Keith Patrick Gill, a key investor from the Reddit forum r/WallStreetBets better known by his username “Deep F---ing Value,” is set to defend his role in the rally of GameStop Corp GME.
What Happened: Gill, popular among his YouTube fans as "Roaring Kitty," claims in his written testimony to lawmakers that his investment in GameStop was based on fundamentals surrounding the company.
“Whether other individual investors bought the stock was irrelevant to my thesis – my
focus was on the fundamentals of the business,” Gill said in a testimony published by the House Financial Services Committee.
“GameStop’s stock price may have gotten a bit ahead of itself last month, but I’m as bullish as I’ve ever been on a potential turnaround,” said Gill.
“In short, I like the stock. And what’s stunning is that, as far as I can tell, the market remains oblivious to GameStop’s unique opportunity within the gaming industry.”
Why It Matters: The Committee will hold a hearing on Thursday where CEOs of Reddit, Robinhood, Citadel Securities, and Melvin Capital are to testify on the circumstances that led to sharp price movements in GameStop stock.
Gill, a 34-year from Massachusetts, formerly in the employ of MassMutual is also to testify.
The Reddit forum at the center of the GameStop saga also carried out a short squeeze in the shares of companies like AMC Entertainment Holdings Inc AMC, Blackberry Ltd BB, and Nokia Oyj NOK.
The resulting rally put pressure on short-sellers such as Melvin Capital and Citron Research, which scrambled to cover their short positions — further fuelling the upwards price movement in these stocks.
Price Action: GameStop shares closed nearly 7.2% lower at $45.94 and gained 1.11% in the after-hours session.
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