Wall Street Journal: West Conshohocken Investor Was Trying to Increase Value of GameStop’s Stock Well Before Reddit Craze
John Broderick, who manages West Conshohocken-based Permit Capital, was working on increasing GameStop’s stock price long before the Reddit craze, writes David Benoit for The Wall Street Journal.
Last spring, Broderick joined forces with another small-time investor, Kurt Wolf, to try and shake up the company’s board of directors because they believed GameStop’s stock was worth more than $4.
“We believe the fair value of the Company is at least $19 per share,” they wrote at the time.
They were successful and their gamble paid off significantly when the video game retailer’s shares skyrocketed to $400 before settling back at $90. This boost netted Permit Capital more than $100 million in paper gains.
The pair of investors risked their reputation on GameStop’s future, which helped plant the seeds for the stock rally that has captivated Wall Street.
Broderick has been able to cash out the majority of his stake in the company and book career-changing gains.
“It’s sort of like after the Super Bowl when they ask someone how it feels and they say it doesn’t feel real,” he said. “I guess I can go to Disney World.”
Read more about John Broderick at The Wall Street Journal by clicking here.
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