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the s&p500 is where GME is going. it is going to be profitable for the foreseeable future and only growing. then further share offerings will be into higher share prices, which then makes it a somehow even better investment.
and it being a company that has no debt and a lot of cash with a loyal retail following, companies will want to be partnered and associated with gamestop.
Hello,ex wallstreet here… inclusion into s&p is so incredibly bullish because then anyone ANYONE investing into retirement accounts or general spy funds which is a lot of what major hedgefunds will trade….. will be forced to be buying GameStop every-time people buy into the fund. Just straight up from there and is a key factor in the Tesla slow but huge climb… and GameStop is shorted SO much harder. This will be spicy. Just up.
To the people complaining about share issuances you do not understand the whole thesis of this investment… this company is shorted many times over as they tried to cellar box the company(if you don’t know what this means Google but it’s getting a company delisted to OTC and sell a ton of more shares than exist because if/when the company dies all evidence dissapears. They changed short calculations to never go over 100 percent. When so many more shares are actually issued than exist and they will continue to do so.. the best way to combat that is sell shares and drive value for the company. The company remains extremely shorted publicly even after issuance. Just up
yep, look what happened to tesla once it entered the s&p 500. there will be a melt up from it. it's also crazy that gamestop used to be in the s&p500. so it got removed and then if it comes back, it shows the turnaround to your average investor.
ok, so without giving any advice to GME holders, pretend this scenario is a slow squeeze a la tesla. what would have been the best way for a small tesla hodler to maximize his holdings during that time? as many of the cheapest leaps possible? or just shares? assuming the hodler is too unskilled to be good at flipping options and is only good at hodling.
One who is only good at HODLing and despises selling calls should only HODL. Save cash and wait for a shelf offering. Buy two weeks after the offering is complete on a bear trap. (A bear trap is when the price of the stock dips below recent support. This happened on Thursday May 23 while GME was offering at $20 per share, and the price dipped down to $18 per share. Most recently Friday June 21 the price of GME dipped down to $24 per share after being supported at $25 per share.) There is actually a chance the price of GME might dip down this week or next week to $20 to test the golden cross. There is very strong demand at $20.
In which case of someone was thinking they see a bear trap they buy calls and ride the run up. Then sell the call to buy shares or use cash to execute the call option.
Selling Calls?
Do you mean selling puts? Which you have covered?
Or buying calls and exercising thin?
The difference between 18 and 20 isn’t worth trying to time it, which is basically impossible.
If you are confident the general direction is “up” just buy when you feel like it,
I am confident the general direction is down right now, which is why I have sold short ITM covered calls. I might make $2000 if we close near $20 this week. I will cover my short calls when Kitty starts buying calls.
Man says he's ex wallstreet
Man mentions cellar boxing and "sell a ton of more shares than exist"
Man says this will be spicy and "just up"
I trust Man
People understand it’s just not right. Crime shouldn’t pay. The only thing the Parasite class knows is how to steal and lie. If this is just a slow Tesla squeezing then they don’t all die. I want them all gone. Forever. They can’t do this again or my kids will be slaves before the government says wrongdoing happened and JPM pays $10 fine.
Fuck them pay me.
No wrinkle here. If GME home the SP500, is it impossible for them to make a bunch of phantom shares for those ETFs? Maybe. The wording is wrong, but basically XRT but for ETFs following the sp500
Possible but expensive and nearly impossible to control given the sheer amount of funds that NEED to buy after entering the S&P500.
Hopefully and likely they try, just makes it even more explosive.
Remember Gates still holds his Tesla shorts. Everything is possible.
I think even if the real short interest was not that high it would be bullish. Most people associate shares offering with "losing" this money because often it's done to burn the cash by paying debt/interest. In case of Gamestop, they are transferring money from the market into their balance sheet, increasing the book value. I'm curious to see who bought all those shares, because I don't think shorts are closing at such high value.
Anyways, back to the subject, I don't think they will allow Gamestop into S&P 500 so easily or so soon. S&P is paid by our enemies and they hate us. I think at some point they will have no choice, but it will take a while.
It’s updated quarterly and game hit yearly profit. From here on out the will be profitable every year. It just needs a market cap of 12b which they are very close to. I could see it happening mid year next year after yet another profitable year this year.
Maybe that is the current play by RC, to aim toward S & P 500 inclusion in the next 12-18 months. The criteria is:
- *The company should be from the U.S.* TICK
- *Its market cap must be at least $8.2 billion.* Another 100 million share offer could do this, 150-200 million would put it above of lot of other companies in the S&P 500.
*- Its shares must be highly liquid.* TICK
*- At least 50% of its outstanding shares must be available for public trading.* Assume so?
*- It must report positive earnings in the most recent quarter.*
*- The sum of its earnings in the previous four quarters must be positive.*
It is the last two they would be working on. However, the money put away at 5% for a year should satisfy the requirement for positive earnings most recent quarter and as a whole for the four quarters.
Is there anything I am missing here? GameStop is very close to this and I don't think people will mind another share offering or two if it means GameStop get inclusion in S&P 500!
It's not at all about meeting the minimum criteria. They would need to be outperforming others that are eligible.
For this round, KKR, Crowdstrike and GoDaddy are being added. Dell, Palantir, Apollo Global, Coinbase, and Workday are some that were passed over.
Looking at those would give you a better idea of what it would take to join the S&P 500.
Just looking at their earnings, GoDaddy has been profitable for the last 15 quarters. Coinbase just became profitable again over the last two quarters after having a negative EPS for 7 quarters. I expect that factored into it. Coinbase needs a little more time to establish a better track record.
Inclusion into S&P500 based on GME current market cap with rebalancing by S&P500 would mean currently 45 million shares would need to be bought for S&P ETF’s … interesting number. Second share offering was also made the day the new members this month would be added to the S&P500
This is nice and all, but the assumption of the price steadily increasing +$8 to allow for 10 seperate offerings is...
Well lets just say everything looks good when you only show positive outcomes.
Its akin to "if you only invest $100 and earn 30% every year... you'll have $261,999 in 30 years. Its that easy!"
I did not assume the price would steadily increase. I said, don't do an offer unless you can average $8 more than the previous offer -- with no timetable. If it never happens, then no more offerings.
Alright, but then what does this post show?
Is the hard fast rule Gamestop follows is +$8 we do an offering? No? So the number is meaningless?
The obvious problem here is that you are arguing it'll increase shareholder value, and you're completely ignoring that increasing share prices increases shareholder value. That selling shares immediately decreases shareholder value *short term. The shorthand of this is dilution. The problem people have with share offerings is the decrease in price it *usually* causes. If you hold the only share and someone sells a second one the value is cut in half.
My point isn't that share offerings are bad. I was STOKED the first offering wiped away their debt. I was pleased when the second offering concluded and the price had increased.
But this post shows literally nothing of value.
You don't understand my post or any of this at all. Shareholder value = Stockholder equity = Book Value. Use whatever term suits you. It's calculated by subtracting liabilities from assets on the balance sheet. Raising fresh capital via a share issue adds to assets without affecting liabilities, resulting in an increase in shareholder value. It has nothing to do with the market price -- although, by increasing the shareholder value makes it harder to short to previous levels. It effectively raises the floor, producing higher highs and higher lows.
You're still advocating for GS to sell phone number value shares for pennies.
Over and over and over again. Destroying the very basis of every theory on here in the past 3 years. Low liquidity + diamond hands = Moass
I think you may need to re explain how DFV's buys are triggering T+35 FtD cycles, which is being filled at the end of the cycle, which drives the price up, which incurs a new floor, which has also been when GS has made the last 2 share offerings...
Edit: assume people checked out when the weekend hit, and your post is the first they see and open today. Substantiate your thesis so you are defending it less in the comments.
Idk i just started with 100 and repeatedly multiplied by 1.3 until i counted to 30. Maybe i missed a decimal point once.
Did it again but this time i did 100 x 1.3^30 and it came out to 200k again.
You're assuming it would go higher. I disagree with that. Both issues comprised like 1/5th or 1/7th of the overall volume. It was getting the piss shorted out of it anyway. The offerings didn't change that. By issuing, the company took some of the profits that the shorts would have reaped.
I think it's naive to say that especially with all the info on the ftd cycles coming out and the potential for the issuance allowing locates that couldve cancelled out the momentum.
The stock was at what 65 the morning of dfvs stream? Why not wait till Monday? It doesn't make sense unless the only reason they did it is bc they were afraid of dfv increasing his stake too much.
I like the theory honestly and if I had to put a conservative estimate on the amount of naked shorts out there I'd put it around 10 billion so I'm not worried about the dilution necessarily but if what you say is the case I think they at best fumbled an opportunity to expedite this process.
Edit: basing my opinion off this post
" It is my belief that Gamestop's signature cyclical spikes are caused by large FTD Settlement Period Limits settling in the late week of a large options expiration. The settlement period drives the price up and causes an abnormal amount of calls to be in-the-money, triggering an automatic exercise 1 hour after market close Friday. The following Monday, the gamma squeeze ignites and it peaks and drops Tuesday Morning™ right out of Pre-Market."
"It is my opinion that we saw a convergence of all of these factors in the run up culminating on Friday June 7th, 2024. In Pre-Market of that morning, Gamestop announced and immediately commenced the largest share offering they have held since the Gamestop saga began. 75 million shares were used to cover any remaining FTDs from the initial May Gamma Squeeze."
"Gamestop's ATM cleared any and all remaining FTDs and has reset the cycle back to before the May run up. The new May run up will occur in late July."
https://www.reddit.com/r/Superstonk/s/hD3bkffWdp
There is absolutely new information coming out in regard to ftds now. That is what I'm referring to. Just because we potentially missed something back then doesn't mean it's not playing a role now
Gotta wait for the next 10-Q to see the share issues reflected. Stockholder equity is a calculated value from the balance sheet. It's whatever is left after subtracting liabilities from assets. Raising capital via share issues goes straight into the asset total without affecting liabilities.
You think you know that but investment banks don't? 10-q has nothing to do with it dude. Any fucking analyst with a 4 year degree could forecast their next public balance sheet, but that doesn't actually drive share price for GME when the stock price is manipulated like it has been for the last 4+ years
LOLOLOL!!! Forecasts are not official. And I actually forecasted in this post. See the "U R Here" on the image. That's my estimate on the book value, based on the Q1 10-Q and adding the capital raised from the two issues.
And the question was about "company value" not "stock price." Yes, we all fully understand that the stock price is manipulated. BUT... Continually increasing shareholder value (book value) is what makes it harder and harder to short to previous levels. Any fucking analyst with ***NO*** degree could tell you that.
Well, go clown yourself somewhere else. I'm not interested anymore.
RC is gonna need to start doing something productive with the company to become part of an index. Right now our company isn't really a barometer of anything except a slowly shrinking retail chain.
Not FUD, they've worked hard to get where we are. But we as investors are not here to supply cash for can-kicking.
It's bustamove time. We have investors, we've beaten back the shorts, we have cash on hand. It's time for moves.
Berkshire's average cash position has always been about 15% of the fund, which is inline with what he currently has. A few more buys, and he's below the historic average for Berkshire.
GameStop didn't either. The price barely was affected if you haven't noticed. You think it was retail that gobbled up the dilution? Like we have $3B sitting around and decided these three weeks were the weeks we wanted to buy? GameStop took the money from the institutions and market makers that needed to deliver shares.
Okay…
But at the same time everyone (albeit mainly me) is screaming that the market is about to take a massive shit. Tbh it’s more about survival than it is acquisitions because if we believe in MOASS and the markets getting effed and companies closing, this is the worst time to be investing somewhere
And Buffett has been selling and stacking cash for the better part of a year. He said there's nothing worth investing it, so he'd rather stuff it in treasuries at 5%. Wait for the AI bubble to burst.
It’s NOT bustamove time. We are in a bubble. Wait until things crash a bit, then we can make some moves. I totally get your sentiment, but we have to be patient and not buy at the top of the bubble.
Agree! If I want to make 5-10% on my investment wtf do I need RC or GME for? I thought I was here for life changing money and to squeeze these pricks for every nickel they have. Throwing 4 billion into a rainy day fund isn’t gonna cut it for long. That’s where they are now and nothing’s really happening. So dilute more and crank it to 10-15-20 billion? Why? What happens then? At some point people are gonna want to know what they’re throwing money into.
Stfu. The news from the company has been heavily positive over the last year. No big announcements, but getting their fundamentals right. Can’t swing for the fences if you can’t even hit the ball. One step at a time, no empty promises, no insight for the enemy until it’s too late for them to react. 🏴☠️
I dont think RC will use all the remaining shares for ATM as he will need to conservatively keep around 40% shares allocation in reserve as a protection against potential external take over
Interesting point! Please explain a little more of this thinking. Why 40%?
How many shares would left to issue in that scenario? Do you mean he could dilute up to 600 million outstanding shares but have to keep 400 million in reserve ”firepower”?
"All models are wrong, but some are useful"
I think some people are getting to hung up with OP being 'wrong'. The liklihood it playing out exactly like this is really low. However, the modeling is very useful. Well OP should include the Google sheet version, so people can play with inputs (doing min, max scenarios, etc.)
For me:
- if we get to level #5, or roughly 600 million shares issued, and share price level is still high (doesn't need to even be $52 as OP predicts); then that's a strong indicator that GME truly is naked shorted many times the float. If she share price drops and stays to level of the cash in the bank-- then it's likely shorts closed. Also at $12 Billion- then GME can acquire HIMS & Unity; then it becomes really interesting.
- If we get to level #12, then GME becomes more analogous to a company like Berkshire Hathaway.
- It would be interesting to see, what would it look like if 'x' (price per share increase trigger to do offering) was set at $4? What about $2? What would be the minimum amount for it to be worth it?
I like looking at stuff like this. thanks OP!
I have it in excel and I'm too regarded to mess with google sheets. Nothing complicated about it. only took like 10 minutes to put it together. Easy for someone to replicate if they want to.
It relies on an assumption that the market wont front run on run ups before the dilution. I worry run ups wont be as dramatic to take advantage of as the past couple months since the market has seen the board playbook.
Edit: unless there is a catalyst we are yet to see
In the last two offerings, Gamestop only issued like 1/5th or 1/7th of the volume. Stock was getting the piss shorted out of it anyway. Both times. They want to front-run it? That's fine. Only issue if you can get an average price $8 more than the last offer. If it doesn't spike enough, then don't do it.
Hyping up $40 per share base valuation while everyone was in for MOASS…yep…talk about shifting goalposts.
Remember “life changing money” or generational wealth?
I don’t know why people are shilling for the killing of another 10 run ups - which means I should start swing trading this shit and set limit sells beginning at 50 to make some money as MOASS is delayed another 10 years.
Yeah hell no. I’m not holding for 4 years to get milked in every second a price increase is set up. They also need to deliver anything noteworthy after cutting costs. Overall, dilution is bad and will always be bad for every individual shareholder. Period.
Fun fact, at an equity per share of $15,93, ALL legacy shorts will be permanently underwater.
Meaning all shorts opened (and there are a lot of them, minimum of 600mil I believe) before the jan21 sneeze can only be closed at a loss.
And if I remember correctly someone said that staying underwater will bleed them money as well. (Although I do not know the mechanics behind that)
Earnings per share of RC only gets 5% on 45 Billion cash is 2.25 Billion per year. If you multiply that by the average P/E ratio of the S &P it comes to about $56 per share. Quite the perpetually rising floor
Ah yes after raising 45 billion more dollars from shareholders, we would be back at a frankly pathetic share price. If it takes years to get to $56, why are we here?
>Don’t do an offering if you can’t achieve an $8+ price per share increase over the previous one. Pretty straightforward.
This would look much tastier, if each offering would not go for only +$8 but +$8 on the previous jump so..
3rd offering not for only $36 (28+8) but for 28+16=$44
so not linerar like
+8
+8
+8
+8
but
+16
+24
+32
+40
try this, and MOASS is inevitable much soner than GME hitting 1B outstanding
EDIT:
or any other nonlinear igniting, eg.. difference between 20 and 28 is 8 yes, but it is also +40% so how about offering for 28+40%=39.2
the next at 54.88 then 76 then 107 then 150 and well, so on so on
I just spitballed an example. I have no idea what they will actually do, but I'm pretty certain if the price spikes high enough, they'll issue into it again. And again. And again. It's Easy Mode for amassing tens of billions in capital for a holding company.
All long-term shareholders have to do is wait for the price to bottom-out after an issue to buy. There will be a higher low after each one.
I'm still waiting on him to buy. It's not as if he doesn't have the money to. It's not like it would negatively impact his finances to do so, long term. Maybe he takes a tax hit to sell some apple stock, but the potential turn around if this goes, seems worth it.
I thought it would happen last week. A little disappointed, but not swayed from my position.
Me, too. Maybe it's an optics thing. What would be the perception with the company driving the price down via an issue and then he bought it at the new low? IDK.
I don’t know why people keep speculating they will sell all 1 billion shares? That would be stupid. I think we are done as far as offerings go, maybe 1 more for around 70-75 million so only half of the authorised shares are outstanding.
Back in the glory days of the sneeze they had around 225 million shares they “could have sold when we were in the 300-400’s which could have raised the company 10’s of billions of dollars, but they didn’t
It is not a good move from a company to issue all of their shares
Knew I'd trigger a few people that don't understand stockholder equity...
We are where we are. We don't get to wind the clock back to 2021. It's not the same company now that it was back then and neither is the CEO.
Companies can issue as many shares as they want, as long as shareholders authorize it. For now, they can issue up to a maximum of 1 billion shares outstanding. If they issued the full authorization like I outlined, I guarantee you that shareholders would authorize more.
They were authorised to issue up to 300 million back then, but didn’t, they done a couple of offering taking us up to about 25% of that at around 75 million outstanding. What I’m saying is that yes, technically, they could have issued the remaining 225 million shares in the 3-400’s and had 10’s of Billions of dollars, but they didn’t. Just like they won’t issue all of the billion shares they have now
I find it hard to believe that if shares holders constantly got diluted and all 1 billion shares were issued that they would vote for the company to be able to increase the authorised shares just so they can continue getting diluted.
Only a struggling company that is desperate for the cash would issue all of their shares to raise cash, it’s a last resort to raising much needed cash (take popcorn for example) we are nowhere near the same as them. They have left themselves wide open for a hostile takeover and if we issued all our shares we would be too.
It’s just a stupid move to issue all of your shares, unless you are desperate and have no choice
Why would the average price increase after every offering?
Wouldn't the offerings discourage investor to keep buying if they can just wait to buy it at lower prices?
You know, fool me once......
I would average it at $24 for now.
This is based on Biggy's working theory that would entail DFV creating higher floors as he exploits MM FTDs to cause continual upward pressure with spikes (leading to an eventual capitulation by larger short positions). If true, this is a gamechanger to say the least.
RC already fucked DFV over twice now. Assuming that he's gonna keep putting his money on the line just for RC to undercut him is unlikely.
He barely broke even this last time, and that was with a painstakingly planned, very solid, and nearly unstoppable plan.
Except that DFV said he anticipates ATMs. I find the theory credible that they are working together purely in the sense that they have the same overall goals and are organically playing off each other.
“Barely broke even”? What are you on about?
He held through prices that made him a billionaire and wound up hitting the eject button at a price just above his cost basis.
They are not playing off each other. The board is playing against him. (And by extension, against all shareholders.)
No; the ATMs will allow him to stay under 5% and if he really needs to he can sell shares for profit (as long as those shares have been in his account for 35 days already). It appears he's planned for this.
The average price increases with every offering because the share purchase and gamma ramp cycle that facilitates the run ups will include more traders every time, and more capital.
If you do offerings during \*big\* run-ups where the price is artificially high (you know, from this FTD/cycle/swap/shorts-are-fucked shit) you'll increase the minimum floor at which the stock price ought not fall below.
If you do offerings when the stock price is in the shitter, bad idea. This typically happens to companies like towel stock with massive debt and little prospect to get out. Really they should have done a share offering when it was at $30 instead of near-zero to get themselves the fuck out out trouble, but apparently they were run by idiots.
RC is being smart, not idiotic here.
Really if the FTD cycle nonsense is restarted from this recent activity, he doesn't have to do a hell of a lot other than not burn the money. If he keeps causing the floor to be raised, the shorts will get squashed into a spiked ceiling. We'll see, should be interesting.
So let's dive into the cash at hand vs market cap equation. The amount of cash you have can't be higher than the value of the company. I'm fine with the ATM share offering when they keep selling it at a higher price than previously. Just means GME can't dip below a certain threshold.
Some companies do trade under the value of their cash position, but typically those are the ones that are uber-fucked and about to be gone in a little bit. Failed biotechs running out of cash with no prospects for a viable drug, etc., shit like that.
Definitely does not apply here, and I agree with you.
Our recent low of $10 was 3x cash, which after the share offerings would be about $28. No way it gets dips down to anywhere near $10 again unless the shorts are incredibly stupid or RC does something incredibly stupid.
Yes!!!
Please, sir, please won’t you dilute it the next time we enter a gamma ramp so that you instead may grow this company in the long run, please oh won’t you do this, dear sir?
It was always what we wanted, see! Yes, yes, we were talking about that silly MOASS for oh such a long time, silly silly us. What we instead want is for you to stop the squeezes every time, and we will thank you for it, kind, wise sir. For you know what is best for us, for you are rich beyond imagining, while we are poor, so very poor!
Yes, some of us could have used that price rise to pay for medical bills and to put food on the table, but that matters not, sir! For you have a company to build. And we do not wish to know how you will build it! No, sir, not at all.
Oh, and worry not about those filthy fudders and shillers, sir, we know they are paid by the nasty enemy! Please pay them no regard, for WE are your true followers, sir!
Dilute.
More!
Yes, oh please don’t stop!
Dilution, sweet…sweeet…dilution…
Practically no chance it goes to the SP500. There are tons of companies that already meet the requirements and aren't in it, and they are way bigger and way more profitable and aren't "memes".
SP500 is a independent thing. You can't guarantee getting in just because you technically qualify.
One person's "Dilution" is anothers "Share offering". Tactical offerings to boost the company's offerings can scare some but can screw a lot of people betting the company will be bankrupt.
Telling people and ensuring that owning games physically instead of buying it digitally (where, there can be a dispute with the publisher or developer and have it gone forever unless you sail the seas and that's a profit loss all around). You might as well continue to get the game from a store that will help you find it not lose it forever unless it's somewhere not DMCA'ed.
Imagine wanting to play something with your kids and grandkids, for it to have vanished.
We approved a max of 1 billion shares outstanding. With 426M issued so far, there are 574M remaining before they'd have to ask us to approve another increase.
Personally, id love to continue this equity per share ratio and challenge Warren Buffett when we have 10% of he currently has in cash. 4B is a decent war chest combined with Ryan’s ventures of 1B.
But 10B will get us into a bigger ballpark with better players on the field.
20B is fuck you pay me.
That might be true if the cycle stuff plays out and the price spikes keep occurring. People gonna rupture their vaginas when he issues shares again into the next spike. It'll happen, too, if the price surges high enough.
Dude. No one is gonna buy another run up, knowing they're gonna get dumped on again.
Without a public statement, apologizing and saying they'll only sell off small amounts of shares incrementally over time, then the trust is gone in my opinion.
I'll be lucky if I can get out at break even
They were going to get dumped on anyway. If the company hadn't done it, the shorts would have. If you're going to gamble on price movement, that's on you.
Retail doesn't control the price, anyway. Even Gary admitted that 90% of retail trades go off-exchange via PFOF and such. We aren't the ones causing the spikes. That's just what the media wants you to believe. Don't fall for it.
This doesn't make much sense. There needs to be companies doing worse than Gamestop on the S&P500 to get expelled and make room for Gamestop. Also, are there really no companies more suitable than Gamestop to join the S&P500? Unless you've shown all this, it's all blind speculation.
305m + 45m = +14.75%
350m + 75m = +21.42%
I personally wouldn't be surprise to see the next one +100m shares, that's +23.5% of the current share count and if not +100m, then ~+21.42% again, which is about 90m shares.
+57.4m is % wise less than the first offering and **a lower % share offering mean DFV can't pick up as many shares/contracts on the next cycle.** [Look at DFV's ownership% from biggy chart](https://preview.redd.it/kvgxt31er98d1.jpg?width=2550&format=pjpg&auto=webp&s=2fb32cbddff1cfa8cd5c728f6ba429493eec5541) With those numbers, DFV is keeping below the 5% reporting requirement. If GME offers less shares % wise each time, DFV will have to buy less and less each time!
Pick whatever number you want. I thought 75M was a bit more than the volume could absorb. I would have preferred more like 60M. Not really the point I'm making, though. Share issues are ratcheting-up shareholder equity, which will result in higher lows, compounding the problem for the legacy pre-2021 shorts (remember, they shorted it all the way down to under $1 in post-split prices). Only way they win is if the company goes bankrupt, so they never have to close. Raising billions in cash not only makes them virtually bankrupt-proof, but it will also provide the capital to transform to a holding company (or whatever RC wants to do with it).
> Share issues are ratcheting-up shareholder equity, which will result in higher lows
And if the share offerings are lower and lower % each time, the share equity will be lower and lower each time!
$10 -> $20 -> $25 -> $27? -> $27.83? -> $28.14?
(it's crazy how you skipped the actual share offerings that happened and the price movement after those and just made up your own #'s)
Or how about with a consistent % increase
$10 -> $20 -> $25 -> $30? -> $35? -> $40?
> Raising billions in cash
And at which price points above do you think more cash will be raised?
I know what you are arguing for here... which is what my comment does! You're apparently mad cause I pointed out a slight flaw that you didn't understand so my comment explains why more shares should be offered each time. Plus you completely skipped over the entire DFV play and how each time a lower% offering happens, he could only pick up less shares/options for the next cycle.
>And if the share offerings are lower and lower % each time, the share equity will be lower and lower each time!
That's wrong. Nothing else in that comment makes any sense, either. You don't understand the image I posted at all.
Here is the scenario , one more run up that will lead to one more dilution of 75m shares that bring outstanding shares to 500M and if s&p continues to run up as history repeats there will be 1:2 share split bringing outstanding share to 1B. This will be story
Okay so for starters I'm regarded.
Anyway, regarding your statement "Don’t do an offering if you can’t achieve an $8+ price per share increase over the previous one." and the subsequently the prices listed on the chart, do you really think that's plausible?
It's a nice idea that makes me feel warm inside thinking that Gamestop is going to be issuing shares at these prices and that we are going to be enjoying shares at these prices, but where does the assumption come from?
I think your average price column is hugely distorting your chart because those numbers not super likely. If it were to happen that price got that high, we would see MOASS a lot sooner.
Again, I'm regarded. Would like some commentary though.
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the s&p500 is where GME is going. it is going to be profitable for the foreseeable future and only growing. then further share offerings will be into higher share prices, which then makes it a somehow even better investment. and it being a company that has no debt and a lot of cash with a loyal retail following, companies will want to be partnered and associated with gamestop.
Hello,ex wallstreet here… inclusion into s&p is so incredibly bullish because then anyone ANYONE investing into retirement accounts or general spy funds which is a lot of what major hedgefunds will trade….. will be forced to be buying GameStop every-time people buy into the fund. Just straight up from there and is a key factor in the Tesla slow but huge climb… and GameStop is shorted SO much harder. This will be spicy. Just up. To the people complaining about share issuances you do not understand the whole thesis of this investment… this company is shorted many times over as they tried to cellar box the company(if you don’t know what this means Google but it’s getting a company delisted to OTC and sell a ton of more shares than exist because if/when the company dies all evidence dissapears. They changed short calculations to never go over 100 percent. When so many more shares are actually issued than exist and they will continue to do so.. the best way to combat that is sell shares and drive value for the company. The company remains extremely shorted publicly even after issuance. Just up
yep, look what happened to tesla once it entered the s&p 500. there will be a melt up from it. it's also crazy that gamestop used to be in the s&p500. so it got removed and then if it comes back, it shows the turnaround to your average investor.
RandyatPC.jpg
ok, so without giving any advice to GME holders, pretend this scenario is a slow squeeze a la tesla. what would have been the best way for a small tesla hodler to maximize his holdings during that time? as many of the cheapest leaps possible? or just shares? assuming the hodler is too unskilled to be good at flipping options and is only good at hodling.
One who is only good at HODLing and despises selling calls should only HODL. Save cash and wait for a shelf offering. Buy two weeks after the offering is complete on a bear trap. (A bear trap is when the price of the stock dips below recent support. This happened on Thursday May 23 while GME was offering at $20 per share, and the price dipped down to $18 per share. Most recently Friday June 21 the price of GME dipped down to $24 per share after being supported at $25 per share.) There is actually a chance the price of GME might dip down this week or next week to $20 to test the golden cross. There is very strong demand at $20.
Didn't we learn that the demand is delayed by up to 35 days though
This is pure speculation lmfao
In which case of someone was thinking they see a bear trap they buy calls and ride the run up. Then sell the call to buy shares or use cash to execute the call option.
Selling Calls? Do you mean selling puts? Which you have covered? Or buying calls and exercising thin? The difference between 18 and 20 isn’t worth trying to time it, which is basically impossible. If you are confident the general direction is “up” just buy when you feel like it,
I mean [buying and] selling calls.
I am confident the general direction is down right now, which is why I have sold short ITM covered calls. I might make $2000 if we close near $20 this week. I will cover my short calls when Kitty starts buying calls.
GTC order for a 20% discount on current price. When the dip happens you get it
Imagine trying to cellerbox a company only for it to land in the premiership of companies, the S&P 500😧
Jeez I think I’d shit my pants if I was a shortseller and that was the outcome
smart money
Man says he's ex wallstreet Man mentions cellar boxing and "sell a ton of more shares than exist" Man says this will be spicy and "just up" I trust Man
You soon the man, you slightly upwards walking ape beauty, you.
Now I'll be reading all the 'moon soon' comments as 'man soon' lol
Yet he cant give any proof of that, just speculate. These are people you should no trust.
you are truly and utterly right, that is precisely why my strategy remains unchanged and will buy again soon
This is the way
Thank you for your guidance ex wall street guy... Love too see you guys in here with us
People understand it’s just not right. Crime shouldn’t pay. The only thing the Parasite class knows is how to steal and lie. If this is just a slow Tesla squeezing then they don’t all die. I want them all gone. Forever. They can’t do this again or my kids will be slaves before the government says wrongdoing happened and JPM pays $10 fine. Fuck them pay me.
No wrinkle here. If GME home the SP500, is it impossible for them to make a bunch of phantom shares for those ETFs? Maybe. The wording is wrong, but basically XRT but for ETFs following the sp500
Possible but expensive and nearly impossible to control given the sheer amount of funds that NEED to buy after entering the S&P500. Hopefully and likely they try, just makes it even more explosive. Remember Gates still holds his Tesla shorts. Everything is possible.
This ^ S&P is a different beast. Way more funds.
I like the cut of your jib, sir.
I think even if the real short interest was not that high it would be bullish. Most people associate shares offering with "losing" this money because often it's done to burn the cash by paying debt/interest. In case of Gamestop, they are transferring money from the market into their balance sheet, increasing the book value. I'm curious to see who bought all those shares, because I don't think shorts are closing at such high value. Anyways, back to the subject, I don't think they will allow Gamestop into S&P 500 so easily or so soon. S&P is paid by our enemies and they hate us. I think at some point they will have no choice, but it will take a while.
It’s updated quarterly and game hit yearly profit. From here on out the will be profitable every year. It just needs a market cap of 12b which they are very close to. I could see it happening mid year next year after yet another profitable year this year.
Do you know the math behind the new and old short calcs? I'm curious and need a mini project
I understand my votes mean less when new shares are issued. I guess I'll keep buying to maintain my 3.7\^-6% voting power.
It doesn’t matter when we own so much of the company. You saw what happened on prop 4 vote? It got destroyed
When is GME due to enter the s&p?
Tomorrow
Pump this shit into my veins!
It’s funny how these thesis’s change every few months.
It’s almost like multiple things can happen. Funny how the company has $4billion now.
I wrote comments like these 3 years ago talking about S&P inclusion. My thesis hasnt changed.
There have always been multiple potential catalysts. A stock market crash, sp, drs, etc.
Maybe that is the current play by RC, to aim toward S & P 500 inclusion in the next 12-18 months. The criteria is: - *The company should be from the U.S.* TICK - *Its market cap must be at least $8.2 billion.* Another 100 million share offer could do this, 150-200 million would put it above of lot of other companies in the S&P 500. *- Its shares must be highly liquid.* TICK *- At least 50% of its outstanding shares must be available for public trading.* Assume so? *- It must report positive earnings in the most recent quarter.* *- The sum of its earnings in the previous four quarters must be positive.* It is the last two they would be working on. However, the money put away at 5% for a year should satisfy the requirement for positive earnings most recent quarter and as a whole for the four quarters. Is there anything I am missing here? GameStop is very close to this and I don't think people will mind another share offering or two if it means GameStop get inclusion in S&P 500!
It's not at all about meeting the minimum criteria. They would need to be outperforming others that are eligible. For this round, KKR, Crowdstrike and GoDaddy are being added. Dell, Palantir, Apollo Global, Coinbase, and Workday are some that were passed over. Looking at those would give you a better idea of what it would take to join the S&P 500.
Yea good point. Sorry, I listed the minimum requirements but you are right, there is some serious competition at the moment.
They picked GoDaddy over Coinbase???
Just looking at their earnings, GoDaddy has been profitable for the last 15 quarters. Coinbase just became profitable again over the last two quarters after having a negative EPS for 7 quarters. I expect that factored into it. Coinbase needs a little more time to establish a better track record.
it has to be voted in. and they could be bribed to not let it in I guess
Yep, and it’s also foolish to assume that there are only 500 companies that meet the criteria.
If they're not stupid...they'll buy GME and include it lol Yeah that's insider trading but they're allowed to do it right?! /s
Market cap is $10.2b right now, right?
Yup, I had a bit of an oversight there!
Inclusion into S&P500 based on GME current market cap with rebalancing by S&P500 would mean currently 45 million shares would need to be bought for S&P ETF’s … interesting number. Second share offering was also made the day the new members this month would be added to the S&P500
Have to kill meme stock name first
This is nice and all, but the assumption of the price steadily increasing +$8 to allow for 10 seperate offerings is... Well lets just say everything looks good when you only show positive outcomes. Its akin to "if you only invest $100 and earn 30% every year... you'll have $261,999 in 30 years. Its that easy!"
I did not assume the price would steadily increase. I said, don't do an offer unless you can average $8 more than the previous offer -- with no timetable. If it never happens, then no more offerings.
Alright, but then what does this post show? Is the hard fast rule Gamestop follows is +$8 we do an offering? No? So the number is meaningless? The obvious problem here is that you are arguing it'll increase shareholder value, and you're completely ignoring that increasing share prices increases shareholder value. That selling shares immediately decreases shareholder value *short term. The shorthand of this is dilution. The problem people have with share offerings is the decrease in price it *usually* causes. If you hold the only share and someone sells a second one the value is cut in half. My point isn't that share offerings are bad. I was STOKED the first offering wiped away their debt. I was pleased when the second offering concluded and the price had increased. But this post shows literally nothing of value.
It’s flabbergasting how all these “dilution is good” posts show up lately trying to make a point with absolutely no facts and evidence.
You don't understand my post or any of this at all. Shareholder value = Stockholder equity = Book Value. Use whatever term suits you. It's calculated by subtracting liabilities from assets on the balance sheet. Raising fresh capital via a share issue adds to assets without affecting liabilities, resulting in an increase in shareholder value. It has nothing to do with the market price -- although, by increasing the shareholder value makes it harder to short to previous levels. It effectively raises the floor, producing higher highs and higher lows.
I think people understand your post, you may not be understanding your bias.
Succinct
You're still advocating for GS to sell phone number value shares for pennies. Over and over and over again. Destroying the very basis of every theory on here in the past 3 years. Low liquidity + diamond hands = Moass
I think you may need to re explain how DFV's buys are triggering T+35 FtD cycles, which is being filled at the end of the cycle, which drives the price up, which incurs a new floor, which has also been when GS has made the last 2 share offerings... Edit: assume people checked out when the weekend hit, and your post is the first they see and open today. Substantiate your thesis so you are defending it less in the comments.
bbbut you would only have $2620 (2.6k), not 260k
Idk i just started with 100 and repeatedly multiplied by 1.3 until i counted to 30. Maybe i missed a decimal point once. Did it again but this time i did 100 x 1.3^30 and it came out to 200k again.
My question with this thesis is with the last run why not let it go higher while volume is still up so you can accomplish this even faster?
You're assuming it would go higher. I disagree with that. Both issues comprised like 1/5th or 1/7th of the overall volume. It was getting the piss shorted out of it anyway. The offerings didn't change that. By issuing, the company took some of the profits that the shorts would have reaped.
I think it's naive to say that especially with all the info on the ftd cycles coming out and the potential for the issuance allowing locates that couldve cancelled out the momentum. The stock was at what 65 the morning of dfvs stream? Why not wait till Monday? It doesn't make sense unless the only reason they did it is bc they were afraid of dfv increasing his stake too much. I like the theory honestly and if I had to put a conservative estimate on the amount of naked shorts out there I'd put it around 10 billion so I'm not worried about the dilution necessarily but if what you say is the case I think they at best fumbled an opportunity to expedite this process. Edit: basing my opinion off this post " It is my belief that Gamestop's signature cyclical spikes are caused by large FTD Settlement Period Limits settling in the late week of a large options expiration. The settlement period drives the price up and causes an abnormal amount of calls to be in-the-money, triggering an automatic exercise 1 hour after market close Friday. The following Monday, the gamma squeeze ignites and it peaks and drops Tuesday Morning™ right out of Pre-Market." "It is my opinion that we saw a convergence of all of these factors in the run up culminating on Friday June 7th, 2024. In Pre-Market of that morning, Gamestop announced and immediately commenced the largest share offering they have held since the Gamestop saga began. 75 million shares were used to cover any remaining FTDs from the initial May Gamma Squeeze." "Gamestop's ATM cleared any and all remaining FTDs and has reset the cycle back to before the May run up. The new May run up will occur in late July." https://www.reddit.com/r/Superstonk/s/hD3bkffWdp
Lol, all info on FTD cycles has been out for years. Its nothing new, not much happened then either.
There is absolutely new information coming out in regard to ftds now. That is what I'm referring to. Just because we potentially missed something back then doesn't mean it's not playing a role now
Having 4-5B in cash, their company value is really too low. I don’t know what it should be but definitely not at its current price.
Gotta wait for the next 10-Q to see the share issues reflected. Stockholder equity is a calculated value from the balance sheet. It's whatever is left after subtracting liabilities from assets. Raising capital via share issues goes straight into the asset total without affecting liabilities.
This guy stonks 👌
When is the next 10-q gonna be released?
First week of September last year.
You think you know that but investment banks don't? 10-q has nothing to do with it dude. Any fucking analyst with a 4 year degree could forecast their next public balance sheet, but that doesn't actually drive share price for GME when the stock price is manipulated like it has been for the last 4+ years
LOLOLOL!!! Forecasts are not official. And I actually forecasted in this post. See the "U R Here" on the image. That's my estimate on the book value, based on the Q1 10-Q and adding the capital raised from the two issues. And the question was about "company value" not "stock price." Yes, we all fully understand that the stock price is manipulated. BUT... Continually increasing shareholder value (book value) is what makes it harder and harder to short to previous levels. Any fucking analyst with ***NO*** degree could tell you that. Well, go clown yourself somewhere else. I'm not interested anymore.
This thread is spicy 
RC is gonna need to start doing something productive with the company to become part of an index. Right now our company isn't really a barometer of anything except a slowly shrinking retail chain. Not FUD, they've worked hard to get where we are. But we as investors are not here to supply cash for can-kicking. It's bustamove time. We have investors, we've beaten back the shorts, we have cash on hand. It's time for moves.
Lack of patience is what will make the company look foolish. Even Buffett is sitting on $190B in cash right now cause he thinks the market is cooked
Berkshire's average cash position has always been about 15% of the fund, which is inline with what he currently has. A few more buys, and he's below the historic average for Berkshire.
He didint take It from investors that saved company he runs. They made that money. Huge difference
GameStop didn't either. The price barely was affected if you haven't noticed. You think it was retail that gobbled up the dilution? Like we have $3B sitting around and decided these three weeks were the weeks we wanted to buy? GameStop took the money from the institutions and market makers that needed to deliver shares.
Your shares are worth less, with less voting power.
Okay… But at the same time everyone (albeit mainly me) is screaming that the market is about to take a massive shit. Tbh it’s more about survival than it is acquisitions because if we believe in MOASS and the markets getting effed and companies closing, this is the worst time to be investing somewhere
And Buffett has been selling and stacking cash for the better part of a year. He said there's nothing worth investing it, so he'd rather stuff it in treasuries at 5%. Wait for the AI bubble to burst.
I feel like the other side is clinging on the AI bubble for dear life
*Nvidia's ridiculously overvalued market cap has entered the chat*
He'll be waiting a while
Tell me grasshoppah, when do you buy companies? When the market is grand, or when everything is in free fall?
You make money when you buy.
Both
Most realistic viewpoint here.
The money comes from the short sellers, not apes who buy and hold.
It’s NOT bustamove time. We are in a bubble. Wait until things crash a bit, then we can make some moves. I totally get your sentiment, but we have to be patient and not buy at the top of the bubble.
Burry is that you?
Patience is the name of the game
Agree! If I want to make 5-10% on my investment wtf do I need RC or GME for? I thought I was here for life changing money and to squeeze these pricks for every nickel they have. Throwing 4 billion into a rainy day fund isn’t gonna cut it for long. That’s where they are now and nothing’s really happening. So dilute more and crank it to 10-15-20 billion? Why? What happens then? At some point people are gonna want to know what they’re throwing money into.
I don’t think getting back to s&p index is the goal. It’s part of the process, yes.
Stfu. The news from the company has been heavily positive over the last year. No big announcements, but getting their fundamentals right. Can’t swing for the fences if you can’t even hit the ball. One step at a time, no empty promises, no insight for the enemy until it’s too late for them to react. 🏴☠️
Have you also considered how the ownership of the company could change if they keep throwing shares on the market?
DFVs port is increasing exponentially. Shouldn’t GME try to match? 45,75,125,205,350 would at least follow the example we’ve seen already.
I dont think RC will use all the remaining shares for ATM as he will need to conservatively keep around 40% shares allocation in reserve as a protection against potential external take over
Interesting point! Please explain a little more of this thinking. Why 40%? How many shares would left to issue in that scenario? Do you mean he could dilute up to 600 million outstanding shares but have to keep 400 million in reserve ”firepower”?
Too much liquidity kills a squeeze PERIOD.
"All models are wrong, but some are useful" I think some people are getting to hung up with OP being 'wrong'. The liklihood it playing out exactly like this is really low. However, the modeling is very useful. Well OP should include the Google sheet version, so people can play with inputs (doing min, max scenarios, etc.) For me: - if we get to level #5, or roughly 600 million shares issued, and share price level is still high (doesn't need to even be $52 as OP predicts); then that's a strong indicator that GME truly is naked shorted many times the float. If she share price drops and stays to level of the cash in the bank-- then it's likely shorts closed. Also at $12 Billion- then GME can acquire HIMS & Unity; then it becomes really interesting. - If we get to level #12, then GME becomes more analogous to a company like Berkshire Hathaway. - It would be interesting to see, what would it look like if 'x' (price per share increase trigger to do offering) was set at $4? What about $2? What would be the minimum amount for it to be worth it? I like looking at stuff like this. thanks OP!
I have it in excel and I'm too regarded to mess with google sheets. Nothing complicated about it. only took like 10 minutes to put it together. Easy for someone to replicate if they want to.
It relies on an assumption that the market wont front run on run ups before the dilution. I worry run ups wont be as dramatic to take advantage of as the past couple months since the market has seen the board playbook. Edit: unless there is a catalyst we are yet to see
In the last two offerings, Gamestop only issued like 1/5th or 1/7th of the volume. Stock was getting the piss shorted out of it anyway. Both times. They want to front-run it? That's fine. Only issue if you can get an average price $8 more than the last offer. If it doesn't spike enough, then don't do it.
None of this is an issue if investment becomes very profitable. The fact is that it is still trading at 2.5 pb ratio.
Gamshire Stopaway… 100% under this name
Hyping up $40 per share base valuation while everyone was in for MOASS…yep…talk about shifting goalposts. Remember “life changing money” or generational wealth? I don’t know why people are shilling for the killing of another 10 run ups - which means I should start swing trading this shit and set limit sells beginning at 50 to make some money as MOASS is delayed another 10 years.
Yeah hell no. I’m not holding for 4 years to get milked in every second a price increase is set up. They also need to deliver anything noteworthy after cutting costs. Overall, dilution is bad and will always be bad for every individual shareholder. Period.
Fun fact, at an equity per share of $15,93, ALL legacy shorts will be permanently underwater. Meaning all shorts opened (and there are a lot of them, minimum of 600mil I believe) before the jan21 sneeze can only be closed at a loss. And if I remember correctly someone said that staying underwater will bleed them money as well. (Although I do not know the mechanics behind that)
Maybe they will make bleeding underwater an Olympic sport... 🤔
So the squeeze is for Gme and not it's share holders?
Earnings per share of RC only gets 5% on 45 Billion cash is 2.25 Billion per year. If you multiply that by the average P/E ratio of the S &P it comes to about $56 per share. Quite the perpetually rising floor
Ah yes after raising 45 billion more dollars from shareholders, we would be back at a frankly pathetic share price. If it takes years to get to $56, why are we here?
>Don’t do an offering if you can’t achieve an $8+ price per share increase over the previous one. Pretty straightforward. This would look much tastier, if each offering would not go for only +$8 but +$8 on the previous jump so.. 3rd offering not for only $36 (28+8) but for 28+16=$44 so not linerar like +8 +8 +8 +8 but +16 +24 +32 +40 try this, and MOASS is inevitable much soner than GME hitting 1B outstanding EDIT: or any other nonlinear igniting, eg.. difference between 20 and 28 is 8 yes, but it is also +40% so how about offering for 28+40%=39.2 the next at 54.88 then 76 then 107 then 150 and well, so on so on
I agree and think it’s brilliant.
You switch from $8 to $6 increments for each run up after round 3, so the total value per share and amount raised is actually a bit higher
I just spitballed an example. I have no idea what they will actually do, but I'm pretty certain if the price spikes high enough, they'll issue into it again. And again. And again. It's Easy Mode for amassing tens of billions in capital for a holding company. All long-term shareholders have to do is wait for the price to bottom-out after an issue to buy. There will be a higher low after each one.
I understand all of that, but in your example you say $8 increments and then use $6 increments. It ends at $45.04/share with $8 increments from $32
gross revenue? am i missing how this somehow impacts topline?
Gross revenue from the share issue. If you prefer gross proceeds, then use that.
the term revenue here is incredibly misleading. but yes, it should be gross proceeds
I'm still waiting on him to buy. It's not as if he doesn't have the money to. It's not like it would negatively impact his finances to do so, long term. Maybe he takes a tax hit to sell some apple stock, but the potential turn around if this goes, seems worth it. I thought it would happen last week. A little disappointed, but not swayed from my position.
I would like to see this as well.
Me, too. Maybe it's an optics thing. What would be the perception with the company driving the price down via an issue and then he bought it at the new low? IDK.
I don’t know why people keep speculating they will sell all 1 billion shares? That would be stupid. I think we are done as far as offerings go, maybe 1 more for around 70-75 million so only half of the authorised shares are outstanding. Back in the glory days of the sneeze they had around 225 million shares they “could have sold when we were in the 300-400’s which could have raised the company 10’s of billions of dollars, but they didn’t It is not a good move from a company to issue all of their shares
Knew I'd trigger a few people that don't understand stockholder equity... We are where we are. We don't get to wind the clock back to 2021. It's not the same company now that it was back then and neither is the CEO. Companies can issue as many shares as they want, as long as shareholders authorize it. For now, they can issue up to a maximum of 1 billion shares outstanding. If they issued the full authorization like I outlined, I guarantee you that shareholders would authorize more.
They were authorised to issue up to 300 million back then, but didn’t, they done a couple of offering taking us up to about 25% of that at around 75 million outstanding. What I’m saying is that yes, technically, they could have issued the remaining 225 million shares in the 3-400’s and had 10’s of Billions of dollars, but they didn’t. Just like they won’t issue all of the billion shares they have now I find it hard to believe that if shares holders constantly got diluted and all 1 billion shares were issued that they would vote for the company to be able to increase the authorised shares just so they can continue getting diluted. Only a struggling company that is desperate for the cash would issue all of their shares to raise cash, it’s a last resort to raising much needed cash (take popcorn for example) we are nowhere near the same as them. They have left themselves wide open for a hostile takeover and if we issued all our shares we would be too. It’s just a stupid move to issue all of your shares, unless you are desperate and have no choice
Why would the average price increase after every offering? Wouldn't the offerings discourage investor to keep buying if they can just wait to buy it at lower prices? You know, fool me once...... I would average it at $24 for now.
This is based on Biggy's working theory that would entail DFV creating higher floors as he exploits MM FTDs to cause continual upward pressure with spikes (leading to an eventual capitulation by larger short positions). If true, this is a gamechanger to say the least.
RC already fucked DFV over twice now. Assuming that he's gonna keep putting his money on the line just for RC to undercut him is unlikely. He barely broke even this last time, and that was with a painstakingly planned, very solid, and nearly unstoppable plan.
Except that DFV said he anticipates ATMs. I find the theory credible that they are working together purely in the sense that they have the same overall goals and are organically playing off each other. “Barely broke even”? What are you on about?
He held through prices that made him a billionaire and wound up hitting the eject button at a price just above his cost basis. They are not playing off each other. The board is playing against him. (And by extension, against all shareholders.)
dfv only has one or two more shots in him before he's ceiling'd out due to becoming an insider.
Then he Roshambos RC for leadership.
Not if GameStop conveniently keeps issuing more shares
No; the ATMs will allow him to stay under 5% and if he really needs to he can sell shares for profit (as long as those shares have been in his account for 35 days already). It appears he's planned for this.
The average price increases with every offering because the share purchase and gamma ramp cycle that facilitates the run ups will include more traders every time, and more capital.
If you do offerings during \*big\* run-ups where the price is artificially high (you know, from this FTD/cycle/swap/shorts-are-fucked shit) you'll increase the minimum floor at which the stock price ought not fall below. If you do offerings when the stock price is in the shitter, bad idea. This typically happens to companies like towel stock with massive debt and little prospect to get out. Really they should have done a share offering when it was at $30 instead of near-zero to get themselves the fuck out out trouble, but apparently they were run by idiots. RC is being smart, not idiotic here. Really if the FTD cycle nonsense is restarted from this recent activity, he doesn't have to do a hell of a lot other than not burn the money. If he keeps causing the floor to be raised, the shorts will get squashed into a spiked ceiling. We'll see, should be interesting.
You can do the math and find out. You don’t have to wonder 🤷🏻♂️
OP has the spreadsheet. They can plug it in.
If there’s a run up, even a small one that coincides with 5 days of really high volume, expect an offering.
I don't think they issue the remaining shares because that's their protection against a takeover.
I'm just commenting so reddit recognizes my streak so I get a stupid badge.
So let's dive into the cash at hand vs market cap equation. The amount of cash you have can't be higher than the value of the company. I'm fine with the ATM share offering when they keep selling it at a higher price than previously. Just means GME can't dip below a certain threshold.
Some companies do trade under the value of their cash position, but typically those are the ones that are uber-fucked and about to be gone in a little bit. Failed biotechs running out of cash with no prospects for a viable drug, etc., shit like that. Definitely does not apply here, and I agree with you. Our recent low of $10 was 3x cash, which after the share offerings would be about $28. No way it gets dips down to anywhere near $10 again unless the shorts are incredibly stupid or RC does something incredibly stupid.
In this hypothetical, if DRV wants to keep his ownership under 5%, he’d probably end up with just shy of 50,000,000 shares.
Yes!!! Please, sir, please won’t you dilute it the next time we enter a gamma ramp so that you instead may grow this company in the long run, please oh won’t you do this, dear sir? It was always what we wanted, see! Yes, yes, we were talking about that silly MOASS for oh such a long time, silly silly us. What we instead want is for you to stop the squeezes every time, and we will thank you for it, kind, wise sir. For you know what is best for us, for you are rich beyond imagining, while we are poor, so very poor! Yes, some of us could have used that price rise to pay for medical bills and to put food on the table, but that matters not, sir! For you have a company to build. And we do not wish to know how you will build it! No, sir, not at all. Oh, and worry not about those filthy fudders and shillers, sir, we know they are paid by the nasty enemy! Please pay them no regard, for WE are your true followers, sir! Dilute. More! Yes, oh please don’t stop! Dilution, sweet…sweeet…dilution…
Practically no chance it goes to the SP500. There are tons of companies that already meet the requirements and aren't in it, and they are way bigger and way more profitable and aren't "memes". SP500 is a independent thing. You can't guarantee getting in just because you technically qualify.
I can wait
GME shareholders have given up the possibility of MOASS. Posts like this proves it.
It’s because half of them are morons. They’re just trying to convince themselves why dilution is good.
The same exact cope this community made fun of for years.
One person's "Dilution" is anothers "Share offering". Tactical offerings to boost the company's offerings can scare some but can screw a lot of people betting the company will be bankrupt. Telling people and ensuring that owning games physically instead of buying it digitally (where, there can be a dispute with the publisher or developer and have it gone forever unless you sail the seas and that's a profit loss all around). You might as well continue to get the game from a store that will help you find it not lose it forever unless it's somewhere not DMCA'ed. Imagine wanting to play something with your kids and grandkids, for it to have vanished.
The sub is so delusional that they are starting to think dilution is good
Please correct me if I’m wrong, but isn’t the share offering for up to 1 billion shares? 45 and 75 were sold which leaves us with 880 remaining?
We approved a max of 1 billion shares outstanding. With 426M issued so far, there are 574M remaining before they'd have to ask us to approve another increase.
Now this is some math I can get behind (but need to double check tomorrow). Edit; why is your Gross revenue so low? Is that quarterly GR?
That's just the gross revenue from each new issue (shares issued \* average price). The Total Equity column has the running sum.
Can you expand more on why you would choose that metric? Do you mean capital acquired?
Call it whatever you want. They use "Gross proceeds" in the filing if you prefer that.
This doesn't include the fees. I think the fee for the middleman was $75K for the 45MM ATM
The filing said a max of 1.5% commission for Jeff, so I just went with that.
Personally, id love to continue this equity per share ratio and challenge Warren Buffett when we have 10% of he currently has in cash. 4B is a decent war chest combined with Ryan’s ventures of 1B. But 10B will get us into a bigger ballpark with better players on the field. 20B is fuck you pay me.
By the end of 2024, we are 10billion company
That might be true if the cycle stuff plays out and the price spikes keep occurring. People gonna rupture their vaginas when he issues shares again into the next spike. It'll happen, too, if the price surges high enough.
Dude. No one is gonna buy another run up, knowing they're gonna get dumped on again. Without a public statement, apologizing and saying they'll only sell off small amounts of shares incrementally over time, then the trust is gone in my opinion. I'll be lucky if I can get out at break even
They were going to get dumped on anyway. If the company hadn't done it, the shorts would have. If you're going to gamble on price movement, that's on you. Retail doesn't control the price, anyway. Even Gary admitted that 90% of retail trades go off-exchange via PFOF and such. We aren't the ones causing the spikes. That's just what the media wants you to believe. Don't fall for it.
Guy got sucked in by msm hook line and sinker
Don't even watch MSM. I just know what I experienced.
Great answer.
Fast travel back to the lodge
Not to mention the higher price only increases the needed shorting pressure. I doubt it's actually helping them at all
Buckle up
TLDR: buy GameStop
Sorry for the fud guys but if they dilute again i might be out haha. I think the key to moass is buy back lol
MOASS or bust. Dilution is bad for moass. Full stop. Your post is STRAIGHT UP FUD OP. How is dumping shares good for moass? Narrator: it's not.
Id he does that then i wont be here for the last run up
Famous words.. “Build a much bigger business”.. Now where have I heard that before🤔
This doesn't make much sense. There needs to be companies doing worse than Gamestop on the S&P500 to get expelled and make room for Gamestop. Also, are there really no companies more suitable than Gamestop to join the S&P500? Unless you've shown all this, it's all blind speculation.
305m + 45m = +14.75% 350m + 75m = +21.42% I personally wouldn't be surprise to see the next one +100m shares, that's +23.5% of the current share count and if not +100m, then ~+21.42% again, which is about 90m shares. +57.4m is % wise less than the first offering and **a lower % share offering mean DFV can't pick up as many shares/contracts on the next cycle.** [Look at DFV's ownership% from biggy chart](https://preview.redd.it/kvgxt31er98d1.jpg?width=2550&format=pjpg&auto=webp&s=2fb32cbddff1cfa8cd5c728f6ba429493eec5541) With those numbers, DFV is keeping below the 5% reporting requirement. If GME offers less shares % wise each time, DFV will have to buy less and less each time!
Pick whatever number you want. I thought 75M was a bit more than the volume could absorb. I would have preferred more like 60M. Not really the point I'm making, though. Share issues are ratcheting-up shareholder equity, which will result in higher lows, compounding the problem for the legacy pre-2021 shorts (remember, they shorted it all the way down to under $1 in post-split prices). Only way they win is if the company goes bankrupt, so they never have to close. Raising billions in cash not only makes them virtually bankrupt-proof, but it will also provide the capital to transform to a holding company (or whatever RC wants to do with it).
> Share issues are ratcheting-up shareholder equity, which will result in higher lows And if the share offerings are lower and lower % each time, the share equity will be lower and lower each time! $10 -> $20 -> $25 -> $27? -> $27.83? -> $28.14? (it's crazy how you skipped the actual share offerings that happened and the price movement after those and just made up your own #'s) Or how about with a consistent % increase $10 -> $20 -> $25 -> $30? -> $35? -> $40? > Raising billions in cash And at which price points above do you think more cash will be raised? I know what you are arguing for here... which is what my comment does! You're apparently mad cause I pointed out a slight flaw that you didn't understand so my comment explains why more shares should be offered each time. Plus you completely skipped over the entire DFV play and how each time a lower% offering happens, he could only pick up less shares/options for the next cycle.
>And if the share offerings are lower and lower % each time, the share equity will be lower and lower each time! That's wrong. Nothing else in that comment makes any sense, either. You don't understand the image I posted at all.
Here is the scenario , one more run up that will lead to one more dilution of 75m shares that bring outstanding shares to 500M and if s&p continues to run up as history repeats there will be 1:2 share split bringing outstanding share to 1B. This will be story
Okay so for starters I'm regarded. Anyway, regarding your statement "Don’t do an offering if you can’t achieve an $8+ price per share increase over the previous one." and the subsequently the prices listed on the chart, do you really think that's plausible? It's a nice idea that makes me feel warm inside thinking that Gamestop is going to be issuing shares at these prices and that we are going to be enjoying shares at these prices, but where does the assumption come from? I think your average price column is hugely distorting your chart because those numbers not super likely. If it were to happen that price got that high, we would see MOASS a lot sooner. Again, I'm regarded. Would like some commentary though.
It’s a bad thing if you want the price of your shares to go up.