The company accumulated 5.05M shares of GME stock over the fall and winter of 2020. That is 7.24% ownership in GME. The company hovered below $20 for all of 2020. In January, the only positive news was that Ryan Cohen, a big investor with lots of retail creds, announced three of his people were now on the board. But then, in late January, Wallstreetbets forum and Keith Gill really got into touting the stock and the 140% of stocks short. And the rest is history. We saw an epic short squeeze that only happens once a decade.
The following chart shows the meteoric rise of GME in late January. Based on the Q1 report, Senvest sold all of its holdings between Jan 22 and Jan 28, also shown in chart. Senvest's timing was almost perfect and the company managed to sell a portion at the very top of $380. Remember they had 5M shares. Depending on their exact selling price they could have made USD$1B. That's billion, with a captial B!
Senvest really did its homework on this. They even spoke with Ryan Cohen. Well done Senvest. I had no idea all this was in the works, but I am glad to come along for the ride. Senvest stock has quadrupled from the lows around when the company was building its GME position.
Today it trades at CDN$342, which is still only 52% of the book value of CDN$647!.
Ya, Senvest trades at a deep discount to NAV. It is funny how some SPACs trade at premium to book (pre-deal) and firms like Senvest which owns a basket of equities trade at 48% discount to book value. Just a reminder to the readers the management team has returned !7% YoY since 1997.
ReplyDelete*(Disclaimer) I have am ($SEC) Senvest shareholder
Hi Timothy, I just noticed your blog and you mentioned Senvest also. It's good to get the word out about Senvest!
DeleteThank you again for your investment insights!
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