I think the SEC needs to look into what happened here.
In an article on its website, MCV quoted an unnamed "well-placed source" as saying GameStop had made a bid for about half of Woolworths' stores in a move that would step up competition to UK market leader Game Group (GMG.L: Quote, Profile, Research, Stock Buzz).
However, a GameStop spokesman denied the story.
"GameStop Corp has made no bid for stores being sold by the administrator of British retail chain Woolworths. Claims originating from games industry publication MCV hold no merit and are completely inaccurate," spokesman Chris Olivera said.
I think MCV may have been taken in by some well-heeled investor trying to manipulate the stock price. He could have been short the stock or maybe was trying to pull some sort of volatility play or something. There wasn't any funny options trades as far as I can tell.
The stock dipped briefly to 19 on the news of the GameStop has lost their mind; and decided to buy a bunch of stores from a near bankrupt company that is selling things in an unrelated business for pretty much no reason at all. It would be like Home Depot trying to buy out the Gap or something. In any case the SEC needs to investigate.
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