This Is Why Ryan Cohen Should Short GameStop Stock (if It Were Legal)

Like
1
Favorite

This Is Why Ryan Cohen Should Short GameStop Stock (if It Were Legal)

InvestorPlace06-16

GameStop (GME) stock stayed high enough for long enough to pull in $3 billion in cash. Shorting GME should be part of the CEO’s investment strategy. He’d be wise to include Warren Buffett in the ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment（1）

SugarDaddy
·06-17
Rubbish article Asking people who own millions of gme stock to short themselves -.-
Reply
Like
Report

Most Discussed

7x24

All

Terms and Conditions·Privacy Policy

Company: TTMF Limited. Tech supported by Xiangshang Yixin.

Email：uservice@ttm.financial

{"i18n":{"language":"en_US"},"data":{"share":"https://ttm.financial/m/news/2443786589?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2024-06-16 20:54","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2443786589","market":"us","top_or_hot":-1,"title":"This Is Why Ryan Cohen Should Short GameStop Stock (if It Were Legal)","media":"InvestorPlace","content":"<div>\n<p>GameStop (GME) stock stayed high enough for long enough to pull in $3 billion in cash. Shorting GME should be part of the CEO’s investment strategy. \nHe’d be wise to include Warren Buffett in the ...</p>\n\n<a href=\"https://investorplace.com/2024/06/this-is-why-ryan-cohen-should-short-gamestop-stock-if-it-were-legal/\">Source Link</a>\n\n</div>\n","source":"investorplace_stock_picks","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>This Is Why Ryan Cohen Should Short GameStop Stock (if It Were Legal)</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThis Is Why Ryan Cohen Should Short GameStop Stock (if It Were Legal)\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-06-16 20:54 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://investorplace.com/2024/06/this-is-why-ryan-cohen-should-short-gamestop-stock-if-it-were-legal/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>GameStop (GME) stock stayed high enough for long enough to pull in $3 billion in cash. Shorting GME should be part of the CEO’s investment strategy. \nHe’d be wise to include Warren Buffett in the ...</p>\n\n<a href=\"https://investorplace.com/2024/06/this-is-why-ryan-cohen-should-short-gamestop-stock-if-it-were-legal/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1363072403.SGD","symbol_name":"Fidelity Global Financial Services A-ACC-SGD","start_time":0,"source_url":"https://investorplace.com/2024/06/this-is-why-ryan-cohen-should-short-gamestop-stock-if-it-were-legal/","article_id":"2443786589","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2443786589","pubTimestamp":1718542444,"sourceInfo":{"source_id":"investorplace_stock_picks","name":"InvestorPlace stock picks"},"weMediaInfo":null,"summary":"The only way Ryan Cohen’s making money from GameStop is if he shorts GameStop stock in his role as portfolio manager.","collect":0,"end_time":0,"defaultTopTitle":"investorplace.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1363072403.SGD":"Fidelity Global Financial Services A-ACC-SGD","BK4548":"巴美列捷福持仓","LU0251142724.SGD":"Fidelity America A-SGD","BK4176":"多领域控股","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","LU0130102774.USD":"Natixis Harris Associates US Equity RA USD","LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD","CHWY":"Chewy, Inc.","LU0971096721.USD":"富达环球金融服务 A","BK4585":"ETF&股票定投概念","BK4534":"瑞士信贷持仓","LU1074936037.SGD":"JPMorgan Funds - US Value A (acc) SGD","LU0149725797.USD":"汇丰美国股市经济规模基金","BK4533":"AQR资本管理(全球第二大对冲基金)","BRK.B":"伯克希尔B","LU1201861249.SGD":"Natixis Harris Associates US Equity PA SGD-H","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","LU0742534661.SGD":"Fidelity America A-SGD (hedged)","LU1571399168.USD":"ALLSPRING GLOBAL LONG/SHORT EQUITY \"IP\" (USD) ACC","LU0980610538.SGD":"Natixis Harris Associates US Equity RA SGD-H","IE00B775SV38.USD":"NEUBERGER BERMAN US MULTICAP OPPORTUNITIES \"A\" (USD) ACC","BK4577":"网络游戏","IE00B3S45H60.SGD":"Neuberger Berman US Multicap Opportunities A Acc SGD-H","LU0234570918.USD":"高盛全球核心股票组合Acc Close","BK4588":"碎股","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","BK4550":"红杉资本持仓","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","GME":"游戏驿站","LU0048573561.USD":"FIDELITY AMERICA \"A\" (USD) INC","BK4076":"电脑与电子产品零售","BK4122":"互联网与直销零售","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","LU0640476718.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQ \"AU\" (USD) ACC","BK4547":"WSB热门概念","LU1280957306.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQUITIES \"AUP\" (USD) INC","IE00BKDWB100.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5H\" (SGDHDG) ACC","BK4581":"高盛持仓","LU1914381329.SGD":"Allianz Best Styles Global Equity Cl ET Acc H2-SGD","LU0234572021.USD":"高盛美国核心股票组合Acc","BK4200":"专卖店"},"translate_title":"这就是为什么Ryan Cohen应该做空游戏驿站股票（如果合法的话）","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"GME":1,"CHWY":1,"BRK.B":1},"content_text":"GameStop (GME) stock stayed high enough for long enough to pull in $3 billion in cash. Shorting GME should be part of the CEO’s investment strategy. \nHe’d be wise to include Warren Buffett in the company’s equity bets. \nBernard Arnault could turn around GameStop. \n\n\n\n\n\n \n\nSource: 1take1shot / Shutterstock.com\n\n\n\nThanks to the insanity of retail investors, GameStop (NYSE:GME) has raised $3 billion in GameStop stock over the past few weeks. It will probably be invested in other companies. \nWhether any of this makes any sense or not, the company’s news release from June 11 confirmed that it generated $2.14 billion in gross proceeds from the latest at-the-market offering, selling 75 million shares at an average price of $28.49. \nPreviously, GameStop sold 45 million shares on May 24 at an average price of $20.74 for gross proceeds of $933.4 million. Based on an average 2% commission for ATMs and another 1% in expenses, GameStop’s net proceeds to be invested are around $2.98 billion. \nI find it amazing that people will moan and groan about higher prices and interest rates and then go out and buy this awful, awful stock. Oh, well, you can’t legislate against stupidity.    \nI doubt Ryan Cohen is reading this, but if he is, here’s why he should short GameStop stock. In addition, I’ve got two companies he should buy if he’s serious about becoming a portfolio manager. \nShorting GameStop Stock\nI don’t believe it’s legal for a CEO and their board to short their own stock. At least, not in the U.S., but if it were, Ryan Cohen would be wise to do so.\nFor all the bulls out there who floated GameStop stock $3 billion at inflated prices, you must see the writing on the wall. This tired video game retailer, whose plan by its savior to go digital, has gone nowhere fast.\nOnly job cuts, as I suggested in my last piece about GME, have done anything to improve its financial condition. \nAs a result, the board has capitulated with Cohen, approving his role of portfolio manager in March, to be overseen by two independent directors. \nGiven GME finished Q1 2024 with $1.08 billion in cash, Cohen will have more than $4 billion to put to work in the GameStop investment portfolio. \nIt won’t be in Berkshire Hathaway’s (NYSE:BRK.B) league but it will be a decently-sized equity portfolio nonetheless. \nInvestors have trusted Cohen to make changes to GameStop’s business since he first invested in the company in August 2020, becoming the “official” CEO last September. \nWe’re coming up on four years of his involvement with no improvements to the business or its business strategy.\nAnd now, investors believe he can pick stocks like Warren Buffett? Hardly.\nInvest in the Best\nI have no doubt that Ryan Cohen is a bright fellow. He was wise enough to sell Chewy (NYSE:CHWY) for $3.35 billion while the business was on an upward trajectory. \nIn the five years since Chewy went public on June 13, 2019, its share price has gained 6%, a compound annual growth rate of 1.1%. \nSo, he knows when to sell, but does he know when to buy? Some would argue that starting Chewy at the beginning of the long-term secular trend for pet products was a prescient choice. \nI do concede that. However, investing in stocks requires a different set of skills from entrepreneurship. \nWhich is why Cohen would be wise to put a lion’s share of GME’s cash into Berkshire. \nAssuming he dropped the entire $4 billion into BRK.B, GameStop would be the 15th-largest owner of Class B shares, ahead of Legal & General Group (OTCMKTS:LGGNY) and behind Norges Bank, Norway’s central bank, and manager of the Government Pension Fund Global.\nThat’s a big deal. And they kind of know what they’re doing in Omaha.\nLuxury Will Always Survive and Mostly Thrive\nBernard Arnault is the second-wealthiest person on the planet according to the Bloomberg Billionaires Index at $206 billion. Down $1.14 billion in 2024, the luxury market has taken a breather. \nHowever, if Cohen had been in a position to invest $4 billion in LVMH (OTCMKTS:LVMUY) at the beginning of 2014, GME would have $17.3 billion to invest, a compound annual growth rate of nearly 16%. \nThe 75-year-old has moved in recent years to ensure there is an orderly succession at the family business. In 2022, LVMH raised the retirement age for its CEO by five years to 80. \nHe’s now got five additional years to position the chess pieces that are his five children who run various businesses under LVMH’s umbrella. \nOn June 6, Arnault promoted his second-youngest child, Frédéric, to be Managing Director of Financière Agache, the Arnault’s family holding company. \nThe holding company has 48% of the equity and 64% of the voting rights in LVMH. Frédéric joined the LVMH board in April. \nIn Q1 2024, LVMH had revenue of 20.69 billion euros ($22.22 billion), 2% lower year-over-year on a reported basis, but 3% higher, excluding acquisitions and currency. In 2023, its revenue was 86.2 billion ($92.58 billion) with an operating profit of 22.8 billion euros ($24.49 billion).\nCohen could do a lot worse than these two hands-off investments.\nOn the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.\nWill Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia. \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nSubmit\n\n\n\n\n\n\n\nArticle printed from InvestorPlace Media, https://investorplace.com/2024/06/this-is-why-ryan-cohen-should-short-gamestop-stock-if-it-were-legal/.\n©2024 InvestorPlace Media, LLC","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[{"id":317618712285368,"gmtCreate":1718582797486,"gmtModify":1718588687506,"author":{"id":"3575341663222675","authorId":"3575341663222675","name":"SugarDaddy","avatar":"https://community-static.tradeup.com/news/3500eaa62efeea624c2ae937624d10f7","vip":1,"crmLevel":5,"crmLevelSwitch":0},"htmlText":"Rubbish article Asking people who own millions of gme stock to short themselves -.-","listText":"Rubbish article Asking people who own millions of gme stock to short themselves -.-","text":"Rubbish article Asking people who own millions of gme stock to short themselves -.-","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/317618712285368","repostId":2443786589,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":0,"commentSize":1,"repostSize":2,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}