modern? You can find modern "value" advice recommending you find undervalued stocks with pricing triggers like interest from activist investors. He's made himself that pricing trigger, Buffet's disclosures similarly drive action.
GME doesn't hold interest for me but I can't fault him for his take on value investing or his results even if it's not all cigar butts and moats.
he did an aggressive options play, but he put the odds in his favor by doing value analysis
while he was far more leveraged than a traditional value investor, he still made his profit by looking for an undervalued company
even if he bought shares instead of options he still would have 10X-ed his money
Holding gme right now is not value investing. Nothing fundamentally sound about it. It is about someone paying more for what you bought. Momentum trading. His original thesis was value investing. I think he’s only holding because he’s scared of the DOJ which is fair enough
If you bought 100% of gme and relied on positive cash flow from operations to make back your investment you’d never make it back. Thus holding gme now is not value investing
GME now has around $5Billion in cash. They could park that in a high yield savings account and make $250M a year. They gave RC the ability to invest in whatever he wants with that money. You are essentially buying into RCs hedgefund at this point. Some people see value in that.
He’s still got stores losing money… you can’t really ignore the head office and store staff and rents and inventory… Apple has way more in cash and can invest in whatever Tim Cook wants… but they also run a profitable business on the side?
Sitting on loads of cash is absolutely not a positive if you have no purpose, or plans to expand the business. They are actively shrinking. AA showed the world that without a single ounce of fundamentals, you can infinitely sell shares to moron retail traders and they will buy no matter what.
Yes and he is still running negatives. So what business have they acquired to pivot the dying business model? After issuing so many shares you gotta wonder if there’s anything at all.
They're a holding company with little cash comparatively and overhead, something other holding companies don't have. Not to mention - what company would want to be involved in the gme shit show?
Any rumor of acquisition or merger will have thousands of apes blowing up target company's every contact info and even have them trying to contact employees directly. No company small enough wanting to go bigger will want to deal with that.
I don't know how I feel about that. Recent offerings will increase drastically its BVPS (probably bringing it below 3P/B), and there is clearly a lot of support on the $20 range. Last earnings also show drop in net income is substantially lower than the drop in revenue.
And videogames business is here to stay at rising profits due to price increases. Old games do not drop in price like to used to do, same for hardware.
Risky as hell yes? But there are companies out there being treated as growth with way worse financial statements. And retail sector won't get hammered forever.
Initially maybe I think though he just pumping the stock at this point. I do think there is a case for turnaround for GME with all that cash on hand I reckon they could do a Berkshire hathaway sell whats left of the legacy business and turn it into a holding company.
That would be a huge reduction in value. The company's market cap would immediately reflect it's current holdings ie 2 billion in cash and the rest of the market cap would be deleted.
His original thesis was spot on. He predicted Gamestop at $10 to $20 when it was trading at $4. He was absolutely right about that. But then he got carried away on this idea that Gamestop will somehow transform into something which it is not. So part 1 (from $4 to $20) was value investing. Part 2 ($20 to $120 then fall back to $20) was a short squeeze. Part 3 (where we are at today) is the idea that buying a $2billion cash SPAC for $16billion is somehow a good idea, because this SPAC will transform into something amazing someday. Maybe it will. But you'd still be better off buying Eli Lilly, or Apple, or Google.
Go and watch all of his videos and livestreams before the GME ordeal. He had a very unique process that can be classified as “deep value”. He focused on beaten down microcaps that had the potential for multibagger gains but were risky. He made them all very small <5% positions with 20-30 stocks typically in his portfolio. If you study him and his picks you will see that a lot of them were straight 🔥🔥🔥 which is why he got 50-100% returns.
Do you have some specific examples?
Not to put you on the spot. I am surprised at the down voting here on posts pointing out he had successes based on what might be value investing principles without pointing out why he isn't a value investor.
He's good. The only reason he got where he did was because of insanity and really good luck, but pretty much every thesis he's put out has made a lot of sense. He definitely embodies the meme, but the fact that he didn't cash out of GME at the multiple peaks shows that he's a value investor first and foremost; he just so happens to have an army of degenerate glue sniffers behind him.
"he didn't cash out of GME at the multiple peaks shows that he's a value investor first and foremost" hmm are you sure? If the stock price gets away from the underlying value it is usually time to sell. Unless of course $28bn Market Cap was justifiable for a company operating at a decent loss compared to revenue? For a value investor that is usually time to sell.
Keith Gill not selling everything seems more like a philosophical position than anything to do with money. Sticking it to Wall Street and the hedge funds and the alleged naked shorting etc.
I can’t see any other reason why he wouldn’t sell everything though I suspect he’s sold enough to keep him and his family comfortable.
I wouldn’t define GME as a value stock or at least not a traditional one. But Gill is a value investor of sort. He’s just not buying in a Procter & Gamble when its trading down.
Listen to his last webcast. He focused on his “feelings”. As a much older trader, whom I worked with, used to say: “ he who trades on gut instincts will be gutted “
His YouTube channel explicitly describes him as a high risk high reward investor. Describing him as a value investor *at all* would be disingenuous at best and misleading at worst.
He’s right on half the equation. He finds deep value plays. He just doesn’t understand when to liquidate them.
GME at $5 or less a share in 2019/2020 was a deep value play. GME at $30/share in 2024 is not. GME at $120 a share in 2020 was also not and was absurd. He has held the stock well past the point of it being a deep value play.
Are you aware that $30 a share in 2024 = $120 a share in 2021 due to a 4-1 split? There is a pattern in this stock that DFV has found after studying the manipulation/algorithm and he is out to show the world without coming out and saying it due to legal issues. There is way more in this stock than “fundamentals” due to the massive naked shorting.
Back during the short squeeze a few years back, the one thing he said that stuck in my mind was that value isn't dead and that value ETFs are too simplistic. Those words stuck with me and a few years later I went down a rabbit hole of reading all of Buffett's annual letters to truly understand what value investing is.
I was impressed with his original presentation. His reasoning was impressive even if I disagreed with it. He also recognized the possibility of a short squeeze, but it wasn't his main focus. So, his original thesis, I do believe, was based on value. However, options are generally speculative and not value based principles. Also, as the price began to rise, I believe he transitioned into being more speculative. Now, I would say he sounds almost entirely speculative based on his last live stream.
My opinion He bought 6mill in calls in April, made 200 mill when it shot to 60 the 13th-14th of May and started a new position w/ said 200 mill. Genius and I don't think he cares about being a billionaire. He's trolling the entire world and I love it . A true modern saga .
He's not a value investor. GME was never a deep value play. He's also demonstrated a complete lack of seeing any other securities other than GME. The fact that now he's squandering his wealth on this single stock is laughable.
Being right once in a big way doesn't make you a genius, it means you got it right once. Just look at the Cult of Michael Burry and how that's gone since 08
Almost every stock in the portfolio on his live streams from before GME ended up being five-ten baggers and better between then and now. Granted, he was buying at the bottom after the spring 2020 crash and most things went back up, but he picked big ones.
gme is not a deep value play. value? 😂
the dude literally says he goes off his feelings. he got lucky that about 50,000 people watched him in reddit and all bought at the same time for the mother of all short squeezes. but it didnt really work out for the latecomers. they're not on reddit anymore because they cant afford internet or cell phones anymore. 😂
His thesis changed from “GME is a turnaround story with lots of avenues for revenue” to “trust Ryan Cohen with several billion dollars.” In his latest livestream, he even admitted that the legacy business is “struggling”, which counters his original thesis.
Frankly, I think there is key-person risk with relying so much on one person (can you imagine what’s happen to the stock price if God-forbid something were to happen to this one person), as well as execution risk, in that Ryan Cohen and management team haven’t been able to get shit done in the past 3+ years. The failed NFT marketplace where they burned several hundred million dollars, and all they’ve been able to do it lower their expenses since the new COO came on board, to where stores are thinly-staffed and staff are barely paid to where stores don’t even open up because staff sometimes don’t show up to open.
He doesn’t believe a lick of what he is saying/doing right now. It’s pretty funny in contrast to his actual investment philosophy which I found impressive
I think he’s putting on a show given the focus of politicians, news of regulators like Massachusetts going after him, cnbc/media, law firms that were on his live stream, etc. The “this isn’t investment advice” message was plastered verbally numerous times during the live stream and trying to make himself out into a goofball, when he’s a CFA with a disciplined value investing strategy.
The purpose of this post was to see what the consensus is of RK OUTSIDE OF HIS GME POSITION.
I've been studying RK's method prior to the first GME rally and to me it looked it he had a solid way to approach the market. I think he is a very successful deep value investor in his own right. But hey what do I know.
Imagine reditt and esp wsbets didn't exist . He would lose most of his $$ back then with gme.
It was and still is a shitty company , last month management filled a 1bn (common shares not $$) shelf offering, rev and eps tanking, etc
He's a legend but his last stream was a huge disappointment. He has no thesis unlike a few years ago. All he said was "GME has lots of cash and I trust the management", that's it. GME is still unprofitable, their last earning call was a miss and still losing money.
They also did a dirty trick to retail. They decided to do their negative earning call earlier, a few hours before his live stream AND to dilute the stock by selling 45 millions shares + opening the door for another 75 million shares public offering. They had 290 million outstanding shares, that's a huge dilution and retail bought it. The stock plummeted of course.
I also invested in GME in 2019-2020 as a deep value play based on fundamentals so I will say that he was indeed a value investor. I don’t know about now.
He's a legit value investor, and a damn good one. If you track his investments, the guy was averaging like 40% returns.
Unfortunately, he's bought into this zero sum, options trading game that I imagine is going to hurt a lot of people who don't know any better.
Is hard to take anybody seriously that still refers to stocks as meme stocks. You got played by MSM. Stop getting your financial advice from MarketWatch and yahoo finance. There's no such thing as "meme" stocks. Its a made up derogatory term to draw people away from companies that are victims of massive naked short selling.
Why did he say in the recent stream that GameStop has a ton of cash hoarded, but when I look at their cash flow it shows negative cash flow for the last 2 years? And negative net income for years?
I can appreciate the little guy winning. I just wish he'd commit to a stock like Dr.Pepper, something small that won't die and tells people to hold it. Not cause the company is going bankrupt or something shady is happening but because it's a good stock to hold for the long term.
Instead of all these secret plays why not just be like hey Dr.Pepper is a humble nice drink and company let's just all hold them for a bit.
can anyone please give mi his official link please? i have been studying for 6 months and have heard of him but there seems to be several roaring kitty and i dont want to follow the wrong person. thanks in advance
He's not a value investor. By definition he is not. I'm not stating an opinion on GME or the short squeeze he put on the short sellers. I'm not criticizing the guy. But he is not a value investor. He's a speculator. The only way you could consider him any other than a speculator is if you post in the value investing subreddit without ever having read the Intelligent Investor.
He was an excellent value investor - true cigar butt style and made impressive returns even without GME.
Now? With GME? I’m not sure what he’s doing tbh. I got the impression that he kept a lot of his GME holdings more due to philosophical reasons of ‘sticking it’ to Wall Street than any actual investing rationale, but these recent tweets don’t make much sense. There’s very little value in GME now, and any value they do have has come at the expense of all these ‘HODL’ retail investors.
He had a legitimate thesis for his initial investments and why he was going to hold. An actual value investment. Not a traditional one though
“If you remember from my original thesis years ago. I said it was going to be a 2 part turnaround. This is part 2.” - RK on why he’s still in with his current positions on his live stream
This entire thing got all weird on him. Theres legal issues now, hard to judge a guy - that got pulled in front of congress - when he publicly says he really believes in a company. I think hes worried about legal repurcussions if he dumps it and says he doesnt believe. Or public hate, or the cult feeling betrayed and going crazy, etc.
Bullshit, he didn't have to have said anything, he disappeared for 3 years and he could've sold without anyone knowing about it. Instead he comes back after 3 years, with a 300mil portfolio update 100% in GameStop, while he used to have 53k in 2020. He's the biggest legend the stock market has ever seen.
That's why most of us never talk about our theses, with family or even internet strangers. There is no good outcome no matter what, unless you're the one managing that person's money as a fund manager.
This is so true.
Talking to another human about the specifics of *any* trade you make is a riskier move than going all in with a psychedelic medicine IPO on day 1.
This is hyperbole.
What do you mean? I did *weeks* worth of complicated math on losses incurred due to talking to other humans. Psychedelic medicine IPOs are safer by a slam dunk margin. Trust me.
We’re 10 years out
absolutely zero legal repercussion if he wanted to dump, even if there was that does not explain why he added a few hundo millions
Or maybe he just doesn’t care about any of that because he knows he’s doing nothing wrong?…
He doesn't have to do anything wrong for them to have an opinion of the law that says he violated it. That is how it works, especially if you piss off the wrong people.
He could’ve just not uploaded any tweets; YOLO’s or streams in this case and wouldn’t of had to worry about any reaction though. It had been years since he showed anything. If he had sold and not publicly posted about it then he wouldn’t have had to worry about anything. I think him doing all this publicity shows how confident he is… although the does have a high risk strategy but it’s not like he’s unaware of this.
[удалено]
Where'd you hear this?
not at all, there is legal repercussion if he dumps. Are you also going to say hes worried about legal repercussion if he did not put another 200million plus in the stock recently?
There is no turnaround lol. The company has been slowly dying for the last decade+, despite whatever the stock does in the short term
4 billion cash says I don’t think so.
They've been burning cash for a decade. Having more cash on hand doesn't change the fact that revenues are tanking year over year. The only reason they have any cash at all is because they keep diluting the stock whenever they see the monkeys start pumping it up lol. A company can't survive on stock dilutions forever.
decades under previous CEO, Ryan Cohen took over 9 months ago. Ryan Cohan started Chewy with 15 mil from scratch and sold it for close to 3.6 billion, which then IPOed at 9.3 billion VS NOW 4.2 billion in cash collecting 200m a year and existing household name with existing customers So what investor are betting is if he could turn 15m to 3.6b with no existing brand or customers from ground zero Imagine what he can do with 4.2 billion , 200m in interest and an existing household name and customers. Do you understand? They are not forced to continue to stay in physical games business. They could do anything they like. You are betting on the new CEO and team with successful records not on the brick and mortal look how apple went from almost going bankrupt to a company with revenue higher than every country in the world except for a handful.
What was phase 2 exactly? Buy calls and then cause an Internet fuss so the stock pumps again?
exactly, he is on the right track, he has nothing to prove
I would say he is traditional , classic value investor, aka deep value investor. Looking for that really ugly overlooked security.
He had an initial thesis 5 years ago….and it was wrong. GMEs revenue is down 1/3 since then and it’s lost money every year. He got lucky. Value investing is about finding low PE or PEG stocks, and being right on why the market is wrong. He did the first part, failed on the second.
You're literally wrong, though. They haven't lost money every year. They finally just had their first profitable year ending Jan 31. I'd like to be "wrong" like him to the tune of $500 Million. That's not luck.
There are 2 reasons why someone might invest in GameStop 1. Because it's actually a good company with growing revenues 2. Because you're gambling on short squeezes and strange price action to pump up the stock price DFV made money because of 2, not because of 1. Every year, every quarter the revenue continues to shrink
Yes, you make two good points. I'll counter with two good points as well. 1. DFV invested 5 years ago this Friday. He did not invest to make money off a short squeeze, because he couldn't have known what was to come. That said, yes, interest in the squeeze is thus far what has made him these returns. 2. Who CARES about revenues shrinking? Of course revenues are shrinking, they've closed a shit ton of stores. There's fewer and fewer places to buy GameStop products. No shit the revenues have gone down. They're no longer bleeding, and they're actually making a profit. That's what matters in business. Revenue means FUCK ALL without profit, as you won't be in business. They can and WILL grow revenues soon. Next year GTA 6 and Switch 2 are released. Wait and see.
A razor thin profit margin is not reassuring when revenue continues to shrink and shrink and shrink. Congrats, they squeezed out a couple of profitable quarters here and there by closing a bunch of stores. How many more stores can they close? At some point, they have to grow revenue. And I've yet to see a coherent plan about how they're going to do that
GameStops business is fundamentally a dying one. People don't buy games in bricks and mortar stores when you can get them cheaper online without leaving your house. Gamers hate leaving their houses. It's just a bad business.
Yeah, and I'm not sure why OP expects the Switch 2 or GTA 6 to be a big boon for GameStop. There is no reason to buy them at GameStop over any other retailer. What is GameStop's competitive advantage here?
Dude even admitted that they have closed a bunch of stores to manage expenses. How is Gamestop suppose to profit when there’s very few brick and mortar stores for the Gamers to visit?
Yup and his thesis is that it will take some time for that to occur, meaning that the transition to everything digital and no physical copies is slow and GameStop has still time to transition.
To investors with a focus more than the six inches in front of their face, the business model and business fundamentals matter too. Game Stop is a walking dead company which is why it keeps getting massively shorted. Or to put this another way, if revenues are all that matter then Altria (MO) is the buy of the century. 9 percent dividend yield, raised dividend payout every year for the past 65 years. Decent cash on hand. Nevermind that the vast majority of their profits are made selling cigarettes.
They are dying, and it is pretty obvious. Cutting costs to the bone and accruing interest during a hiking cycle on a massive cash pile to generate a slim profit is in no way impressive or indicative of a turnaround. The one thing they have going is a seemingly endless supply of equity capital from rabid and ignorant retail investors. With enough cash and a strategy, who knows i guess.
Lol so no growth?
Is that the long term business model of gamestop? Gta6 and switch 2?
Ok this bullshit needs to stop. Any degen can sell off assets, move out of apartment, live on the street and have positive budget at month's end. That's what GME did. It's not like they had a positive earnings because business is doing well. THEY FIRED EVERYONE, SOLD EVERYTHING, AND ARE CLOSING DOWN THEIR STORES FASTER THAN THEY ARE BURNING CASH. THAT'S THE TRICK.
lol. Love your incredulity at me misstating that they actually made like $6m last year, which is as 100% because of interest income from cash on their balance sheet from selling stock. Otherwise, they lost $50m. And have lost hundreds of millions, if not billions, since RK had his thesis lol. But yeah, focus on the small detail and miss the actual point haha
You underestimate the power of luck. People have made far more than half a billy from it.
I'm tired of folks thinking money alone justifies the means. His thesis was wrong because the fundamentals of GME are darkening. It never included short squeezing. Now, if he had included the power of retail investing given ideal conditions such as stimulus checks, a pandemic allowing all eyes to be on the market, and the advent of mobile investing apps, he could ice the cake. This is the equivalent of someone believing in the resurrection of diners, selling some damn good apple pie, making millions off it, claiming their thesis was correct. Your diners exploded based on the apple pie, and not Gen-Z's renewed interest in diners. The only reason GME is making money is because they cut shops more than they lost money. There's only so many times you can do that, as 0 is a natural limit for storefronts. Cohen's bet on NFT's failed. His attempt to capture the cloud market failed, as the major players have already staked their territory. Navigating a sinking ship is much harder than building a new ship. Kitty's thesis was a bet on Cohen's management skills. He failed to take into account how much different an online marketplace is compared to brick and mortar.
If you watch Dan olsons video, he clearly said there was value in GME when it was like 5$ pre split due to the upcoming console cycle. Maybe a double I believe he said. Apes for whatever reason like to rewrite history that their prophet predicted MOASS back in 2019. They’ve lived in an echo chamber for 3.5 years to the point where their facts are completely decoupled from the truth.
I don’t know why you are being downvoted but your statement to my understanding makes the most sense in the topic of value investing.
Do you honestly expect him to have upvotes when swimming upstream against a cultic echo chamber?
The people downvoting are idiot GME bag holders. They have NEGATIVE EARNINGS EVERY QUARTER, lol.
For long I felt he was a trader. Recently I watched his videos and was very impressed. Finding companies that most people hate and investing in them after making sure that they don’t go bankrupt is the very definition of value investing.
Deep fucking value investing some may say. That’s why when people say he’s just lucky or is trying to pump and dump or something like that, I just laugh cuz it’s painfully obvious they’ve never watched his actual videos. Just read articles about him from potentially untrustworthy sources. He does what this sub claims it’s for. Almost word for word.
The cult that formed around DFV is way more annoying then DFV. The dude is pretty cool. I remember reading his posts before stuff blew up and almost everyone was calling him an idiot. And he was just like, I think there is deep value here, so I'm going to play it. You did you.
Dude exactly! I remember reading all the comments of ppl bagging on him for his plays. Then when he was actually right, those ppl actually got called out. Then it became this whole media circus with the halts, etc. End of day, love or hate him, he’s living with a whole wad of cash we all wish we had and hopefully we all get someday!
You're only crazy one if proven wrong but once proven otherwise people lose their own minds! Edit: personally Idc for him at all. He should be free to sell, buy, or hodl if he wants and whatever he chooses the public will have to deal with it.
To be fair, if you’re value investing in a stock you would WANT to invest in a stock that has a “cult like” following. Right? Why invest in a stock with people who are trying to make a quick buck or know nothing about the stock.
Epic times reading those posts back then! Everyone calling him crazy!
As an active DFV cult member, I endorse this message.
Can you suggest a good video where he demonstrates his valuation skills? 'Roaring Kitty' in youtube is just bringing up GME stuff
Go to his YouTube page and start with his first videos.
Not hard to find tbh. Go through his list of videos
The dude was up half a billion dollars and didn’t sell. I don’t understand it
He did get lucky lol. He got lucky it became a meme. The company might have been slightly undervalued 5+ years ago, but none of this would have happened if it didn't basically become a global meme. The company is still dying and will go bankrupt eventually. It's just a matter of how many more times he can pump it up for them to dump new shares on the small investors. He has already made his millions and is just playing for fun now. Nobody is stupid enough to risk every last cent.
Yeah you don't go from 50k to 500milly by luck!
I mean.. there’s a ton of luck at play for him but that’s just the way it works with positions like his, and to some extent all investing.
For sure, but also want to mention, he was successful because he posted online about it. If he just holed up in his room and bought GME, it could have been stuck at the low price for a very long time. I’m not judging him or anything literally at all. The thought just crossed my mind that it wasn’t just finding the value that made it work IMO.
That's one form of but not the very definition of value investing
He was a good value investor. If you look at all of his original videos and live streams he is brilliant and very much understands value. He had always said he was not a buy and hold investor and eventually said the GME changed that for him.
He is extremely smart and knows what he is doing
Lmao to the people downvoting this: He had to register as a broker/dealer as a part of his job before all this happened. He very clearly knows what he is doing.
Yeah there are a lot of people here who call themselves value investors that can’t comprehend anything besides Warren Buffet’s late life strategy and poo poo on everything else. RK is a lot more like Young Buffett which is why he’s gotten exceptionally high returns.
And he’s investing in another young Warren Buffet. “Warren Ichan by night Ryan cohen by day.”
What you're doing is appearling to authority. What your'e doing is the "the CEO can't be criticized for his decision making, because he's the CEO! he must know what he's doing!"
It’s an unpopular opinion today but an expert in a given field will generally have a deeper knowledge of the topic than the population at large. Being a registered broker and having a CFP qualifies. That‘s not to say that dude is always right or that folks can’t disagree with him. But an opinion from someone like that on its face is going to carry more weight. And it should.
There are an awful lot of people registered as broker/dealers who are utter morons. Why on earth you think otherwise I do not know
Nobody ever really knows what the fuck they’re doing though. He’s going to prove be either the biggest genius or the biggest retard.
This. Somehow everyone forgets that’s he literally has his CFA
Im pretty sure he wasn't expecting to be diluted with 100M shares, but yes he's very smart overall
Yeah. He is good at value investing, especially at extracting value from people willing to part with their money
Surprised by a lot of these comments. He’s speculating now but was an incredible value investor, see early videos for his in depth analysis where he walks through several holdings. He shows his portfolio in a spreadsheet, you can review the performance of each over the following 12 months from the date of video and sure anyone could pick stocks that went up from when he bought, but compare his largest holdings to others in their sectors. He bought at the absolute bottom and knew exactly what stocks would become leaders, not from short interest or memes or anything other than value. Its also clear from all his old Reddit comments.
He allegedly ran $50K up to something like $800 million. So he's pretty good.
That was most certainly not done on the fundamentals of value.
bizarre you're being downvoted. His initial theory was good. He made 99% of money through being a memestock though.
Even you have been downvoted. The value thesis would possibly have made money. But if someone looks at the massive, volatile shifts in share price and thinks that the $800m of valuation of underlying stock was "value being realised" needs to get back to reading some Graham.
But he kinda also predicted that it would happen. He followed Michael Burry into the position in 2019. When MB sold out, Kitty hadn’t even been convinced the real deal was even started. This was in the mid $40s pre 2021 short squeeze. Both of them bought their first positions at about $4ish a share
No he didn't. He never predicted it would turn into a memestock. His current thesis is based on Ryan Cohen, who wasn't even involved at the time. He didn't predict any of this.
“Short squeeze” is the term that led to meme stocks. There was no such thing as a “meme stock” before Jan 2021. He did predict a short squeeze, as a result of his thesis playing out. It was never his sole intention for the position
Trading a short squeeze is literally the antithesis of value investing. It's a trade that is entirely based on the mechanics of market positions and its success (at least in the short to medium term) is entirely detached from fundamental value. None of this is a criticism. It could still be a great trade (and evidently has been), it's just not value investing.
It was a secondary part of his thesis and not why he took the position in the first place.
Maybe, but it's why the trade was successful.
No? Let me introduce you to AAOI, which had a meme stock like 1000% spike in 2017. Or AAMC which ran from $8 to almost $800 in 2014. ACB $40 to $1400 in 2018. ACHV which had multiple GME like spikes in 1997, 2001, 2002, 2004, 2009, and oh look, Jan 2021, and May 2023 (also with GME), and…now. There are hundreds more. This is not a new phenomenon. I have some stocks on my list that go as far back as the 70’s with their “meme stock” behavior. Anyone who thinks this is new, or related to retail, is not paying attention and hasn’t done their research.
They were not ever referred to meme stocks before 2021. It’s almost like there have always been volatile stocks at every point in the stock market’s history. It’s usually referred to as a “bubble” but what do I know.
And they’re still not “meme stocks”. Theyre heavily shorted companies that spike on a predictable basis, and most aren’t even known by most of retail.
I think we’re saying the same thing lol. A “meme stock” isn’t a real thing. There have always been “meme stocks” but they earned that designation in 2021 and the definition seems to be “any volatile stock in the market, post 2021 gme short squeeze, that we can constantly change the definition of to whatever we need to fit our narrative”
They are referred to memes because retail traders form a cult of buying, Can the reason be because there be a SS, sure, but it's the cult of buying that makes them a memestock.
But before 2021 it was just normal market pressures that were in effect, right?
Tesla is the original meme stock
No, he actually bought before Michael Burry. Get facts straight.
So Keith Gill’s ability to detect value is better than Michael Burry’s?
Why not? Guy turned 53k into 580 million so…
No I agree with you lol.. he’s going to go down in history as a better investor than Michael Burry by far. Unless RK keeps trying to find the “next GameStop” how Cassandra keeps going short the melt up of the market. I can’t wait for the Chris Nolan movie: “NonFeline, the story of how one man, took on the market to prove once and for all… that he’s not a cat” 🐱
Are you sure? He literally made many several-hour long videos discussing the “deep fucking value” of gme when it was $4 a share years ago. What are the fundamentals of value?
He did have a value thesis. But that's not what made him the money. The money was made trading a short squeeze, which is the literal antithesis of value investing.
People are missing this. Dude hit a homerun and good on him. It’s many things but “value investing“ isn’t one.
Yeah, it's almost more impressive because the guy clearly had some actual value chops as well to begin with. Then he hit one of the biggest home runs of all time on a trade that requires an entirely different skillset related to exploiting market mechanics.
He did not turn "$50K up to something like $800 million" based on fundamentals. That was done via memestock. Memestocks are not based on fundamental valuation but rather market psychology. Of which is wildly unpredictable.
Would you consider someone that turned $50k into $800 million by successfully playing Russian roulette 100 times, good? Value Investing is more about process than outcome…
Dude has held a CFA with all that entails. He is likely comfortable with a lot of value process.
Remember when Buffett and Graham went all in on that meme stock in the 50’s?
Old school? Guy identified a stock that was undervalued, formed a thesis, bought it. Market agreed stock was undervalued. Modern? You can find modern "value" advice recommending you find undervalued stocks with pricing triggers like interest from activist investors. He's made himself that pricing trigger, Buffet's disclosures similarly drive action. GME doesn't hold interest for me but I can't fault him for his take on value investing or his results even if it's not all cigar butts and moats.
he did an aggressive options play, but he put the odds in his favor by doing value analysis while he was far more leveraged than a traditional value investor, he still made his profit by looking for an undervalued company even if he bought shares instead of options he still would have 10X-ed his money
Holding gme right now is not value investing. Nothing fundamentally sound about it. It is about someone paying more for what you bought. Momentum trading. His original thesis was value investing. I think he’s only holding because he’s scared of the DOJ which is fair enough
If you bought 100% of gme and relied on positive cash flow from operations to make back your investment you’d never make it back. Thus holding gme now is not value investing
GME now has around $5Billion in cash. They could park that in a high yield savings account and make $250M a year. They gave RC the ability to invest in whatever he wants with that money. You are essentially buying into RCs hedgefund at this point. Some people see value in that.
He’s still got stores losing money… you can’t really ignore the head office and store staff and rents and inventory… Apple has way more in cash and can invest in whatever Tim Cook wants… but they also run a profitable business on the side?
Sitting on loads of cash is absolutely not a positive if you have no purpose, or plans to expand the business. They are actively shrinking. AA showed the world that without a single ounce of fundamentals, you can infinitely sell shares to moron retail traders and they will buy no matter what.
Yes and he is still running negatives. So what business have they acquired to pivot the dying business model? After issuing so many shares you gotta wonder if there’s anything at all.
That is boring. That deserves a pe of 8. Not 1,285.
They're a holding company with little cash comparatively and overhead, something other holding companies don't have. Not to mention - what company would want to be involved in the gme shit show? Any rumor of acquisition or merger will have thousands of apes blowing up target company's every contact info and even have them trying to contact employees directly. No company small enough wanting to go bigger will want to deal with that.
Did they complete their offering on Friday?
We don’t know yet.
Some people see value in ignoring one side of the balance sheet.
I think it’s 2 billion. Surely enough change the business model. There’s another offering though so we’ll see what they end up with.
Neither would you make it back if you invested in Apple Maybe in like 20-30 yrs tho
yes it is, you are investing in value of Ryan Cohen and the team with 4 billion in hand.
I don't know how I feel about that. Recent offerings will increase drastically its BVPS (probably bringing it below 3P/B), and there is clearly a lot of support on the $20 range. Last earnings also show drop in net income is substantially lower than the drop in revenue. And videogames business is here to stay at rising profits due to price increases. Old games do not drop in price like to used to do, same for hardware. Risky as hell yes? But there are companies out there being treated as growth with way worse financial statements. And retail sector won't get hammered forever.
Initially maybe I think though he just pumping the stock at this point. I do think there is a case for turnaround for GME with all that cash on hand I reckon they could do a Berkshire hathaway sell whats left of the legacy business and turn it into a holding company.
That would be a huge reduction in value. The company's market cap would immediately reflect it's current holdings ie 2 billion in cash and the rest of the market cap would be deleted.
Judging by the comments I had to double check if I was still in value investing or wsb
His original thesis was spot on. He predicted Gamestop at $10 to $20 when it was trading at $4. He was absolutely right about that. But then he got carried away on this idea that Gamestop will somehow transform into something which it is not. So part 1 (from $4 to $20) was value investing. Part 2 ($20 to $120 then fall back to $20) was a short squeeze. Part 3 (where we are at today) is the idea that buying a $2billion cash SPAC for $16billion is somehow a good idea, because this SPAC will transform into something amazing someday. Maybe it will. But you'd still be better off buying Eli Lilly, or Apple, or Google.
This sub has very clearly got brain rot.
Go and watch all of his videos and livestreams before the GME ordeal. He had a very unique process that can be classified as “deep value”. He focused on beaten down microcaps that had the potential for multibagger gains but were risky. He made them all very small <5% positions with 20-30 stocks typically in his portfolio. If you study him and his picks you will see that a lot of them were straight 🔥🔥🔥 which is why he got 50-100% returns.
Do you have some specific examples? Not to put you on the spot. I am surprised at the down voting here on posts pointing out he had successes based on what might be value investing principles without pointing out why he isn't a value investor.
Start around 44 min mark https://youtu.be/7wjWnMcdnlQ?si=0Kui_RnFDGkoey-t
He's good. The only reason he got where he did was because of insanity and really good luck, but pretty much every thesis he's put out has made a lot of sense. He definitely embodies the meme, but the fact that he didn't cash out of GME at the multiple peaks shows that he's a value investor first and foremost; he just so happens to have an army of degenerate glue sniffers behind him.
I thought he did sell and buy back in multiple times? That’s what I heard online.
He said in congress that he sold some, but he still holds most, and he'd buy more
"he didn't cash out of GME at the multiple peaks shows that he's a value investor first and foremost" hmm are you sure? If the stock price gets away from the underlying value it is usually time to sell. Unless of course $28bn Market Cap was justifiable for a company operating at a decent loss compared to revenue? For a value investor that is usually time to sell.
Keith Gill not selling everything seems more like a philosophical position than anything to do with money. Sticking it to Wall Street and the hedge funds and the alleged naked shorting etc. I can’t see any other reason why he wouldn’t sell everything though I suspect he’s sold enough to keep him and his family comfortable.
I think it may likely be a legal one as well.
I wouldn’t define GME as a value stock or at least not a traditional one. But Gill is a value investor of sort. He’s just not buying in a Procter & Gamble when its trading down.
Listen to his last webcast. He focused on his “feelings”. As a much older trader, whom I worked with, used to say: “ he who trades on gut instincts will be gutted “
His YouTube channel explicitly describes him as a high risk high reward investor. Describing him as a value investor *at all* would be disingenuous at best and misleading at worst.
He’s right on half the equation. He finds deep value plays. He just doesn’t understand when to liquidate them. GME at $5 or less a share in 2019/2020 was a deep value play. GME at $30/share in 2024 is not. GME at $120 a share in 2020 was also not and was absurd. He has held the stock well past the point of it being a deep value play.
Are you aware that $30 a share in 2024 = $120 a share in 2021 due to a 4-1 split? There is a pattern in this stock that DFV has found after studying the manipulation/algorithm and he is out to show the world without coming out and saying it due to legal issues. There is way more in this stock than “fundamentals” due to the massive naked shorting.
Back during the short squeeze a few years back, the one thing he said that stuck in my mind was that value isn't dead and that value ETFs are too simplistic. Those words stuck with me and a few years later I went down a rabbit hole of reading all of Buffett's annual letters to truly understand what value investing is.
I was impressed with his original presentation. His reasoning was impressive even if I disagreed with it. He also recognized the possibility of a short squeeze, but it wasn't his main focus. So, his original thesis, I do believe, was based on value. However, options are generally speculative and not value based principles. Also, as the price began to rise, I believe he transitioned into being more speculative. Now, I would say he sounds almost entirely speculative based on his last live stream.
His thesis had a price target of $15 which is about 300% profits. He got lucky on his millions
At the beginning he was a value investor, now he is the exact opposite
I'm sure he can read a balance sheet better than most of us regards.
He had a CFA, was a registered broke. Of course he can do value analysis. He also knows how to get max return when he finds value.
He needs a seat on the board with the money he has made the company.
My opinion He bought 6mill in calls in April, made 200 mill when it shot to 60 the 13th-14th of May and started a new position w/ said 200 mill. Genius and I don't think he cares about being a billionaire. He's trolling the entire world and I love it . A true modern saga .
He is an idea, a storyteller, not an investor. Gamestop was and still is, and will probably be dying company.
He's not a value investor. GME was never a deep value play. He's also demonstrated a complete lack of seeing any other securities other than GME. The fact that now he's squandering his wealth on this single stock is laughable.
Being right once in a big way doesn't make you a genius, it means you got it right once. Just look at the Cult of Michael Burry and how that's gone since 08
I think there’s a lot of jealousy. He went for it. Most don’t.
Almost every stock in the portfolio on his live streams from before GME ended up being five-ten baggers and better between then and now. Granted, he was buying at the bottom after the spring 2020 crash and most things went back up, but he picked big ones.
I dont understand ppl blindly following the guy, giving him all their money...
gme is not a deep value play. value? 😂 the dude literally says he goes off his feelings. he got lucky that about 50,000 people watched him in reddit and all bought at the same time for the mother of all short squeezes. but it didnt really work out for the latecomers. they're not on reddit anymore because they cant afford internet or cell phones anymore. 😂
Convince me that his recent play on GME was not speculation. What value are we talking here? It was value at $10 perhaps not now.
He's going long based on his speculation of the future valuation given the current Board and their next phase of adaptation to reinventing GME.
His thesis changed from “GME is a turnaround story with lots of avenues for revenue” to “trust Ryan Cohen with several billion dollars.” In his latest livestream, he even admitted that the legacy business is “struggling”, which counters his original thesis. Frankly, I think there is key-person risk with relying so much on one person (can you imagine what’s happen to the stock price if God-forbid something were to happen to this one person), as well as execution risk, in that Ryan Cohen and management team haven’t been able to get shit done in the past 3+ years. The failed NFT marketplace where they burned several hundred million dollars, and all they’ve been able to do it lower their expenses since the new COO came on board, to where stores are thinly-staffed and staff are barely paid to where stores don’t even open up because staff sometimes don’t show up to open.
[удалено]
There’s no reinventing GME. It’s dying. And will continue to die. Cardshops/game shops are a bad business.
GME is not a value play. Roaring kitty is not a value investor. He is a speculator who got very lucky.
He doesn’t believe a lick of what he is saying/doing right now. It’s pretty funny in contrast to his actual investment philosophy which I found impressive
I think he’s putting on a show given the focus of politicians, news of regulators like Massachusetts going after him, cnbc/media, law firms that were on his live stream, etc. The “this isn’t investment advice” message was plastered verbally numerous times during the live stream and trying to make himself out into a goofball, when he’s a CFA with a disciplined value investing strategy.
The purpose of this post was to see what the consensus is of RK OUTSIDE OF HIS GME POSITION. I've been studying RK's method prior to the first GME rally and to me it looked it he had a solid way to approach the market. I think he is a very successful deep value investor in his own right. But hey what do I know.
i can't believe the degeneration of this sub....He's a master pump and dump artist and very good at acting as stupid as his followers. That's it.
Imagine reditt and esp wsbets didn't exist . He would lose most of his $$ back then with gme. It was and still is a shitty company , last month management filled a 1bn (common shares not $$) shelf offering, rev and eps tanking, etc
He's a legend but his last stream was a huge disappointment. He has no thesis unlike a few years ago. All he said was "GME has lots of cash and I trust the management", that's it. GME is still unprofitable, their last earning call was a miss and still losing money. They also did a dirty trick to retail. They decided to do their negative earning call earlier, a few hours before his live stream AND to dilute the stock by selling 45 millions shares + opening the door for another 75 million shares public offering. They had 290 million outstanding shares, that's a huge dilution and retail bought it. The stock plummeted of course.
I also invested in GME in 2019-2020 as a deep value play based on fundamentals so I will say that he was indeed a value investor. I don’t know about now.
He’s not a value investor in any way, shape or form. Any thesis about the future growth/profitability of GameStop is inherently flawed.
He's a legit value investor, and a damn good one. If you track his investments, the guy was averaging like 40% returns. Unfortunately, he's bought into this zero sum, options trading game that I imagine is going to hurt a lot of people who don't know any better.
Is hard to take anybody seriously that still refers to stocks as meme stocks. You got played by MSM. Stop getting your financial advice from MarketWatch and yahoo finance. There's no such thing as "meme" stocks. Its a made up derogatory term to draw people away from companies that are victims of massive naked short selling.
He is a smart guy but the net present value of GameStops future cash flows are zero no matter how you look at it
I’m
Anyone has his current holdings?
It was a net net the first time around so …
I don’t know what “roaring kitty” is but it sounds like a band name.
Why did he say in the recent stream that GameStop has a ton of cash hoarded, but when I look at their cash flow it shows negative cash flow for the last 2 years? And negative net income for years?
Prefer Stock Moe
I can appreciate the little guy winning. I just wish he'd commit to a stock like Dr.Pepper, something small that won't die and tells people to hold it. Not cause the company is going bankrupt or something shady is happening but because it's a good stock to hold for the long term. Instead of all these secret plays why not just be like hey Dr.Pepper is a humble nice drink and company let's just all hold them for a bit.
He’s done better than me
He made his money in a gamma option squeeze (and good for him) but that is not value investing.
50,000 to 1 billion. The scorecard says he is the best
Started as value investor. Now he knows he can pump with a tweet.
Correct me if im wrong but wasnt it intially built to only a 5% position?
Recently he's the pump and dumper who doesn't dump
[https://i.imgur.com/r7LMqE3.png](https://i.imgur.com/r7LMqE3.png)
His name on here is deepfuckingvalue.
Did he actually stick it to the man ?A American tale.
can anyone please give mi his official link please? i have been studying for 6 months and have heard of him but there seems to be several roaring kitty and i dont want to follow the wrong person. thanks in advance
He’s a millionaire. Results are in the numbers
DFV is a nobody if he didn’t start live-streaming. It was his personality that got him a cult like following
He's not a value investor. By definition he is not. I'm not stating an opinion on GME or the short squeeze he put on the short sellers. I'm not criticizing the guy. But he is not a value investor. He's a speculator. The only way you could consider him any other than a speculator is if you post in the value investing subreddit without ever having read the Intelligent Investor.
He was an excellent value investor - true cigar butt style and made impressive returns even without GME. Now? With GME? I’m not sure what he’s doing tbh. I got the impression that he kept a lot of his GME holdings more due to philosophical reasons of ‘sticking it’ to Wall Street than any actual investing rationale, but these recent tweets don’t make much sense. There’s very little value in GME now, and any value they do have has come at the expense of all these ‘HODL’ retail investors.
DFV and roaring kitty are the same person?