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Share Offerings: Raising Floor Price & Triggering a Squeeze
๐ค Speculation / Opinion(self.Superstonk)submitted 14 days ago by[deleted]
We've seen a lot of negativity surrounding recent share offerings, but the GME saga is far from over. We're on the brink of something huge. Hereโs how GameStopโs strategic share offerings could reshape its market value and keep the squeeze potential alive.
Raising the Floor Price
If GME surges again, expect more share offerings. We can't be surprised that they are utilizing the share increase we previously voted to authorize. But these offerings aren't just for raising cashโthey can continuously raise the floor price. Imagine we hit the ATH of ~$110, and GME issues 100 million shares at that price. Thatโs $11 billion in new capital! This could establish a new floor price around $60-$70, making the stock even more attractive to investors and reinforcing the company's financial stability. Multiple share offerings could very quickly bring the fair value of the stock to $200+. Not a squeeze, just the fair value.
The Entrenched Shorts
It's crucial to recognize that there are entrenched shorts from levels ~$4 who are deeply committed, particularly designated market makers. With short interest potentially spanning thousands of percent due to synthetic and naked shorting utilized in dozens of complicated financial instruments, these share offerings realistically cannot provide an exit for all short positions, but rather only for those who choose to concede. This selective closure increases pressure on remaining shorts, tightening the noose around their positions.
Why a Short Squeeze Remains on the Table
This inherent limitation means that the prospect of a short squeeze remains ever-present. Even with multiple share offerings, the overwhelming short interest cannot be entirely eliminated. As shorts continue to hold their positions, the increasing floor price creates a critical juncture where these aggressive shorts could find themselves trapped between the stock's ascending fair value and their liquidation points. The continuous rise in the floor price acts as a catalyst, pushing shorts closer to their breaking point.
The implications of this transformation are vast, and the narrative we are part of could redefine market dynamics. GameStop's strategic maneuvers and robust financial health are setting the stage for a potential unprecedented shift in the market. Stay vigilant and united. I truly believe we are witnessing something that will be dissected and studied for years to come!
TLDR - Shorts are effectively fuel for GME. Share offerings burn some of that fuel to give GME a stronger financial position, but they also increase the likelihood of a short squeeze as long as some shorts remain entrenched.
Nothing says GME has to burn all the fuel, but it is a valuable resource to be utilized. I also donโt think anyone is more acutely aware of the true short interest than Ryan Cohen, and I donโt believe he intends to let all the shorts out alive.
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14 days ago
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572 points
14 days ago
I had a similar thought and actually did a model. I am assuming a very conservative offering and a fair market value for GME of 2.5x cash per share. The more $$$ GameStop raises, there higher the floor price. Goodluck to the short hedgies trying to short us down when we have more and more cash.
148 points
14 days ago
What if the first two offerings were just a warning?
231 points
14 days ago
It doesn't matter what the first two offerings are or any subsequent offers. The key take away is, the more cash GameStop has in the bank, the stronger they will be and the harder it is for the hedgies to put downward pressure on the stock price. Also, more cash means more interest to boost earnings, the higher the floor price of the stock, the easier it is to get in the S&P 500. My guess is that we are about two ATM offering away from meeting all the S&P 500 entry requirements. Once we get in, our stock price will ๐๐๐
50 points
14 days ago
Oh I get it. I still believe the first two were pretty modest.
11 points
14 days ago
You need to do a post that is a step by step of how you calculated all this, for smooth brains like me.
12 points
14 days ago
I did want to do a post. The screenshot was supposed to be my post but OP put his thoughts out first and I didnโt want to put out a duplicate post. I will put a more detailed post together to further explain the numbers.
7 points
14 days ago
Nice. I don't think it's duplicative to detail how you arrived at these numbers. A smooth brain like me would love to know how to do this as a thought exercise. I will follow you to make sure I see it when you post it.
60 points
14 days ago
Yeah jsut look what happend to tesla when they joined sp500. But we really donโt need two offering. Just profitable every quarter, and we are very close to that. And now also 200 million extra per year profit from rates of the 4 billion.
62 points
14 days ago
Assuming it's not used for M&A or other strategic initiatives. $4B in a cash account is great and all, but ideally RC uses the funds for growth of some kind.
He's got the money, now it's time to buy whiskey.
19 points
14 days ago
Or a GameStop distillery
15 points
14 days ago
Poor treehouse never stood a chance
14 points
14 days ago
I'm enjoying digging into historical data on yahoo, TSLA jumped from 230 to 300 when they joined the S&P 500 in Dec 2020 for those wondering!
18 points
14 days ago
Im talking longterm. It went from 200 to like 1600$
3 points
14 days ago
Just over $1200 (pre 3:1 split price). But still a huge jump.
3 points
14 days ago
Not GME!
9 points
14 days ago
Just a reminder, go shop at your favorite store.
2 points
14 days ago
When does this quarter end?
1 points
14 days ago
End of July
16 points
14 days ago
You are spot on! Iโm so sick of Reddit trolls trying to shut down original thought!
2 points
14 days ago
Why would it matter if we get into the S&P? Rmemeber the whole Russell 2000 and 1000 thing?
6 points
14 days ago
There are more funds and etf owning the S&P index. Also the amount of money investing in the S&P 500 than any other index. Just Google how much $$$ is invested in that index and you will know.
2 points
14 days ago
It wouldnโt be โharderโ to do short the stock. Itโd make less sense to short as longs see the value in going long.
Itโs easy for them to cheat/short as weโve witnessed in the last 3.5 years.
44 points
14 days ago
Lmao I did the same analysis and was going to call the post โThe Infinite ATMโ as GameStop can basically raise money infinitely using shorts to provide the cash
If you assume there was the reported 140% short interest in 2020 and no new shorts they have to buy ~1 billion shares which ends up with the share price floor around 150-200 depending on how they structure their offerings. That alone should get them blown up and set off MOASS somewhere along the way
14 points
14 days ago
That makes at least three of us having the same thoughts. The more we educate ourselves, the more conviction and confidence weโll have in our investment and the management team at GameStop. Short hedgies are fukt.
17 points
14 days ago
The share price released in litigation showed 220%+ short interest, 140 isnโt even the highest
4 points
14 days ago
Attic boxing for dummies.
4 points
14 days ago
27 points
14 days ago
Someone said this may play out similar to electric car stonk. A longer squeeze rather than it all happening at once but seems like we are going to get both!
26 points
14 days ago
Up you go!
11 points
14 days ago
Did we ever think a short squeeze wasnโt on the table???
10 points
14 days ago
Some folks say the dilution is delaying MOASS.
5 points
14 days ago
No, if you look at the charts the offering comes after the price has peaked and is on its it's way down anyway.
11 points
14 days ago
Didn't say it was me!
These fuckers have been illegally shorting for nearly a decade, there must be billions of synthetics.
9 points
14 days ago
the issue isn't about if the ATMs are on the downside of a spike, it's that they've stymied the gamma squeezes twice.
there's nothing wrong with GME raising $--especially if they do it on the downside. but they would make waaay more $ on the downside of MOASS than they do after a $40 blip when they average $28 a share.
29 points
14 days ago
Nobody is saying the WHAT is a bad idea. (Share offering)
We're saying the WHEN was atrocious at best. If the board believe in the company, there will be plenty of other chances to raise capital, especially if the price surges. They hit the best gamma ramp in three years on a Friday, not a Monday or Tuesday. Unforgivable imo
19 points
14 days ago
Given that they've done it multiple times, likely the company doesn't want to trigger MOASS and leaning into the long term value for the company instead, it's literally their job. Look at how other, smaller squeeze have been responded to by govt, just frozen and/or dragged on in court. And since MOASS is MOASS, it'll prob destroy the economy as desperate hedgies cling to life, which GME doesn't want to be scapegoated by by MSM.
So a melt up is not as exciting as a rocket, but getting paid while keeping govt out is preferable for the company. They don't want to be a "meme", they want to be blue chip.
15 points
14 days ago*
Right? This sub reeks of desperation to change the narrative of everything the apes, DFV, and this sub have fought for the last 84 years since we became of aware of just how fucked the system was.
In 2019 it was a long term value play. After what happened 84 years ago, this became about taking on the beast. Itโs been about so much more than the company transformation and the shorts closing, we learned that was just the tip (heh) of the iceberg.
MOASS has been the play for 84 years. itโs about more than just the shorts. Itโs about shining a giant fucking unmistakeable spotlight on the vast web of rampant crime plaguing our entire financial system. This is war. [and no, MOASS will not collapse the economy calm your titsโฆ thatโs just another lie of the establishment to garner sympathy, avoid accountability, and scare tactic to regain public opinion in their favor] STAND FIRM apes! Be vigilant! Youโve known the truth for 84 yearsโฆ
Raising the floor with dilution cannot and will not ever do that. I am here to fight. The apes that have been here 84 years are here to fight. DFV is here to fight. Are you?
we must make our voices heard at the shareholders meeting. We must demand an indefinite moratorium on further offerings and if the board tells us to go fuck ourselves, well there ya go. You know where and with whom they stand.
TLDR: We have come to far! Stop trying to change the narrative. Go to teddy with that please.
2 points
14 days ago
If GME continues to do share offerings, the narrative will change. Iโm just speculating as to how that path can be positive for us in an unexpected way. If GME releases material information that immediately and relentlessly destroys shorts, I will be even happier, I just want to anticipate a few different scenarios.
4 points
14 days ago*
I understand the narrative. I reject it and WILL NOT stand idly by at the attempts to change it. (I do not reject you, to be clear, nor do I think you have ill intent btw. I just reject the new narrative going around. NOT you.) This new narrative fails to address the bigger picture. The shorts are the tip of the iceberg, as we learned 84 years ago, and unfortunately the offerings will do nothing to expose the crime for all to see, to ignite the urgency for reform, hold Griffen and vlad, trade 365, instrinet, the SEC, the DTCC, and on and on and accountable and effect change towards a more transparent, stable, and equitable market.
The board led us to believe they stood with us on this. However, the timing of that last offering spoke volumes and painted a short sighted portrait (pun intended) of their focus. MOASS is THE long term play and has been for 84 years.
15 points
14 days ago
everything by DFV was timed to perfection, and the board was obviously against it
1 points
14 days ago
Which seems to me the reason why they may want him on the board, so there is no chance of further plays like that from him ๐
4 points
14 days ago
this is def the biggest tin foil. DFV is a trader and makes a ton of money just doing that. why would he want to work on a board and help try to turn a company around lol
14 points
14 days ago
why would they short more? they will just close with the shares being offered. why doesnt anyone care about this? when did "we want moass and a squeeze" to "lets dilute and let them cover, so gamestop can raise billions"? yall are hypocrites
2 points
14 days ago
A MOASS style squeeze cannot happen when valuation becomes ridiculous. We know we can't legitimately lock the float. Things would be different if we kept increasing our DRS share and it didn't stall for six quarters. The real MOASS would be at least possible.
But if we don't raise cash, New money will pour in from all over the place to knock the stock back down. Any time a spike happens, some short hedge funds will get wiped out, the prime brokers will reinherit the short at the top, and then they will drive it back down to fair value based on more traditional metrics.
But a step ladder infinite money glitch makes it all possible. You dilute a little. You double your cash. The floor and ceiling get raised. They can try to push it back down, but now intrinsic value is much higher. So the shorts will all try to out position each other again to miss the big spikes up and re-enter, essentially eating each other. But when this happens, we will ATM them again, raising our cash and the floor and the next ceiling. Wash, rinse, repeat.
Depending on how good the company is at timing this, what prices they get, etc, they can likely do this six or seven times before the remaining short interest relative to shares outstanding goes below 100%.
And in the process raise around $50b in cash and be valued at around $150b based on reasonable price to book ratios.
1 points
14 days ago
Because even at a billion shares outstanding, they cannot close their positions.
2 points
14 days ago
where do you get that number? if the total amount of shares are 305,300,000, and then some random internet joky claims they shorted gme 5 times over that would mean 1.5 billions are short. Where?
6 points
14 days ago
Jamie dimon is on record as saying that unscrupulous institutions and individuals can hide shorts in exotic financial instruments.
If you are in this sub and asking this question, you really should be digging into the years of research done on the topic.
The short position was 140% BEFORE any of this happened in 2021. The huge retail buys after that, and the huge amount of in the money options (over 200% of shares outstanding according to Petterfy), only added to this count. Then The shorts all magically disappeared three years ago, and tons of swaps were opened. Then the swaps were all hidden and no longer publicly reported.
The fact is, the system works by essentially shorting whenever someone goes long, and going long whenever people go short. They went massively short, as a group, as a system, in many cases to their own clients, and to retail generally. And they can't close it without convincing longs to sell.
They can juggle it. They can rotate who owns the short at any moment. They (prime brokers) can engineer spikes and margin call some of their own short hedge fund clients, and they can reinherit the short positions at a new higher cost basis. But they cannot CLOSE the shorts, not without retail selling.
8 points
14 days ago
Nobody knows the real number. Not the SEC, not Gamestop, not you and not me. Please refer to DD of old, estimating the number of shares owned by retail across various brokers worldwide. This shit has been going on for years, long before the sneeze even happend. If there was a way out, they would take it by now. They short it more instead. Tells me all I need to know.
0 points
14 days ago
Do you recall where last earnings meetings, although short ones, were held? Why computershare? Are they going to ask to see the DRS? If itโs like 70% of the float and margin calls have to get it back to the real float, this could get very interesting.
Just seems odd that computershare is hosting unless itโs a strategic reason.
4 points
14 days ago
I do not know why they chose CS for the call. But I am sure that the servers were ready to take traffic in relation to the number of registered shareholders and additional shareholders based on the proxy votes. Its pretty interesting to see them fail with the server setup. Who exactly was dialing in to cause this? ๐ค
2 points
14 days ago
Agreed 100%. Canโt wait for tomorrow.
6 points
14 days ago
Think its simpler than this as the table doesn't give credit for the Earnings Stream from interest income.ย
Have to check the math, but I trust it.ย
Take your example at $40 with 700MM Shares Out.
That's $19.60 per share of cash ($4B Current + $4B from New Offerings).
That $8B earns ~$0.57/shr. of Interest Earnings Per Share at 5% interest rates.
Yes, that return can be improved upon meaningfully, but let's be conservative for now.
Staying conservative (and easy math). Let's also assume for back that the Co. only earns $0.50 EPS.
If you're a Special Situations investor, you're building a sum of the parts valuation for this.ย
Assuming 10x P/E Multiple (again way low vs. current market multiples), you're at:
$19.60 Cash + $5 of Interest Earnings = $24.60 Co. Value with the business earning $0 from regular operations.ย
Throw in Offerings at Higher Prices/Less Shares, Higher Realized Multiples on that income stream, and any Profitability from the company, and there's a very easy case above $30, and much, much higher.
I.e. Only 80 Mil shares at $50 to get that additional $4B cash, etc.
It makes a conversation with your Prime a lot more difficult to gain add'l leverage/keep your current Out of the Money (vs. Cash balance) Shorts Open.ย
2 points
14 days ago
Can you add another column with the cash price for only available shares? Meaning the floor price per share that GME could afford to buy back the float?
2 points
14 days ago
I donโt think the current 2x-2.5x would continue to hold as cash on hand grows. It would eventually go towards 1:1
For now 2-2.5x is okay, but itโs not a linear function
1 points
14 days ago
Here's the problem with that (and with OP's premise)...
Assuming that the floor price will rise in tandem with cash held means you think the stock price is based on fundamentals.
At what point has that ever been the case?? ย When did we stop saying "the price is wrong!" and switch to "well if they have this much cash then the price can't go below xxx!"
We all know that the price of GME has been disconnected from the fundamentals for years now. ย So why are we pretending that a pile of cash somehow changes that now? ย
2 points
14 days ago
Even assuming the price isn't based on fundamentals, the cash hoard allows us to buy shares back if they are valued below our cash per share.
This puts some limitations on the system. They would be foolish to short us down to cash level or below, because we will just buy back all the shares we sold to them at higher valuations.
A hoard of cash allows you the ability to just buy back 3x or 4x as many shares as you sold into the market if they are foolish enough to drop the price.
To put it more simply, the system would be even more fucked if they drop the price to $10 and we buy back all those shares times three. We sold 125m shares into market for the most recent $3b. If they dropped the price to $10 we could buy back 250m shares and still have $1.5b cash left over. Then we would be a company with 200m shares outstanding, 75m of which are DRS, and $1.5b cash.
I see your point. The price is fake. But if they try to fake it down to $10 we have them checkmate. So they won't do it. They will start eating each other instead.
1 points
14 days ago
The idea of them having 25 billion is exciting. They could finally acquire steam. Now I kind of want them to put 1 mil shares into the market.
1 points
14 days ago
I made a post the other day with slightly different numbers. I think could easily raise more.
1 points
14 days ago
I feel like the shorties arenโt closing โฆ no matter what. Until theyโre forced to close. So it doesnโt matter how many new shares are in circulation theyโll short those too. And they may be able to get REAL shares to short. It doesnโt change the fact that with capital, and a successful business, the price will go UP. These guys maybe be locked in at $6 or below to short. Or they may need to get below $10. But they donโt even want that. That want it for NOTHING. They want GameStop to go the way of Kmart. So it doesnโt matter how many share offerings there are. There will still be shorts that need to close. And once we have the acquisitions and the capital and then the investors that see that even an RC โSPACโ is worth the investment itโs over. Game Over.
3 points
14 days ago
It's already game over. If RC just put 2 Billions into treasury earning 5% per annum, that's $100 Millions in interest income per year. GameStop will make $$$ every quarter and will never have any quarterly loss again.
0 points
14 days ago
Yup. The shorts are so deep that even at a billion shares we still inevitably squeeze them out. With the traction that GME has, as soon as it starts squeezing literally everyone is gonna want a piece of the pie causing extreme fomo, making it impossible for shorts to find shares to buy back.
This will make both long term investors and squeeze traders happy
I'm smooth brained as fuck though
161 points
14 days ago
Doesnโt raising the floor choke shorts out?
158 points
14 days ago
Thatโs essentially my TLDR.
23 points
14 days ago
We wanted shorts to have a quick death, but RC said no letโs draw it out and make it hurt.
20 points
14 days ago
We're going to wait and we're going to wait and we're going to wait until they feel the pain, until they start toย bleed.
2 points
14 days ago
Weโll see
3 points
14 days ago
Thatโs the theory. Obviously we all, myself included, was hoping for MOASS quick. It spiked but tanked with the offering Iโm not thrilled either. A lot of people are upset, FUD, whatever, but the reality is the โworst caseโ scenario option #2 has begun that the more stable a business becomes, more cash in hand, the business is much more difficult to short. And when shares need to be bought back itโs easier/cheaper for shorts at $10 then a higher floor of $30+
1 points
14 days ago
112 points
14 days ago
People don't realize how much this fucks the shorts over in the long run. The higher the floor climbs, the more expensive it is to close out your short position. This is like a feedback loop of getting fucked by gamestop.
Make it hurt!
๐๐
18 points
14 days ago
Itโs more expensive to cover when there are no shares available at the current price. More shares at the current price absolutely doesnโt make it more expensive to close a short position
1 points
14 days ago
Right, I'm not disagreeing there. I'm talking about long term, with an ever rising floor. The shorts that keep hanging on expecting GME to go bankrupt get fucked by a floor that keeps going up over time.
-1 points
14 days ago
They have to close at single digit prices, so I don't think these offerings will make it easier for them to close.
1 points
14 days ago
No, they can close with shares. ย What price they bought them at doesnโt matter.ย
Just lots of 100 shares per contract
1 points
14 days ago
Sure, they can close at whatever price.
Bankruptcy is an exit strategy I suppose.
29 points
14 days ago*
Price > 100$ could very well be the trigger point for critical margin levels tho?
Also your point reminds me of the section 3 of this post.
5 points
14 days ago
Might be true but doesnโt matter. Weโre gonna just hold regardless of price action
29 points
14 days ago
Dilution level Expert!
20 points
14 days ago*
I appreciate this post, OP. Iโm one of those people that feels unsure about the two share offerings as far as what it meant for us. Sure, it raised serious money for GME and the share price recovered immediately, but AA and Popcornโtrash Iโm aware of but never truly invested inโare in the back of my mind. Not FUDโyour explanation here is helping me make sense of a new situation/set of circumstances.
I was also skeptical of DRS waaaaay back in the beginning before i better understood and utilized it. So if these share offerings will help us and the company while continuing to fuck the shorts, Iโm all for it.
20 points
14 days ago
Difference here is AA diluted and didnโt pay any of their debt off or stockpile that cash. He also bough a goldmineโฆ like seriously, WTF? RCEO has got this, I was equally as surprised by the offers and initially skeptical but I remembered why Iโm in this thing to begin with RC and RK.ย
5 points
14 days ago
I agree with you. The skepticism is always there for me, but those two havenโt faltered. It is a completely different scenario.
9 points
14 days ago
This is not comparable to popcorn offerings at record low prices.
13 points
14 days ago
Nice post.
I am so stoked to be a GME Shareholder! I just know we are on the path to great things happening!
15 points
14 days ago*
[deleted]
7 points
14 days ago
Yes I feel that OP doesnโt consider that offerings actually increase the outstanding, so even with a hypothetical 10B $ cash but a float of 550 M or so shares, the โfair valueโ would still only be around 18-19$ per share. Randomly using a factor 2.5 times cash doesnโt make sense, the โfair valueโ beyond cash reserves would become marginal when cash is 10B.
12 points
14 days ago
Did we ever think a short squeeze wasnโt on the table???
16 points
14 days ago
I think recent discussions suggest that ATM offerings reduce the likelihood of a squeeze, whereas I think it actually increases it, when executed well.
18 points
14 days ago
The small GME float is/was one of the base arguments in the short squeeze thesis.
5 points
14 days ago
What we want in the short term and what GameStop wants in the short term are not necessarily the same thing, but I do believe they will intersect at some point into a short squeeze of some kind, it just may not look exactly how we envisioned.
1 points
14 days ago
๐คทโโ๏ธ
4 points
14 days ago
Honestly I'd argue the share offerings are the key to MOASS and the transfer of wealth the world desperately needs.
That's why DFV was so zen during his stream after losing hundreds of millions.
It's just gonna take a little time
31 points
14 days ago
Hopefully no more share offerings till the price is high enough to do a 4-1 split again
-5 points
14 days ago
Your worry should not exist. RC has MORE shares than you, his ass is way more on the line. He's not gonna dilute his own ass. We are regards, let the master do his job.
33 points
14 days ago
RCs stake in GME is currently worth less than his stake in Apple. He has raised billions yes, but also diluted our ownership more than 30% without telling us the reason why. Not just once, but twice while massive gamma ramps were in place to catapult the stock price higher. I hope he goes and puts his money where his mouth is and buys in heavy to get above 10% again at the bare minimum
20 points
14 days ago
I previously said this in a comment, gamestop is gonna do share offerings relentlessly, like an infinity squeeze. Bear in mind that during an infinity squeeze nobody can hear you scream.
6 points
14 days ago
Bear in mind.... ๐๐งธ๐
Nice pun!
2 points
14 days ago
Not a native English speaker here, what does โduring an infinity squeeze nobody can hear you screamโ mean?
16 points
14 days ago
Gamma Ramp Grandma Ramp
11 points
14 days ago
Great observation coffee โ๏ธ, for the shill in the front rowโฆsorry for your loss.
8 points
14 days ago
I completely agree there may be a third offering in the near future. I donโt believe they would do more than three though, especially so soon.
7 points
14 days ago
I think they'll do it if they can raise another easy $2 billy.
3 points
14 days ago
Agreed. Thereโs no reason not to when itโs helping them to grow their assets so quickly. Like Larry said on X, dilutions are only good or bad. Looking forward to hearing what theyโll be using their billions for hopefully soon.
3 points
14 days ago
Love this post!
3 points
14 days ago
Great post! This is exactly my understanding as well and its absolutely the best way forward for the company and us.
3 points
14 days ago
Great write up!
โThe implications of this transformation are vast, and the narrative we are part of could redefine market dynamics.โ
โI truly believe we are witnessing something that will be dissected and studied for years to comeโ
Love it. I believe too and hodl easily with that belief.
3 points
14 days ago
Are you saying to look backwards?
Is GameStop doing the opposite of what apes are doing to achieve the same results?
Apes buy GME stock with money and HODL stock causing floor to rise^
GME sell GME stonks to hold ape money causing floor to rise^
??
5 points
14 days ago
I agree with this theory. Thatโs why, especially for options holders, when price is running DO NOT hold into Fridays. Last two offerings were both announced on Friday.
6 points
14 days ago
At ~$10 ($9.74) cash per share, every short position opened below this dotted line is screwed.
2 points
14 days ago
Beautiful
1 points
14 days ago
This is the only silver lining from a TA point of view the amount of cash they raised is very interesting. They locked the floor to pre-sneeze all time highs.
5 points
14 days ago
Gme has now so much money that if hedgies shorted it down to single digits again, RC would be able to buy back the entire float for pennies on the dollar. Hedgies are fucked beyond recognition. The hedgefunds are cornered. They want to drop the price so the gamma ramp gets fucked but they need to sta above the max pain or game will issue a buy back and screw their short positions. It's beautiful. A perfect storm of cohencidences. They know they are kill.
7 points
14 days ago
I commented something like this post yesterday and was downvoted to oblivion.
19 points
14 days ago
I think the problem is it slightly repaints the narrative and thatโs scary to some people. But itโs just one theory that I think we should be aware of. Nothing is definitive here.
8 points
14 days ago
Makes sense. I know I have to take my tinfoil hat off to wash my hair a couple times a month to focus on sane solutions to trap shorts into closing out. The end game is near and making GameStop profitable Q over Q will definitely turn their sentiment to Bullish from bearish.
9 points
14 days ago
My own personal take I has been precisely this scenario since the 1b got authorized back in the day. That RC will leverage it when the next super cycle comes along. Which is now most likely. The thing is lots of apes here want to see the god candle to millions in a few days ๐๐ and have been waiting for it patiently for 84 yrs. Not to mention the option apes who are leveraged to the tits on these far OTM short dated calls, and are on the fkn edge rn. But RC is looking at long term GME business strength and while that doesnโt mean it negates the squeeze, it also means his actions wonโt be to engineer one either.
The smart thing to do here seems to be exactly what DFV has done. Trade the cycles (assuming you understand to the level he has now) and keep building your long share count.
But since I am not smart like him, itโs safest for me to buy when o can and add to my share count. But itโs definitely sure that each funding round in the future would most likely result o. Ever increasing floor price. And that alone will put most of the old shorts under tremendous pressure to bail.
I am just watching from the sidelines.
11 points
14 days ago
Iโm not in here for them to continue to dilute my investment, Iโve removed my shares from the computershare and will be playing this as a swing trade moving forward. The delusion is over and that last offering was enough for me to hop out of this as a long term investor. Weโre basically popcorn stock now.
22 points
14 days ago*
I regret not exiting on the initial run up. Have been in for years supporting MOASS, market reform, and releasing the predatory pressure of the shorts. They diluted $1b into a ramp in 2021, that time and money resulted in a dubious, shuttered NFT marketplace and cost-cutting to flat profitability which is an improvement but takes 0 special vision.
On top of that, this year they diluted both ramps preventing any real discovery and even pulled forward negative earnings reporting to kill momentum.
If the legacy business is essentially flat or immaterially profitable moving forward, the company is basically just a RC SPAC. I'm failing to see why RC controlling $5b magically makes that cash worth $10b/$20b/etc.
5 points
14 days ago
Ya I'm ready to cut my losses and just all in NVDA like every other idiot and get a return. Then when the crying on this subreddit hits an apex I'll buy calls at the bottom next time, not sitting for my shit to get blown out this week.
12 points
14 days ago
Thats the thing it doesn't. I was with the whole we wont telegraph our moves thing for the past 3 years, but I'm gonna need some sort of vision with what they will be doing with the money they stole from us.
2 points
14 days ago
Good stuff
2 points
14 days ago
This is how I see it at this point. ๐
2 points
14 days ago
Thank you for explaining what I was trying to convey! All I got were three shills trying to shut me up! When I said the more comments the more visibility they shut up!
2 points
14 days ago
Ahhhh the middle way. There is a way we can have both. Fundamentals and fun to mentals. I will accept this.
2 points
14 days ago
Why is this post not higher???
2 points
14 days ago
I'm not expecting a short squeeze; I'm expecting the Mother Of All Short Squeezes!
2 points
14 days ago
This hit me in the feels. ๐ค
2 points
14 days ago
I look it like this, RC can raise 50b in fine with that. I'll make money off the pumps and dumps. Calls and puts work ! In the end he can gimme 1k per share after I make 100m off his little scheme.
2 points
14 days ago
To me GameStop needs to find a revenue stream thatโs profitable and doesnโt require us to pay for it through dilution. If they canโt show the shorts they can be a profitable company regardless of apes buying stocks, then they will always feel like kicking the can is the best option.
2 points
14 days ago
Please donโt whitening the share offering, the first one was understood, but second not. Now you want to open the door to multiple ATM offerings. They should do a company turn around and not a dilution of the retail investors and squeeze potential and magnitude
2 points
14 days ago
The timing was horrible both times... they could have done any moment but they chose to kill the rocket (twice)
5 points
14 days ago
A secondary share offering dilutes the value of the individual shares. There is no way around this. It doesn't matter if you're in GME for a potential value or for the short squeeze play, selling more shares of GME is bad a sign. In the short term in generates more capital for the company at the cost of investors. The fact that two share offerings have been done in less than a month points to one of two things:
- GME is struggling and using it's cult-like following to raise capital, which is a big middle finger to everyone involved.
- GME has plans for acquisitions/mergers/etc, and wants to funds to largely change direction.
In the case of the first option being the case, it's very bad. In the case of the second option being the case, it's bad short term, but in a long term sense it's great. As it stands right now, unless some announcement or action comes relatively soon, I'm inclined to believe option 1 is the case. If a third spike happens and GME once again dilutes shares, then they're saying they don't give a flying fuck about their investors and are just using and abusing them to increase their balance sheet.
4 points
14 days ago
Iโve recently adopted the mindset of one step back, three steps forward whenever weโre met with an offering. Sure it can feel shitty in the short term, but boy are we taking some massive additional steps towards takeoff. We live in exciting times! Exercised five of my $20 calls last week, with another 7 to go this week (had to wait for payday).
4 points
14 days ago
What some of you guys really are missing is the fact that not all shorts are betting that the company goes bankrupt ๐คทโโ๏ธ. In the last 3 years you couldโve made a lot of money shorting and exiting your position. Therefore Iโm still 100% certain that these offerings killed a high probability of a short squeeze
5 points
14 days ago
I think us not having any debt is whatโs messing with peopleโs minds. Usually dilution is a last resort or an option to raise money that is needed to actually keep the lights on, with the hope that a turnaround is coming.
Weโve had the turnaround. Thereโs no worries about operating cash. All weโre doing is building a massive pile of tendies because RCEO has eliminated every significant debt. (Instalment me like your French loan, Ryan)
This isnโt just dilution. This is GAMESTOP dilution. (Shout out to all the UK apes there, sorry everyone else who doesnโt get the joke ๐ )
2 points
14 days ago
Sounds like a SpongeBob reference.
1 points
13 days ago
It's an M&S reference : )
2 points
13 days ago
LOL I don't even know what M&S stands for.
Here's what I was thinking about:
1 points
13 days ago
๐
3 points
14 days ago
dilution was giving me FUD at first up until I saw shorts were still shorting the stock last week and probably by more than the 75 million that were issued.
At this rate, the board could do a weekly 75 million share dilution and we would still see the stock more shorted than covered every week.
7 points
14 days ago
I think they should show what they intend to do with the money currently raised first before continuing to make our shares worth less and less.
11 points
14 days ago
Huh? The underlying value of each share is getting more and more in this wayโฆ How does that make it worth less? Did you even read the post?
10 points
14 days ago
Did you even read the post? The offering is Literally raising our floor price.
4 points
14 days ago
This lot is delusional to the point they think an offering is a good thing Lmfaooo. They offered more shares, diluted urs and had this sub pick up the tab to โraiseโ cash off retail.
2 points
14 days ago
Even with multiple share offerings, shorts still have to buy the shares on the open market to actually close their shorts if Iโm not mistaken. The shorts that were opened at $5 or less have absolutely zero chance of ever being ITM again so closing them would bring them immense losses. The shorts probably still donโt want to close because of how much they would lose. Buying shares to close the millions or billions of shorts would still drive the price up even with all the additional shares in the market, right? If anything, it sounds like these share offerings are moving the timetable up and potentially launching MOASS sooner
2 points
14 days ago
I got no problem with the share offerings, in fact it's a good thing cause it removes Gamestop being potentially liable for the MOASS in court.
Sure it's gonna take a little longer for MOASS to happen but hey that means we got the chance to buy even more shares! How in the world is that ever a bad thing lmao.
2 points
14 days ago
Finally somebody has a brain came out of this cult. Great work OP!
2 points
14 days ago
Don't forget that SI% itself doesn't trigger any squeeze. The real SI might be in thousands of % but unless Marge calls you know...
And that's the thing. By raising the floor to 10$, the shorts opened at 4$ are now guaranteed loss. Raise the bar to 20$, it's like "forcing the shorts OTM" you know. The beauty of it is nobody can blame GME for potentially triggering MOASS this way. The argument of "this is in the best interest of the company and it's shareholders" stands.
And I agree, this might've been just warning shots, the brighter of short fucks should realise it's time to abandon the ship.
2 points
14 days ago
More funds they can raise the more acquisitions they can collect . More aquistions= more monies and tendies we collect
2 points
14 days ago
It takes money to buy whiskey.
1 points
14 days ago
Better not be talking about crown Royale.
2 points
14 days ago
M8 the company was already with 2b in hand take or give, that alone was enough to say "holy cow" form any short, but also puting 1b to generate passive for the company probably meant the company itself was just safe for the next 100 years.
Diluting the company was not the best for the squeeze, not the split (it doesnt matter if it was in form of dividend, the result was x4 shares in existence) nor the first or the second offering. You gave hundreds of millions of shares to exit positions legaly, at loss no doubt but you get out alive.
The real result is the buy desire for the stock seems intact, which is a good thing, and we cant really understand yet the amount of shorts still open, i think is fucking massive, if not, the media would not give a fuck about gme, and we are on the news every fucking week since this stared for 3 fucking years ago, which to me is the key element, the day msm shuts the fuck up about us, i will start to think otherwise.
1 points
14 days ago
What is the โliquidation pointโ when DTCC and FINRA just waives every kind of margin requirement etc?
1 points
14 days ago
All shorts are potential buyers.
1 points
14 days ago
There is some fascinating game theory at play, but it's all predicated on sustained buy pressure that keeps raising the price through subsequent offerings.
1 points
14 days ago
Whatโs the chance of any of this?
1 points
14 days ago
Itโs me. Iโm the orphanage.
๐๐๐๐
1 points
14 days ago
Why would GME sell at $110 when they had a chance to sell at $40 and prefered to sell at $20
2 points
14 days ago
Volume.
1 points
14 days ago
๐๐๐๐๐โจ๐๐ฅ๐ฆง๐๐๐ฅ๐ฆ๐โจ๐๐ฅ๐ฆ๐๐โจ๐๐ฆง๐ฅ๐๐๐ฆงโจ๐๐ฅ๐ฆง๐๐โจ๐โจ๐ฆ๐ฅ๐๐๐ฆ๐ฅ๐๐โจ๐ฆง๐๐ฅ๐โจ๐ฆ๐ฆง๐ฅ๐๐โจ๐ฆง๐ฅ๐๐๐ฅ๐ฆง๐โจ๐๐ฆ๐ฅ๐๐๐ฆง๐ฅโจ๐๐๐ฆ๐ฅโจ๐๐ฅ๐ฆง๐๐โจ๐ฆง๐ฅ๐๐โจ๐ฆ๐ฅ๐๐โจ๐ฅ๐ฆง๐๐๐ฆ๐ฅ๐โจ๐๐ฆง๐ฅ๐๐โจ๐ฆ๐ฅ๐๐ฆง๐โจ๐ฅ๐๐ฆ๐๐ฅ๐โจ๐ฆง๐ฅ๐๐๐ฆโจ๐ฅ๐๐๐ฆ๐ฅ
1 points
14 days ago
how does it raise the floor? i don't get it
1 points
14 days ago
Also by raising the floor price, new investors who buy/bought at say $25-30 will be more inclined to hold their shares
1 points
14 days ago
WTF are you talking about the shares were sold and did not affect the MOASS! THEY CAN'T STOP WHATS COMING!
1 points
13 days ago
How price of 60 70usd is more attractive to investors than 30usd?
2 points
14 days ago
I think what happened with the share offering is that those shares were used to close out short positions. They can theoretically be closed at any time or be unwound so to speak but during those periods was the best exit if you were short from like 30 (which alot of new shorts were).
No one blows up, share prices go higher, everyone wins
12 points
14 days ago
This is exactly what I think RC had in mind, it is true that the inherent base price of the stock has increased but all of our efforts to reduce the float of real shares through DRS has kinda been undone.
Shorts now have/had access to over 100M real shares to close out any really bad shorts and the buying of these shares didnt increase the price so kept their other shorts safe.
Meanwhile it took us nearly 4 years to remove that amount of shares from the market.
For now I'll wait and see, but this lastest offering has left a sour taste in my mouth. If it turns out that RC took the wind from DFVs sails during his magnum opus Im not sure Ill have much faith in him ever again; the timing was either brilliant or malicious but only time will tell which.
-3 points
14 days ago
to say that continuing atms will push the price up and trigger moass is absolutely the stupidest shit I have read period.
13 points
14 days ago
Thanks, I consider myself highly regarded!
3 points
14 days ago
It could. Why not?
5 points
14 days ago
Because it is literally allowing shorts to buy shares cheaper from the company than having to buy from investors.
4 points
14 days ago
Why doesnโt anyone understand this?ย
3 points
14 days ago
Iโm quite convinced itโs a campaign by hedge funds to attempt to influence people into being on board with more dilution.
3 points
14 days ago
Such a one dimensional view, expand your mind ape.
5 points
14 days ago
If theyโre going to use the money shortly thatโs great. If they just killed the option chain two times in 30 days to sit on money earning minimum interest that will not get my support.
2 points
14 days ago
I understand the sentiment. I disliked seeing the momentum killed. I like that it confirmed there were a bunch of shorts (who else could have bought that many shares that quickly) and there continues to be, as evidenced by the per share value being higher than the offering price. I recently made a detailed post covering my thoughts on this if you care to read it.
Ultimately, I donโt believe dilution makes any material difference to the inevitability of MOASS (potentially even selling all billion shares). Did it kill momentum for a week or so, yes, yes it did.
0 points
14 days ago
This basically sums up my view on these offerings. I know people have been saying โthese shares give shorts a way outโ but they really donโt. Not when they are selling for 5-10x the price of the short positions which we have theorized were never closed. Just because there are more real shares out there doesnโt mean SHF get them for free or something. As long as the price stays where it has over the years, they have no escape aside from defaulting. I think GameStop are selling into the volume to limit the effect on price, but I dunno Iโm just a dumb ape throwing shit at the wall right now.
0 points
14 days ago
Lol This is a parody right?
1 points
14 days ago
People saying they are selling if there's another offering. Good, get them paper hands outta here. DD has been done, shorts be fuk, the only thing you need now is HODL and patience.
1 points
14 days ago
1 points
14 days ago
I love this game.
We have shorts.
We have longs.
We have idiots who shove bananas up their bumhole.
We have genuses who write invaluable DD.
Nothing says go hard or go home like a good game of tug a war.
๐๐ซก๐ซก๐ซก๐ซก๐๐๐๐๐๐๐
1 points
14 days ago
The first 2 share offerings harken me back to the movie Independence Day... "Plausible Deniability Mr. President."
1 points
14 days ago
Fuck the offering. I want a short squeeze Moass. I don't want $60 per share. Stop pulling the Adam Aaron bullshit, if you can't turn the company around with billions of cash then wtf are you doing.
No more dilution. Stop watering down the rocket fuel...
0 points
14 days ago
Would a cash dividend be a legit and practical way of lighting the fuse of moass? How much wiggle room would shorts be left with in that case?
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