GME Earnings
GME was supposed to release earnings on Tuesday June 11. In a shocking turn of events, GME unexpectedly released earnings a few hours before RoaringKitty’s live stream. The earnings results were very poor, GME reported a 29% YoY sales decline.

New GME Shares
The most shocking part of the earnings announcement is that GME diluted their investors again, selling 75 M new GME shares. These new shares are a huge threat to the GME short squeeze. A short squeeze requires there to be few stocks available for short sellers to buy. GME is helping the short sellers by creating more shares for them to buy.

RoaringKitty’s Call Options trade
RoaringKitty’s June 21 call options trade would give him approximately 12 million GME shares at a $20 strike price. RoaringKitty and GME bulls could have successfully pulled off a short squeeze by purchasing and holding millions in GME shares.

Ryan Cohen
GameStop CEO Ryan Cohen is a key polarizing figure in this whole situation. Cohen is being criticized for issuing 75 M in GME shares. However, this move is actually pretty brilliant because GameStop raised $3 billion and now has roughly $5 billion in cash. The key question is what will they do with all that money, and whether these executive decisions will provide long-term growth for GME stock. RoaringKitty expressed that he trusts Cohen to guide GameStop’s future success. Cohen’s decision to issue 75 M GME shares hurts the short squeeze, but it gives hope for turning GME into a great long-term investment opportunity.

The Genius Behind RoaringKitty
There was a lot of criticism behind RoaringKitty’s live stream, particularly because he didn’t say anything important to help the stock pump. However, I think RoaringKitty is a genius who successfully trolled Wall Street. He played dumb throughout the stream and made everyone believe he was the fool in the room. Mainstream networks like CNBC stopped what they were doing to tune into RoaringKitty’s live stream just to watch him debate whether he should ask questions to an 8Ball. Everything RoaringKitty did during his stream was carefully planned, including showing up late to his stream, the symbolic messages in the thumbnail of his video, and exposing how the GME stock gets halted when he says keywords during his live stream. RoaringKitty proved that there is market manipulation against GME stock, and did not implicate himself in another future SEC lawsuit.

RoaringKitty has hundreds of millions of dollars in his GME trade, and he wholeheartedly believes in the stock’s future. He does not want you or anyone else to just blindly follow his trades, reminding you that you could risk losing your entire position. I believe he has done his research and knows what he is doing.

The GME Community
RoaringKitty did not give the reasons for his GME trade because he did not want to implicate himself in another SEC investigation. Instead, he played dumb and said very little about why he is willing to go all in on GME. One of the important hints that he gave during the investigation is the strong GME community. Compared to other stocks, GME is unique because there is a strong community of retail investors that want this stock to succeed. You have strong community support for the stock, which is very similar to the strong support within crypto communities. This community support is important especially when GameStop is sitting on $5 billion in cash. There could be a great roadmap for GME’s future, and the community will continue to show their support to help GME succeed.

My Opinion on GME

There’s always a lot to unpack with GME. In this update I want to let you all know where I personally stand on GME. I have not bought any GME shares yet, but I will consider buying some GME on this dip. GameStop has a market cap of $7.32 billion and is currently sitting on around $5.2 billion in cash after the recent stock dilutions. I’m not sure what GameStop has in store for the future, but my best guess is that they turn into a company similar to MicroStrategy that invests in crypto. I like GME because I think the community has strong support for the stock, and this community support will help to drive the price action.

The two key events to consider are an annual shareholder meeting on June 13 and June 21, which is the deadline for RoaringKitty’s call options trade. There is speculation that RoaringKitty could become elected as a GameStop board member. I think that is entirely possible considering that he is the 5th largest GME shareholder.

RoaringKitty has posted on Twitter yesterday, and his message always has some symbolism. There’s a lot of different interpretations of his tweet because there is a “5” written on the cat mask. My interpretation is that the image is from a Batman film featuring the Joker where he is about to rob a bank. If you watch that scene, one of the lines you will hear is that “5 shares is plenty.” I think this is RoaringKitty’s way of saying that 5 shares will be worth a lot of money in the future. If we compare that to MSTR, 5 shares are worth around $1,600 apiece.

There’s a lot of other interpretations and viewpoints. We don’t really know for sure, but I’m sure RoaringKitty will host another livestream and will provide more clarity. We will also hear what happens at the June 13 shareholder meeting, and we will see what RoaringKitty does with his call options by June 21. I think RoaringKitty is a very smart guy that knows what he’s doing. He also appears to be a very nice person that didn’t backstab his community. He had a chance to sell with $300 million+ in profit, and he chose to hold through this drawdown. He is clearly bullish on GME’s long-term future, and has $200 million+ reasons to be. I believe he knows what he is doing, and I do not look at GME as a short-term trade. Instead, this is a longer term investment betting on GameStop’s new direction guided by the $5.2 billion cash they are sitting on.

GME Price Levels

There are three key price levels for GME. Support at the white trendline around $19.42, a light blue zone between $47.11 and $64.74, and previous all time highs around $121.17. GME is in a downtrend at the moment, and could drop retest the white trendline on this move. There were two strong rejections in the light blue zone, both events caused by hype surrounding RoaringKitty’s return.

The time to get excited is when the price is low, not after a strong pump. Also a good idea to take profits at key price levels on the way up. In an upcoming RoaringKitty live stream we will see him asking questions to an 8ball, and we will get some more answers about his bull thesis for GME. He’s a smart person that has taken a massive bet on a single company so there are definitely some good reasons. For now he’s trolling while dropping hints to his community supporters.

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