- Michael Burry compared the GameStop squeeze to “The Big Short” as a unique opportunity.
- The investor highlighted the stock’s huge short interest, small market cap, and how unloved it was.
- Burry said that if he had made life-changing money on GameStop, he would cash out.
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Michael Burry compared the GameStop saga to “The Big Short” and suggested big winners should cash out in tweets on Friday and Saturday that have now been deleted.
“There really can’t be another GME,” the investor said. “Nothing else is/was even close to as shorted (100+% of float), so small (microcap), and so hated/ignored/dismissed prior to the #thebigshortsqueeze.”
“It was a uniquely perfect setup,” the Scion Asset Management boss continued. “There won’t be another like it. Much like #thebigshort.”
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Burry is best known for his billion-dollar bet on a US housing-market crash in the mid-2000s, which was chronicled in Michael Lewis’ book “The Big Short.”
The investor laid the groundwork for GameStop’s astronomical rally this month when he disclosed a 3% stake in the video-game retailer in August 2019, and began pushing for changes at the company.
Chewy cofounder Ryan Cohen followed his lead by taking a 13% stake in the retailer last year, and parlaying it into three board seats earlier this month.
Hordes of amateur investors, buoyed by Burry and Cohen’s votes of confidence, have seized the chance to squeeze short-sellers and make fast money by driving GameStop’s stock price up as much as 2,500% this month.
Read more: A veteran options trader breaks down the intricate strategy that Reddit traders used to outsmart Wall Street’s bet against GameStop – and shares 2 ways the parabolic rally could permanently alter the stock market
Burry highlighted the story of Keith Gill, the casual investor who goes by “Roaring Kitty” on YouTube and u/DeepFuckingValue on Reddit, in another tweet.
Gill plowed $54,000 into GameStop call options in June 2019 after determining the retailer’s stock was undervalued. He boasted $32 million in GameStop calls and shares and $14 million in cash as of Saturday, according to an unverified screenshot he posted on Reddit.
“Hey, $GME is now a $stonk and may go >$1000, but if I made a life-altering amount in this stock, I’d punch out,” Burry tweeted.
“Main Street has Wall Street by the cojones. Great story/LOVE it. Tee it: bulls make money, bears make money, #pigsgetslaughtered,” he added.