Newly Minted GameStop Millionaires Could Be Poised to Buy in Irvine, CA

Sir, this is a Wendy's

What does Wendy’s restaurant and GameStop have in common? Not much, except it seems that it is r/wallstreetbets on Reddit’s favorite fast-food chain.

If you haven’t heard there is a war between the Wall Street hedge fund managers and a group of self-identified internet degenerates. Right now this loose band of misfits is kicking the short-selling suit’s butts. There are several battlefields but the big one is the stock $GME (GameStock). Melvin Capital and Citron Research had huge short stakes in $GME and the rookie investors over at r/wallstreetbets have pushed the stock price up to where “short-sellers have accumulated losses of more than $5 billon (sic) year to date” according to CNBC’s Markets and Investigative Reporter ~ Yun Li

Yun Li’s article shows the graph of GameStop’s meteoric rise up to Jan 24, 2021. In the last week, it has risen to $483 and has settled down as of this writing to just over $300 per share. Given that the graph below shows that the stock was trading below $20 just a few weeks ago that is quite the climb.

Source: CNBC

Short-Squeeze

By holding on to the stock that the internet has come to love, they expect that a short-squeeze will occur just like the one that happened to Volkswagen in 2008.  FT’s Alphaville reporter ~Jamie Powell summed it up perfectly in his article where he said, “In midst of the great financial crisis, something odd happened. Volkswagen, the German carmaker, became the biggest company in the world. For one, brief day.” Powell explained the oddity with a graph that charted the meteoric rise and fall of Volkswagen titled “A strange year”. Retail GameStock purchasers are looking to cash in on the squeeze and push $GME up like Volkswagen. To do that they are betting that the longer that they hold on to their stock purchases and drive the price up the short-sellers will have to cover their shorts by buying back the stock at the squeezed price to cut their cash bleeding.

 

Source: FT and Bloomberg

Millionaires are Minted

Those Redditor’s who YOLO’d and bet big on $GME have seen their portfolios increase over 1000%. One Redditor whose initials are DFV has turned his portfolio total to nearly $50M. This is an extremely volatile stock and swings are huge DFV has lost $14M in a trading day just to make it back up the next day. The mantra of r/wallstreetbets is “keep holding with diamond hands” because you need to keep a tight grip on those stocks to win the battle they are playing. It would be all too easy to cash out now but those that hold the line are predicting that the squeeze will shoot the stock over the moon and then they will cash out.

What to do with all this newfound money?

Some Redditors have hopes of paying off student debt, buying a car — a reasonable one like a Toyota or sending money to mom to pay for their sister’s Lyme disease medication. Others have talked about buying a home with their earnings. Which got us thinking about where would these newly minted millionaires would want to settle down, and then it hit us as close to a Wendy’s as possible so they can celebrate their tendies (gains) with “chicken tendies”. Without further ado let me present to you the first of its kind a Lifestyle Search for the Diamond Handed internet deviant looking to buy a Million dollar plus home in the vicinity of a Wendy’s restaurant.

Orange County Homes Over $1.0M Near a Wendy’s – Lifestyle Search

Yep, we did it. My wife is not sure why, but I mapped out each and every one of the Wendy’s in Orange County, California, and created a search for million-dollar-plus homes perfect for these GameStop millionaires or anyone who just wants to know that there is a Wendy’s in the neighborhood. There seems to be the largest collection of million-dollar-plus homes are in Irvine neighborhoods so perhaps Irvine, CA would be the perfect spot for a home purchase. Time may soon tell.

Here is the search to get you started. Every $1M plus home available for sale in Orange County near a Wendy’s restaurant. 

 


Bottom Line

It will be interesting to see how this all plays out. Sure homes around a Wendy’s might not be your ideal criteria for buying a home. The internet can be a strange and interesting place after all, but it does underscore one thing, which is that if a search can be created specifically to look for homes by a Wendy’s then why not contact me to see if I can create a search specific to what you might be looking for, be it near a park, near a favored school, near your work, or even your favorite restaurant.

 

About the Author
Richard Wamsat is an author, a deep thinker, and master of home sales. He lives in Irvine, California with his wife Brandy and a fluffy white dog named Murphy. His knowledge of real estate spans two decades having purchased his first home at the age of 19. He has worked in both Northern California and Southern California markets and has fought with banks to save client's homes or get relief from underwater mortgages during the Great Recession. Richard is a licensed real estate agent with Coldwell Banker Residential Brokerage - CalRE#01345167. He has earned the designation of Master Certified Negotiation Expert from The Real Estate Negotiation Institute, a member of the Harvard Program on Negotiation. Connect with Richard on Twitter @rwamsat, or on his website https://ocluxehomes.com