(News Bulletin 247) – Keith Gill, the investor who was at the basis of the 2021 rally in the video game distribution group, has significantly strengthened his position by purchasing, according to a post posted on Reddit.

The “roaring kitten” continues to bring rain and especially good weather to Gamestop action. As a reminder, Keith Gill, an American individual investor known under the nickname “roaring kitty” on X and on Youtube and “deepfuckingvalue” on Reddit, was the great trigger of a dizzying upward movement of Gamestop stock in 2021.

His rave analyzes of the company, published on social networks, encouraged thousands of investors to band together and massively purchase the titles of the video game distribution group, known in our latitudes via its Micromania brand. What followed was a significant increase in the stock (+2,000%) which caught the short sellers by surprise, forced to urgently unwind their positions. It was the birth of “meme stocks”, these values ​​that American individuals pushed on the stock market (also with the cinema operator AMC or Nokia) in 2021.

The fever on these values ​​popular with American stock marketers has since subsided. But, a few weeks ago, she briefly reappeared a few days when “roaring kitty” published a series of somewhat cryptic posts on X, suggesting that Keith Gill was returning to business. Gamestop and AMC then jumped.

>> Access our exclusive graphic analyses, and gain insight into the Trading Portfolio

The title is still burning

This time the individual investor has gone up a notch. Keith Gill posted screenshots of his portfolio on Reddit on Sunday showing that he held 5 million Gamestop shares at a paid price of $21.74, as well as 120,000 call options. Which would value its non-cash portfolio at around $180 million. As Bloomberg rightly points out, it is difficult to know whether the positions in these screenshots are authentic or not.

CNBC also notes that Keith Gill did not post his positions on the WallStreetbets forum, a section of Reddit, as he did in 2021, during the stock market frenzy around Gamestop.

But this is enough to cause a new jump in Gamestop shares which rose 74% in pre-opening trading on Wall Street this Monday, after having even gained more than 100%. AMC for its part advances by 25%.

Increase in capital

“The recent surge in interest in meme stocks, as major U.S. indexes struggle to reach new highs, is a sign of excessive exuberance and is more likely a negative sign given the headwinds blowing in markets,” said Robert Lea, an analyst at Bloomberg Intelligence.

Remember that Gamestop’s stock market surge remains totally disconnected from its economic fundamentals, considered very fragile by “ordinary” investors. According to investing.com, only one analyst covers Gamestop stock, and he is Sell, with a price target of $7 (compared to a current price of $23.14).

Gamestop also benefited from its renewed stock market form to increase its capital by $933 million last month.

More generally, and as we wrote in a previous article, the current economic context is much less conducive to the phenomenon of “meme stocks” than it was in 2021. “There is no chance that we are reliving a period of the same intensity (…) because the current monetary environment is absolutely no longer the same as at the time, whether in terms of rates or liquidity,” explained the last month Alexandre Baradez, of IG Markets.