I Bought GameStop at $3 and Sold at $420.69
Channel: Ishfaaq Peerally
Date: 2021-02-03

I finally took all profits on GameStop Stock

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⭕ Today's video is about:

0:00 Intro
1:48 Cigar Butt
5:25 Inevitable Short Squeeze
8:29 Ryan Cohen
10:27 Wall Street Rebellion
14:23 Taking Profits
16:17 Buy Again?

I Bought GameStop at $3 and Sold at $420.69

I've been buying GameStop $GME since September 2019 and was able to buy some shares at $3 until I recently took all profits at $420.69. My average profits on GameStop is 3300%.

The first trigger for the short squeeze is not Wallstreetbets, it is Michael Burry. Michael Burry sent a letter to the board of GameStop asking them to buyback shares. This brought the shares outstanding short from about 50% to 80%. The reason why I invested in GameStop was because it was a cigar butt stock, which would be generating more free cash because of the new console cycle. I only discovered the short squeeze in January 2020.

I always considered the short squeeze as a bonus. I was buying more of GameStop because it was a deep value stock with more cash than debt, and trading under its cash value. The short squeeze was inevitable even without WSB as the short sellers themselves would be force to cover when they realize that it was impossible for GameStop to go bankrupt with such a balance sheet.

Ryan Cohen invested in GameStop and the stock became popular causing people on Reddit to buy it to cause a short squeeze. This news went on CNBC, on Twitter, Bloomberg... and everybody was buying GameStop. That's how speculation works. This short squeeze was most probably caused by big hedge funds buying GameStop stocks for a quick profit, not retail investors.

The intrinsic value of GameStop according to me is $50 in the bull case and I started selling at $58, I kept a little to profit from the short squeeze, but as soon as I saw things getting out of control, I took all profits. These speculators don't care about GameStop, they are going to move to another stock next week. They are only here for a quick profit.

I hope GameStop takes advantage of the situation to raise capital. If it falls back to the right price, I may buy back in.

⭕ Who is Ishfaaq Peerally:
Ishfaaq Peerally is a popular investor on the leading social trading network eToro where he manages investment assets for over 900 people. On this channel, Ishfaaq talks mainly about investing, stock analysis, passive income, financial education, economics and entrepreneurship.

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