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1/ As a multi-billionaire Ryan Cohen of $CHWY will likely buy more $GME in the coming weeks/months. It appears once he made his decision he quickly bought up as much as he could in August before he had to file the 13D.
2/ Read the interviews with him – a relatively small $30 million purchase of a speculative stock isn’t his style. He’s likely making a big long-term move into the gaming industry via $GME.
3/ This makes sense considering his playbook for $CHWY (provide amazing customer experiences as category experts) is exactly what $GME is shooting for.
4/ $GME "I really think it's all about creating experiences for customers... to the extent that retailers are focusing on creating an amazing in-store experience then I think omnichannel strategy can make a lot of sense."
5/ $GME “I’m contrarian and so I think that created really white space where you didn’t have that many people going after the category and so it created a big opportunity for us.”
6a/ $GME “And we really differentiated ourselves by being the category expert and really bringing a face to e-commerce. And really at the end of the day we just happened to sell pet products.
6b/ $GME If you’re in the business of delighting your customers I think that you could be very successful. And I think we would’ve been successful in any category.
7/ $GME “... when it comes to being the category experts… you call us and we know the product better than anyone else we’re the best in the business.”
8a/ $GME "The vision for the company was to replicate the experience I had in the neighborhood pet store but do it online and do it at scale.... doing all these things to really delight our customers and show our customers we're bringing a face to e-commerce...
8b/ $GME within a category like pets where customers are so fanatical all of those small things just create this loyalty, & once customers shop at Chewy they continue shopping at Chewy & tell all their friends and family about this incredible experience."
9/ $GME [Cohen] likens his obsessive focus on building Chewy to his approach to stock picking. “I don’t want to swing for a single,” he says. https://www.bloomberg.com/news/articles/2020-06-05/chewy-founder-cashes-out-bets-on-apple-wells-fargo
10a/ $GME “...and I thought wow, if customers can go bananas for shoes online, imagine if we could do it for pet customers who are as fanatical and obsessed with their pets like I am…
10b/ $GME An emotional connection & a differentiated niche isn’t enough unless there is existing demand. In the pet space, there was demand – a $75 billion TAM for consumable products that people needed to order repeatedly… [RK note: gaming = rapidly growing $150B industry]
10c/ $GME Right now [Cohen] is trying to figure out what the next “something” will be for him. "I look at almost everything that comes to me, but I say no to 99.9% of it." https://www.forbes.com/sites/joanverdon/2020/01/26/ryan-cohen-started-a-company-that-took-on-amazon-and-sold-it-for-3-billion-now-hes-thinking-about-whats-next/#27789155790b
11/ It’s impossible not to think of $GME when you read and listen to how Cohen succeeded with $CHWY. Replace “pet” with “gaming” and it’s the exact same strategy. It’s absurd.
12/ That’s all for now cuz I’m out of breath. FYI here’s a quick 4min video I put together to summarize the $GME bull case... it’s followed by some other deeper dive $GME videos: https://www.youtube.com/watch?list=PLlsPosngRnZ1OLfGPDLLC3a8k_rrwFNk6&v=alntJzg0Um4&feature=emb_title
14/ Cohen upped his $GME stake today – now owns 9.6% of the company based on the latest outstanding share count we have. In theory he could own over 15% if mgmt has exhausted the remaining buyback authorization.
