Gamestop $GME: The Return of Meme Stock Idiocy

by Dave Kranzler
Investment Research Dynamics

Meme stock mania is back in full idiocy. And it’s time again to revisit $GME as a short. On March 14th, GME closed at $$78, its lowest level in February 23, 2021. The stock had been down nearly 75% since June 9, 2021. But after the market closed on March 21st, GME Chairman Ryan Cohen, announced that he bought 100,000 shares in the open market, taking his ownership stake to 11.9%. This drove the stock price from $94 to as high as $189 by March 28th.

Then after the market closed on March 31st, GME announced its intent to do a stock-split. The stock jumped after hours from its closing price that day of $165 to as high as $203. It opened at $189 Friday and sold off steadily during the day to as low as $155, before closing at $163. Note: GME is doing a “stock dividend” rather than a stock split. While there’s GAAP accounting differences with respect to the shareholders equity accounting, for practical purposes there’s no difference.

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