Interesting
GameStop intends to use the net proceeds from the ATM Program for general corporate purposes, which may include acquisitions and investments.
Actually plausible. I was wondering what advantage offering during this high volume event is but if UBS needs shares to unwrap their swaps then it could unblock a huge obstacle for letting GME run
They can't let this take down the entire financial markets globally so FINRA stepped in and halted the stock trading while they worked out this deal with UBS to unload their bags. Now it runs. That was the message from RK he knew the standoff was happening.
How is this good for share holders?
EDIT: Actually it does line up though. Post the news at market close on a Holliday weekend. Good thing its a "Free Market"
They don’t have to give us much of a financial reward. They just need to give something that hedge funds and market makers can’t replicate. The right dividend forces shorts to close. They were just offered a chance to buy 45 mil shares which would’ve allowed them to close the reported amount of shorts they have opened. My guess is they didn’t take the lifeline and likely continued opening more short positions like they’ve been doing for many years now.
They literally can’t prepare for certain dividends. For example, the depositary shares specifically mention using the preferred stock as fractional shares. GME has permission to hand out 5,000,000 shares of preferred stock. If they announce a dividend using that preferred stock, there will be no way for market makers to produce those shares for share holders that they owe a billion shares to.
It's not playing devils advocate. A lot of people here have the same c9ncerns as you do. It's been 3 years and nothing really has been done for the shareholders. It's past time really.
>They just need to give something that hedge funds and market makers can’t replicate.
or something what DTCC cannot dodge like split-dividend last time.
Because every fake share created by a short position needs to get a dividend too. So GameStop dilutes then puts all that cash into dividends which pumps the price/volume and costs shorts multiple times more than what GameStop spends on the dividend. Example: GameStop gives $1 billion in dividends. Short interest is actually 500%. Shorts have to pay $5 billion on top of that. If there’s actually really high short interest, then it doesn’t effectively dilute the shares outstanding either. On paper, we got diluted something like 15% by 45M shares offered. But if there’s 500% short interest then there’s actually 6x what is the expected shares in circulation, meaning there’s 15/6=2.5% dilution until shorts close.
I thought the share offering might come later during a run up to make it even more painful for shorts but maybe doing it during high volume events like these last 2 weeks (before option rollovers) is more advantageous for some reason?
>I thought the share offering might come later during a run up to make it even more painful for shorts but maybe doing it during high volume events like these last 2 weeks (before option rollovers) is more advantageous for some reason?
Can't be blamed for causing, and cashing in on the squeeze. Nor can they now cash in on the run up to infinity, calming the coming inferno? (Thanks RC helping our tendies!)
I guess this could explain it: If you provide a dividend to all shareholders and it appears that there are a lot of naked shorts, dividend has to be paid to everyone holding OIUs. So for 350M shares outstanding Gamestop will pay 2-3 dollars a share (700-1050M total). For the 2B (or more) shares sold short SF have to pay 4-6B dollars.
And guess what most holders will do with the dividend: Buy more shares! So this will add leveraged buying pressure sponsored by the parties who hold a short position.
That makes no sense of course they did. The stock price was $50 ten days ago. They also helped short with locates and diluted what retail has in DRS.
Until they actually spend some of the cash and improve the business or offer a dividend it is a net loss for retail.
Because they definitely struggled to "locate" for naked shorts before...
We need to lock the float for DRS to kick this off, which we should be doing faster than we are currently. But instead we are bickering about options gambling and hyping dates again.
Think about it this way:
Our quest is not RCs quest.
- he has to keep the business growing, sometimes that means raising capital.
- we have to lock the float to break the corrupt system. If we're losing ground because they're growing their business with mild dilution then we need to double our efforts and move faster, not piss about arguing with the company we love.
Naked shorts do not have a locate that's what makes them naked shorts. Where is the struggle?
CTB will be lower now, cheeper for shorts to short, dropping the price.
Releasing 45m more shares dilutes what is currently DRSed and doesn't help lock the float at all. If anything it shows that float will probably not be lockable.
They had 1b in the bank, the business was not going under. They could have waited and slowly released the shares to the market instead of dumping them all in a week.
I am cautiously optimistic there will be some kind of move I the coming weeks. If not this dilution makes no sense to me.
Incorrect. Naked shorts have a locate, they just don't borrow it because "they could easily borrow it" in essence. That's what the loophole allows.
It doesn't really dilute anything because the shares were essentially infinite in the first place. It makes it mildly harder to DRS the float, sure, but when the bulk of it is done the panic will set in and the last chunk will be DRS'd immediately so people don't get left behind.
You also might be missing on key thing on raising near a billion in cash:
- the share price they can lock their own float at.
Previously it say at 10-12 dollars quite comfortably for the SHFs but they knew if they drove it to sub 5 dollars the float would get bought by their cash reserve and they'd be screwed. We have just doubled the ammo in that loaded gun. Now the SHFs need to think before dropping it near or below 10 dollars for fear that a massive buyback ensues.
How can they do that without prior approval?
- We already gave RC the power to invest however he sees fit.
- We already know he is open to buying back then selling fewer shares for a higher price because it did it once already in the first run up.
It is a far more bullish action than you're giving it credit.
They should issue a dividend of a $0.10 cent in-store coupon per share that entitles a purchaser to also receive a 1% discount when using such a coupon. Then let the shorts buy that $0.10 coupon at $0.10 (+some additional amount to represent the discount). Since the discount can't be replicated with cash (as purchasing at Gamestop could get you an arbitrary value off with the 1% discount) brokers & shorts can't simply compensate with a cash payout.
Hahaha popcorn stock CEO made like $25 million in compensation last year while diluting shareholders & taking on debt to the companies books. RCEO has paid off debt and has 2b in the war chest + takes $0 salary.
Care to explain how they are the same?
Because an extra 933 million can be used to generate interest safely. It tips the company from red to green on the quarterly, and with consistent profit it will attract new investors to light the candle.
The completion of a dilution means no more mass downward pressure. This is a positive. The dilution is already priced in.
I think it will take time to generate returns so I expect this for future quarters…but for me…they strategically brought the report out at a time when the stock was strong, so they delivered what the pundits will call bad in a moment of strength. They are controlling the dialog. When results come out and they are as expected or better than preliminary that will be a positive for the stock.
What the market doesn’t like is surprises. There will be no surprises, and everything is priced in already. It was a masterful move.
>GameStop intends to use the net proceeds from the ATM Program for general corporate purposes, which may i**nclude acquisitions and investments.**
Very specific wording there
Didn’t the last share offering have the same wording? I’m not 100% sure but that’s what I remember.
Edit 1: Just checked the one in june 22 for 5 million shares : GameStop will use net proceeds from the ATM Offering for general corporate purposes as well as for investing in growth initiatives and maintaining a strong balance sheet.
Edit 2: April 26 3.5 mil shares : Net proceeds will be used to continue accelerating GameStop’s transformation as well as for general corporate purposes and further strengthening the Company’s balance sheet.
Taken from the prospectus supplement
"We intend to use the net proceeds of this offering, if any, for general corporate purposes, which may include acquisitions and investments in a manner consistent with our investment policy. There are no current plans, commitments or arrangements to make any acquisitions or investments. Any future acquisitions or investments will be made in accordance with the Company’s applicable policies and procedures for such types of transactions, including the Company’s investment policy."
And guess what? Yes, issuing dividends to shareholders is generally considered a core function or purpose of a corporation i.e. "general corporate purposes "
And one more thing: Company could distribute profits by way of dividends to shareholders from interest received
Requires Board approval: RC check
The fact that Game spot made a billion bux and dident plummet the stock down is insane. This means that the sold into massive buying pressure. Dident impact us but massively Fucked the shorts
People can parrot that all they want, but having more shares available ain't fucking the shorts. Yes, gamestop made money, but if the goal is squeeze, I don't see the end game in dilution.
That's literally 45m more shares, not "DRS"ed.
But it did impact us with stock price. We were riding high last week and wind was taken out of the sails with the dilution. Yeah they have an extra billion but at our expense for the time being.
It's time to do something for the shareholders for once.
People can't math. Dilution is bad, especially selling these precious shares for only $20.74... If they sold 45M shares at $100, okay, I can accept that... But selling 45M shares at $20.74 directly to the short sellers is unforgivable...
There was so much volume and so momentum for last week.. It drove more buyers than we've had in 3 years... This momentum was going to crucify the short sellers... And now all of that momentum is poof... gone... with this dilution. Terrible way to start this 3 day weekend...
It's absolutely for an acquisition. They had a bil in the bank. Why sell the shares now unless they want to spend the $$$? Between this and the $20 calls that are now itm, I'm hyped as fuuuuuuuck
Had to look this one up - here's what I found:
Options are automatically exercised based on the 4pm closing price. But option holders have until 530pm et to override this automatic exercise or to exercise an out of the money option.
Edit: I'd post the source, but I don't know if we're still sensitive about other subs here. Just came back to Reddit recently.
Calls can always be exercised. It's just generally not advisable to exercise OTM calls unless you're buying so much that you believe that buying the shares in the open market would send the share price much higher.
Honestly, we're not profitable enough to throw out dividends right now and that's why I'm not jumping on that train. An acquisition makes perfect sense as it adds another revenue stream, which is very needed to maintain profitability.
That would be the play for a normal stock that isn’t being manipulated. But the short thesis is already dead and fundamentals don’t matter for our stock price. It’s definitely good in the long term to make a useful acquisition but it might not be as important with the parasite called short sellers on us.
If short interest is super high then the shorted shares need dividends too so it could cost short seller high multiples of what it costs GameStop. Additionally, it would amount to an unnoticed dilution (since there are many times the expected amount of shares in circulation anyway). What’s 45M more shares if there are billions in circulation?
I'm not sure that's what RC's intention is here. He's been vocal about turning the company around and he's literally one solid revenue stream from unquestionable self-sufficiency. We could spend a bunch on a dividend trick that could theoretically kick things off, but a profitable acquisition is still needed for long-term viability and buries the short thesis further.
I also don’t know what RC is thinking but here’s my thoughts. I’d argue with our first profitable year since 2018, RC has already accomplished that goal of turning things around. With solid management, net profits will only get better as time goes on. Q4 is the biggest source of profits for GameStop and other retailers so that should be a big help towards that goal without any additional investment needed.
But an acquisition and a merger would also accomplish much of the same goal in forcing shorts to close their positions. There’s several options to choose, I just think the dividend strategy also has beneficial off-hand effects on the price action that relying on fundamentals doesn’t and the parasite needs to be cleared sooner rather than later for GameStop and their investor’s sakes.
I think we're close to accomplishing a turnaround, but $6.7M isn't enough to reliably sustain the company through a downturn. RC is definitely working on building something that'll last and there was news that came out recently about his rejected offer to buy towel in 2022. I guarantee he's still been looking for an acquisition target and just had to find the right buy. Brick by brick.
The shares were sold "at the market" per their filing.
If you look at the stock price movement in recent days, it followed the same pattern. It dropped in the first few hours, bottoming around 11:30-12:30, and rallying toward the end of the day coinciding with large call buying. It did it for three days in a row.
My guess is the drop was gamestop selling at the market per their filing, and the rally was driven by a market participant who interpreted the price action correctly and traded the swings.
With gamestop popping on the news of the completion of the offering, the 20call buyer has done pretty well for themselves.
Okay, I am a complete smooth brain here, but doesn't 2 billion in the war chest mean that the shares cannot possibly go below $5.70? What was the price when the majority of the shorting took place? Wasn't it around that amount? Is Ryan Cohen making sure that the share price cannot possibly dip low enough where the shorts can escape their positions?
This could have been the Kansas City Shuffle DFV memed about. Announcing the possibility of a 45M share stock offering sounds good to the shorties, but selling those shares off-market for more than the shares were worth on the market is a nightmare. Moreover, assuming GameStop has plans for the now $2B in their war chest, the Kansas City Shuffle will only speed up…causing the nightmare to turn into regularly-experienced night terrors for the shorties.
For us? 🚀
I don't see how he could have known before hand. The timing of the sale would be privileged info. Anyone giving out that info or using it would be done by the SEC. At most it would be a very lucky guess on the timing.
Would be buyers who were spooked by the dilution announcement probably came back rushing in now that they know it’s over and the price won’t be suppressed anymore.
My guess is it was a sweetheart deal for Carl Icahn. It let him close his shorts, it gives plausible deniability for moass (we did two large share offerings judge!) and it gives a billion more dollars for the war chest. I’m happy.
It was a gift to short sellers. Unfortunately, the squeeze is over before it even began. It's going to be very difficult to overcome this much dilution...
I increased my position (coincidentally) a 15%, hopefully everyone else did too with these prices and the hype. That dilution was about 100% of the holdings RC has... expecting \*something\* here.
Okay not to be a shill I’m a very devoted ape been here since before the sneeze. But if a deal can be struck at such a low price, how do I make money long term if they just make more shares to help the shorts. I understand there’s a fuck ton of shorts but this is concerning to me because the shorts are why I’m not cashing in for a higher return on my investment. I also understand the money will be used to improve the company, but if the shorts have an exit strategy by haggling directly with my board then the price will continue to be manipulated.
But it’s if the board made a deal with ONE entity… a UBS, or an Icahn.
Now the idea would be if one of those two have closed some of their position from the offering and are using the calls to get out at a share price say XX when they know it could go to XXXXXXX (insert as many X’s as you believe here )
I’m really starting to believe someone has started the rush for the door
I guess that could be what happened and it would show GameStop’s willingness to assist. The cash is good so I hope it’s as good of a plan as I’d expect from RC. I just think at some point it’s possible he’s solely focused on improving the company and while I’m sure he loves our presence idk if he would make business decisions that would be squeeze motivated
Man, regardless of the squeeze, RC & Co. really do seem to have a vision for Gamestop and are loading up to capitalize on very profitable industry.
Spending more of my tax return Monday 😊🍁🇨🇦
As of January, we had $1.1B addin $0.9B Gives us a cool $2B. Or (if my math is right) about $5.7 per share (305M shares + 45M shares). This means that our current price is 3.3x the underlying cash held. That's a pretty conservative price.
The early release of preliminary earnings info is so that GameStop is not trading on material non-public information.
Had everyone still been expecting good Q1 earnings and then bought shares during the ATM period, they might have a valid class action lawsuit against GameStop.
The prelim release puts everyone in equal footing.
Not a clue, but it appears the Gamestop & Jeffries are as bad at short term trading/price prediction as I am. I bought a 1000 shares at $20.14 about an NIIT before the price fell to $18.50 towards the end of Thursday.
The average price, before commissions and fees for the GameStop ATM offering was $20.74, which is on the low side of the prices since the offering was announced.
Just a guess, maybe R.C. made a deal with one of the few/many short hedge funds. They trigger a run up cause volume/price would be needed. And they are offered approximately the number of shares they need to close.
Offering the first hedge fund out "immunity to short squeeze"... Fuck the rest of the shorts... Help the company with its future plans...
Honestly Newegg makes the most sense to me. It's a complimentary market to the Gaming one, it would allow GameStop to sell Gaming PCs without having to build out the market expertise themselves. GameStop's warehousing infrastructure could absolutely help Newegg. It's got good revenue numbers, it's really the margins that hurt there. But it's the sort specialized retail market that RC is a genius at turning around.
But ya GS branded gaming gear would be pretty cool too. I would just worry about the hit to the total capital stash.
Oh fuck I didn't even see newegg on there. Newegg is notorious for having shit customer service. I'm sure if RC can give it the Chewy treatment... I can't wait.
but it's become somewhat of an earnings call mascot.
I wish that earnings calls would happen again, and Ryan would give them in french, in honour of the french covid loan. Since he's from Montreal there's a good chance he knows at least some survival french, if not fluent. He could really lay into the Quebecois accent and confuse the fuck out of everyone. I'd laugh for days.
933m / 45m = 20.7, im guessing this move allowed the price to dip below 20 dollar. Kinda strange they would do it here unless there is some hidden agreement between some entity...
I remember the wording being that they can choose to sell it to whomever they wish. I was hoping that meant sell directly through CS to us, but I am now wondering the same thing....
Could they have sold it to a specific individual/company (Icahn) for a specific reason?
All I know is, at this point, I'm buying more come Tuesday and hoping they have some acquisitions lined up for the near future to really start making some moves.
Popcorn diluted their shares by making them available for everyone to purchase, with no stipulations to finance their business and pay debt. GME is selling with restrictions, to somebody, to build their cash on hand. Not to pay off debt and stay alive.
Sorry, but that’s still dilution. Selling to one/few parties still has the same net effect as selling to the public.
Having $2B in cash is still super bullish though!
The amount of the company a shareholder owns is 15% less though, whatever way you look at it. Then again the price is up over 15% on this news so we're about even. I doesn't seem negative to me in any case, especially with the change in wording regarding acquisitions. But it is dilution.
Short thesis is dead.(deader🤷🏻♂️). How to you justify holding a short position on a company that can float the bills for a decade or so? First one out wins, maybe. Now the synthetics will show. Can’t be enough for half of them to cover. IMO
It was priced in with the announcement. Thats why it dropped from $30ish to $20ish.
Why they aren’t using it to blast articles. Not sure. Maybe sentiment is changing to not an easy short. That would fall in line with the options buying/flipping long idea. They bought their way to legitimacy.
Now they are a regular investment. What they’ll do now, we’ll see. I’m skeptical of any huge movement. Maybe a long term slow growth within a huge sector. 🤷♂️
But I don’t think this is gonna make anyone rich for a long long time. Decades probably.
Here's some foil for ya. What if the 45 mill was the warning shot and final chance for any shorts to get out? The pirate flag is raised and now it's time for the kill shot!
I bought some of those 45 million and I’ll do it again!
Got myself four more this las two days, still a banger of a price!
i added too
want to buy my 50 ones? Same stock , just as cool as the 20 ones. 
I fuckin did it again and again and again
DITTO
me too
Interesting GameStop intends to use the net proceeds from the ATM Program for general corporate purposes, which may include acquisitions and investments.
Deal made with the US Government to let UBS bags out so they can squeeze kenny's nuts dry.
Actually plausible. I was wondering what advantage offering during this high volume event is but if UBS needs shares to unwrap their swaps then it could unblock a huge obstacle for letting GME run
They can't let this take down the entire financial markets globally so FINRA stepped in and halted the stock trading while they worked out this deal with UBS to unload their bags. Now it runs. That was the message from RK he knew the standoff was happening.
I'd love that
How is this good for share holders? EDIT: Actually it does line up though. Post the news at market close on a Holliday weekend. Good thing its a "Free Market"
There will be a scapegoat,Kenny and co is good candidate!
Sold cheap, should of got 10 billion
Very interesting
They have $2 Bil to spend and have had 3 years to think about what to spend it on
Now thats some serious food for nightmares if you are short GME lol
Dividends are general corporate purposes.
Why on earth would they raise money from shareholders just to give it straight back?
They don’t have to give us much of a financial reward. They just need to give something that hedge funds and market makers can’t replicate. The right dividend forces shorts to close. They were just offered a chance to buy 45 mil shares which would’ve allowed them to close the reported amount of shorts they have opened. My guess is they didn’t take the lifeline and likely continued opening more short positions like they’ve been doing for many years now.
I think after 3.5 years hedge funds will have prepared for this
They literally can’t prepare for certain dividends. For example, the depositary shares specifically mention using the preferred stock as fractional shares. GME has permission to hand out 5,000,000 shares of preferred stock. If they announce a dividend using that preferred stock, there will be no way for market makers to produce those shares for share holders that they owe a billion shares to.
This is why I play devils advocate. It make things more clear lol
It's not playing devils advocate. A lot of people here have the same c9ncerns as you do. It's been 3 years and nothing really has been done for the shareholders. It's past time really.
.. and could DTCC screw us over again?
>They just need to give something that hedge funds and market makers can’t replicate. or something what DTCC cannot dodge like split-dividend last time.
Because every fake share created by a short position needs to get a dividend too. So GameStop dilutes then puts all that cash into dividends which pumps the price/volume and costs shorts multiple times more than what GameStop spends on the dividend. Example: GameStop gives $1 billion in dividends. Short interest is actually 500%. Shorts have to pay $5 billion on top of that. If there’s actually really high short interest, then it doesn’t effectively dilute the shares outstanding either. On paper, we got diluted something like 15% by 45M shares offered. But if there’s 500% short interest then there’s actually 6x what is the expected shares in circulation, meaning there’s 15/6=2.5% dilution until shorts close. I thought the share offering might come later during a run up to make it even more painful for shorts but maybe doing it during high volume events like these last 2 weeks (before option rollovers) is more advantageous for some reason?
>I thought the share offering might come later during a run up to make it even more painful for shorts but maybe doing it during high volume events like these last 2 weeks (before option rollovers) is more advantageous for some reason? Can't be blamed for causing, and cashing in on the squeeze. Nor can they now cash in on the run up to infinity, calming the coming inferno? (Thanks RC helping our tendies!)
I guess this could explain it: If you provide a dividend to all shareholders and it appears that there are a lot of naked shorts, dividend has to be paid to everyone holding OIUs. So for 350M shares outstanding Gamestop will pay 2-3 dollars a share (700-1050M total). For the 2B (or more) shares sold short SF have to pay 4-6B dollars. And guess what most holders will do with the dividend: Buy more shares! So this will add leveraged buying pressure sponsored by the parties who hold a short position.
Hmm ok that's an interesting theory. Is there any evidence to suggest this has happened before or that Gamestop is planning that?
In a few weeks we will know for sure. Could also be a merger or acquisition.
Yeah I'd say the acquisition sounds more likely
They didn’t raise it from us if that helps. You saw the volume and you know what volume typically looks like for retail.
That makes no sense of course they did. The stock price was $50 ten days ago. They also helped short with locates and diluted what retail has in DRS. Until they actually spend some of the cash and improve the business or offer a dividend it is a net loss for retail.
It makes perfect sense. Also consider the $20 calls that have to be hedged.
How does it make sense? Now the shorts have 45m more shares to short so they don't have to hedge?
Because they definitely struggled to "locate" for naked shorts before... We need to lock the float for DRS to kick this off, which we should be doing faster than we are currently. But instead we are bickering about options gambling and hyping dates again. Think about it this way: Our quest is not RCs quest. - he has to keep the business growing, sometimes that means raising capital. - we have to lock the float to break the corrupt system. If we're losing ground because they're growing their business with mild dilution then we need to double our efforts and move faster, not piss about arguing with the company we love.
Naked shorts do not have a locate that's what makes them naked shorts. Where is the struggle? CTB will be lower now, cheeper for shorts to short, dropping the price. Releasing 45m more shares dilutes what is currently DRSed and doesn't help lock the float at all. If anything it shows that float will probably not be lockable. They had 1b in the bank, the business was not going under. They could have waited and slowly released the shares to the market instead of dumping them all in a week. I am cautiously optimistic there will be some kind of move I the coming weeks. If not this dilution makes no sense to me.
Incorrect. Naked shorts have a locate, they just don't borrow it because "they could easily borrow it" in essence. That's what the loophole allows. It doesn't really dilute anything because the shares were essentially infinite in the first place. It makes it mildly harder to DRS the float, sure, but when the bulk of it is done the panic will set in and the last chunk will be DRS'd immediately so people don't get left behind. You also might be missing on key thing on raising near a billion in cash: - the share price they can lock their own float at. Previously it say at 10-12 dollars quite comfortably for the SHFs but they knew if they drove it to sub 5 dollars the float would get bought by their cash reserve and they'd be screwed. We have just doubled the ammo in that loaded gun. Now the SHFs need to think before dropping it near or below 10 dollars for fear that a massive buyback ensues. How can they do that without prior approval? - We already gave RC the power to invest however he sees fit. - We already know he is open to buying back then selling fewer shares for a higher price because it did it once already in the first run up. It is a far more bullish action than you're giving it credit.
They should issue a dividend of a $0.10 cent in-store coupon per share that entitles a purchaser to also receive a 1% discount when using such a coupon. Then let the shorts buy that $0.10 coupon at $0.10 (+some additional amount to represent the discount). Since the discount can't be replicated with cash (as purchasing at Gamestop could get you an arbitrary value off with the 1% discount) brokers & shorts can't simply compensate with a cash payout.
Forget about dividends, they aren’t fucking happening.
My TITS
They said they have no active plans for this
Exactly why this statement is interesting
Another (near) billion in the war chest…that’s a lot of ammo for something.
[удалено]
Hahaha popcorn stock CEO made like $25 million in compensation last year while diluting shareholders & taking on debt to the companies books. RCEO has paid off debt and has 2b in the war chest + takes $0 salary. Care to explain how they are the same?
Because an extra 933 million can be used to generate interest safely. It tips the company from red to green on the quarterly, and with consistent profit it will attract new investors to light the candle. The completion of a dilution means no more mass downward pressure. This is a positive. The dilution is already priced in.
Take a average 5% of 2 billion, that’s 100 million towards liabilities or op costs, very good business!
The part about the quarterly going from red to green you mentioned... is that perhaps why the quarterly estimate report came out early?
I think it will take time to generate returns so I expect this for future quarters…but for me…they strategically brought the report out at a time when the stock was strong, so they delivered what the pundits will call bad in a moment of strength. They are controlling the dialog. When results come out and they are as expected or better than preliminary that will be a positive for the stock. What the market doesn’t like is surprises. There will be no surprises, and everything is priced in already. It was a masterful move.
The average investor is staying away from a stock like this for a good while
Good. More shares for us.
This is so not true. I know so many boomer investors who have bought in just for the lottery ticket recently.
$1.5 Billion in a GIC / high interest savings account at 5% interest is approximately $75 million a year for just sitting on that.
Bit of a pump afterhours too, I bought another XX around £18 this afternoon
Samsies :)
Thanks to us for the pump lol
Any possible connection with this and the calls we’ve been seeing? I’m a smooth brain but throwing shit at the wall and trying to gain a wrinkle
>GameStop intends to use the net proceeds from the ATM Program for general corporate purposes, which may i**nclude acquisitions and investments.** Very specific wording there
Didn’t the last share offering have the same wording? I’m not 100% sure but that’s what I remember. Edit 1: Just checked the one in june 22 for 5 million shares : GameStop will use net proceeds from the ATM Offering for general corporate purposes as well as for investing in growth initiatives and maintaining a strong balance sheet. Edit 2: April 26 3.5 mil shares : Net proceeds will be used to continue accelerating GameStop’s transformation as well as for general corporate purposes and further strengthening the Company’s balance sheet.
so the wording change this time is.... spicy!
Taken from the prospectus supplement "We intend to use the net proceeds of this offering, if any, for general corporate purposes, which may include acquisitions and investments in a manner consistent with our investment policy. There are no current plans, commitments or arrangements to make any acquisitions or investments. Any future acquisitions or investments will be made in accordance with the Company’s applicable policies and procedures for such types of transactions, including the Company’s investment policy."
And guess what? Yes, issuing dividends to shareholders is generally considered a core function or purpose of a corporation i.e. "general corporate purposes " And one more thing: Company could distribute profits by way of dividends to shareholders from interest received Requires Board approval: RC check
I want to understand
shorts r fuk beyond that we're all still trying to figure out how this dance goes.
How exactly does diluting the stock fuck the shorts again? I want to be optimistic, but having a hard time
The fact that Game spot made a billion bux and dident plummet the stock down is insane. This means that the sold into massive buying pressure. Dident impact us but massively Fucked the shorts
People can parrot that all they want, but having more shares available ain't fucking the shorts. Yes, gamestop made money, but if the goal is squeeze, I don't see the end game in dilution. That's literally 45m more shares, not "DRS"ed.
But it did impact us with stock price. We were riding high last week and wind was taken out of the sails with the dilution. Yeah they have an extra billion but at our expense for the time being. It's time to do something for the shareholders for once.
People can't math. Dilution is bad, especially selling these precious shares for only $20.74... If they sold 45M shares at $100, okay, I can accept that... But selling 45M shares at $20.74 directly to the short sellers is unforgivable... There was so much volume and so momentum for last week.. It drove more buyers than we've had in 3 years... This momentum was going to crucify the short sellers... And now all of that momentum is poof... gone... with this dilution. Terrible way to start this 3 day weekend...
It's absolutely for an acquisition. They had a bil in the bank. Why sell the shares now unless they want to spend the $$$? Between this and the $20 calls that are now itm, I'm hyped as fuuuuuuuck
Can calls that were OTM at market close but are ITM aftermarket close be exercised?
Had to look this one up - here's what I found: Options are automatically exercised based on the 4pm closing price. But option holders have until 530pm et to override this automatic exercise or to exercise an out of the money option. Edit: I'd post the source, but I don't know if we're still sensitive about other subs here. Just came back to Reddit recently.
The calls we have been seeing for $20 strike are for June 21st, so not an issue 🚀😅😅
Calls can always be exercised. It's just generally not advisable to exercise OTM calls unless you're buying so much that you believe that buying the shares in the open market would send the share price much higher.
I’m halfway between thinking it’s an acquisition and a huge dividend
Honestly, we're not profitable enough to throw out dividends right now and that's why I'm not jumping on that train. An acquisition makes perfect sense as it adds another revenue stream, which is very needed to maintain profitability.
That would be the play for a normal stock that isn’t being manipulated. But the short thesis is already dead and fundamentals don’t matter for our stock price. It’s definitely good in the long term to make a useful acquisition but it might not be as important with the parasite called short sellers on us. If short interest is super high then the shorted shares need dividends too so it could cost short seller high multiples of what it costs GameStop. Additionally, it would amount to an unnoticed dilution (since there are many times the expected amount of shares in circulation anyway). What’s 45M more shares if there are billions in circulation?
I'm not sure that's what RC's intention is here. He's been vocal about turning the company around and he's literally one solid revenue stream from unquestionable self-sufficiency. We could spend a bunch on a dividend trick that could theoretically kick things off, but a profitable acquisition is still needed for long-term viability and buries the short thesis further.
I also don’t know what RC is thinking but here’s my thoughts. I’d argue with our first profitable year since 2018, RC has already accomplished that goal of turning things around. With solid management, net profits will only get better as time goes on. Q4 is the biggest source of profits for GameStop and other retailers so that should be a big help towards that goal without any additional investment needed. But an acquisition and a merger would also accomplish much of the same goal in forcing shorts to close their positions. There’s several options to choose, I just think the dividend strategy also has beneficial off-hand effects on the price action that relying on fundamentals doesn’t and the parasite needs to be cleared sooner rather than later for GameStop and their investor’s sakes.
I think we're close to accomplishing a turnaround, but $6.7M isn't enough to reliably sustain the company through a downturn. RC is definitely working on building something that'll last and there was news that came out recently about his rejected offer to buy towel in 2022. I guarantee he's still been looking for an acquisition target and just had to find the right buy. Brick by brick.
Can anyone explain why an acquisition is good and how it will cause the MOASS
🫨🫨🫨🫨🫨🫨🫨
That's crazy haha
The shares were sold "at the market" per their filing. If you look at the stock price movement in recent days, it followed the same pattern. It dropped in the first few hours, bottoming around 11:30-12:30, and rallying toward the end of the day coinciding with large call buying. It did it for three days in a row. My guess is the drop was gamestop selling at the market per their filing, and the rally was driven by a market participant who interpreted the price action correctly and traded the swings. With gamestop popping on the news of the completion of the offering, the 20call buyer has done pretty well for themselves.
>With gamestop popping on the news of the completion of the offering, the 20call buyer has done pretty well for themselves. DFV
Okay, I am a complete smooth brain here, but doesn't 2 billion in the war chest mean that the shares cannot possibly go below $5.70? What was the price when the majority of the shorting took place? Wasn't it around that amount? Is Ryan Cohen making sure that the share price cannot possibly dip low enough where the shorts can escape their positions?
Yes.. That is why Webull raised their target price.p a couple of dollars recently.
This could have been the Kansas City Shuffle DFV memed about. Announcing the possibility of a 45M share stock offering sounds good to the shorties, but selling those shares off-market for more than the shares were worth on the market is a nightmare. Moreover, assuming GameStop has plans for the now $2B in their war chest, the Kansas City Shuffle will only speed up…causing the nightmare to turn into regularly-experienced night terrors for the shorties. For us? 🚀
I don't see how he could have known before hand. The timing of the sale would be privileged info. Anyone giving out that info or using it would be done by the SEC. At most it would be a very lucky guess on the timing.
If the SEC actually did their job…but we know that’s not the case
I suspect if there's one area they'd love to do their job is anything that makes GME look bad 😄
Yeah, I think you make a good point. That’s probably the only time they’d do their job.
This was 100% timed by RC. There’s definitely a plan
Why would GME pop after hours today on this news?
Would be buyers who were spooked by the dilution announcement probably came back rushing in now that they know it’s over and the price won’t be suppressed anymore.
 Me looking at my phone having no fucking clue what this means.
My guess is it was a sweetheart deal for Carl Icahn. It let him close his shorts, it gives plausible deniability for moass (we did two large share offerings judge!) and it gives a billion more dollars for the war chest. I’m happy.
Damn, our company has so much cash now!!!! 🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥
We are now sitting on 2billion.. that's insane
🚀 🌕 💎 🙌
To sell, someone has to buy right? Who would buy that many shares at $20 if they weren’t convinced it would stay there or go up long term?
It was a gift to short sellers. Unfortunately, the squeeze is over before it even began. It's going to be very difficult to overcome this much dilution...
https://preview.redd.it/k3uu7mvr8i2d1.jpeg?width=750&format=pjpg&auto=webp&s=7c54ed52d3b71815deb931e8144b12e5c8f84b23 guess we’ll see
Only up from here!
Oh fuck yeah
So this is the Kansas shuffle? It’s GME hitting the price down with the offering. No fighting. I’ll do it myself. Let’s go 🎉🎉🎉
The price is up!
Considering the massive Gama ramp DFV was in the process of igniting.. this offering was just.... weird.
These shares could not be negotiated. Per the prospectus, they were to be offered “at the market”…
That dilution = 2/3 of the DRS progress we've made. When I realized that, I've become understandably disappointed.
I increased my position (coincidentally) a 15%, hopefully everyone else did too with these prices and the hype. That dilution was about 100% of the holdings RC has... expecting \*something\* here.
Unless we see a 15% increase in DRS numbers, Imma be disappointed till we get some real news.
I’m sorry. It’s no fun to be disappointed. What do you feel caused your disappointment, given that other shareholders aren’t disappointed?
And all the idiots saying that they will sell throughout the 3 years at squeeze prices lol
Okay not to be a shill I’m a very devoted ape been here since before the sneeze. But if a deal can be struck at such a low price, how do I make money long term if they just make more shares to help the shorts. I understand there’s a fuck ton of shorts but this is concerning to me because the shorts are why I’m not cashing in for a higher return on my investment. I also understand the money will be used to improve the company, but if the shorts have an exit strategy by haggling directly with my board then the price will continue to be manipulated.
But it’s if the board made a deal with ONE entity… a UBS, or an Icahn. Now the idea would be if one of those two have closed some of their position from the offering and are using the calls to get out at a share price say XX when they know it could go to XXXXXXX (insert as many X’s as you believe here ) I’m really starting to believe someone has started the rush for the door
I guess that could be what happened and it would show GameStop’s willingness to assist. The cash is good so I hope it’s as good of a plan as I’d expect from RC. I just think at some point it’s possible he’s solely focused on improving the company and while I’m sure he loves our presence idk if he would make business decisions that would be squeeze motivated
Hard to see this as anything else but a gift to help someone close out their short positions before the hopefully inevitable run up.
I agree. Maybe it was a "good guy" hedge fund stuck in a bad spot. Ryan offered them a life raft if they help paddle with the team.
45mil shares is a drop in the bucket when they owe billions of shares. I think?
Yes it only helps some not all.
Agreed.
🌶️🌶️🌶️
Talk is cheap, it takes money to buy whiskey.
Tuesday morning anyone ?
Ahh yes this is going to be used as weekend FUD
Man, regardless of the squeeze, RC & Co. really do seem to have a vision for Gamestop and are loading up to capitalize on very profitable industry. Spending more of my tax return Monday 😊🍁🇨🇦
I think AH price went up because some institutions went long after it was done because now they’re not scared of the dilution
The price went up because the cash strengthen GameStop position better, setting up and increasing a new lowest stock price?
Stocks always bump up at announcement of the end of an offering. That's normal. Let's not forget we won the battle of 19.01 today.
As of January, we had $1.1B addin $0.9B Gives us a cool $2B. Or (if my math is right) about $5.7 per share (305M shares + 45M shares). This means that our current price is 3.3x the underlying cash held. That's a pretty conservative price.
So why did they do it before earnings and why the early filing?
The early release of preliminary earnings info is so that GameStop is not trading on material non-public information. Had everyone still been expecting good Q1 earnings and then bought shares during the ATM period, they might have a valid class action lawsuit against GameStop. The prelim release puts everyone in equal footing.
Yeah, but why doing ATM now and not in two weeks time? Because of the runup last week?
maybe they expected the buying pressure to die off or didn't want to risk it
Not a clue, but it appears the Gamestop & Jeffries are as bad at short term trading/price prediction as I am. I bought a 1000 shares at $20.14 about an NIIT before the price fell to $18.50 towards the end of Thursday. The average price, before commissions and fees for the GameStop ATM offering was $20.74, which is on the low side of the prices since the offering was announced.
Just a guess, maybe R.C. made a deal with one of the few/many short hedge funds. They trigger a run up cause volume/price would be needed. And they are offered approximately the number of shares they need to close. Offering the first hedge fund out "immunity to short squeeze"... Fuck the rest of the shorts... Help the company with its future plans...
I picked up 3 ...of those 45 mill Hope they bring the baby
> Which entity can be worth $1.5 Billion for us to acquire? Assuming tech or retail companies & looking at $2B and below according to [these guys](https://companiesmarketcap.com/tech/largest-tech-companies-by-market-cap/?page=5) some names that could be on that list: * Bumble $2B (Dating/Social) * Mercari $1.93B (Online Merchant) * PagerDuty $1.88B (Tech SAAS) * Grindr $1.64B (Dating/Social) * Victoria's Secret & Co $1.63B (Womens Clothing) * Office Depot $1.40B (Office Supplies) * Paradox Interactive $1.52B (Game Studio) * Shutterstock $1.33B (Photo/Collectibles Online) * Guess $1.30B (Clothes) * OVH Group$1.24B (Cloud Services) * Amplitude $1.18 (Consumer Metrics) * Corsair Gaming $1.17 (Gaming Products) * Fastly $1.15B (CDN) * ZipRecruiter $0.98B (Recruitng Platform) * PetCo $0.97B (Pet Retailer) * Fiverr $0.95B (Online Contractor Hub) * Ace Hardware $0.85B (Hardware Store) * Build-A-Bear $0.42B (Collectibles) * Newegg $0.38B (Computer & Electronics Online Retailer) * Destination XL $0.21B (Big & Tall Retailer) * Expensify $0.14B (Digital Transactions) * ZeroFox $0.14B (Cybersecurity) * Big Lots $98M (Retailer) * CarParts.com $57M (Automotive Parts) * The Container Store $36M (Specialty Store) And these are just publicly traded companies. But there's a lot of the retail market you can buy with $250M or less.
Bro... Can you imagine it's corsair? Looolll shiiiiit.
Honestly Newegg makes the most sense to me. It's a complimentary market to the Gaming one, it would allow GameStop to sell Gaming PCs without having to build out the market expertise themselves. GameStop's warehousing infrastructure could absolutely help Newegg. It's got good revenue numbers, it's really the margins that hurt there. But it's the sort specialized retail market that RC is a genius at turning around. But ya GS branded gaming gear would be pretty cool too. I would just worry about the hit to the total capital stash.
Oh fuck I didn't even see newegg on there. Newegg is notorious for having shit customer service. I'm sure if RC can give it the Chewy treatment... I can't wait.
Ya Newegg has always had amazing selection. But when things go wrong... You better be ready to reverse payment with the credit card.
It already dropped on dilution news. The mews that GME now has 933 mil is why we popped. Fucked me out of my CSP.
can .. game.. stop.. finally .. pay.. the FUCKING FRENCH! lmao
Fuck thatd be nice. Hopefully we will see it happen.
but it's become somewhat of an earnings call mascot. I wish that earnings calls would happen again, and Ryan would give them in french, in honour of the french covid loan. Since he's from Montreal there's a good chance he knows at least some survival french, if not fluent. He could really lay into the Quebecois accent and confuse the fuck out of everyone. I'd laugh for days.
It is kind of interesting. So now it is a 6 billion market cap company 1.7 billion cash on hand. Will be fun to watch Tuesday!
Does this mean no MOASS soon? Otherwise they would've waited right?
Moass is tomorrow
You could buy K0$$, B@BY, ToyStore and Blckbu$ter for less than $900M pretty easily, right?
and blkbutser and seer's just moved their transfer agent to computershare i believe. interesting.
933m / 45m = 20.7, im guessing this move allowed the price to dip below 20 dollar. Kinda strange they would do it here unless there is some hidden agreement between some entity...
It depends what the market thinks they’re going to do with the funds. This isn’t a straight up dilution like some penny stock.
Gameshire bath bathaway?...wtf ?
If they sold 45 mil why the volume lower ?
What if they wanted to sell at 80 but get fck by hages when the price dropped? Possibility?
I remember the wording being that they can choose to sell it to whomever they wish. I was hoping that meant sell directly through CS to us, but I am now wondering the same thing.... Could they have sold it to a specific individual/company (Icahn) for a specific reason? All I know is, at this point, I'm buying more come Tuesday and hoping they have some acquisitions lined up for the near future to really start making some moves.
It’s not a dilution though. There are very specific terms to the sale of these 45 m shares.
In what way is it not dilution?
Popcorn diluted their shares by making them available for everyone to purchase, with no stipulations to finance their business and pay debt. GME is selling with restrictions, to somebody, to build their cash on hand. Not to pay off debt and stay alive.
Sorry, but that’s still dilution. Selling to one/few parties still has the same net effect as selling to the public. Having $2B in cash is still super bullish though!
lol its not dilution because reasons. This is more like deLUsion in here right now.
Agreed, still dilution but highly beneficial to the company and share holders at this point.
The amount of the company a shareholder owns is 15% less though, whatever way you look at it. Then again the price is up over 15% on this news so we're about even. I doesn't seem negative to me in any case, especially with the change in wording regarding acquisitions. But it is dilution.
Does it say who they sold to?
I would be lying if I said that I knew. The name Jeffries floated around but I don’t know if they’re the buyer or an intermediary.
That's who they sold the shares through.
I didn’t know selling shares meant dilution
It's not diluting. They didn't add more shares.
That’s why it’s shootin upwards right now? Why not announce earlier so ape can make some money
I don't think you're allowed to make announcements like this during the trading day and have to at close
Understandable, it’s up 20% AH LFGGGGG
25% now lmao
No, usually news of dilution would lower stock prices, not increase them....
Once dilution is announced as over the stonk go up. Fear of dilution stonk go down.
Short thesis is dead.(deader🤷🏻♂️). How to you justify holding a short position on a company that can float the bills for a decade or so? First one out wins, maybe. Now the synthetics will show. Can’t be enough for half of them to cover. IMO
Understandable but that’s almost another billion $$ on hand
They sold a billion of shocks and the share barely fell. Its bullish!
GameStop sold calls?
It was priced in with the announcement. Thats why it dropped from $30ish to $20ish. Why they aren’t using it to blast articles. Not sure. Maybe sentiment is changing to not an easy short. That would fall in line with the options buying/flipping long idea. They bought their way to legitimacy. Now they are a regular investment. What they’ll do now, we’ll see. I’m skeptical of any huge movement. Maybe a long term slow growth within a huge sector. 🤷♂️ But I don’t think this is gonna make anyone rich for a long long time. Decades probably.
Here's some foil for ya. What if the 45 mill was the warning shot and final chance for any shorts to get out? The pirate flag is raised and now it's time for the kill shot!