#BUY TRADE MANIA 2 FREE#

#BUY TRADE MANIA 2 FREE#

Short interest on the retailer was 63% of its available shares for trading, or free float, or as of January 15, according to Goldman Sachs. His hedge fund, despite having missed out on the GameStop trade, reaped a 300% gain last week from its 2017 investment in Bed Bath & Beyond (BBBY). 'And I think it's just the beginning because I think we will eventually get to places where there's a complete divorce on the upside from real-world values.' A 300% gain on Bed Bath & Beyondīefore reaching that eventual bubbly top, the market still has a long way to run, and so do the many brick-and-mortar retailers unloved by Wall Street, Lemonides said. 'What's really interesting is that you can have this much drama and this much excitement without us going to crazy phantasmagorical valuation levels,' Lemonides said. Investors do not have to look far to find other companies trading at similar levels. He added that stocks such as GameStop, which is trading at stretched valuations in part because of expected future earnings, were a dime a dozen these days. 'And GameStop has the potential to transform their stores into a magnet place where people go to buy video games, socialize, and play games with other people.' 'Retailers do more than simply stock the shelves with something that you go in and buy,' he said. His hedge fund has never owned or shorted GameStop.Īs the economy recovers from COVID-19 and business activities resume, investors should also take into account the pent-up consumer demand for real-life interactions and experiences. He said it was fair for GameStop to plunge to $4 last year because the company was poorly managed and had to shut down its 5,000 stores in the middle of the COVID-19 pandemic.īut after Ryan Cohen, former CEO of the e-commerce pet retailer Chewy, joined GameStop's board along with two Chewy lieutenants, investors should reassess the company, Lemonides said. 'But it's not on the side of things that are just not sustainable or completely divorced from reality.' 'It's on the expensive side of things,' he said. Visit Business Insider's homepage for more stories.Īfter a frenzied week that sent GameStop (GME) 'to the moon,' the video-game retailer's stock fell back to earth and crashed more than 30% on Monday.īut the 'game' started by Reddit's army of traders is not stopping anytime soon, according to Charles Lemonides, the founder and chief investment officer of the New York hedge fund ValueWorks, which manages about $200 million.Īt about $245 a share in midday Monday trading, GameStop was valued at more than $22.5 billion, which was a high but not stratospheric price, even though the stock started the year at $19 and hit $370 before the end of January, Lemonides said.He says GameStop is only the beginning and shares another stock that could similarly spike.

He invested in Bed Bath & Beyond in 2017 and exited the stock last week, generating a 300% return.Charles Lemonides is the founder and chief investment officer of the $200 million hedge fund ValueWorks.