Thank you, everybody for subscribing to my channel, giving my videos thumbs. Ups we’re talking about gamestop yet again, and the question is the shares hit 76 on friday. They closed at 65. What will they do on monday and ultimately will they go even higher the answer? Yes, they will will they go higher on monday? Maybe maybe not the shares might take a few days to consolidate, but the long term trend is definitely higher and um. There are a few technical reasons why, and there are a number of uh business reasons. Why and i’ll i’ll go over those with you right now on this on this video thanks for joining me again, the high trade on friday, 76.76 that’s a lot faster than a lot of us were predicting um. I had been looking at the shares to to reach 100 a share, but not in a week. The shares went from 18 this week up to 76, ultimately closing around 65.. Absolutely unreal uh. What has not changed is the fact that there are 70 odd million shares. Shorted on gamestop and only 51 million free trading that has not changed this week and with that realization the shares have already popped. Just on that knowledge here is a chart for yesterday uh friday, the 22nd of january 2021. The share started in that low 40 range uh on the far bottom left, and then they peaked up around noon at 76, 76 backed off a little bit and then held their own and popped up at the end towards that 65 mark.
This was unbelievable. 195 million shares traded yesterday, almost four times the total number of free trading stock that’s available. So you can imagine how much turning over is going on. This is the week right here. Uh started the first few days, not so much, and then luck out. This was unbelievable. Uh here is the um, i believe the one month chart here. You go where the shares were in that 20 dollar range and then first they popped to the 40 range. Then they popped into the high 40s and then yesterday look out all the way to 76 dollars. A share market cap for this company is now 4.5 billion dollars uh. It was 350 million dollars last summer, things to remember things to understand about gamestop back in 2019. They bought 34 million shares of their stock back at five dollars: 14 cents, a share average price and cancelled the certificates, so this company has a lot fewer shares outstanding now than they used to. There are only 69.7 million shares in existence. This gentleman right here, ryan cohen, he bought on the open market. Like all the rest of us, he bought up nine million shares for 76 million dollars over a few months of the company to hold 13 percent of the firm he’s now on the board of directors. With two of his partners from the company, they used to run called chewie, which is an online pet seller of supplies, foods and everything else.
He is now going to convert a gamestop into an e commerce. Specialty company say goodbye to a lot of these brick and mortar stores over the next few years. Most of the leases that they have are less than 24 months old or have less than 24 months left to go, and so a lot of these stores will run out the clock and they will not renew leases. They are going to shift into e commerce. There are 55 million members of the power up members club of gamestop. These are folks that have given their online addresses to the company and are always bombarded with offers. I think going forward. These 55 million customers will be buying and selling items on the gamestop website. They’Ll trade in their old stuff for new stuff and they will be constantly updated on what’s going on the website for gamestop, is going to become a absolute powerhouse. So far, they’ve hit 34 percent of total sales. Online 1.35 billion in online sales were recorded over the holiday period. The company expected only a billion, they exceeded it by 35 percent. I suspect that, as these stores phase out, they will uh bump up the online division dramatically. Look for the companies sell off their stores. In australia, new zealand, england and europe, the rumor has it that uh five to six hundred million in cash will come into the coffers for those stores. They will continue. The stores will continue, but they will not be owned by gamestop and managed by gamestop.
They’Ll be managed by new owners in those territories, the canadian and u.s stores. I suspect there might only be a thousand left within a year or two, as this company becomes an online power house. If you compare this company to chewy and a few other online, real retailers estimates right now are that the stock could reach 135 dollars a share just on the similar valuations. Uh gamestop has the opportunity to go to the brokerage community at any time now. To talk about placement of of shares from the treasury – in other words, you know those 34 million shares they bought back at 514 average a share, they could turn around and just issue 34 million shares to the street anytime. They want um at much much higher prices and be sitting on a boatload of cash. I have a strong suspicion that this is going to happen in dribs and drabs. Maybe five and 10 million shares at a time, as these shares continue to rise in price. You look at this chart right here. This is the percentage of shares shorted versus the float we’re now at 140 short interest. This is a recipe for disaster for short sellers, but as a recipe for happy times for those of you out there who own stock shares of gamestop that this just tells me, the shares can go much much higher uh from this technical chart. Right here, absolutely unbelievable short figures out there, and these short sellers are at gray in grave danger.
Do not think ryan cohen bought 9 million shares just for them to go to 40 or 50 bucks a share that’s, not the game plan. The game plan is much much higher than that. Also wall street bets. There are over two plus million people actively on and following wall street bets. The reddit uh chat room uh following gamestop, and this will not stop. It will continue. A lot of retail investors have yet to make a move into this stock if, in the next few days, the shares moderate a little bit. This might be an opportunity, one of the last opportunities for people to be able to buy these shares at a pretty decent price before they break the triple digit number uh. I cannot see the shares not breaking 100, a share way too many billions on the line. Now uh short sellers with 70 million shares shorted at 70, a share you’re talking almost 5 billion dollars in a short position and to carry short uh stock in gamestop. You are paying interest of between two and three percent uh two to three percentage points per month. On the value of the stock, so if you’re carrying a hundred thousand dollars of um game, stop short because it’s gone up on, you you’re now paying two to three thousand dollars a month, just to hold the position to the brokerage firm that’s lending you the stock. There is a sub business here that a lot of investors don’t know about, and it is a juicy one for the brokers, there’s.
A reason why there are 70 million shares short brokers are making a fortune going, helping customers go long and go short and carry short, and we have only just begun, uh figuring out what is happening here.