Keith Gill, also known as “Roaring Kitty” and “DeepF—Value,” hosted a livestream today on YouTube (NASDAQ:GOOGL) (NASDAQ:GOOG) where he discussed his thoughts on GameStop (NYSE:GME). Gil stated that his investment in the video game retailer is a bet on Ryan Cohen’s ability to turn things around and believes it will take some time to do so.
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He specified that his investment thesis is based on feeling rather than hard data and warned that his aggressive style has the potential to lead to huge losses. As a result, he told viewers not to follow his trades blindly.
Nevertheless, Gil noted that it’s not uncommon for companies to try different strategies before finding something that works; it’s just less common in publicly traded companies. In addition, when commenting on GameStop’s announcement earlier today of possibly selling up to 75 million shares, he stated that this would give the company billions of dollars to execute the turnaround.
Looking to Avoid Legal Trouble
It’s no secret that regulators have revived discussions of market manipulation following Gil’s return to the limelight. In fact, ETrade was considering removing him from the platform. As a result, likely in an attempt to avoid legal troubles, Gil made it clear that he’s just a normal guy with a big bet on GME by joking around during his livestream.
This included showing up almost half an hour late while wearing an arm sling and pretending to be injured. He also shared a beer with the viewers and joked about how he wished there was an eject button to get him out while the stock price was falling. This was likely to point out that although he may have some influence on GME prices, he doesn’t have the ability to manipulate it the way regulators want to believe.
How Much Money Does Roaring Kitty Have in GameStop?
“Roaring Kitty” then went on to reveal his portfolio, which is made up of just two positions:
- 5 million shares of GME shares at an average price of $21.274 per share.
- 120,000 GME options with a strike price of $20 and an expiration date of June 21.
This is accompanied by over $29 million dollars in cash.
Is GME Stock a Good Buy?
Given that GME’s pricing action is not based on fundamental factors, no Wall Street analysts are covering the stock. However, traders who rely on technical indicators can look to TipRanks’ Technical Analysis tool. Interestingly, GME is considered a Buy when looking at the overall consensus (pictured below) due to 14 bullish indicators versus four neutral and bearish ones.
