My Stock Pick For A Massive Profit In Under A Year

Should You Buy GameStop Stock? The Short Answer Is No
GME stock is an icon, but that doesn't make it a buy. It is however, a great stock to short right now!

GameStop (NYSE:GME) stock has been an excellent trading vehicle lately. Despite the volatility, GME stock has provided huge ranges in both directions allowing traders to ride these torrential waves to large profits — if they are positioned correctly.

However, while GameStop has served as a solid trading vehicle for some and as big-time entertainment for others, that’s hardly a tasty recipe for a good investment.

There’s just no way to justify a robust valuation for this business. Throw in all the Reddit news, and investors have to wonder if it’s worth the headache.

Breaking Down the Reddit Situation:
So what is going on with the Reddit hoopla in the first place? In the simplest terms, we have a rogue short squeeze on our hands.

Just like when investors think a stock is going up, bulls can go long the stock. When investors think a stock is going down, bears can go short the stock. To go short though, they must borrow the shares.

Short interest is measured as a percentage, usually of the float, or the shares that are publicly traded. A high short-interest reading is usually in the 20% to 40% range. What made GME stock so interesting is that its short interest was above 100%.

How can that be?

Essentially, the shorts were betting on bankruptcy for the struggling retailer. Believe it or not, not all shorts are looking for their positions to go to zero. It could be that the stock has run too far or that it’s overvalued. In the case of GameStop though, they absolutely were looking for it to go to zero.

In that case, covering their position wasn’t a problem — that is, until GameStop didn’t go belly-up.

Fueling this realization were thousands of traders on Reddit. As the hype spread online and around trading desks, it was like sharks smelling blood in the water. GameStop obviously isn’t worth what it’s trading at now, but the recent action is all a function of short interest, short squeezes and poorly managed risk by the hedge funds.

So What Is GME Stock Worth?
That’s a hard question to answer, given the current situation that’s playing out. However, the short answer is simple: It’s not worth as much as it’s trading for.

The prior all-time high for GME stock came in 2007 in the mid-$60s. Now that all-time high sits all the way up at $483.

Right now as of this writing the GME is sitting at $282. For 4 1/2 out of the last five years the stock was at a steady decline from about $27 to $3. A very steady smooth decline.

Shares are now down about 49% from the previous high, but the market is still valuing GameStop with a $17 billion market capitalization. For a retailer that’s forecast to do $5 billion in revenue for FY 2021, that’s too rich.

GameStop might not be a bankruptcy candidate, but that doesn’t make it a good business.

As it stands, analysts expect sales to slip 28.8% this year and for earnings to fall considerably. Last year, GameStop generated a profit of 22 cents per share. This year, it’s forecast to lose $2.17 a share.

For the last eight quarters, the business has had negative revenue growth and missed estimates in each of those quarters. Man, just look at the revenue decline for the past three quarters: -34%, -26.7% and -30.1%.

I don’t know what that looks like for everyone else, but to me it’s horrendous.


Now, and I mean today is the time for me to do another GME short. (The trade was done several hours ago)

I already have a short position, but today would be much better time to short GME. So, I'm going to take a huge position of about 7,000 GME stocks. I'll update this thread when I buy them back and you will see how much money I make.

This is not financial advice for any of you reading this. However I will say that every one of my millionaire friends have a short position in GME since the recent volatility started last January and today is one of the top four days in the last six months you would want to short GME.

Thanks, I always buying stocks was a legal way to gambling away ones money for the general investor. Like everything, its who you know on the inside of the company that you invest or even work for these days. There is no human trust these days in the world. Dog eat dog has a true meaning to it in the "real" life of mankind.

a reply to: Alien Abduct

Now I understand that you've been here a long time and probably genuine. However why should the advice you give be any more sincere than the Reddit crowd? Who's to say that the purpose of this thread is nothing more than gaining followers, then when the direction of movement you advised happens you bet against us?

Can you see that?

a reply to: Alien Abduct

You and the other shorters are the reason this whole debacle is happening. So you come here to gain support to short more? I am going to lmao if it hits 350$...

I don't see this panning out the way you do if the least squeeze is anything to go on it fell to like 48$ and 3 months later is back to almost 300$.

a reply to: Alien Abduct

On the other hand the worlds largest publicly traded cannabis company Tilray is pulling away from the usual merger down turn beautifully and as we speak went from 16.98 to 19.00 today. We all know legalization federally here in the states is around the corner and within the next 2 years is very likely to happen. My prediction is Tilray will be the amazon of cannabis inside 5 years. Imagine owning 19$ shares of amazon 10 years ago...

a reply to: Alien Abduct

AMC is doing absolutely beautifully right now.
I can’t remember what I got in originally for. I think it was 8 bucks?
Then I got more at $10 And I think my last order was around 12.50
Today... well those patiences has paid off a bit. Because today that beautiful beast is sitting at 62 cad.

And I’m gonna hold. I’m Diamond hands.
I figure I put in around $650 total.
I never risk more than I can afford to lose.
so that’s not an issue.

Between Doge. BTC and AMC, I’m thinking it’s gonna be a great summer.
I told myself at the beginning of the year I’m going to be a millionaire by the end of December.
Still have a long way to go, but I’m closer than I was yesterday.

a reply to: Macenroe82

Im kinda sick I didnt get another 100 shares of Tilray at 13.85 looking today at a 2.11$ gain. I fully believe they will be the amazon of cannabis so I still might buy even at these prices.

originally posted by: TheConstruKctionofLight
a reply to: Alien Abduct
Who's to say that the purpose of this thread is nothing more than gaining followers, then when the direction of movement you advised happens you bet against us?

This is essentially the main driver of mainstream financial news and appears to be a primary motivator to many financial regulators.

I'm slightly more worried about them than random folks on a conspiracy forum.

originally posted by: TheConstruKctionofLight
a reply to: Alien Abduct

Now I understand that you've been here a long time and probably genuine. However why should the advice you give be any more sincere than the Reddit crowd? Who's to say that the purpose of this thread is nothing more than gaining followers, then when the direction of movement you advised happens you bet against us?

Can you see that?

That would take hundreds of thousands of followers. ATS isn't big enough and I'm not popular enough.

Plus, people should read the whole OP especially the last paragraph where it says this isn't financial advice.

originally posted by: RickyD
a reply to: Alien Abduct

You and the other shorters are the reason this whole debacle is happening. So you come here to gain support to short more? I am going to lmao if it hits 350$...

I don't see this panning out the way you do if the least squeeze is anything to go on it fell to like 48$ and 3 months later is back to almost 300$.

Game Stop is a flailing dinosaur of a business model. Their financials are trash. The stock is going to crash back to at or very near where it was one year ago. It is inevitable.

Like I said in the OP, I'll update this thread when I cover.

a reply to: RickyD

My prediction is Tilray will be the amazon of cannabis inside 5 years. Imagine owning 19$ shares of amazon 10 years ago...

Haha, careful now, you're starting to sound like Motley Fool.

Either way, cannabis companies are more suitably compared to alcohol companies IMO for market valuation. not to say it's not a huge market, but Amazon isn't beholden to one market space.

a reply to: Alien Abduct

Never short ANY stock, owing to the possibility of UNLIMITED losses if the stock rises instead of falling as you expect.

If you must bet on the demise of a company, buy put options instead - you will never lose more than the premium paid for the options and the return can be as good as shorting, depending on your skills as a trader.


With respect to GME, no I do not believe it is a good candidate for shorting, I believe it may be at risk of an imminent blow off rise instead, within the next 1-2 months.

I am not an investment advisor, this is my personal opinion only.


Respectfully.
Cheers

This is not financial advice for any of you reading this

a reply to: Alien Abduct

Kudo's to your Hold ability. It looks like it netted you around 2 mill give or take.

Quick question, if AMC has roughly a 6 to 7 times larger base than GME, when it went mainstream, could one reasonably forcast that AMC could have a potential high of, let's say, $1000.00 per share?

a reply to: M5xaz

I'm with you, too risky too short with how irrational that side of the market is.

I'd rather make plays with stocks I don't mind holding onto if my timing is off. The meme stocks don't fit that bill for me, and an option play on them is super expensive and isnt worth the premium IMO.

Plenty of other short term plays I would prefer without the added cost of mainstream attention.

originally posted by: CriticalStinker
a reply to: M5xaz

I'm with you, too risky too short with how irrational that side of the market is.

I'd rather make plays with stocks I don't mind holding onto if my timing is off. The meme stocks don't fit that bill for me, and an option play on them is super expensive and isnt worth the premium IMO.

Plenty of other short term plays I would prefer without the added cost of mainstream attention.

Well, you can make money with options,even with meme stocks, if you know what you are doing.

At the very least, options allow you to limit your losses should the market go against you.
You will only lose what you paid for the options.
Not so with shorting, as numerous hedge funds found out the hard way in January with GME and recently with AMC

Again, shorting can be financially ruinous owing to the possibility of unlimited losses, even more so with the large volatility of meme stocks

GLTA


This is not financial advice for any of you reading this

HODL!

originally posted by: Alien Abduct

I already have a short position,

Short sellers are the scum of the earth. I hope you lose everything. You have to be a miserable person to want to drive a stock price down and make money off everyone else losing money. I have no position on GME, but I support the apes in crushing people like you.

a reply to: Alien Abduct

Wanna see that loss porn =D get all WSB in here...

a reply to: CriticalStinker

I know I know...thats just like my opinion man lol. I will say at least I dont change my opinion day to say like literally all of those financial outlets...which are really more like blogs.

shorting GME the worst idea ever.
I just took profits from AMC and bought Black Berry Stock. I believe Black Berry or Rite Aid are the next squeeze we see happen.