Reddit trader, known as ‘Roaring Kitty’, defended his social media posts that sparked a mania in GameStop shares last month in testimony released on Wednesday, saying he is an individual investor who is only on the publicly available information acts.
The dealer, whose real name is Keith Gill, will testify to the U.S. House Financial Services Committee on Thursday. In addition to defending his actions, Gill used his testimony to reiterate the case as to why he was still clumsy on GameStop.
“GameStop’s share price may have gone up a bit last month, but I’m just as strong as I’ve ever had a potential turnaround. In short, I like the stock,” Gill said in the comments. “I believed – and I continue to believe – that GameStop has the potential to rediscover itself as the ultimate destination for gamers in the $ 200 billion thriving gambling industry.”
Through YouTube videos and Reddit reports, Gill – who goes DeepF —— Value on Reddit and Roaring Kitty on YouTube – attracted an army of day traders who cheered each other on and piled up the brick-and-mortar video game . stock and call options.
GameStop’s share price has risen to $ 483 per share, after currently falling more than 90% to around $ 46 per share.
“I believed the company was dramatically undervalued by the market. The prevailing analysis of GameStop’s impending downfall was simply wrong,” he said in the testimony. “My investment skills have reached a level where I felt sharing them publicly can help others.”
According to Gill’s testimony, he started buying shares of GameStop in 2019, when the share price fell on disappointing earnings. On top of that, Gill likes that famed investor Michael Burry was bullish on GameStop.
‘Because I thought the stock was undervalued, on June 7, 2019, I bought call options. I increased my position during a large part of 2019 and 2020, because as I continued to analyze the company and its three prospects, I gained more and more confidence that the share price was indeed dramatically undervalued, ”reads the evidence.
Gill said the market underestimates GameStop’s growth prospects and overestimates the likelihood that the video game will go bankrupt. Gill believes GameStop can expand its digital capabilities and leverage its 60 million loyal members, the evidence said.
The WallStreetBets star further said that social media platforms like YouTube, Twitter and WallStreetBets on Reddit compare the playing field for individual investors as they work together to build investment ideas.
“I was very clear that my channel was for educational purposes only, and that my aggressive investment style would probably not be appropriate for most people who visit the channel,” Gill said. “Whether other individual investors bought the stock was irrelevant to my dissertation – my focus was on the fundamentals of the business.”
Gill’s latest report on Reddit showed that he earned $ 7.8 million from GameStop. On Wednesday, a class action lawsuit against Gill was filed in federal court in Massachusetts, alleging that he pretended to be a novice trader, even though he was a licensed professional.
While Gill worked as a marketing and financial training employee at MassMutual, he said he never sold securities for the firm, nor a financial advisor.
“My investment in GameStop and my social media posts were completely my own,” Gill testified. “I did not ask anyone to buy or sell the stock for my own profit. I did not belong to any groups that tried to bring about movements in the share price. I never had a financial relationship with any hedge fund. “I had no information about GameStop other than what was public. I did not know any people within the company, and I never spoke to an insider.”
Gill will testify to Congress on Thursday at 12 p.m. ET about the GameStop trade battle.
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