Monthly Net Worth Update – Jan 2021 – Moolah-Man
Here is Moolah-Man’s net worth update for last month.
In January, Moolah-Man’s net worth shot up to 150k (a good 41% increase in a month). All because of $GME <3.
“Can’t stop. Won’t stop. Gamestop.”— r/wallstreetbets
Why Did Moolah-Man Invest in Gamestop?
There are a few catalysts that made Moolah-Man invest his hard-earned money into $GME. (Big shout out to the redditors who did their amazing due diligence!)
1. Short Squeeze Potential
GME is heavily shorted by the big institutions as they used to have an outdated business model of brick-and-mortar stores in the US. Too little shares are available in the pool for the institutions to cover their shorts, as people are now buying and holding the shares in hopes to win against the big boys. Every time the price shoots up, institutions will get burnt and need to BUY back the shares to cover. When they buy back, the price will increase. It’s a vicious cycle of price increase. See short percentage (as of time of writing 102.08%, according Yahoo Finance). You would think that there is only 100% of shares to be sold, but institutions borrowing from institutions can achieve that kind of result. Read also Volkswagen short squeeze back in 2008.
2. Ryan Cohen
Ex-CEO of Chewy, invested 9 million shares into this company, making him one of the new board member. People believe that he will be bringing in his wisdom into GME like what he did with CHWY.
3. Gamma Squeeze Potential
Option sellers will need to hedge their trades from the price increase, leading to another cycle of increase in the price.
4. Multi-year partnership with Microsoft
This will strengthen their e-commerce sales. Market is forward looking. No point thinking them as a dying business. They are doing their best to turnaround.
The infamous subreddit making the headlines, leading to more new traders FOMO-ing. This subreddit has been advocating for other redditors to HODL and claiming that the tables have turned. It’s time for retailers to take all the money from the institutions. You’ll see their new king, DFV (full name can’t be stated in this website) has increased from 5 figures to 7 figures.
6. Michael Burry
Guy who predicted the housing bubble is long on this stock. Need I say more?
Buuuuuuuuuuuuuuut. There’s always a but. The stock has went up too high too fast. It became a meme stock that made people FOMO and YOLO their savings into it. Because of that, Moolah-Man decided to take out his capital when the stock price doubled.
Surprisingly, Moolah-Man noticed that he sleeps better now that his initial capital is saved. Volatility kills sleep.
Meanwhile Moolah-Man plans to just leave the rest of it and HODL for the long term. Can’t wait for Ryan Cohen to do his magic. The following news made me want to be a diamond hand:
Update: Seeing the net worth drop in February is painful. The non-stop “could-haves”
More info on Moolah-Man’s net worth in 2020 can be found here.