Some analysts thought they were really done for because of the virus with all of their shops having to close worldwide 5 000 stores by the way. But the company has made a remarkable turnaround and have been a lot of things happening behind the scenes that have really changed the the perception as to what’s going to happen here number one. The company was able to open up stores, depending on which state they were located in the u.s in and which province in canada they’ve also had a major turnaround on their online selling uh. This is probably the future of the company. 34 percent of all sales for gamestop in the last roughly quarter has come from online sales, and that is going to really continue to expand from what i can see. Activist investors have come into play here, and the big story is the number of shares shorted versus the number of shares that actually exist. It is hard for people to fathom, but in the market you can sell a stock short buy it back later. Try to buy it at a lower price, so you sell it say it 10 bucks a share, buy a stock back at five. You make five bucks a share profit. Thank you very much. You just have to be able to borrow the stock, be able to sell it first, so that you can then carry the shirt position until you buy back your stock. The reality, though, is in the case of gamestop.
There are about 65 million shares outstanding, give or take. I think, 54 million actually trade hands publicly. There are 70 million shorted, there are more shares shorted on gamestop than exist, and there is a short squeeze underway right now and take a look at this chart right here. You’Ll notice that in the last week we went from the low 20s to as high as 43 and the thinking here and the thinking in the talk on the street is that this stock’s going to go a lot higher. This stock has become a major talking point online between gamers and investors. Remember, game stock is in the gaming business and the the 18 to 40 year olds are talking up this stock and there are a lot of folks who are trading on robin hood on fidelity. The schwab, the these these uh sites that allow you to buy fractional shares this stock is the talk of all stocks, and the question is if this short squeeze continues, because the stock has had such a run. Short sellers are going to look like this. These shares could go to 100 bucks a share in the next couple of weeks. Just the way this pattern is going, so the question is: do you buy the stock or do you buy the options? My recommendation just buy. The stock don’t touch the option with a 10 foot cattle prod i’ll. Tell you why? Because if you buy the stock you’re actually helping yourself the reality is this every time an investor buys shares and gamestop, i don’t care.
If you buy. One share 10 shares a hundred shares it doesn’t matter. You buy stock in game stock. You are adding to the short squeeze you’re, actually making your prophecy come true, the more stock that is purchased by out and out investors, the fewer shares the shorters can buy for themselves to cover their shirt positions. I expect the stock to trade over 100 million shares a day going forward for quite a while i’m talking about trading. A hundred million shares a day when only 60 odd million exist and 50 odd million could possibly trade. This is why the shares will keep on running up in price if you’re buying options you’re buying an option from someone else who has the stock that you might be able to buy it from you’re, better off just buying it off the street. Look at this chart here, i’ve used this chart before this shows the percentage of the public float of shares that are actually shorted and back in 2004 568. It was between 10 20 and it was 20 to 40 percent. You can see in 2010, 12, 14. 16. 20. 40. 45. Look at the last two years, baby from 2018 to now we’re. Now at 140 percent of the free float of the shares that has been shorted, you go out there and buy gamestop stock. Put it in your account and sit on it until it gets to 100 bucks a share. These shorters can’t get out they’re going to have to pay a higher premium.
To get out. You make more money, you buy options, you don’t make as much because you’re not helping your own cause this guy right here, mr cohen. He bought over 13 of the company shares on the open market and he’s, not interested in selling at 25 or 35 or 40. Bucks a share, this guy is looking for a return in the billions and he’s going to get it. If he is successful, like he was with chewie the company that he founded and sold off the petsmart for billions of dollars in gains, if he does what he did with chewie with with eb games and gamestop look out, the online world for gamestop is about to Change, it’s, no longer a matter of oh. Can i get a gaming system at a better price online through gamestop than i can say through best buy or walmart no that’s, not the question. The question is: am i going to have a better experience buying my systems and my future games through the gamestop app because i’m part of a family versus just buying through a discount retailer that’s the difference? This is what happened with chewie chewie did not compete with amazon for pet food supplies and other supplies for price. Chewie beats amazon because of the overall user experience of the entire process, and people who use chewy feel a lot more closer to the dog ownership world than they would, if they just bought through amazon, which is like a glorified series of warehouses.
This is what’s happening at gamestop. This is why cohen is involved with his group. He has three guys himself and two others now on the board of directors and the street has figured it out. The street likes the direction gamestop is going. They love the fact that 140 percent of the shares are shorted and there’s no way to get them back at these low levels. They love the fact. The stock went from 20 to 43 dollars a share last week and the street is beginning to figure out. This thing could go a whole lot higher because there is no way the short sellers can get their stock back for perhaps prices over 100. A share by the time, it’s all said and done. That is why gamestop is being talked about on the internet, like you cannot believe. People are lining up to get into this stock and, as i said, you want to buy an option or buy the stock. I recommend you buy the stock don’t, buy the options too much in premiums buy the stock. You’Ve got all the time in the world.