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A leading investor in
GameStop
called the recent surge in action “unnatural, senseless and dangerous”.
Investor Michael Burry, head of Scion Asset Management and major figure The big court book and movie, said in a now deleted post on
Twitter
that he thinks there should be legal repercussions on what goes on with GameStop trading. Burry made a substantial investment in GameStop in 2019 and noted that he was happy for the investors who made money after his initial investment in the retailer.
“If I put $ GME on your radar, and you’ve done right, I’m really happy for you,” he wrote Tuesday in a quickly deleted Tweet. “However, what’s going on right now – there should be legal and regulatory implications. It is unnatural, senseless and dangerous. “
Burry said Barron’s in an email, he deleted the message because he marked the wrong SEC Enforcement account. After publication, Burry reposted the same comment, this time with the appropriate tagged account.
GameStop stock has risen more than 3,415% in the past 12 months, towering a wave of enthusiasm from retail investors and crushing short sellers. The extremely high short interest in the stock was targeted by speculative traders on Reddit’s WallStreetBets forum. He’s been a favorite among this crowd for months, and their faith has paid off. This month’s skyrocketing was initially sparked by an announcement that Chewy co-founder Ryan Cohen and two former executives from the ecommerce company would join GameStop’s board. Cohen’s RC Ventures owns approximately 13% of GameStop shares.
In August 2019, when the GameStop shares below were $ 4 per share, Burry disclosed a 3% stake in the company. Burry believed the shares were undervalued, pointing to GameStop’s record and predicting that the next generation of video game consoles, due in late 2020, would still include disc drives, extending GameStop’s relevance.
Burry’s company sold more than one million GameStop shares, or about 38% of its stake, in the September 2020 quarter, according to an SEC filing. Burry did not immediately return a follow-up email asking if he still held stock.
Burry’s investment has proven to be hugely successful for those who have followed him and have held on for the past week. GameStop stock closed 92% higher at $ 147.98 on Tuesday and shares flew higher after hours of trading after a shout from Tesla CEO Elon Musk.
Representatives for GameStop did not immediately return a request for comment on the movement of the action.
Write to Connor Smith at [email protected]
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