GameStop NEWS Posted this Morning! GAME PLAN transcript

okay so it's about 7:15 and we're going to do a GameStop update so if you watch my recap yesterday you'll see that I was down $10,000 on GameStop the only person in the world that lost money on it yesterday except of course short sellers uh because in spite of the stock going up basically like this I managed to buy Tops on it and get stopped out not once but twice I got stopped out right here buying the break of $44 a share and caught that red candle and then I got stopped out after hours buying the break of 47 and got stopped out on that red candle both times I oversized for the range lost four grand basically on each trade or F yeah it was down 9,000 um nonetheless uh I got chopped out only to watch it squeeze after hours I first see it go up to 48 up to 52 and then pulls back and then goes up to 54 and then pulls back and then goes up to 58 and a 60 and 65 and 68 so here I am crying into my soggy lettuce hands and feeling sorry for myself I could have would have should have just had the coones to hold the whole position and be up you know 20 grand but instead I'm in the red so I'm starting to think all right should I uh should I sit down at 4:00 a.m. right that's what I'm starting to think so I'm watching the after hours price at um on my phone on Robin Hood just to kind of see like where it's at and I see the after hours prices are showing like 5758 so I'm like n all right I happened to roll over around 4:30 in bed and I pulled up my phone refreshed it and saw it was at 65 so I was like all right it's not it's not going up into the 7080s so um you know whatever so then I get up around 6 and I saw it had just started to dump here when I pulled up my phone so I was like ah all right well it's pulling back and when you look at it like this you could see you know it's pulling back but now look at this holy smokes it dropped all the way down to $338 so what happened well we had news that just came out the news that came out was that they report earnings earlier than expected so they reported their q1 earnings um and let's see if I can pull them up here so the q1 earnings um were a Miss let's see um missing Wall Street estimates um this is a Seeking Alpha article so it's kind of um uh so let me let me see if I can get the actual um well so non-gaap um earnings per share of minus 12 cents misses by 3 cents revenue of 881 million misses by 113 million so let's see um so net sales were 880 million for the first quarter compared to 1.2 billion for the prior Year's first quarter so definitely you know revenue is net sales are down net loss was 32 million for the first quarter compared to a net loss of 50 million for the prior Year's first quarter so their net loss has trimmed a little bit cash and cash equivalent Etc 1 billion at the close of the quarter okay so so they posted earnings um and they're they're a Miss okay so they missed on earnings but but they posted them early several days early um which is confusing why why are they posting earnings early right earnings were supposed to be I think on the 11th so they're posting them a few days early so that's weird uh so they post earnings early and then they have another uh announcement here which is a shelf registration which gives them the right to sell 75 million shares at the market 75 if they sold 75 million shares shares at the market they'd raise well at the current prices billions of dollars so um so now this is in their prior offering they sold 45 million shares and they raised about a billion and that's what gives them about a billion dollars of of cash right now so they're sitting on a lot of cash and now they have the right to sell another $75 million 75 million shares so and these open market sale agreements have to announce this to um shareholders because it it's important that shareholders are aware that there's a shelf out there so essentially this morning and we know that roaring Kitty has a um YouTube live scheduled for 12: p.m today so there's a lot of question about you know everything that's going on in fact it was the YouTube live scheduling that got this so amped up so um so now you know you've got this big move into his uh roaring Kitty's 12 pm live stream today but the company sort of softening that with these two um these two you know pieces of news so yeah with the Shelf registration it's very common a lot of companies have shelf registrations but this is a big registration 75 million shares 75 million shares would dilute the current share well currently there's um let's see how many shares do we have it's actually down a little bit they've got about 300 million shares so this would increase the float by like 25% a little bit more than that so it's it's substantial you know there's substantially there that's a lot of shares to sell onto the market so now the problem is you can't help but feel like um if you trade it you're potentially Buy buying shares the company is just selling right on the market and that's always a little bit of a a crappy feeling it it feels like this is where I don't know this is where the retail Traders get sort of the rug pulled on them because you know stock starts going up and then all of a sudden hey let's do an offering let's dump it you know stock starts moving up and then hey here comes some bad news so I don't know you know but on the other hand maybe it's just going to trap some shorts um maybe and then it it really depends I guess on the news or the the live stream at noon time which I'll watch I'll be tuning in for the things that I'm going to be looking for in that live stream just to give you some context so the things that I have said kind of right along on this is that I feel like we don't have a I haven't get her like a the thesis of why this is a buy right now because I don't see see it as being a deep Value stock at its current prices or even when it was pricing at like 20 I just didn't see it that way no convince me that I'm wrong I'm I may very well be wrong I obviously was wrong about how much it's gone up just in the last day or two so you know I convinced me that I'm wrong help me understand why it's deep value right now help me understand why it seems like the short interest is only 20% Which doesn't seem like enough to create a big squeeze now some people are saying well he bought uh 12 million shares worth of uh option calls which is going to force potentially um the hedge fund or whoever sold those calls to buy 12 million shares well we don't know that they don't already own 12 million right I mean they could have just written the call I mean we don't know but at the same time yesterday given the fact that the volume on this yesterday was 200 million shares I'm not sure that being forced to buy 12 million shares would really have a sub I mean I don't know I mean it would be 12 million shares of buying it would move the market but I don't think it would send the stock to like $2 $300 a share by any means uh again prove me wrong Maybe I'm Wrong um but that's just the way I see it and also not to mention that for him to execute on those calls he is going to need $240 million of cash to buy the the stock so I'm just I guess I just don't know um I mean obviously he's got I I just don't know exactly how that how it works um so he's up a lot on them but it just it just I I'm a little bit confused by it um so my kind of theme with what I want to see on the live stream is give me a thesis tell me the reason why it's a good buy and paint the picture give me the story and then then I can have something I can sort of be buying into right now I'm just not clear and so I've been trying to trade the price action but obviously you know I got um I I I lost on that yesterday now I'm still green on the week on GameStop I I really shouldn't complain too much it is a choppier stock we've got bigger spreads uh by the way I haven't taken any trades yet on it today it's down 10% right now so I don't know if I'm going to take any trades on um on GameStop today I think it'll really depend on the live stream so you know I'll be watching during the live stream I'll be streaming here at Warrior during that live stream so you guys will know what I'm doing but uh we can listen together but yeah I'm uh I don't know that that that's kind of to be determined now I also as always during these periods we'll look at other stocks that have sympathy momentum because there's a lot of emotion in the market right there's some fomo in the market so Traders are kind of you know they're looking for stocks to trade people are going to sit down and feel some fomo that oh GameStop you know made this huge move I didn't do well on it so what's something else so if we see something else it starts moving then you know I'll pay attention to that currently This Morning Vero is our leading gapper up 107% this made that big move after hours pulled back at 4:00 a.m. so that one's out of play for right now g g Jour whatever 575 million share float that's a little outside my strategy LLY this one I took a trade on yesterday I lost on it was a little choppy um popped up at 4:00 a.m. dropped down I'll keep that on a side chart vs H this was another one that moved after hours it's pulling back bcda this one is you know kind of recent reverse split some news maybe but you know we'll we'll see so right now it's still a little early so just kind of giving you guys a um you know a little breakdown a little update uh on gam stop especially and yeah at this point given the fact that the company now can sell up to 75 million shares we just don't know when we're looking at the level two if that's the company dumping shares right so that's just the risk that we face right now so got to manage risk and I guess the thing on um GameStop is that buying dips is a lot better than buying breakouts and that well I did buy breakouts on Monday and I'm I'm green on the week buying breakouts in total green on Monday but red yesterday buying dips would still probably be better okay so you know that's it um for the GameStop breakdown and it's coming up to 7:30 so I'm going to watch news at the bottom of the hour we'll watch news at the top of the hour 7:38 8:39 and then we'll go into trading hopefully we'll have a good day and then watch this live stream at noon time so that's the game plan for today