GameStop swap position signals deal prep ‘in motion,’ says Gordon Haskett

Gordon Haskett head of event-driven research Don Bilson recalls that Gamestop (GME) Chairman and CEO Ryan Cohen let investors know in late January that he was ready to make a “very big” acquisition in the consumer space and contends that a note in the 10-K filed Tuesday confirming that the company “posted approximately $0.7 billion of cash into an account of the Company that is pledged as collateral for certain existing and potential cash or physically settled derivative transactions” is a signal that “he has put the wheels in motion.” The firm added in its note: “You might be thinking $700m isn’t that much, but given the leverage GME might have layered on top of its commitment, it figures that Cohen owns very substantial economic exposure to a particular name. The billion dollar question is what name that might be. Previously, we have thrown Best Buy’s (BBY) name against the wall and we did see some prime broker action in that name during Q4 but that doesn’t square with GME saying it put its money to work after its fiscal year ended. Whatever Cohen may have bought should stand out like a sore thumb when the counter-party files its 13F in mid-May or discloses a five percent position via a 13G filing.”