Man buys Nintendos for Starship with Gamestop earnings
A young Hawke’s Bay businessman who has made thousands of dollars from the trading of Gamestop stocks has chosen to use his earnings to give back to those in need.
Morris Lazootin has bought $5000 of Nintendo Switch consoles and games for children in hospitals going through cancer treatment.
Gamestop, a video game retail chain in the US, saw its stock price rise as much as 1700 per cent in recent days, backed by those who believed it was unfairly valued by large investors and hedge fund groups.
As small investors showed-off their purchases on social media, stock prices rapidly grew, forcing the large investors to spend big covering their losses.
Lazootin was one of thousands around the world to purchase stocks in the Texas-based company.
But for the 30-year-old, it was not about making money — it was about stopping hedge funds bankrupting businesses and giving back to a worthy cause.
“Gamestop is a video game selling company and I thought it’d be poetic justice for the hedge funds on Wall Street to pay for some Nintendos for those battling in hospital,” he said.
“I’m up more or less the cost of the Nintendos.”
Lazootin said he chose to give back his earnings after a close friend’s child was diagnosed with leukaemia and pointed out the lack of activities for children and families in hospitals.
“When you are dealing with cancer, especially for a child, it’s a dark time in all of their lives,” he said.
“Plus I’m a millennial, so it seemed fitting to use the money to buy
Nintendos for kids using Gamestop money.”
Child Cancer Foundation CEO Robyn Kiddle said the tech will be passed on to Ronald Mcdonald House Charities — a charity that houses families away from home while their children are treated in hospitals, including Auckland’s Starship Hospital.
“The kids are a long way from home and going through often lengthy treatments, so we like to call these devices distraction devices or boredom busters.
“Whatever money Morris gained from Gamestop, he has turned it into a donation, for which we are so grateful.”
Lazootin said he has also encouraged others who made money from Gamestop to donate to a good cause.
Financial adviser and CEO of Stewart Group Nick Stewart urged the public to reconsider before throwing their money at Gamestop.
“When one particular company has been the main focus of attention of traders, media, armchair investors and everyone’s making lots of money, it’s easy to get caught up in the madness,” he said.
“Gamestop’s stock price is driven by speculation, not fundamentals. The frantic buying is causing short sellers [people betting against the stock] to surrender — and that’s pushing prices even higher, for now.”
Stewart said it is unclear how long this will continue.
“No one knows when this wild trading stops, but when it does you don’t want to be holding the bag.”
But Lazootin, who also has shares in companies including Tesla, recommends investing in the stock market.
“All trading is risky, and the market is unpredictable, but if you were going to make any bet on the stock market, this is the most exciting by far.”
— Hawkes Bay Today