Chewy Inc. spiked again after pumping and dumping last Thursday when ‘meme’ stock trader Keith Gill, known as Roaring Kitty, posted an image of a cartoon dog on X.
The second pump occurred Monday morning in premarket trading in New York after a disclosure with the US Securities and Exchange Commission shows that Gill owns 9 million Class A shares, valued at about $245 million based on Friday’s closing price. This equates to about a 6.6% passive stake in the online pet food and product retailer.
Things are getting so weird, next thing GME and Chewy will spinoff into a company that sells games to animals,.
— Jamie (@GoEBBE) July 1, 2024
Here’s more from Bloomberg on Gill’s Chewy filing:
Monday’s filing lists June 24 as the date of event and contained a tongue-in-cheek reference to Gill’s Roaring Kitty persona. The document submitted to the SEC’s Edgar database of corporate filings includes a section for the reporting person to “designate whether you are a cat.” It’s followed by two check boxes, one that reads “I am a cat.” and the other — which is marked — reads “I am not a cat.”
Gill, known for his bullish stance on the struggling video game retailer GameStop (basically squeeze bearish hedge funds), is now going uber long in a heavily shorted pet foods company. The link between the companies is Ryan Cohen, GameStop’s CEO, who also co-founded Chewy.
And if history serves as any guide, such as Gill’s most recent GameStop pumps, which allowed Cohen to dump 75 million shares into retailer traders, allowing the company to raise more than $2 billion, then Chewy could be imminently preparing to capitalize on meme frenzy.
CHWY about to issue more stock https://t.co/Nwn6Hy28Cb
— zerohedge (@zerohedge) June 27, 2024
Shares jumped as much as 29% in premarket trading.
There are many questions…
$CHWY $GME It seems pretty clear now: Keith Gill investing $200 mil in Chewy? Unlikely this is his own money. Even selling all his GameStop without paying taxes, it just doesn’t add up. Remember, investing is always at your own risk. If you’re looking for aggressive buys Warren…
— Citron Research (@CitronResearch) July 1, 2024
Sigh.
Tyler Durden
Mon, 07/01/2024 – 08:05
