1. Finally a post that dives more into their balance sheet. I’ve been in since the $6 handle, looked into why Burry was buying up shares. I pulled the trigger once Cohen got involved right before the cycle. Their worst quarter ever is literally the last quarter before the new cycle. You sprinkle the disproportionate amount of shorts that got way too greedy, this is setting up to compare to VW squeeze. Cohen could be slowly fucking these guys up and funding his acquisition at the same time. 4D chess. I was gonna tell you retards but there’s a stupid month probation from posting. I have 1000 shares maybe picking up some calls on a dip. Already 30% of my port, but YOLo

  2. I have never bought shares before till GSM (outside Wells Fargo brokerage). I’m heavy in shares with avg price of 7.60ish. I start buying at 6.80ish.

  3. I'm all OTM calls. Though buying puts at the top of the opening spike and selling them 20 minutes later when it bottoms out has been surprisingly consistent the last couple of days.

  4. As a PC gamer. I can tell you that shit about the physical copy aspect is WAY off. When consoles go to downloads, that's pretty much it for physical. I haven't purchased a hard copy of a game in almost 2 decades and don't know any that have. Yeah physical is arguably better, but when you offer convenience over quality, humans will choose convenience every time. There's other aspects of it too, but I won't get into it here. The rest of the DD could be spot on though, idk.

  5. But the lower end consoles won’t have cd trays. How will GME survive without CD based hard copy sales considering the majority of market will purchase the cheapest option for the newest consoles? Lol. I don’t get it, the majority of accessories are cheap sold on amazon, and most games are digital. I can’t imagine everyone’s grandmas buying them gift cards, cheap consoles, and digital game codes keeping this business model afloat regardless of online presence and trend following. Idk man, after all, I am a 🌈🐻.

  6. I think there could be a slight correction as a result of the huge gains in the short term but I think they’ll do well. The only thing is outside of console releases, I still have doubts on why anyone would pick GME over other online retailers or even physical retailers like Best Buy or Walmart

  7. This went from sub $4 to almost $10 and shorts have only added to their positions. There are around 55 million shorts in GME the float is 40 million and likely less since institutions have been buying. It’s going to be insane when they can’t cover.

  8. Fantastic post OP. I've been long GME in some way since August 2019. I took profits when Burry first disclosed his position a while back, then reloaded and took profits (potentially too soon, but profit is profit...something this sub needs to desperately learn) after the Cohen filing a couple weeks ago.

  9. This is great. My DD never goes beyond “there’s a fuckton of shorts in this thing, I might as well go long and see what happens.”

  10. The Inflection Point for GameStop's earnings was last quarter. The turn around story on the balance sheet is extraordinary considering all the headwinds they've faced over the last two years. The fact they have free cash flow and working capital going into the new console launch is amazing. This stock is going to continue to jump. The combination of positive balance sheet momentum and the 120% SI as a percentage of float is going to cause an epic short squeeze. It's just a matter of time. Those holding short be careful.

  11. The hype for digital will die once gamers realize that their digital “collections” are actually just long-term lease agreements that can be cancelled anytime. Not to mention to lack of re-sell, trading, sharing, etc. I gave it a try myself and games are getting so big these days that my 1TB ps4 could only hold like 5 games before I had to delete some.

  12. I doubt it. I think CD’s will be obsolete just like the diskette was. We are gonna move to digital 100%. Memory are getting cheaper by the day.

  13. im surprised you didn't mention this - a few weeks ago, I talked to an employee and I said that I was surprised they hadn't started offering PC parts yet.

  14. No one that's building a pc is going to go to gme to buy parts. This is retarded. Brick and mortar stores are for instant gratification stuff only. If it takes a day or two to build a PC, no one will care if they have to wait another day to order online at a cheaper price.

  15. Smart man. It may not get the squeeze we are expecting....but if it does it would be unlike anything we have ever seen before. We could be looking at anything from 25 bucks to 200

  16. Mmm I'm not buying this. News is not that good right now to justify 10c especially when 52w high is like 11.16. their most profit part of the business is resale and I feel like digital has been stomping on that for years

  17. They got a new tech officer too and are debuting a revamped app this month. Should help create less friction for retail purchases and compete better with big box major retailers

  18. There are several of us on ST and SA who have been building significant positions for months based on this thesis. Most are sitting on triple-digit returns with no intention of cashing out yet, because we recognize the momentum is just starting. Not too late yet, but the clock is rapidly ticking down as numbers start to roll in for the console preorders, and whales such as RC and Scion start making their next moves.

  19. You should also mention the fact that much of the float is locked up behind schedule 13D/13G holders, around 55 million shares. It's also why Ryan Cohen's been stuck at 9.6% shares for weeks because it is practically impossible for him to do a hostile takeover by buying up more of the float. His only way to take control of GME is to do a tender offer, unless he's tricked us all and he's just a passive investor or also in it for a short squeeze.

  20. I agree with your theory on how many shares are actually available. There has been a growing number of holders who are expecting a squeeze and will be holding tight. There may be a very small amount of shares available for shorts to cover when the time comes. The data doesn't exist for this possibility, so it's impossible to gauge.

  21. I could be (am) retarded but I swear that cuck Michael Blurry was investing in GameStop way back in like April/May, anyone else remember that?

  22. I honestly hate Digital. Why? 1. It is the same price as the physical copies. 2. Take up a lot more HD space and you better be ready to buy bigger HD. 3. Cannot resell it.

  23. Why didn’t you do a DD or post your play before it went up 100% or at least when you made it?Only shilling the stocks you make money on and doing it after the fact is why wsbGod is such a meme. And then complaining about the fomo yolo mentality on wsb? Come on dude

  24. Well said. Having begun accumulating in 2017 I was early, but averaged down hard AF with equity and began accumulating options in August 2019...primarily for Jan21, Apr21, and July21 for $4C and $5C. I ended up with more than 125 of those and have also acquired significant sums of $10C, $15C, and $20C for mostly Jan21. The IV is still relatively cheap compared to what happened during the prior shortage of shares in the market due to the minor slate proxy fight earlier this Spring. Get your fucking chips on the table for this one. Edit:check out my StockTwits comments & incremental DD there and in SA commentary.

  25. Do you even know why Netflix became so big? It's not because of dvd subscriptions or streaming. They started producing their own series so they didn't have to pay a huge fee to the studios.

  26. The biggest regret I’ve made trading was not pulling the trigger on calls late august. Then I figured I missed my chance, which wasn’t wrong since it traded flat until the 9th after that, then figured it wouldn’t go back up after a 30% dump.

  27. I had already purchased some calls by late August and flirted with the idea of selling them before earnings, but let a coin toss determine my fate and I held. Things obviously looking up now, but god damn I wish I would have dumped a lot more money in this bet.

  28. Retro/older games are almost always available on Steam, GoG, etc, and get released whenever there is sufficient interest. Emulators are a thing! That means gamestop is what, a pawn shop specializing only in games and nerdy collectibles? Every time I read a GME DD, I doesn’t seem like they’ve been in a gamestop any time recently. And for anyone thinking they might get into digital distribution.... look at Epic. Digital distribution is almost a solved problem and developers are now looking for ways to get a better margin, but platform owners still seem to hold the cards. That looks like a really tough market to get into to me.

  29. WSB will never get behind GME cause most of you autists are millennials who got shitty trad in deals when they were 13 and now hate GME with every tendie powered bone in their bodies. 11c 1/21

  30. Shares can be lent multiple times. Researched this and found an article about a company being fined for lending each share of a company to be shorted 1k different times lol

  31. Gamestop needs to invest in selling more gaming memorabilia -- tshirts, statues, figurines, posters, wall art, stuffed animals, backpacks, maybe even a small amount of tabletop and collectible card games and accessories.

  32. They should be selling Magic cards and hosting Friday Night Magic tournaments. That community will never, ever, fully commit to the digital version of the game.

  33. The person who posted the new consoles don't event have disc drives missed the memo that those are just one version and have made up for less than 2% of the console sales.

  34. paper hands made me not sell at open like a moron, but I'm still up about $1k from this play. didn't buy the big dip but bought at like $10.50 for shares and I'm just selling covered calls 'cause the premiums are too good to pass up on now

  35. Yes they will keep shorting and not be subject to uptick rule anymore. In some recent days 30 percent of all volume is due to short selling.

  36. Yeah thanks for that man. I’ll get all the hookers and blow I can with that gold bar :). On gme it looks like they turn their algos on around 2 to push price down a bit before margin calls. You can try to trade it but gotta be quick.

  37. How can game stop grow digitally. There is no place for a middle man/distributor in digital games except in certain niche products. In most games it is the studio and the console manufacturer that charge the customer. And most money these days they make by selling add-on packs and the rest. I don’t game anymore, but my son does. The author has no idea and neither does Michael burry.

  38. People like to buy all their things in 1 place and not have to place orders from 3-6 different publishers/developers. It’s like why would you pre order PS5 from GameStop vs. Buy it directly on Sony? GameStop also sold the most Nintendo switches yet you can buy them directly from Nintendo.

  39. Easy, they keep buying back used stuff and give more "in store" credit than they do cash. Then they've effectively tied those dollars to their digital platform

  40. Why the hate for PRPL? Was it a pump and dump? I got something like a 165% return from August calls on PRPL last month.

  41. Very nice and organized DD, not that this is something to base an investment off but I know GameStop isn’t even in the back of my mind when I want a gaming system/game.

  42. bought at close yesterday, sold this morning for the quickest 20% gain ever. Waiting for it to come back down and maybe i buy more?

  43. It's just like Mallinkroftt pharmaceutical it was up to $130 a share our short interest is over 50%. It's down to 23 cents since close of Friday it's up to 47 cents The shareholders have taken a major hit Mallincroft decided to go bankrupt so they're filed chapter 11 now the shareholders that believed in those pipeline drugs and invested all their retirements from their families are now hanging out to dry The stock symbol is MN KKQ maybe this forum would like to take a look at that one as well.

  44. Do some research on this first. Iv is high and the company is vastly under priced due to short interest. Without short squeeze this could move to 15-20 for the next few years

  45. Stimulus in question now that McConnell has vowed to replace SCOTUS RBG after her death. He will likely use this to bargain with the Dems. That said, I think the 10/2 is possibly a inverse play.

  46. Great DD and not a single thing mentioned about all the things brought up by people like camelot331. Enjoy your sinking ship.

  47. Squeeze hasn’t even started bruh. There was an increase in shorts within the past 2 weeks. Do you know how shorts make a profit?

  48. A few shorts exited, mini squeeze. More shorts got in. Same position but at a higher price with a strong uptrend and increasing analyst expectations and news

  49. You should do DD on JCPNQ for us next and tell us how its a great buy... GME is trash, their financials are trash, and their valuation metrics are trash. Of course GameStops Q2 transcript will try to spin things positively. Maybe it will survive or maybe it will try for radical change and fail like JCPenny.

  50. gamestop has to evolve to a all around electronic store focused on gaming (pc,monitors,keyboards, special edition controllers to adapt to this new market. if they keep their buisness revolving around ripping 13 year olds off by giving them 1/4 the price of a old cd they will be gone after this next console cycle

  51. A nicely constructed argument. From my perspective, the ‘driveless’ design and likely acceleration of cloud based gaming and digital store purchases are enough to keep me away from this play - good luck!

  52. Will not invest in gamestop, but it does make sense for them to go up some more. Will try my best to continually buy PUTs sometime after Q1 of next year.

  53. I don't care how many words and hyperlinks you add, Gamestop is dead. Physical media might not be, but everything game going to be bought online until the next vaccine. You might see a initial pop on console sales because there will be backorders and artificial limits per store, and Gamestop is going to get a cut.

  54. The next earnings in December won't include revenue from console sales. How are you planning on playing that?

  55. The October/November calls sound wild at a current ask price of 1.95. At that ask price, your break even point is roughly 11.95, which means you'd have to see the stock rally ~26% to see profit.

  56. You do know its come up 150% in the the last month, month and a half? It was 4. With how much shorting there is, we could see it hit 12 this week, and even more likely the week after with the Xbox preorder

  57. Assuming I believe your DD for 1 minute, it sounds like I need to buy puts once this stock takes off due to a short squeeze. Let’s face it, GME is dead in the water and has no chance of a comeback. This company is going to lose long term and stock investors value companies based off the long term. The only hopes you have for calls paying off are in the short term, while puts are best for the long term

  58. How about cloud gaming services like Stadia and others that will be coming up? What are the specs of those vs these next-gen consoles? Maybe this is the last big refresh before “High-end-gaming-PC as-a-service” takes over?

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