GLOBAL INVESTOR
JEAN PIERRE VERSTER: Companies that could be a good buying opportunity
The meteoric rise of GameStop’s share price has been a great example of the lollapalooza effect (see this week’s Money story (https://www.businesslive.co.za/fm/money-and-investing/2021-02-04-reddit-vs-wall-street-financial-insurrection/) for an in-depth account of the GameStop phenomenon).
Many speculators are now trying to anticipate (or engineer) the next major short squeeze. The share prices of some heavily shorted stocks have started to rise quite sharply, with little regard given to the fair value of the businesses behind these stock tickers. Even commodity markets have been targeted, with an army of retail investors trying to emulate the Hunt brothers’ attempt to corner the silver market 40 years ago...
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