FAST FIVE: So You Missed Yesterday's Epic Move In Gamestop: Here's How To Catch The Next One
So You Missed Yesterday's Epic Move In Gamestop: Here's How To Catch The Next One Back in 2013, we first said that in a market as broken as this one, where no fundamental or technical analysis works, and where logic and rational thought have been flipped upside down thanks to the Fed, the best strategy is to merely go long the most shorted stocks.
is this right pic.twitter.com/mVfitVff5b – zerohedge (@zerohedge) January 14, 2021 .
Well, that catalyst today was Citron Research which, with the stock already rampaging in the past few days, announced at the open that it will stop commenting on the stock following the actions of “an angry mob.” “We are investors who put safety and family first and when we believe this has been compromised, it is our duty to walk away from a stock,” Citron managing partner Andrew Left wrote in a Friday letter.
GameStop pared gains after short-seller Citron Research tweeted that it sees the stock returning to $20 quickly.
To be sure, there were also some fundamental reasons for the surge: as Wedbush analyst Michael Pachter said, GameStop became a “cult stock because of Ryan Cohen's success with Chewy” and retail investors “appear confident that he can implement omnichannel initiatives that will materially grow their earnings.” Maybe, but for the company to be worth $50 a share it would have to quickly double its growth, Pachter, who has a $16 price target which is the second highest among analyst tracked by Bloomberg, said.