News

“Roaring Kitty” Keith Gill defends GameStop posts, saying he is extra upbeat than ever on the inventory

roaring-kitty-keith-gill-defends-gamestop-posts-saying-he-is-extra-upbeat-than-ever-on-the-inventory

Reddit and YouTube’s trading star known as “Roaring Kitty” defended his social media posts, which last month helped spark a mania in GameStop stocks.

The trader, real name Keith Gill, will testify before the US House of Representatives Committee on Financial Services on Thursday. Aside from defending his actions, Gill used his testimony to re-establish why he is still optimistic about GameStop.

“GameStop’s stock price may have improved a bit over the past month, but I’m more optimistic than ever about a possible turnaround. In short, I like the stock,” Gill said in the comments. “I believed – and continue to believe – that GameStop had the potential to reinvent itself as the ultimate destination for gamers in the thriving $ 200 billion gaming industry.”

Through YouTube videos and Reddit posts, Gill – who offers DeepF —— Value on Reddit and Roaring Kitty on YouTube – attracted an army of day traders who cheered each other on and plunged into video-only stock and call -Options.

GameStop’s share price rose to $ 483 per share before falling more than 90% to currently around $ 46 per share.

“I thought the company was dramatically undervalued by the market. The prevailing analysis of the imminent fate of GameStop was just wrong,” he said in the statement. “My investment skills had reached a level where I felt that public sharing could help others.”

In his testimonial, Gil said he started buying GameStop stock in 2019 when the stock price fell on disappointing earnings. Gill also liked that famous investor Michael Burry was optimistic about GameStop.

“Believing the stock was undervalued, I bought call options on June 7, 2019. I increased my position for much of 2019 and 2020 as I continued to analyze the company and its three potential clients increasingly confident that the stock’s price was indeed dramatically undervalued, “the testimony read.

He said the market underestimated GameStop’s growth prospects and overestimated the likelihood of the video game company going bankrupt. Gill believes GameStop can expand its digital capabilities and leverage its 60 million loyal members, the testimony reads.

The WallStreetBets star went on to say that social media platforms such as YouTube, Twitter and WallStreetBets on Reddit improve the playing field for individual investors as they work together to develop investment ideas.

“I knew very well that my channel was for educational purposes only and that my aggressive investment style probably wasn’t appropriate for most of the people who check out the channel,” said Gill. “Whether other individual investors bought the stock was irrelevant to my thesis – my focus was on the fundamentals of the business.”

Gill’s last post on Reddit said he made $ 7.8 million from GameStop. On Tuesday, a class action lawsuit was filed against Gill in federal court in Massachusetts alleging that he was an inexperienced trader despite being a licensed professional.

While Gill worked as a marketing and financial education clerk at MassMutual, he said he never sold stocks for the company and was not a financial advisor. MassMutual was named as a defendant in the lawsuit. “We are looking into the matter and have no comment,” said Paula Tremblay, a spokeswoman for MassMutual.

“My investment in GameStop and my social media posts have been entirely my own,” said Gill. “I have not asked anyone to buy or sell the stock for my own benefit. I did not belong to any group that attempted to create movement in the stock price. I never had a financial relationship with a hedge fund. I had no information about GameStop except which was public. I didn’t know any people within the company and I never spoke to an insider. “

Gill is due to testify in front of Congress on the GameStop retail controversy on Thursday at 12 p.m. ET.

Correction: A class action lawsuit was filed against Keith Gill on Tuesday. In an earlier version, the day was incorrectly specified.

Subscribe to CNBC PRO for exclusive insights and analysis as well as live business day programs from around the world.

0 Comments
Share

Katherine Clark