Craig Marcus, a partner at law firm Ropes & Gray, stated it's difficult to prove ill intent if Roaring Kitty is only executing his thesis without engaging in manipulative activities.
E*Trade reportedly considered barring Roaring Kitty from its platform over concerns of market manipulation.
Roaring Kitty's holdings peaked at over $550 million on June 6.
Some investors suspect Roaring Kitty's actions could be part of a pump-and-dump scheme.
Title: Roaring Kitty's Impact on GameStop: A Look at the Numbers
In recent weeks, the influence of Keith Gill, also known as Roaring Kitty, on GameStop (GME) has been a topic of great interest in the financial world. Gill's large stake in GME and his public disclosures have sparked speculation and debate about his intentions and potential impact on the stock market.
Facts:
Roaring Kitty's holdings peaked at over $550 million on June 6, according to a Reddit post by Gill himself.
Some investors suspect that Gill's actions could be part of a pump-and-dump scheme, while others believe he will come out ahead due to his quick adaptation to market trends.
E*Trade reportedly considered barring Roaring Kitty from its platform over concerns of market manipulation.
Craig Marcus, a partner at law firm Ropes & Gray, stated that it's difficult to prove ill intent if Gill is only executing his thesis without engaging in manipulative activities.
Background:
Roaring Kitty gained notoriety during the meme stock phenomenon of 2021 when he helped launch the movement by publicly disclosing his large position in GameStop. His influence on social media platforms, particularly Reddit, has been significant as he continues to share updates about his holdings and market insights.
Impact:
Gill's actions have had a noticeable impact on the stock market. When he revealed his $180-million position in GME shares and call options on June 2, the stock saw a significant upward tick. Robinhood reported a 19% jump in GME just 20 minutes after Gill's post.
Despite concerns about market manipulation, it's important to note that Gill has not been accused of any wrongdoing. His actions may simply reflect his belief in the potential value of GameStop and his ability to capitalize on market trends.
Conclusion:
Roaring Kitty's influence on GameStop is a reminder of the power of social media and individual investors in shaping financial markets. While some may view his actions with skepticism, others see him as a savvy investor who has successfully navigated the volatile world of meme stocks.
Roaring Kitty's stake in GameStop peaked at over $550 million on June 6.
Some suspect that Roaring Kitty’s actions could be a pump and dump scheme, while others believe he will come out ahead due to his quick adaptation to market trends.
E*Trade reportedly considered barring Roaring Kitty from its platform over concerns of market manipulation.
Craig Marcus, a partner at law firm Ropes & Gray, stated that it’s difficult to prove ill intent if Roaring Kitty is only executing his thesis without engaging in manipulative activities.
Accuracy
Roaring Kitty's actions could be a pump and dump scheme
GameStop is burning $115 million a quarter or $460 million annually in negative free cash flow
The company plans on selling 75 million more shares, potentially bringing the total number of shares outstanding to 426.22 million
Deception
(30%)
The article contains selective reporting as it only reports details that support the authors' position about Roaring Kitty's potential manipulation of the market. The authors also use emotional manipulation by implying that Roaring Kitty is a 'folksy charm' who has lost his appeal and is now under suspicion. They also use sensationalism by reporting on the large sums of money involved and the potential for market manipulation.
The episode brought to the fore questions of what constitutes market manipulation.
The notion was hardly far-fetched. Over the course of two weeks, Gill had been posting images of a massive stake in GameStop and its call options in a portfolio that peaked at more than $550 million on June 6.
As Gill’s actions sent the price soaring again, GameStop seized on the volatility to sell more than $2 billion worth of stock.
Fallacies
(85%)
The authors make an appeal to authority by quoting Steve Sosnick, chief strategist at Interactive Brokers, and Don Steinbrugge, CEO of Agecroft Partners. They also use inflammatory rhetoric by stating 'the wrath of Redditors' and 'at the expense of Gill's retail-trading fans'.
Steve Sosnick, chief strategist at Interactive Brokers: “But I’m not sure who ‘them’ is anymore.”
Don Steinbrugge, CEO of Agecroft Partners: “At some point retail investors are going to wise up and realize there’s a lot of danger.”
Bias
(95%)
The article does not contain any clear examples of political, religious, ideological or monetary bias. However, the authors do use language that could be perceived as depicting Roaring Kitty in a negative light and questioning his actions. They mention 'potentially delivering an instant profit' and 'manipulation concerns'. The authors also quote others raising questions about Roaring Kitty's actions being a pump and dump scheme.
“How is Roaring Kitty coming back not a basic pump and dump scheme?”
GameStop is burning $115 million a quarter or $460 million annually in negative free cash flow.
As of May 4, the company had $1.05 billion in net cash and securities after almost no debt.
The company sold $933.7 million for 45 million new shares on May 17, bringing its present net cash balance to $1.99 billion.
GameStop plans on selling 75 million more shares, potentially bringing the total number of shares outstanding to 426.22 million.
Based on the current number of shares outstanding and net cash balance, GameStop’s net value is approximately $10 to $12 per share.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(85%)
The article contains some inflammatory rhetoric and appeals to authority, but no formal or dichotomous fallacies are present. The author provides a realistic analysis of GameStop's value and acknowledges the potential for speculation in the stock price.
The stock is probably worth only about $12 per share... given the cash burn
Good thing it has cash. At quarter-end it had $1.05 billion in net cash and securities (after almost no debt) and recently raised $933 million more or almost $2 billion total.
Everything else above this is a speculative gamble on the ability of management to properly invest the cash and turn around the loss-making business.
Gamestop's shareholder meeting encountered a technical issue on Thursday
Many investors were unable to log on to the livestream due to ‘unprecedented demand’
The meeting was adjourned and it is not yet clear when it will be rescheduled
Accuracy
No Contradictions at Time
Of
Publication
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(95%)
The article contains one instance of an appeal to authority fallacy when the spokesperson for Computershare is quoted stating that 'unprecedented demand' caused a 'technical issue'. This statement implies that the spokesperson is an expert on technical issues and demand levels, and therefore their statement is authoritative. However, this does not necessarily mean that unprecedented demand was the cause of the technical issue.
'unprecedented demand' from shareholders looking to access the meeting led to a 'technical issue'
The spokesperson said in a statement sent to The Associated Press Thursday afternoon.
Keith Gill, also known as Roaring Kitty and DeepFuckingValue, bought 4 million more GameStop (GME) shares on June 13, increasing his holdings to over 9 million shares worth approximately $262 million.
Roaring Kitty closed his GME call options set to expire next week.
Community members speculate that Roaring Kitty might join the GameStop (GME) board of directors due to his large shareholding, making him the fourth-largest shareholder.
GameStop CEO Ryan Cohen disclosed a similar number of shares when he joined the company.
Roaring Kitty’s $180-million position in GME shares and call options caused an upward tick in the stock’s price on June 2, with Robinhood seeing a 19% jump just 20 minutes after his post.
GameStop added an Easter egg to its website referencing Roaring Kitty and moved its annual meeting to June 17, which some believe is a reference to GameStop onboarding him.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(100%)
None Found At Time Of
Publication
Bias
(100%)
None Found At Time Of
Publication
Site
Conflicts
Of
Interest (100%)
None Found At Time Of
Publication
Author
Conflicts
Of
Interest (0%)
The author, Ezra Reguerra, has multiple conflicts of interest on the topics provided. He writes about GameStop (GME) and Keith Gill (Roaring Kitty), whom he refers to as 'Roaring Kitty' throughout the article. The author also mentions DeepFuckingValue, a Reddit community known for promoting GameStop stocks. Additionally, the author discusses Mt. Zion Market Ventures, a venture capital firm that has invested in GameStop and is led by Ryan Cohen, another individual involved in the GameStop stock situation.
Ezra Reguerra refers to Keith Gill as 'Roaring Kitty' multiple times throughout the article.
The author mentions DeepFuckingValue, a Reddit community known for promoting GameStop stocks.
