Grahamian Value Week in Review ― February 5, 2021
Grahamian Value Week in Review ― February 5, 2021
“I have always believed that a single talented analyst, working very hard, can cover an amazing amount of investment landscape, and this belief remains unchallenged in my mind.”
— Dr. Michael J. Burry
PART ONE.
WEEK IN REVIEW
PART TWO.
WEEKEND READING
PART THREE.
WEEKEND WATCHING
PART FOUR.
WEEKEND LISTENING
In the past week —
One business returns to the list of Grahamian Value companies.
There have been no material developments at Grahamian Value listed companies.
OVERVIEW —
Gulf Island Fabrication, Inc. returns to the Grahamian Value Classic list, most recently explored on November 6, 2020.
A BRIEF UPDATE —
In this issue we curate several primary source documents related to the Gamestop situation, which, in the eyes of the co-editors, is a real-time case study with multiple layers of long-term implications.
I. WEEK IN REVIEW
This marks our seventeenth consecutive week with no new additions to the Grahamian Value Classic list of companies.
Due to underlying share price movement, Gulf Island Fabrication, Inc. (once again) meets the valuation requirement for inclusion on the Grahamian Value Classic list. Please refer to November 6, 2020 for further situational background.
An Important Note for All Readers: We share the following primary source materials solely from a desire to case study the situational logic and reasoning (and facts and data) of Q3 2020 and Q4 2020. Subsequent developments, in our view, speak to topics such as market structure, market mania and, in certain instances, may arguably raise questions on the compliance of some market participants with the securities regulations. We view the present situation as one that will likely end in tears for many participants; in dismay, we watch from the sidelines. As always, the information below is intended for educational purposes and is not intended as investment advice.II. WEEKEND READING
Part 1 of 3 | September 8, 2020 —
u/Jeffamazon: “…If you’re wondering why fund managers aren’t covering [GameStop short positions] and going long, remember that they have a JOB. They can’t make contrarian bets at the risk of looking idiotic. Cohen and Burry can because they own their own money.” Full source
Part 2 of 3 | October 11, 2020 —
u/Jeffamazon: “They say the original is always better than the sequel, but not in the case of $GME. This second leg is going to go better I than expected. And I didn't take any adderall today, so this post will be short and sweet…” Full source
Part 3 of 3 | November 30, 2020
u/Jeffamazon: “The GME story can be broken up into 2 main theses. The first is a deep value play which has credibility all on its own. The second is an infinity short squeeze like we’ve never seen before in history, which has credibility all on its own. When combining the two, you get the trade of a lifetime. In all my (albeit limited) days, I have never EVER seen a trade set up like this before. I’ve pored over every source of historical finance material I can get my hands on, and still have nothing to reference to...” Full source
III. WEEKEND WATCHING
Courtesy of ‘Roaring Kitty’ (Keith Gill): In this video I review GameStop (GME, $4.03, $260 million market cap). As of July 2020 I’m bullish on the stock – perhaps foolishly so. What are your thoughts on GME? Do you agree or disagree with my take? What did I overlook in my analysis? Which of my assumptions were off? (Recorded on July 27, 2020)
IV. WEEKEND LISTENING
Courtesy of The Wall Street Journal & Gimlet: A group of investors on Reddit are driving up the stock price of GameStop, going against Wall Street consensus that the video game retailer’s days are numbered. WSJ’s Gunjan Banerji explains how they’re working together to make the stock soar — and make a lot of money for themselves in the process. (January 27, 2021 episode date)
ABOUT GRAHAMIAN VALUE
Founded in 2020, Grahamian Value is a labor of love centered around our desire to openly share data and perspectives that we find helpful in our pursuit of Benjamin Graham-inspired investment ideas.
The co-editors of Grahamian Value, as of the date of this communication, may individually own shares of companies mentioned herein. The publishers do not receive compensation from the companies and people covered in Grahamian Value for such coverage. This communication is for informational purposes only. This is not intended to be investment advice. Seek a duly licensed professional for investment advice.