A year Ago, The CEO Of GameStop’s 2.3 Million Shares Were Worth $7 Million… Today… $730 Million – What The Heck Is Going On?

(Stephen’s voice): This week’s hottest stock is Gametop. This stock has everything … Reddit memes, hedge funds stuck in nuts, confused CNBC anchors, New York Mets, Elon Musk … even if you don’t pay attention to the business world, you must have heard that something crazy is happening. is. Right now with GameStop stock. GameStop, a deteriorating video game retailer typically found in equally deteriorating malls, has occurred on Wall Street in what has only been described as a fever dream (and the week is only half over!) . The stock has risen in a way that makes no financial sense at all. And no one is happier than the company’s CEO, George Sherman, a guy who’s been at work for less than two years.

[Disclaimer – I do not own any shares of GameStop and this article is in no way a recommendation to buy or sell shares in any stock.]

So what the heck is going on?

Let’s start with a one-year chart of GameStop’s share price (ticker symbol GME):

Please note that a year ago a portion of GME would cost less than $ 4.

And now please note what happens to the Green Line after its arrival in 2021. And notice how I type this article, a portion of GME will cost you $ 324.28.

George Sherman is the CEO of Gametop. He is the CEO since April 2019. It has not been quite two years.

By the time he became CEO, GME was trading at around $ 10 per share. The stock was $ 25 two years ago.

Upon becoming CEO, George Sherman was given 2.3 million shares in the company. The day he became CEO, those shares were valued at $ 23 million.

A year later those shares were valued at about $ 7 million, with the share price dropping to an all-time low of around $ 3.

Absolutely no A + performance for the CEO.

As I type this article (I say that because the stock price is swinging very fast by the hour … as you can see in that screenshot above, the stock is $ 176 per share), George Sherman’s 2.3 million shares are worth:

$ 745 million

So what is going on?

The short story (which has no purpose) is that a “brief squeeze” of epic proportions is being coordinated by a group of vigilante traders who follow a subredit called R / WallStreetBat. It has become a meme, or a running joke, jumping to “memes” in digital memes.

Even Elon Musk – the richest human in the world – met with a tweet on the action that simply said “Gamestock !!” With a link to R / WallStreet Bates:

FYI, “stonk” is basically lingo for “stock”. Used in a sentence: “Tasting a slice of pizza, Barstool founder Dave Portnoy announced ‘Stones Only Go Up’.

To keep it as simple as possible, until recently GameStop was the smallest stock on Wall Street. When a stock is shorted, the bet is made that the price will come down. Those in short positions make money only when the share price decreases. Risk is infinitely negative with short sales.

For some reason, those who follow r / wallstreetbets bought tons of shares on all GME shorts, sending the price to the moon, forcing them to “cover” their bets … actually more. Put more Gasoline on fire because if they stand by their short-selling conviction (aka they don’t bail), they are essentially forced to buy more shares at an even higher price. This is a vicious cycle for squeeze.

As a result of this unprecedented short squeeze, it is reported that some hedge funds that had large short positions leading to bankruptcy have lost hundreds of millions or billions of dollars in just a few hours this week.

A hedge fund, which I will not name because these are unconfirmed rumors, was allegedly so damaged that it had to borrow $ 2 billion from a fellow hedge fund run by the owner of the NY Mets. It has been alleged that the hedge fund went ahead the next day (tomorrow) to dismiss that entire $ 2 billion.

It will be very interesting to see where it all ends.

I am dying to know if the CEO of Gametop (or any other insider who is suddenly sitting on a large scale) is still allowed to sell his shares. If I am George Sherman, I will quit now, free myself from all conflicts of interest and controversial duties, and therefore free me to dump 100% of my shares on the open market ASAP.

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