and it went up to, like, $50. andi m like, oh, shit. i just made a bunchof money on that. and then it went down. and then i was, like, sick. i was like, i don t knowwhat the fuck i m doing. i m an idiot.and then it went back up. i m like, oh,i m a genius. - [roars] sir jackalot: everywhere elseon the internet, people are tryingto be their best self. but on wallstreetbets, we just acknowledge,like, we re just all idiots. [typing] stock expert:wallstreetbets came on our radar, and we first startedto talk about it with teslain the summer of 2020. wallstreetbets would makea meme or a joke
or death with jak inhibitors. it s time to get out in front of eczema. ask your doctor about once-daily cibinqo. [christmas music] welcome, boys and girls, to a sir jackalotchristmas carol. gather around,my fellow degenerates. grab a mug ofeggnog and find a cozy cornerof your mother s basement, and enjoy this taleof sir jackalot. this post here is my magnum dong opus. now listen, my convictionfor the gamestop mother of all short squeezes. the moass, it was insane. i had over a million dollarsinvested in this. that s all my net worth. but that 20%earnings drop, oh, man. oh, man. it hurt. it really hurton a spiritual level.
like it makes sense that they re goingout of business, but they seemto be making some plays. alvan chow:and then i just noticed this extremelyastounding figure, the 140%short interest figure. sir jackalot: 140% shortinterest ratio on one stock. that means there are moreshorts than shares that exist. [laughs] all the shares outstanding for the companywere basically shorted, which is absurdand unprecedented. alvan chow:so i tried to look for a historical precedenton what would happen if somethingwas over 100% shorted, but there was nothing. stock expert:when you sell stocks short, you re betting that the marketis going to go down. and if you re wrong,the stock can go up against youvery sharply, and you have to close thatposition, usually at a loss. so you can see guyson wallstreetbets who knew what they were doing. these guys are smart.they understand, ok, we can get leverageon this thing, right?
third quarter2020 earnings call. sir jackalot: i rememberbeing the cocky asshole, literally playing the final countdown, the song, making sure i was physically readyfor an earnings report. man: the call will includeforward-looking statements, which are subject to variousrisks and uncertainties that couldcause actual results to differ materiallyfrom expectations. - you know, you havelegendary investors, like michael burryand bill gross - god. watching the earnings call. man: we continue toreduce expenses, delivering over $315 millionin its expense reductions so far this year. and weare pleased to end the quarter with almost $300 millionmore in cash and restricted cashcompared to the end of the prior year third quarter. sir jackalot:and gamestop, it was shooting up.i was like, this is it. this is the squeeze.this is finally happening. i was, like,literally jumping up and down. man: to summarizethe third quarter, we believe the pandemic,and importantly the
sir jackalot: and a coupleof months afterwards, it just starts tanking. i was like, oh, no.oh, no. what s this mean? what s this mean? man: we have closedalmost 800 stores worldwide since the beginning of 2019 - and it started tankingeven more. and i was like, oh, fuck. man: in an adjusted lossof $0.53 per share. sir jackalot:it crashed like i don t know 15% to 20% instantly. i was like, whoa, i just lostsome serious money. alvan chow: they didn t eventake a q&a session. george sherman,kind of a boomer. just read off his script. if they haddone anything, [laughs]i think it would be better. matt kelly:i m buying christmas presents and stuff for the kids. and i m kind ofgritting my teeth. and at the same time,i m having to instill confidencein my wife, that like this isgoing to work out. i m not going to sellfor a loss. stocks only goup, right? - that s where i gota little cold feet. got some paper hands. i sold my sharesprobably december, mid- december. 88,000 gamestopshares at $15.