This is an historical moment and i want to be a part of it so before we jump right into this, don’t forget to smash the like button and there’s gon na be some free stocks down there in the links in the description. If you guys want four free stocks from weeble one free stocks from robin hood, if you guys, are brand new to the stock market, so now let’s jump right into the story. This is a historical moment in time. This is the first time for me personally in the in the last three years that i’ve been investing that i get to be a part of an epic short squeeze, and there was a lot of money made from retail investors, and there was a lot of money Lost from head fund head fund managers, so this is uh how my portfolio is looking like on the day: 94. 000. My goal here is to get to 100k as fast as possible and i’m doing that by buying as much alibaba as i can so uh alibaba. Here, sitting at 260., i just bought 10 shares today. That is my alibaba update. But the main attraction of the story today is gamestop, so gamestop on the day opened up at about 100 and if you are brand new to gamestop and you don’t know what is going on. Basically gamestop you know has been dying for the last five years. So uh you know five years ago.
This is what the chart looks like gamestop was worth about. 30. 33. A share. You know. Over the years people stopped going to malls. Um people started downloading games online, so they lost a lot of business and um gamestop. Basically, crashed all the way down to about four dollars during the pandemic of 2020 and um. Only in the last few months that gamestop has finally turned around and now gamestop is sitting at 88. So earlier, today, gamestop went from uh, basically a hundred dollars all the way to 159 dollars all the way at the top at 10, 40 today and the shop back all the way down to 72. So this is what happens when um, so you can kind of call this a pump and dump all right. So you know i do feel bad for anybody that bought at the top at 159 and sold that you know one at 72 dollars that’s like what 50 percent of uh lost value there, but for anybody that’s still holding you know there still might be some money To be made here, because um there’s still a lot of short sellers in the market all right. So let me try to summarize everything to make this as simple as possible. All right so um head fund managers, the some ways that they make money, is by short selling a stock. So they make a bet against the company because they think the company’s not going to do well and short sellers.
They try to drive the price of a company down and the lower that the company price goes the more money they make and vice versa. So if the stock price goes up, that means the hedge fund, that is trying to short, sell they’re going to lose money, and that is exactly what happened today. So this is wall street bets wall street bet is uh, basically a bunch of retail investors like me, and you we have what maybe a thousand to hundreds of thousand dollars to invest and uh. You know we invest in what we like, so this community has about 2.2 million readers and currently today, right now, as we speak, there are over 200 000 people on here. So just imagine the power of 200 000. You know retail investors working together. You know talking about what they want to buy and everything. So if you’re watching mainstream media, they’re gon na say you know, wall street bets is a bunch of you know, degenerates these guys, don’t know what they’re doing, but these and uh most of that is true, but these guys found an opportunity to get back at the Big guy so let’s take a look at this tweet here by willam. This kind of summarizes things up a little bit. Retail investors basically just shut a hedge fund down all right citadel and point 72 are investing backstopping 2.75 billion into melvin capital, who was a superman short gamestop. Melvin is down over 30 in 2021, so for the short squeeze that’s been happening over the last few weeks.
This hedge fund has basically lost 30 of their entire capital of their entire business and, in my opinion, these hedge funds just got way too. Greedy and wall street bet saw that as an opportunity and if you guys see anything in the mainstream media today or the next few weeks, they’re gon na probably spin it the opposite way. They’Re gon na say, wall street bet these retail investors, with only like thousands of dollars to invest that just lost their job that are just sitting home because uh, you know they because they’re not essential employees, they’re gon na say these guys are manipulating the markets. Where i think, and in my opinion, the hedge fund managers are the ones that have been manipulating the markets, especially with gamestop, so this guy is the legend himself. This is uh the middle part of his name. I can’t really say, but this is deep something value. This is his position and i think he’s, the one that’s you could call him the leader or the one who has the the most to gain and the most to lose. So he has about 50 000 shares price paid 14.89. He has 800 call options here, so each contract here is worth 100 shares. Okay, so uh he has uh 800 call options and he paid a price of 31 cents for each one for each share and uh right now his position is valued at 13, almost 14 million dollars and i believe his initial investment was somewhere close to 50 000.
All right, so this is um from my understanding here. So let me give you some examples of what i’m trying to say all right these. These are the most shorted stocks on the stock market, as of today last updated january 25th. 2021.. So at the top here is gamestop. So when i say these hedge funds are really greedy. Look at this float: 250 percent shorts, uh percentage of shares, short 90, 97, 97 and there’s a lot of other companies here that are talked a lot about on youtube on wall street bed as well. We got bed bath and beyond. These guys are uh. You know, shares floated 76, so not as bad as um, not as bad as gamestop. Fubu has been talked a lot about i’ve seen this one going around shares floated 62 percent and uh all the way down. Here we got macy’s shares floated at a ‘, but macy’s is one of those companies that are doing really bad. But when it comes to gamestop there’s, a hundred percent of shares out there right and these guys are shorting even more than a hundred percent of the shares. Think about that, in my opinion, that’s just pure greed and now they are paying for it. So one thing that i always like to say is: history always repeats itself right. This is what happened uh before my time of investing. This happened in october 2008. So if you’re really young – you probably might not even remember this at all, either hedge fund loses 30 billion dollars on volkswagen’s infinity squeeze, so infinity squeeze is basically the ultimate short squeeze it’s like the highest level, and that could possibly happen with gamestop as well.
Volkswagen is a you know, car manufacturer. If we take a look at this article, volkswagen and this squeeze was considered the mother of all squeezes all right. Imagine a hedge fund losing 30 billion dollars. 30 billion in 2008 was worth a lot more than 30 billion in 2021.. This short squeeze that i’m telling you made volkswagen the most highly valued company in all of the entire stock market. For that one day for, like a short period of time, all right, this drove the price past thousands of dollars, an orchestrated squeeze on volkswagen shares, caused volkswagens to briefly become the most valued company in the world worth more by market cap than exxon mobil. Exxon mobil is a company that i own a lot of shares in today, but at that time exxon mobil was the most highly valued company. So from what i’m seeing, i don’t think that this gamestop short squeeze is over because there’s still a lot of shares. Um floated and if we take a look here, i think this is where we’re at right here this little dip here. This is where we’re at with uh what’s going on now, so potentially all right – i’m – not i’m, not trying to predict what’s gon na happen. But this giant spike here this infinity squeeze could happen with exxon mobil and a lot more. Hedge funds could be losing a lot more money over the next few weeks, so i’m. Getting really excited right now and i kind of want to take things back a little bit more before i give you my final thoughts.
This is the financials of gamestop, and you know this is what some analysts are targeting the price of gamestop here, so gamestop finbox, fair value is sitting roughly around forty dollars. You know some analyst targets it at around twelve dollars, uh there’s, an upside of negative forty. Two dollars uncertainty is very high. I completely agree with this. Uncertainty is very high. If we take a look at some of the historical financials you can see, you know the revenues declining over the last few years. You can see. Operating income has been declining. We can see we can see net profits declining. Everything is looking pretty bad, but there is a turnaround story there somewhere. The turnaround story for gamestop is starting with uh ryan cohen. This guy he was the founder of chewie chewie. Is an e commerce store where you you know, buy subscriptions from them and they send you foods for your cats and dogs that’s? What you know that’s what i use for my cats and i have two cats, so they send. They send me a lot of food. Every single uh every single month so in this turnaround story, ryan cohen, he was the founder of chewie and he invested or he bought about 13 of gamestop, and this is where it all starts. So chewie has a market cap of 42 billion dollars all right. So this company is worth a lot more than gamestop compared to their peers, they’re worth a lot more as well.
Their peers are worth like what 200 200 million in the sector itself is worth about: 47 million, so this guy basically hit a home run with chewie, and you know there’s a really big bullish case that you can say he might be able to bring back gamestop As well and that’s why a lot of wall street bettors are betting on this stock. So even though there’s weak numbers there’s weak fundamentals for gamestop, everyone is really playing the story here. Everyone is ignoring the fundamentals and they just want to get in where they fit. In and um me personally, i want to just be a part of this all right. I want to be a part of this david versus gly’s story. I think um. If the infinity squeeze continues to happen, a lot of more hedge funds that are trying to short game stock is gon na lose a lot of money. So you know, i might buy a few shares just to say i own a few shares of gamestop and i was part of history, so my channel is more about dividend: investing, conservative, investing and for beginners. I don’t think they should even go anywhere near this stock, but you know just for the novelty of it. Just for the you know, historical value of it, i think personally, for me, i just want to own, maybe one or two shares just to be a part of be a part of history, so that’s my take on this gamestop epic saga and uh.
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