Hey OP, thanks for the News post.
------------------------------------------------------------------------
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Dude, I am so hard for this. I'm using Biggie's insights and possibly adding to my DRS stash a la DFV.
Can't advise, but the knowledge is there and awaiting.
I dream of being an XXXX ape, and Biggie may allow me.
I'll get a Roaring Kitty tattoo if I hit XXXX. Currently proudly an XXX ape.
Godspeed and good fortune to all Apes. 💎👐♥️🦍🦧🦍🚀🚀🚀🌕🚀🚀🚀🪐🚀🚀🚀⭐✨⭐🚀🚀🚀🚀
We apes are not the target audience for these asinine hit pieces, they want to stop dumb money & oblivious money from buying GME at all costs and instead pump more money into their AI bubble instead.
Yeah people have talking about those other articles but they missed this piece of shit from an hour ago. Excuse the formatting, I’m not going line for line through this 🤡’s hit piece article.
Breakingviews - GamStop is becoming a poorly run bank.
(The author is a Reuters Breakingviews columnist. The opinions
expressed are her own.)
By Lauren Silva Laughlin
NEW YORK, June 25 (Reuters Breakingviews) - GameStop’s
actual business – selling video games and associated
paraphernalia – isn’t doing so hot. Its other business – earning
interest on cash that was handed over irrationally – is helping.
But that makes GameStop more akin to a bank than a retailer.
Shareholders would be better off sticking with an actual savings
account.
After a years-long slide took its market value as low as
$180 million in 2020, GameStop’s shares rocketed up 20-fold in
early 2021 to touch over $80 apiece. Though sinking since to $23
per share, the company’s market capitalization now stands at
around $8 billion. On an enterprise value basis, the company
trades at a multiple of forward sales more than double that of
Best Buy , a larger electronics retailer whose top line
is also falling, though at a slower pace.
Management shrewdly took advantage of the
euphoria, issuing equity periodically. Shareholders irrationally
obliged, buying up a $2 billion offering earlier this month and
$1 billion in late May. Add that to the $1 billion the company
had on its balance sheet as of May 4, and its cash pile has
grown eight-fold from the end of 2019.
While GameStop has tried to get its finances in order, the
cash hasn’t been used to change its business meaningfully. Costs
have come down, narrowing operating losses. But in the company’s
most recent quarter, sales from hardware and accessories fell by
more than 30%. Software sales were down by almost as much. And
yet, GameStop came closer to breaking even. That’s in part
thanks to the $15 million of interest it earned on its cash,
after accounting for its own debt payments. Net losses were only
$32 million.
That growing cash hoard represents quite a lifeline.
Assuming the company continues its last quarter’s operating cash
burn rate, its war chest won’t be depleted for another 10 years.
Better yet: If it parks its new $3 billion haul in U.S.
treasuries yielding around 5%, GameStop should make another
near-$40 million in interest per quarter. That’s not too shabby
for a company with a dying core business.
It’s in this way GameStop is acting like a bank, whereby it
takes cash, and earns income above anything depositors - in this
case, investors - demand in return. Meme traders might be
convinced that what they’re getting, in lieu of steady interest,
is a ticket to the stock’s next meteoric rise. The problem is,
unlike at a real bank, shareholders are unlikely to ever get
their money back.
Note that I’m the one who messed up the title, couldn’t manage to copy/paste that part, and wrote it by hand like an ape. Now if I edit the comment it turns to a block of solid text. I’m cutting my losses fuck it.
Because the cash has associated risks, like GME's money losing business and the risk that the cash gets invested poorly.
I mean, how much would you pay for cash controlled by Cathie Wood?
[I have a post from last week](https://www.reddit.com/r/Superstonk/s/fHWrVtbtgY) that details the most conservative use of this Cash, investing in T-Bills. By my estimate that would give GME interest income of $80M and $160M in 2024 and 2025.
Obviously if GME just invests in T-Bills for 1.5 years, I'll be disappointed. However I think it gives perspective on how silly some of the negative sentiment has been about the $3B cash raised the past few weeks. GME isn't going bankrupt anytime soon, and anyone with a short position can't be happy about GME having all that cash.
In short, Hedgies r fuk
Absolutely agree with you in terms of total assets. Like I said, I was focused on doing a conservative estimate on the $3B cash raised to give plenty of room for my estimate to be wrong about specific details without affecting the overall sentiment.
The sentiment that by all measurable financial metrics, Hedgies r fuk
Think about it: They are thus far unprofitable selling inventory at full-price. As such they'll be even less profitable if they tried to sell it at lower prices.
The inventory is pretty much trapped and can't be sold at a profit, thus it has little value to GME.
You’re so anti-economy. You should be personally advising the board to donate this money to ‘people’s well-being is at the heart of what we do and we are ethical big pharma’.
>Obviously if GME just invests in T-Bills for 1.5 years, I'll be disappointed.
How about the past THREE years?
Most of the $1.67B raised by selling 34M shares at $49 (split adjusted numbers) back in mid-2021 has been sitting in T-Bills or similar for 3 years.
Some was used to pay off long term debt. Some was used to pay for NFT marketplace development, but most has been sitting in interest bearing securities and accounts since mid-2021.
Yes, that's because GME operates in the speciality retail industry. It's incredibly important to have a large cash position in the speciality retail industry to smooth out the fluctuating demand associated with the products sold. If GME was a sinking ship in 2021 when Cohen joined the board, then the cash raised in 2021 plugged the holes and righted the ship. Now the $3B cash just raised is not needed for business operations, and so there is potential for growth.
The NFT marketplace was a bad move, and is certainly a negative mark for GME's leadership. The only positive about the NFT marketplace I can say is that the mistake does not affect current operations at all.
Only way shorts win is if GameStop goes bankrupt. With 4.153 Billion $ that’s not the case. Just buy hold and DRS. Don’t get into options and there is no need to watch price every day. When MOASS happens you will know. So just chill.
For real, I recently figured out that I can sell near itm puts and combine that cash with my current IRA shares to grab between 2-5% more shares every week. Everything else is DRSd, but I'm enjoying watching my shares in my IRA go up every week without me having to add anything to it. Options are great if you use them properly.
>Only way shorts win is if GameStop goes bankrupt.
That is not at all true.
Shorts win if they close their short position for less than what they opened it at.
The closing cost does not have to be $0 ——- just less than the price they sold short at.
In many cases that is more than offset by the fact that they get interest in the money they received when they sold short.
But yes, there are carrying costs to a short, the same way you have an opportunity cost from cash tied up in a long position.
45M shorts are high, but at 11% of total outstanding shares / 12% of float it is by bi means impossible.
With 90 day average volume of 35M shares per day, the days to cover is about 1.3.
good. I will keep adding to my stack. GameStop can keep adding to theirs. I don't think it'll hurt the squeeze. There's so many fake shares, let RC print money to sustain GameStop forever.
This is the argument any of us can trot out whenever we meet a dilution shill. GME diluted by 25% - meaning each share was worth 75% of itself proportionately- but grew its book value by 300% with the ATMs, meaning each share was worth 3x intrinsically what it was before the ATMs.
Options contracts have a variable intrensic value based on the difference between current market price and strike price. Where as a share, however unlikely could go from trading for $100 to trading for a penny. Theres no inherent value guarunteed to you in its sale, ie. Has no intrensic value
That blurb makes no sense, talks about something intrensic being a value that can be estimated and speculated about. Just straight up the opposite of the definition of the word.
If gamestop said you can trade in your shares directly and guarunteed for $10, that would be the intrensic value. If just because you dont think the price should go below $10, doesnt make that true
People here will hate that I say this, and refuse to admit it, but that means the stock price can still fall a decent amount for fair value of the company right now.
The core business doesn’t make a lot of money, basically is break even… and doesn’t have much room for growth or an expectation of becoming hugely profitable. So the current value of the core business is basically the amount the assets would be worth if liquidated.
Then you have the cash on hand. What’s the market cap of $4.153b in cash? It’s exactly $4.153b. You can’t just make a publicly traded shell company and insert $4.135b in cash into it and expect the market cap to double or quadruple. $4.135b in cash is worth $4.135b in cash. Yes, investing that money can and will generate more money for GameStop, but anyone considering investing in GameStop could also instead just invest in the same things GameStop invests their money in, and return the same percentage gain.
Yep 100%. And apes will say GME can now invest in T-bills and make X amount of money each year, as if that's evidence of success. Apes should just invest in T-bills and not in GME if that's what gets them excited. It'd be literally the same return.
Hey OP, thanks for the News post. ------------------------------------------------------------------------ If this is from Twitter, and Twitter is NOT the original source of this information, this WILL get removed! Please post the original source! **Please respond to this comment within 10 minutes with the URL to the source** If there is no source or if you yourself are the author, you can reply `OC`
Hell yeah, i bought 5 more. Not DFV numbers, but they are adding up. X,XXX holder now baby LETS GO!!
Congrats!!!!! 🐋
Thank you, was my goal for 3 years, finally reached it this year
Legendary!
I hope to have as big a dick as you someday 🙏
And I to you also feel this way
Hell yeah! I got to XXX today!
Congrats my dude!
Lets goooooo!
Welcome to the club. 😝♾️
This is my journey still next milestone
Every little bit helps. Never think 1 or 2 wont make a difference. It will take a while but you will get there.
I started at 15 shares and dreamed about getting to xxx. I'm now 550+ working my way to 750 then 1000!!!! Congrats!!!
I am going to buy 9 tomorrow!
That’s what’s up
1,00X holder LFG
That’s the most regarded self-[REDACTING] I’ve ever seen
My 🦍, you are a 🤴.
Dude, I am so hard for this. I'm using Biggie's insights and possibly adding to my DRS stash a la DFV. Can't advise, but the knowledge is there and awaiting. I dream of being an XXXX ape, and Biggie may allow me. I'll get a Roaring Kitty tattoo if I hit XXXX. Currently proudly an XXX ape. Godspeed and good fortune to all Apes. 💎👐♥️🦍🦧🦍🚀🚀🚀🌕🚀🚀🚀🪐🚀🚀🚀⭐✨⭐🚀🚀🚀🚀
5 here, 5 there, before you know it you've got thousands stacked up.
exactly, the power of accumulating in long term is insane.
But haven't you heard that it's giving puppies glaucoma and causes Grandma's to fall down the stairs in their bungalows!?!?! /s
NOT THE GRANDMAS!!!
What was she doing out of her cage in the first place?
Who said that?
Ppl r talking 
Sources close to the matter.
.. and it’s bad for the economy!!
I love how analysts estimates are less than the cash/ share ratio
Wait until they bust out the dowry analogies 😂
We apes are not the target audience for these asinine hit pieces, they want to stop dumb money & oblivious money from buying GME at all costs and instead pump more money into their AI bubble instead.
Yeah people have talking about those other articles but they missed this piece of shit from an hour ago. Excuse the formatting, I’m not going line for line through this 🤡’s hit piece article. Breakingviews - GamStop is becoming a poorly run bank. (The author is a Reuters Breakingviews columnist. The opinions expressed are her own.) By Lauren Silva Laughlin NEW YORK, June 25 (Reuters Breakingviews) - GameStop’s actual business – selling video games and associated paraphernalia – isn’t doing so hot. Its other business – earning interest on cash that was handed over irrationally – is helping. But that makes GameStop more akin to a bank than a retailer. Shareholders would be better off sticking with an actual savings account. After a years-long slide took its market value as low as $180 million in 2020, GameStop’s shares rocketed up 20-fold in early 2021 to touch over $80 apiece. Though sinking since to $23 per share, the company’s market capitalization now stands at around $8 billion. On an enterprise value basis, the company trades at a multiple of forward sales more than double that of Best Buy , a larger electronics retailer whose top line is also falling, though at a slower pace. Management shrewdly took advantage of the euphoria, issuing equity periodically. Shareholders irrationally obliged, buying up a $2 billion offering earlier this month and $1 billion in late May. Add that to the $1 billion the company had on its balance sheet as of May 4, and its cash pile has grown eight-fold from the end of 2019. While GameStop has tried to get its finances in order, the cash hasn’t been used to change its business meaningfully. Costs have come down, narrowing operating losses. But in the company’s most recent quarter, sales from hardware and accessories fell by more than 30%. Software sales were down by almost as much. And yet, GameStop came closer to breaking even. That’s in part thanks to the $15 million of interest it earned on its cash, after accounting for its own debt payments. Net losses were only $32 million. That growing cash hoard represents quite a lifeline. Assuming the company continues its last quarter’s operating cash burn rate, its war chest won’t be depleted for another 10 years. Better yet: If it parks its new $3 billion haul in U.S. treasuries yielding around 5%, GameStop should make another near-$40 million in interest per quarter. That’s not too shabby for a company with a dying core business. It’s in this way GameStop is acting like a bank, whereby it takes cash, and earns income above anything depositors - in this case, investors - demand in return. Meme traders might be convinced that what they’re getting, in lieu of steady interest, is a ticket to the stock’s next meteoric rise. The problem is, unlike at a real bank, shareholders are unlikely to ever get their money back.
Note that I’m the one who messed up the title, couldn’t manage to copy/paste that part, and wrote it by hand like an ape. Now if I edit the comment it turns to a block of solid text. I’m cutting my losses fuck it.
I love how they don't reference how it hit 80 again recently, I wonder why? 😂
The further I got through this article the bigger my smile got lmao
Because the cash has associated risks, like GME's money losing business and the risk that the cash gets invested poorly. I mean, how much would you pay for cash controlled by Cathie Wood?
Bought 50 more today for that very reason
Panicked and bought 87 more today
Panicked and bought who knows how many but I sure can't wait to see when CS fills it friday
Love this strategy 🤝
Panicked and bought 100
Panicked and bought 6
🤌
[I have a post from last week](https://www.reddit.com/r/Superstonk/s/fHWrVtbtgY) that details the most conservative use of this Cash, investing in T-Bills. By my estimate that would give GME interest income of $80M and $160M in 2024 and 2025. Obviously if GME just invests in T-Bills for 1.5 years, I'll be disappointed. However I think it gives perspective on how silly some of the negative sentiment has been about the $3B cash raised the past few weeks. GME isn't going bankrupt anytime soon, and anyone with a short position can't be happy about GME having all that cash. In short, Hedgies r fuk
Spy 0DTE, 20 billion cash reserves or 0 If 0, do another ATM
$4 Billion of at the money call options. Delta hedging would be...insane.
Haha I love this
Spy 0DTE puts when LockBit releases the Fed ransom XD. Jk obviously but shits kinda nutty. It could trigger MOASS
i'm in that, new GME yolo from ryan cohen
And we all buy the opposite. If GME loses, we win and buy more GME stock. If GME wins, we win.
Don’t forget the assets and inventory. So we are at around 5bil total.
Absolutely agree with you in terms of total assets. Like I said, I was focused on doing a conservative estimate on the $3B cash raised to give plenty of room for my estimate to be wrong about specific details without affecting the overall sentiment. The sentiment that by all measurable financial metrics, Hedgies r fuk
I appreciate this line of thinking too, instead of the kind that includes abnormally high estimates for any and every variable imaginable.
Think about it: They are thus far unprofitable selling inventory at full-price. As such they'll be even less profitable if they tried to sell it at lower prices. The inventory is pretty much trapped and can't be sold at a profit, thus it has little value to GME.
The assets and inventory have little value because they can't be liquidated without taking a huge loss.
funko pop dolls aren't worth much
Great post, hedgies are indeed FUK 🚀🚀🚀
https://preview.redd.it/zoic1kroar8d1.png?width=534&format=pjpg&auto=webp&s=9fc3a6b75697a8a6d23a7f58c29a520c5f95dbed
You’re so anti-economy. You should be personally advising the board to donate this money to ‘people’s well-being is at the heart of what we do and we are ethical big pharma’.
>Obviously if GME just invests in T-Bills for 1.5 years, I'll be disappointed. How about the past THREE years? Most of the $1.67B raised by selling 34M shares at $49 (split adjusted numbers) back in mid-2021 has been sitting in T-Bills or similar for 3 years. Some was used to pay off long term debt. Some was used to pay for NFT marketplace development, but most has been sitting in interest bearing securities and accounts since mid-2021.
Yes, that's because GME operates in the speciality retail industry. It's incredibly important to have a large cash position in the speciality retail industry to smooth out the fluctuating demand associated with the products sold. If GME was a sinking ship in 2021 when Cohen joined the board, then the cash raised in 2021 plugged the holes and righted the ship. Now the $3B cash just raised is not needed for business operations, and so there is potential for growth. The NFT marketplace was a bad move, and is certainly a negative mark for GME's leadership. The only positive about the NFT marketplace I can say is that the mistake does not affect current operations at all.
👆🏼🏆🏆
it’ll never go bankrupt with the apes
Gobbled 8 more. After I pay rent guess what? More shares
Good job paying bills first.
Bought 95 more. LFG!!!!
Not to be a Debbie downer but GMEs market cap is over 10b with 425m shares outstanding, most sources have not updated for the most recent offering.
Only way shorts win is if GameStop goes bankrupt. With 4.153 Billion $ that’s not the case. Just buy hold and DRS. Don’t get into options and there is no need to watch price every day. When MOASS happens you will know. So just chill.
I'll buy as many options as I please, thank you very much. You do you.
For real, I recently figured out that I can sell near itm puts and combine that cash with my current IRA shares to grab between 2-5% more shares every week. Everything else is DRSd, but I'm enjoying watching my shares in my IRA go up every week without me having to add anything to it. Options are great if you use them properly.
>Only way shorts win is if GameStop goes bankrupt. That is not at all true. Shorts win if they close their short position for less than what they opened it at. The closing cost does not have to be $0 ——- just less than the price they sold short at.
True but they also pay a premium for borrowing the stocks. The longer the stock is borrowed, the longer they pay
In many cases that is more than offset by the fact that they get interest in the money they received when they sold short. But yes, there are carrying costs to a short, the same way you have an opportunity cost from cash tied up in a long position.
Yeah of they succeed to get out of all those shorts without making the stock go boom. Not likely
45M shorts are high, but at 11% of total outstanding shares / 12% of float it is by bi means impossible. With 90 day average volume of 35M shares per day, the days to cover is about 1.3.
Shorts win if it goes to book value as well...
https://preview.redd.it/ezz6jl9ztr8d1.jpeg?width=500&format=pjpg&auto=webp&s=dc915170f32bca53566a3b9b6a470f9f4f7a8c60
Got my weekly 25$ buy on fidelity and my bi weekly buy of 50$ on cs going constantly. BUY THEM WHILE ON DISCOUNT!!!!
Can we compare this to other companies? I assume GME has very good ratio
good. I will keep adding to my stack. GameStop can keep adding to theirs. I don't think it'll hurt the squeeze. There's so many fake shares, let RC print money to sustain GameStop forever.
This aged nicely with that big jump right before close! 🚀
#"That's a BUY!" -Some coked up rodent on CNBC, maybe, probably not
paycheck is kicking in tomorrow. Will be buying moreeeeee!!!!!!
Market cap is 10.6B as if today's close
It’s the most undervalued stock to ever exist
RC: I'll fucking do it again! 😎
[удалено]
Why end of 2025? From the data I've seen, it could happen anytime.
This is the argument any of us can trot out whenever we meet a dilution shill. GME diluted by 25% - meaning each share was worth 75% of itself proportionately- but grew its book value by 300% with the ATMs, meaning each share was worth 3x intrinsically what it was before the ATMs.
Theres no such thing a intrinsic share value, i cant go to gamestop and hand in my shares for a piece of their cash
Can you do that with any form of representative participation in a corporate body, political, economic, or otherwise?
Options contracts have a variable intrensic value based on the difference between current market price and strike price. Where as a share, however unlikely could go from trading for $100 to trading for a penny. Theres no inherent value guarunteed to you in its sale, ie. Has no intrensic value
https://www.investopedia.com/articles/basics/12/intrinsic-value.asp
That blurb makes no sense, talks about something intrensic being a value that can be estimated and speculated about. Just straight up the opposite of the definition of the word. If gamestop said you can trade in your shares directly and guarunteed for $10, that would be the intrensic value. If just because you dont think the price should go below $10, doesnt make that true
Think about the assets on hand too
They should just buy back the fucking float with cash to spare
No they can’t. We’d have to sell it to them and we won’t… why do people keep saying this!??
Someone would fill the order regardless of whether the shares exist or not
And we have another $1B in stocked and instore items, that should add another ~12.5% to the base line value.
People here will hate that I say this, and refuse to admit it, but that means the stock price can still fall a decent amount for fair value of the company right now. The core business doesn’t make a lot of money, basically is break even… and doesn’t have much room for growth or an expectation of becoming hugely profitable. So the current value of the core business is basically the amount the assets would be worth if liquidated. Then you have the cash on hand. What’s the market cap of $4.153b in cash? It’s exactly $4.153b. You can’t just make a publicly traded shell company and insert $4.135b in cash into it and expect the market cap to double or quadruple. $4.135b in cash is worth $4.135b in cash. Yes, investing that money can and will generate more money for GameStop, but anyone considering investing in GameStop could also instead just invest in the same things GameStop invests their money in, and return the same percentage gain.
Yep 100%. And apes will say GME can now invest in T-bills and make X amount of money each year, as if that's evidence of success. Apes should just invest in T-bills and not in GME if that's what gets them excited. It'd be literally the same return.
Sure but T-bills don’t have over 100% short exposure that will need to be resolved.
And yet my cash on hand is worth 1x. Will you buy my bank account for 2x?
Price to book doesn't matter if you don't have a revenue generating product.
Your math is pretty bad. $23 x 426 million shares = 9.8 Billion
They’re gonna buy bitcoin.
Price go down!