Profit Pregame

How GME Can Go from a “Meme Stock” to a Legit Growth Name

A New Twist in the GameStop Saga

Once a stock traded solely for short squeeze potential, GME could soon become a real force in the video game industry… again.

What’s happening?

GameStop Corp. (GME) – the stock that started the short squeeze craze back in late January – is looking to become more than just a “meme stock” that is valued mostly by supply and demand and not for its fundamentals.

In attempting to play catch-up to a video game industry that has largely seen sales move away from brick and mortar locations and into the digital world, GameStop has announced several new hires – including a new Chief Growth Officer and Chief Technology Officer.

The moves come as GameStop revealed on Monday that year to date sales in 2021 have increased 11% over the same timeframe last year.

So, to help keep that momentum going and finance its transformation into bigger and better digital sales, GameStop is planning a massive new offering that could have huge ramifications for its stock.

Where’s the money?

In March, GameStop announced that digital sales had already increased 175% in the fourth quarter.

Much of that is thanks to the overhaul of GameStop’s business plan to better align to consumer spending habits, spearheaded by board member Ryan Cohen.

And as GME looks to capitalize on the huge amount of attention it has received on Wall Street lately, the video game retailer said it may soon be offering up to $1 billion in additional shares.

The move is expected to finance even more efforts to bring GME up to speed with digital competitors, solidifying its fundamentals and potentially stabilizing GME’s valuation.

While concerns about share dilution are valid, they should be minimized by the nearly ten-fold increase in GME since December.

So, with GME looking like it may not meet a similar end as Blockbuster after all, is it a good buy for the long-term?

Here’s what I think…

How do I get some?

In my opinion, this should have happened a long time ago.

But GME is doing the right thing by offering more stock after a massive increase in value.

The announcement of the new stock offering took the share price down initially, but for some reason that I can’t explain GME rallied and has remained fairly stable.

In the short-term, I believe that strong demand will buoy GME stock while the company perfects its ecommerce strategy. I think this stock goes higher in the long-term as revenue improves from increasing digital sales.

In the end, being the first “meme stock” may ultimately be exactly what saves GameStop from going under. I like adding shares of this stock on any pullback.

Short Squeeze Hunters May Need to Find a New Target

The latest news from GameStop might well spell the end of the party for those looking to extend the short squeeze on GME stock.

But there are still plenty of short squeeze profits out there to be had, if you know how to find them.

Just yesterday, subscribers of Super Squeeze Profits had a chance to cash in a 100% gain after just two weeks on a trade I recommended on Cleveland-Cliffs Inc. (CLF) – a highly shorted steel mining company.

The GameStop saga illustrated how, with a concerted plan, everyday Americans can beat hedge fund managers and institutional traders at their own game.

And with the help of my proprietary S.C.A.N. trading algorithm, I’m giving Short Squeeze Profits subscribers the real time data that can help traders get out in front of those spikes for a shot at massive wins.

It’s not too late to get in before the next short squeeze. Click here now for all the details.

In the Spotlight: A Backdoor Play on the Booming EV Space

With the boom in electric vehicles just getting started, there could be several enormous profit opportunities in “pick and shovel” plays that take advantage of growing demand.

Lithium is a key material in the production of high-capacity batteries – like the ones used in electric vehicles.

And with more and more companies entering the space lately, demand for lithium has skyrocketed, sending prices up along with it. Since July 202, the price of lithium has nearly tripled.

There are several lithium production companies that stand to benefit greatly if the demand and high prices can hold. I’ll be doing research on each, and I’ll be releasing my findings – and possibly a name or two to invest in – in the coming days, so be sure to keep an eye out.

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