Former hedge fund manager Whitney Tilson, who recently Electronics retailer removed GameStop Corp. GME from the “Dirty Dozen” list of stocks to avoid, once again meddled with the meme stock.

What happened: “What GameStop is doing is smart,” Tilson said, adding that that’s why he removed it from the “Dirty Dozen” list.

To support his argument, he referenced a Wall Street Journal story that said GameStop was shrinking its way to profitability after its not-so-successful bid to become an “e-commerce juggernaut.” “Online Marketplace” for buying and selling non-fungible or NFT Tokens.

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billionaire Ryan Cohen, who runs the show at GameStop has slowed the e-commerce push to focus on its roughly 4,400 brick-and-mortar stores, the report said. The company also cut costs, which allowed it to post its first profit in two years in the fourth quarter, it added.

risk remains: Though GameStop has been removed from its list of “must-avoid stocks,” Tilson is still suspicious.

“That said, I think the most likely outcome is that the company is now back where it was before the stupidity of meme stocks — a melting ice cube — making its $6.8 billion market cap look very rich.” ‘ said the former fund manager.

He noted that GameStop shares trade at unique enterprise value as a percentage of revenue, compared to just 0.4% for larger peers BestBuy, Inc. BBY. The latter, according to the analyst, is a “much better positioned” company.

price action: GameStop ended Thursday’s session up 0.18% at $22.50 Benzinga Pro data.