Gamestop = Tulip Bulbs

The company is a niche marketer of new and used video games and associated computer accessories and collectables. Small investors - or more, properly, speculators - have driven the price up to levels beyond the dreams of avarice, or anything else that makes some kind of sense. Just today, it went from the ridiculous price of $248 per share to $347.51. Contributing to the rise is a short squeeze on market professionals - the situation in which they must buy shares to cover their short positions.

In the 3 hours since the markets closed, shares have dropped dramatically. A few minutes ago they were off 123 points, but have now rebounded to where they are off only [!] 90. I suspect the short squeeze might be over, and the amateur speculators [dumb money] like the 16-year H.S. student mentioned in the attached article are on their own.

This is speculation run amok. There is little intrinsic value to these shares, which were hovering around $4 year ago, and through much of the summer, before creeping up to about $14 in mid December.

There is only one way for this to end - with Gamestop shares back in the range of $2 to 4, where they belong. The only question is when it is going to happen. Rather soon, I suspect.