TLDR
- Investor Ross Gerber has cautioned Keith Gill, known as ‘Roaring Kitty’, about his short-term position in GameStop, citing the potential risks due to Gill’s “many enemies.”
- Gill recently disclosed a massive $115.7 million stake in GameStop, including $65.7 million in call options expiring on June 21, which has led to a surge in the company’s stock price.
- Gerber and short-seller Andrew Left have expressed concerns about potential market manipulation, with Left questioning whether someone else is operating undercover.
- The Massachusetts Secretary of State’s Office is investigating Gill’s trading practices, while the Securities and Exchange Commission is also reviewing GameStop options trading activity.
- E-Trade, the brokerage Gill uses, is considering banning him from the platform over concerns regarding potential market manipulation.
The recent resurgence of meme stock mania, spearheaded by Keith Gill, better known as ‘Roaring Kitty’ or ‘DeepFuckingValue’, has caught the attention of investors, regulators, and online communities alike. Gill, who rose to prominence during the GameStop short squeeze in 2021, has once again stirred up the market with his latest disclosures and online activity.
On Monday, Gill shared a screenshot showing that he holds 5 million shares of GameStop stock, along with $65.7 million in call options expiring on June 21. The revelation of his massive $115.7 million stake in the video game retailer has led to a surge in GameStop’s stock price, with the shares closing Monday’s volatile session up 21%.
However, Gill’s actions have not gone unnoticed by the investment community. Renowned investor Ross Gerber took to X to caution ‘Roaring Kitty’ about his short-term position in GameStop.
Kitty better be careful exposing such a short term position with so many enemies. Where would he get all the money… he’s got to sell the options soon. $gme
— Ross Gerber (@GerberKawasaki) June 4, 2024
Gerber warned that Gill “better be careful exposing such a short term position with so many enemies,” hinting at the potential risks associated with his highly publicized trades.
Gerber’s concerns were echoed by short-seller Andrew Left, who raised doubts about Gill’s actions and questioned whether someone else was operating undercover.
The increased scrutiny has also caught the attention of regulators, with the Massachusetts Secretary of State’s Office confirming an investigation into Gill’s trading practices. The Securities and Exchange Commission is also reportedly reviewing GameStop options trading activity.
Adding to the controversy, E-Trade, the brokerage platform Gill uses, is considering banning him over concerns regarding potential market manipulation.
The Wall Street Journal reported that the Morgan Stanley-owned brokerage is holding internal talks about whether to drop Gill from the platform.
Despite the regulatory pressure and concerns from market participants, Gill’s impact on GameStop’s stock remains evident.
The company’s shares have risen 62% over the past month, largely driven by renewed interest from retail traders inspired by Gill’s actions.
