Article: www.businesswire.com/news/home/20190819005633/en/
Michael Burry, the guy from The Big Short who made a killing shorting subprime mortgage bonds, is currently long 3% of GameStop (GME) and trying to start an epic short squeeze.
Over 50% of the outstanding shares are short and the company has enough cash on hand to buy back more than the entire market cap of the company. All they need to do to start a historical short squeeze is to get off their asses and start buying.
Plus, the PS5 and next-generation Xbox are launching next year, with support for physical discs. This is likely to lead to significant revenue growth in 2020 and 2021 and reinvigorate the business, at least temporarily.
Obviously, physical disc games are in secular decline, but I think this is going to take many, many more years. People still give physical console games as presents and it is likely to stay that way for a while.
They also sell collectibles and T-shirts, game accessories and various other things that are NOT in secular decline. The collectibles and accessories have been growing YoY.
GME is going to cut over $100M in SG&A expenses this year. They have a brand new CEO with a good track record that is currently cleaning house aggressively.
This stock is ripe for a short squeeze.
Thoughts?