Image: ABC News
Faizel Patel – 29/01/2021
The Managing Director of ATK Esports says it’s very unusual for a retail investor to bully institutional investors following the GameStop saga.
Warren Barkhuizen was speaking to Radio Islam on Friday about the whole GameStop fiasco which saw the value of the retailer soaring from less than $20 weeks ago to a peak of $492 on Thursday, dearly costing hedge funds that bet GameStop stock would tank.
GameStop is s an American video game, consumer electronics, and gaming merchandise retailer.
An epic battle unfolded on Wall Street, with a cast of characters clashing over the fate of GameStop.
Barkhuizen says investigations are underway to determine the volatility of the value of GameStop.
“The people that run the markets are looking to this. I don’t see anything illegal but certainly they are going to try to have a good look at this and what happens and how to prevent something like this happening again.”
Barkhuizen says there is no rational explanation for the increase in GameStop’s value.
“The analysts and the people who have taken a look at the financials obviously, a 2300% rise in a stock price is not rational and is not based on any fundamentals. This company isn’t suddenly selling more products, it is not suddenly making any more profit than it was two weeks ago.’
Barkhuizen says individuals in the hedge fund industry who had to take a hundred percent loss had a lot of time to “get back into the game at a much higher price.”
Listen to the interview with Warren Barkhuizen
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