Philip Moustakis, a former lawyer in the SEC’s Enforcement Division, argues that the drafting of new rules in response to each new situation makes the regulations very specific and difficult to enforce.
GameStop Corp. shares fired on Monday after investor Keith Gill doubled its stake in the video game retailer.
Gill, known as DeepF — ingValue on Reddit and Roaring Kitty on Twitter and YouTube, now owns 100,000 shares of the company worth more than $ 4 million. It also has 500 call options worth approximately $ 1.5 million.
Unrealized earnings of more than $ 5.5 million are in addition to the more than $ 10 million of earnings he has already recorded.
THE TAX ON FINANCIAL TRANSACTIONS OF ILHAN OMAR COULD HURT MAIN STREET: GAMESTOP AUDIENCE SPECIALIST
GameStop’s stock on January 28 skyrocketed to an intraday high of $ 483, with members of Reddit’s WallStreetBets group teaming up to tighten short positions, or betting stock would fall.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| GME | GAMESTOP | 45.75 | +5.07 | + 12.46% |
The slight pressure caused the Robinhood trading app to freeze customers when buying GameStop shares and other highly volatile stocks, as the increase in trading volume made the company unable to meet the clearinghouse’s deposit requirements.
The episode prompted Gill, Robinhood’s CEO Vladimir Tenev, and others to testify last week before the Chamber’s Financial Services Committee.
Gill, at the hearing, told lawmakers that he believed the video game retailer “has the potential to reinvent itself as the ultimate destination for gamers,” turning to a technology-driven business.
He also said the stock, which closed at $ 45.94 on Wednesday – the day before the hearing – was attractive at its current level.
GameStop’s shares have shot up 364% since September 22, when activist investor RC Ventures, venture capital firm of Ryan Cohen, founder of online pet food supplier Chewy, announced that it had increased its stake in the company to 9 , 98%.
RC Ventures de Cohen, which plans to turn the company into an e-commerce business that sells a wide variety of goods with fast shipping, announced on January 13 the addition of three directors to the GameStop board, beginning the small squeeze.
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Although GameStop’s shares rose 117% this year through Friday, the company continued to struggle amid the COVID-19 pandemic.
GameStop’s third-quarter results, released on December 8, showed that sales fell 30% year-over-year as stores closed due to the pandemic and the trend of downloading online games weighing in. The company lost $ 18.8 million during the quarter, an improvement from the $ 83.4 million lost the previous year.