"Burry, who recently pivoted from hedge fund manager to online writer, first invested in GameStop in the summer of 2018. The video-game retailer's stock looked undervalued to him, and he saw an array of catalysts that could send it higher, he wrote. They included a console refresh in 2020, the possibility of a buyout, the potential sale of the Spring Mobile business, and strong cash flows and a large cash pile offering scope for a "very big and consequential buyback," Burry wrote."
"He exited the position in the second quarter of 2019 after the stock failed to budge. But he reinvested in July 2019, buying the stock "with both hands" and making it one of his larger holdings, in part because high short interest presented a fresh catalyst, he wrote. "I visited a GameStop store to make sure I was not crazy," Burry wrote. "It did not work.""
Michael Burry first invested in GameStop in summer 2018 after assessing the stock as undervalued with catalysts including a 2020 console refresh, potential buyout, sale of Spring Mobile, and strong cash flows enabling a large buyback. He exited in Q2 2019 after lack of price movement, then reinvested in July 2019 and made the position a large holding driven partly by high short interest. Public activism led to contacts from Keith Gill and Ryan Cohen and included direct outreach to the board. Burry ultimately sold before the 2021 meme-driven surge and regretted missing the significant gains.
Read at Business Insider
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