GameStop Investment: Can It Make You Rich?

Investing in GameStop (GME) may seem like a risky proposition, but as of December 2021, it can be a wise decision. However, it is crucial to conduct your own research and form your own conclusions, as mainstream media is often complicit in propaganda that discourages investment in GME shares.

The Role of Mainstream Media

Financial media has been pushing the narrative that GameStop is a poor investment, which is likely fueled by the financial interests of certain entities. For instance, Citadel, a short seller with a substantial short position on GME, owns a significant portion of MarketWatch. This ownership raises questions about MarketWatch's editorial stance, with MarketWatch publishing 753 articles in six months that discouraged readers from investing in GME (4 posts per day).

The Short Squeeze Theory

Despite the negative media portrayal, many investors believe in the short squeeze theory, which suggests that if a significant number of short sellers are forced to cover their positions, the stock price of GameStop can skyrocket. While it is impossible to predict whether a short squeeze will occur, the current situation still supports the idea.

According to the Securities and Exchange Commission (SEC), no short sellers had covered their positions on GME during January's market run-up, further validating the short squeeze thesis. Additionally, the number of direct registered shares (DRS) of GameStop is declining, which could lead to a smaller float and a potential short squeeze. As of October 2021, almost 5 million shares had been DRSed at Computershare. Should this trend continue, a short squeeze is likely to occur, or at the very least, the float will be reduced.

Due Diligence

To gain a deeper insight into the GameStop investment, investors should review the due diligence report posted on r/SuperStonk on Reddit. This subreddit has almost 600,000 users who are actively working towards a short squeeze and providing detailed information and analysis.

SEC and DOJ are currently investigating short sellers of GameStop, as they are suspected of using predatory and unfair practices that risk financial markets. This ongoing scrutiny may further support the idea that short sellers are facing increased pressure to cover their positions.

Conclusion

While there are risks involved in investing in GameStop, the recent trends and ongoing investigations suggest that the stock may still be a viable investment. Investors should conduct thorough research, stay informed about market developments, and consider the short squeeze theory seriously. However, always remember that investing carries risks, and diversification is key to a successful investment strategy.

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Note: The content and recommendations provided are for educational purposes and should not be considered financial advice. Always consult a financial advisor before making investment decisions.