One of the top penny stocks that has managed to make significant moves over the past week or so in the video game retailer GameStop Corp. (GME Stock Report). The company managed to reduce its staff by 14% and helped reduce costs to some extent. This happened all while ace investor Michael Burry made the bull case for GameStop in an interview.
Penny Stocks To Buy Or Sell In September: GameStop
In his Barron’s interview, Burry stated that he is quite optimistic about the company’s future. He also revealed that he owns 3 million shares of the video game retailer. That being said, the company has had a tough time over the past few years. As a result, GME stock price has tanked considerably due to that. However, recent developments make GameStop one of the more interesting penny stocks to watch.
Back in 2013, GameStop used to trade at $50 a share but over the years, the company had run into great difficulties and last Thursday, the stock was trading at only $4.23. However, now is the time to look at the positive developments that could prove to be positive for the stock.
Michael Burry, of ‘The Big Short’ fame, stated that he has a 3% stake in the company as of now. He went on to argue that the company’s shares are currently cheap. That proved to be a major boost for the penny stock as it started climbing.
One Of The Best Penny Stocks To Watch In September?
However, it was last Thursday that the stock recorded another 9% gain after GameStop announced large-scale changes to its website. Customers had complained repeatedly about the website. After GameStop announced the said changes, the shares shot up. That being said, it’s highly unlikely that the significant bump was wholly due to the changes announced about the website.
It’s important to note, that at the end of July the total short position in the stock is significant and that could have had an effect. According to analysts, the short interest in the company stood at as much as 57 million shares.
Shares of GME are up about 26% over the past two weeks from its 52-week low of $3.15.