😺 Roaring Kitty's new GameStop play

"Roaring Kitty" exited his GameStop call options | US companies built up record levels of cash | [Finimize](   TOGETHER WITH     Hi {NAME}, here's what you need to know for June 15th in 3:11 minutes.   👀 So much of what gets labeled as “corporate innovation” is just old ideas in new-ish wrappers. On today’s [Generation Podcast](, Max talks to Lex Sokolin, an entrepreneur and economist who understands the difference. [Listen in to find out what makes innovation actually innovative]( Today's big stories - Keith Gill, a.k.a. “Roaring Kitty”, changed up his GameStop play - JPMorgan Private Bank has seen this film before: here’s where it sees opportunities now – [Read Now]( - US corporate cash piles swelled to a record $4.1 trillion last quarter, giving companies plenty of ammo The Kitty That Got The Cream [The Kitty That Got The Cream] What’s going on here? Keith Gill, a.k.a. “Roaring Kitty,” seemingly [exited]( all his GameStop call options and now holds around nine million shares. What does this mean? Gill, who sparked the original GameStop trading frenzy, seems to have shifted strategies. Earlier this week, his Reddit account showed that he owned five million GameStop shares and 120,000 call options, which were due to expire next week. They’re essentially contracts that give the buyer the option to buy a share for a certain price up to a set time in the future. The investor can either “exercise” them and turn them into shares, sell the contracts on, or let them expire. And according to a screenshot posted on the social media site yesterday, Gill now owns nine million GameStop shares and zero call options. Number-crunching traders believe he sold 80,000 of the options and exercised the other 40,000, meaning Gill now owns $260 million of GameStop stock. Why should I care? Zooming in: Cash money. GameStop has taken advantage of its pumped-up stock, selling new shares and raising $3 billion over the past month. That’s a whole lot better than going to the bank for a loan when interest rates are so high. Now, the company was already boasting around $1 billion in cash with just $500 million in debt before the raises. But GameStop barely turns a profit, so the bigger the safety net, the better. The bigger picture: The game is on. The GameStop craze is clearly far from over. In fact, the firm’s digital conference call system crashed during this week’s annual shareholder meeting, overwhelmed by the number of beady eyes joining the call. No wonder retail investors are so interested: the stock has tripled to $29 since the beginning of May – and even if it starts to slip, GameStop can afford to buy back shares to push the price back up. You might also like: [Nvidia’s latest rise has a GameStop feel to it.]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=The Kitty That Got The Cream&utm_campaign=daily-global-15-06-2024&utm_source=email) Analyst Take JPMorgan Private Bank’s Got Déjà Vu [JPMorgan Private Bank’s Got Déjà Vu]( By Russell Burns, Analyst [JPMorgan Private Bank]( has seen this film before. The sense of [déjà vu]( it gets when it looks at the investment scene has helped it nail the important calls all year – and has been guiding its midyear outlook too. Here’s where the global wealth giant sees the [best opportunities]( now. That’s today’s Insight: [how JPMorgan Private Bank sees it all playing out](. [Read or listen to the Insight here]( SPONSORED BY STREETBEAT Work in finance? Meet your new AI agent If you’re a decision-maker in a financial field, there’s something you should know. Streetbeat has a [brand-new platform that deploys AI agents for finance professionals]( – and they can do a heck of a lot. Harnessing AI’s impressive capabilities, [StreetbeatPro](’s simple integration makes it possible to automate tasks, access and analyze financial information, and connect with your own proprietary data. That means you’ll be able to integrate real-time stock data, alternative data sets, and customer information to automate processes – [boosting both efficiency and customer insights](. Yep, it’s an easy and cost-effective way for your business to [benefit from the power of AI]( - and you will have access to the 170+ datasets StreetbeatPRO is already connected to. The sooner you get on board, the sooner you can reap the rewards: [check out Streetbeat Pro today](. [Find Out More]( Streetbeat, LLC ("Streetbeat") is an SEC-registered investment adviser. All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance. Any historical returns, expected returns or probability projections are hypothetical and may not reflect actual future performance. See Terms and Conditions at [Streetbeat.com](. When you support our sponsors, you support us. Thanks for that. If you want your brand featured here, [get in touch.]( Cash Cows [Cash Cows] What’s going on here? US companies, ahem, beefed up their cash reserves last quarter to reach a record stash of $4.1 trillion. What does this mean? Companies are sitting on 12.6% more cash than last year – around $1.3 trillion above pre-pandemic levels. See, high interest rates are making it more attractive to save than borrow money – and flush with cash, companies are finding more confidence to risk making short-term investments. Now, most of that money is parked in cash and cash-like instruments – think deposits, loans, and securities – which can currently pull in returns of roughly 5%. But extra savvy companies are funneling their stash into longer-term investments like corporate and US government bonds. They require more patience, but could ultimately be more profitable and less risky over time. Why should I care? Zooming out: It pays to keep pockets lined. With interest rates at decade highs, nearly one in ten non-financial companies in the S&P 500 earned more from interest on their cash than they paid on their debts last quarter. Besides that solid income, cash can act as a safety net and let companies jump on money-making opportunities quickly. But that can be a double-edged sword. Some execs use spare change to make unprofitable purchases in the name of ego, buying assets to crank up their clout and build an empire – even at the expense of shareholders. The bigger picture: A merry tune. Companies can also use that cash to carry out an investor-approved trick: share buybacks. By buying back more shares and reducing the supply of them in the market, firms can – all else equal – push up the price of the remaining shares. So with all that money in the bank, Goldman Sachs expects US share buybacks to jump 16% next year and pass $1 trillion for the first time. If that pans out, it could keep the US market rally going strong. You might also like: [Why stock buybacks are suddenly in vogue.]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Cash Cows&utm_campaign=daily-global-15-06-2024&utm_source=email) 💬 Quote of the day "Walking with a friend in the dark is better than walking alone in the light." — Helen Keller (an American author) [Tweet this]( 🤝 Tom and Jerry, Woody and Buzz Lightyear, Butch Cassidy and the Sundance Kid. You're a stellar fintech brand looking to get your name out there, and [we're a newsletter]( with hundreds of thousands of brainy, switched-on readers. Let's become the next picture-perfect duo: [Talk to the team](. [Get Your Name Out There]( 🪙 It’s Not Just Bitcoin [US stocks]( have been in a long-term bull market for about 15 years, and there's an often overlooked factor partly behind that: scarcity. The [number of shares out there is shrinking](, as firms buy back their own to push up stock prices. So without any sign that the trend will end, you need to know [how buybacks are changing the stock scene](. [Read The Quicktake]( 🎯 On Our Radar 1. Caped crusaders. There’s been a rise of vigilantes [fighting crime]( in idyllic UK villages. 2. Theory will only get you so far in the real world. Here's how to [master options trading](.* 3. Ghostly goings on. How seances came to the [White House]( in the 19th century. 4. Tax advantages, compounded returns, flexible inheritances. ISAs can have it all – so long as you [choose the right one](.* 5. Monkey see, monkey do. A new study shoes chimpanzees know when they’re [winging it](. When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🤩 Coming up soon... All events in UK time. 🔒 [An Expert's Five-Year Investing Plan](: 5pm, June 18th 🤑 [How AI Can Help You Invest Like The Wealthy](: 5pm, June 25th 🏔️ [Gaining An Edge Beyond ETFs](: 8pm, July 9th 💃🏼 [Finimize Ladies Investing Club:]( 6.30pm, July 18th 🚀 [2024 Modern Investor Summit](: 2pm, December 3rd ❤️ Share with a friend Thanks for reading {NAME}. If you liked today's brief, we'd love for you to share it with a friend. You stay classy, {NAME} 😉 We’d love to hear your thoughts. [Give feedback]( Want to advertise with us too? 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