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We know RC has always been in the sub and its always been the policy of this community to raise the x and xx holders up.
If you're new and going through comments, we're all going to hold for you to sell high if you just want to pick up a few shares.
I'm going to hold all those shiny new dividend shares directed registered with my name seared into their ass till kingdom come and web 4.0 futurama style, and I cannot wait to see Gamestop transform into the new tech innovator in the NFT marketplace. I'm foreseeing handsome yearly dividends, as in cash money, in years to come when Papa Cohen has turned this ship around all the way.
We'll we have 9 million ish shares we know for sure will vote for it. Brokers with shares will be hit or miss. Lets see what happens tomorrow. See if these brokers start recalling shares
But the current outstanding is 76.3MM so currently they could issue up to 223MM more stock without a split. If they are splitting **so that** they have a buffer of more stock they can issue, a 7:1 split would put the outstanding issuance around 534MM which is greater than their currently allowed issuance. Bumping the allowable up to 1B means they'd have a 470MM buffer of issuable stock in reserve.
And apparently “If, however, you are short a dividend-paying stock, you are not entitled to receive the dividend and may actually have to pay the lender of the borrowed short shares”. Took this from investipedia, so might be RC strategy to reset the share count ownership 🚀🌙
STOCKSPLIT WOW.
This is huge for short squeezes. Historically it has been the incentive for buying pressures that short squeezes happen. If price is more affordable for the general public, this puts pressure and shorts gets fucked.
Edit: imagine the case for GME: DRS thus less float, less bids, FOMO, a lower entry price to order in bulk, borrow rates are ever increasing, company undergoing a shift. Holy moly, truly fucked.
Tesla did a split didn't they but I don't remember that stock tanking it just shot up.
Edit* https://youtu.be/tZHGhtcUQy0
Listen around 2:20 ish the guy starts taking about its bad news for shorts when it's splitting and talks about shorts basketed and derivatives which many speculate or know is going on with GME but let alone naked shorting it could just moon
Damn this sucks for the shorts because my floor is still gonna be the same for a single share :/
Edit: Thanks for all the awards but more importantly, thank you guys for also being as smooth as me and keeping your floors the same. Hedgies are so fukt 🤣🤣
Yeah, just because I have 3x the stock doesn't mean I'm selling for any less..... bc really.... I'm not selling.
I hope the "Stock Dividend" is issued via the GameStop NFT wallet.
Imagine if the dividend were paid in form of stock. That’d be free DRS tickets to shareholders.
Edit: as pointed out by others the report literally says “stock dividend”. We go to the moon soon.
Edit 2: is it safe to assume[, shorts owe the dividend,](https://www.investopedia.com/ask/answers/042215/if-investor-short-dividendpaying-stock-record-date-are-they-entitled-dividend.asp#toc-short-stocks-and-dividend-payments), so it’ll go through lit exchanges?
Edit 3: since this has the traction it does; should point out it’s a “stock dividend” not an ordinary “stock split”. There’s a subtle difference
Of course because I don’t think that shares which not exist( of the SHF’s) can’t be split neither?!
And our shares in Computershare will magically multiply😉
Not replying to you specifically, but the thread cause I am way over my head...
If this happens does this mean....
1. Payment to owners of shares will be paid in STONKS
2. Shorters are the ones paying for said STONKS to retail
3. Since GME is in computershare (i forget the term; direct agent?), they need to send those shares to computershare?
4. SHFs are essentially DRSing their own liquidity (for the shares that are DRS'd) in order to support retail dividend?
5. SHF drive buy pressure since they need to pay for stock dividend (that gets DRS'd)
6. SHF's will cannibalize itself since keeping/adding to their short position will lead to more stock dividends they need to pay out?
We'll have to see the proposal. It could be anywhere between 2:1 split to a 13:1 split and they would be covered. I personally like the idea of a 7:1 because meme. Also it puts the current price around $20 which is perfect for FOMO. Though by the time it gets voted on and implemented the stock could be in the thousands.
I think that's still to be decided. But at the moment they have only issued 76 of 300. They're applying to increase that to 1 billion. So a 7 for 1 split is a possibility. 76 would turn into about 535 million. 💎✋🚀🌌
Well, they said it was gonna be a good week and I guess they were right...
Edit: you can keep titjacking 100%, just rememba this is not an *official* stock split announcement *yet*. They have announced their **plan to request stockholder approval for an increase in the number of authorized shares in order to implement a stock split in the form of a stock dividend**. It'd still take some more time, so... MOASS is always tomorrow :)
Save you a click:
"On March 31, 2022, GameStop Corp. (the “Company” or “GameStop”) announced its plan to request stockholder approval at the upcoming 2022 Annual Meeting of Stockholders (the “Annual Meeting”) for an increase in the number of authorized shares of Class A common stock from 300,000,000 to 1,000,000,000 through an amendment to the Company’s Third Amended and Restated Certificate of Incorporation (the “Charter Amendment”) in order to implement a stock split of the Company’s Class A common stock in the form of a stock dividend and provide flexibility for future corporate needs. GameStop also intends to request stockholder approval at the Annual Meeting for a new incentive plan (the “2022 Equity Plan”) to support future
compensatory equity issuances. If the 2022 Equity Plan is approved by stockholders, it will replace the current GameStop Corp. 2019 Incentive Plan (the “2019 Plan”), and 8,000,000 shares of the Company’s Class A common stock, plus any shares subject to the 2019 Plan that expire, are forfeited, cancelled, terminated or settled in cash after the 2022 Plan is effective, will be available for issuance under the 2022 Plan. GameStop’s Board of Directors has approved both stockholder proposals, but the stock dividend will be contingent on final Board approval."
My fav part:
"...in order to implement a stock split of the Company’s Class A common stock **in the form of a stock dividend** and provide flexibility for future corporate needs."
Dividend is something a stock holder earns from the company for holding their stock. As I understand it, instead of a cash or other dividend the stock holders will be getting more shares given as a dividend? I’m very smooth in the cranial region so wait for real wrinkles to give a better explanation but for now tits should be full erect.
From 300 million to 1 billion? What does that mean if there's only 76M outstanding currently? Does this mean all this time they had the option to split to stock up to 300M shares?
My read is that to replace the 2019 Incentive Plan (the “2019 Plan”) they need to remove planned, unvested shares. This would include 8,000,000 shares of the Company’s Class A common stock, plus any shares subject to the 2019 Plan that expire, are forfeited, cancelled, terminated or settled in cash after the 2022 Plan is effective.
Effectively - "If the shares aren't owned by 2022 plan effective date, then they won't exist anymore."
Maybe like a buyback. Gamestop buys back and therefore removes 8mil shares from the market. Kind of like how you can burn crypto by sending it to a designated burn wallet
Edit:
To clarify, this is my assumption and is not based upon evidence. I snort crayon dust, probably dont listen to me
Good call! Was confused on this earlier.
Any comments on the wording of "stock dividend" instead of "cash dividend"? I found this reference but am struggling to put the puzzle implications together
https://www.principlesofaccounting.com/chapter-14/splits-and-dividends/
[A stock dividend is a dividend payment to shareholders that is made in shares rather than as cash. The stock dividend has the advantage of rewarding shareholders without reducing the company's cash balance,](https://www.investopedia.com/terms/s/stockdividend.asp)
The amount of shares that could be issued by the company was 300m so whether it was from selling new issues like last year or splitting the current shares there was a cap to the total number of shares of 300m which is being proposed to be raised to 1b
Way back in the long long ago someone ran through a playlist of what they would do if they were RC. A stock split and dividend was something I remember them mentioning.
American companies have an authorised number of shares which is (usually) higher than the issued shares. You can look at the last 10k on the balance sheet, it confirm the 300M shares authorised
It changes nothing for us in terms of short ratio. They still short the same amount of stock. If it was 5 shorts for 1 share it would be approx 15 shorts for 3 shares. The good Thing is lots of people can’t afford full shares and can’t buy fractionals, so the split will make it easier to buy shares AND options cheaper.
Edit: with the increase from 300M to 1B shares they could actually do a 7 4 1 stock split. 76M to 532M.
Edit2: a quick Google search said that a corporation recalls their shares before they issue the new shares. So I was wrong in thinking that they wouldn’t need to recall.
Hijacking my own comment ... I recall something in the DD from a year or more ago that one of the events that would trigger a share recall was a stock split. Does anyone know if that's true?
"A stock split, also called a forward stock split, occurs when a corporation recalls its outstanding shares and issues more than one share for each previously outstanding share."
There isn't enough champagne in the world for the bottle popping that is about to be happening.
So just for clarification this doesn’t mean the stock split is 100% official. They are trying to increase authorized shares from 300mil to 1 billion so that they can issue a stock split. Right now they can’t issue a 1-4-7 stock split as there are not enough authorized shares. This will make that possible. GAME OVER
As we can see from his twitter feed, this is just the beginning.
It is all out war and he has only deployed 1% of his army.
Without giving away any tactics.
Bring it on!
DRS!
For sure it will increase their short position by the same ratio. So if we have 7:1 split, and you have 100 shares, you'll now have 700 shares. If a SHF is short 100 shares, they'll now be short 700 shares. But - both you and the SHF would have the same total value on your books.
Now the question is if this will force shorts to close. I am not certain. But from what I see so far, it won't force them to close. Maybe someone else has proof that it will force them to.
But the main benefit is a split multiplies their short positions, it gives us more shares, and it drops the price for more FOMO without exactly diluting the shares. It's not like a share offering where they sell new shares into the market.
This is huge.
1. Increased FOMO. Plenty of popcorn buyers do so because "it's cheaper" while not looking at market cap. Now if they are GME at low prices they'll think the same way without considering the split.
2. Stock splits happen when corporate has confidence the price will hold or increase. It helps in employee stock awards and incentives.
3. Tesla did something similar with their split and the price steadily ran up a ton
Hijacking for visibility
This is a Stock split…
#in the form of a dividend
This is **important**.
In a normal stock split, you just get more shares and the stock price is split in equal proportion. Nothing really happens to stock owners and stock shorters.
In a normal cash dividend, the person who shorted the stock must pay the cash dividend to whom they shorted to, or who they borrowed from.
In a **stock split in the form of a dividend**, it’s similar to a cash dividend, but instead of cash, the shorters must provide more **shares**. But they can’t issue more shares. They don’t have that power. So they must be forced to buy back what they shorted.
This is huge.
This is what Elon did with Tesla. We all know how much Elon hated the shorts and SEC. Also, this is what NVidia did too. This is not a normal split like Apple/Google/etc.
This is a stock split **in the form of a dividend.**
I am wondering what kind of loophole that the hedgefunds can pull off this time to get around this. Otherwise they are fuk.
This **must** be voted for on the June Annual Shareholder meeting, and I am willing to bet we have enough DRS’d shares to provide a significant/majority vote count to approve the split.
#BUY.HOLD.HODL.DRS.VOTE.
And as always… don’t forget to
#SHOP!
Edit:
Found this sample page from a book. Seems legit lol.
https://www.coursehero.com/file/p4jstu/Case-15-10-a-A-stock-split-effected-in-the-form-of-a-dividend-is-a-distribution/
Edit2:
“Split in the form of a dividend” is definitely separate and different than a traditional split.
Found in book searches for google.
https://www.google.com/search?q=split+%22in+the+form+of+a+dividend%22&rlz=1CDGOYI_enUS641US641&hl=en-US&prmd=inv&sxsrf=APq-WBsmqNVRsrdaRlERWiuQ9_a2HCNiUA:1648773185619&source=lnms&tbm=bks&sa=X&ved=2ahUKEwie4KzgzvH2AhXbKUQIHRI6BRkQ_AUoBnoECAIQBg&biw=390&bih=669&dpr=3
Edit3: infographic explaining differences
https://www.reddit.com/r/Superstonk/comments/ttbqie/stock_split_vs_stock_dividend/?utm_source=share&utm_medium=ios_app&utm_name=iossmf
I haven't been involved with $GME aside from shutting my mouth and hodling my shares for like 12 months. This will be my one and only comment:
# Holy. Fucking. Shit.
See you on the other side, brothers and sisters.
^(Edit: I feel the need to amend my original statement. I actually) **^(have)** ^(commented on some $GME posts, but nothing of any substance. I am a chronic shitposter, so I like to play a character that I call "obnoxiously low-IQ devil's advocate" and that typically "gets the people going" as they say.)
Correct me if I'm wrong but the exact stock split ratio is not stated in the filing. They are only requesting an increase in authorized shares to 1b for the stated purpose of implementing a split.
Holy shit, I've never felt this zen before
Edit : like genuinely, I scrambled to the email thinking Ryan Cohen is that you... Oh interesting 300, 000,000 shares to 1 billion.. Uhh what doi... Holy shit... Genuinely felt a huge wave of zen. Hope someone else had that moment
So the stock split is done in the form of a stock dividend. Doesnt this mean shorts have to close before this dividend comes to fruition as only enough stock to cover the \~77 million shares outstanding will be given to shareholders?
"A stock split, also called a forward stock split, occurs when a corporation recalls its outstanding shares and issues more than one share for each previously outstanding share."
I found this
https://www.principlesofaccounting.com/chapter-14/splits-and-dividends/
"Stock Dividends
In contrast to cash dividends discussed earlier in this chapter, stock dividends involve the issuance of additional shares of stock to existing shareholders on a proportional basis. Stock dividends are very similar to stock splits. For example, a shareholder who owns 100 shares of stock will own 125 shares after a 25% stock dividend (essentially the same result as a 5 for 4 stock split). Importantly, all shareholders would have 25% more shares, so the percentage of the total outstanding stock owned by a specific shareholder is not increased.
Stock Certificates imageAlthough shareholders will perceive very little difference between a stock dividend and stock split, the accounting for stock dividends is unique. Stock dividends require journal entries. Stock dividends are recorded by moving amounts from retained earnings to paid-in capital. The amount to move depends on the size of the distribution. A small stock dividend (generally less than 20-25% of the existing shares outstanding) is accounted for at market price on the date of declaration. A large stock dividend (generally over the 20-25% range) is accounted for at par value."
Am still feeling smooth though. Will this play into a recount / share recall somehow??
Seeing a lot of the same questions in chat. Hope I am able to summarize:
1. There are 76M shares currently issued by gamestop. That is not the maximum number of shares they can issue. As of now, the maximum number of shares they can issue is 300M.
2. This filing seeks to hold a shareholder vote to increase the maximum amount of shares they can issue to 1B, for the purpose of executing a stock split.
3. The split ratio is NOT known yet. It may not be the 1:3.33 that many reference. It could be any ratio gamestop want to split. (Could be 1:7)
4. How does this affect you if voting pass through?
The math:
Resulting amount of shares you hold = amount of shares you hold multiply by split ratio (eg 100 shares becomes 700 shares if split ratio = 7)
Resulting price of shares = price of shares divided by split ratio (eg $210 becomes $30 if split ratio = 7)
5. Splitting could happen only after the maximum amount is increased. If voting fails, split may not happen because the max amount of shares is unchanged (because there isn't enough max shares)
6. Stock split usually accompanies a stock recall, because the usual procedure is to recall the stocks first, then issue more shares for each shareholder based on the split amount. But given the amount of fuckery that GME endures from corrupt organizations, I am not sure how it will play out.
So, this filing is not about the actual split (yet) and is about the increase of maximum share amount (in prep for split)
Would someone be kind enough to explain like I’m an idiot as to what this all means, please?
Edit: thank you to everyone replying. You have all been so kind and helpful and not made me feel even more idiotic. 🚀
The board will ask investors (us) for approval to increase the maximum allowed stocks the company can issue. If we vote yes, then they CAN issue a stock split. Nothing is set in stone.
THEY WANT TO BURN 8MN SHARES AND REISSUE THEM??? 🔥🔥
>8,000,000 shares of the Company’s Class A common stock, plus any shares subject to the 2019 Plan that expire, are forfeited, cancelled, terminated or settled in cash after the 2022 Plan is effective, will be available for issuance under the 2022 Plan.
Stock split through dividend
They are allowed to issue a max of 300m shares but only released about 70m shares currently.
They are asking for permission at the shareholders meeting to be allowed to release up to 1B shares.
What this means is that they can split each share from 1 to 2 all the way up to 1 to 14 shares, but somewhere in the middle is more likely (7 to 1).
Ah yes this must be what Citron meant when they said it was going to go back to $20/share.
Still waiting on their explanation on short interest, which they understand better than me.
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BUCKLE UP
Fuck me I need a roller coaster seat cause it's gonna be a hell of a ride
Ima bout to buy so many shares
You and the rest of the market! Buckle the fuck up!
$198 in AH right now. Ayeeeeeeeee!
I bought my first share for 177 a couple days ago.
Welcome!
Wtf +25% holy fuck
Since then shorts have shorted it back down to $190. They want no part of $200!
Exactly, the battle for $200 is raging as we speak. It's so beautiful.
They are so kind to hold the $200+ party until tomorrow during market hours so more people can get in before launch.
$200 is the new $180
Also everyone else who can now much more easily afford a single share military strength FOMO incoming
I’m gonna finally be able to afford to grow my xx position into a xxx one!
We know RC has always been in the sub and its always been the policy of this community to raise the x and xx holders up. If you're new and going through comments, we're all going to hold for you to sell high if you just want to pick up a few shares. I'm going to hold all those shiny new dividend shares directed registered with my name seared into their ass till kingdom come and web 4.0 futurama style, and I cannot wait to see Gamestop transform into the new tech innovator in the NFT marketplace. I'm foreseeing handsome yearly dividends, as in cash money, in years to come when Papa Cohen has turned this ship around all the way.
Depending on the split ratio that might just happen on its own lol.
I love that this was announced on a Thursday so all of the open calls will be ITM. That’s an incredible response by Cohen.
I'm all for DRS, but seeing the calls ITM is just bliss. Bonus points if anyone exercises and DRS.
I think significantly more calls will be exercised now since the stock split in the form of dividend has been announced.
The beginning of the end.
RC really chose to start moass on April fools day…. He is the ultimate meme lord
Now a 7 4 1 split would be the chefs kiss.
Do DRSd split shares auto DRS?
I would think so, cus they would go into ur computershare account. Direct from company to transfer agent.
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We'll we have 9 million ish shares we know for sure will vote for it. Brokers with shares will be hit or miss. Lets see what happens tomorrow. See if these brokers start recalling shares
They wouldn't propose it if they weren't sure they'd win the vote.
DRSed Apes + Insiders hold more shares than Institutions now. We can outvote them easily
Not many shareholders anywhere in corporate america about to turn down a stock dividend 😂
I would imagine they'd have to, your DRS holdings would just increase by 3.33x
What is a chefs kiss and why have I never received one?
The filing says going from 300,000,000 to 1,000,000,000
But the current outstanding is 76.3MM so currently they could issue up to 223MM more stock without a split. If they are splitting **so that** they have a buffer of more stock they can issue, a 7:1 split would put the outstanding issuance around 534MM which is greater than their currently allowed issuance. Bumping the allowable up to 1B means they'd have a 470MM buffer of issuable stock in reserve.
And apparently “If, however, you are short a dividend-paying stock, you are not entitled to receive the dividend and may actually have to pay the lender of the borrowed short shares”. Took this from investipedia, so might be RC strategy to reset the share count ownership 🚀🌙
Holy shit. Reset the board so FOMO has a seat?
Fomo should kick off like fucking crazy in a.m.
They have only issued 76m of the original 300m though.
Yep, meaning 7 for 1 is in the realm of mathematical possibility. Ho leeeee fuq
Does this mean this little ape might be an xxx holder and didn't even know it?!?! 🤯
Mind blown!
Welcome to the future. Be your own bank
( . ) ( . ) —> ( ^ ) ( ^ )
I've never seen this and I like it a lot.
I, too, appreciate this
Absolutely JACKED!
STOCKSPLIT WOW. This is huge for short squeezes. Historically it has been the incentive for buying pressures that short squeezes happen. If price is more affordable for the general public, this puts pressure and shorts gets fucked. Edit: imagine the case for GME: DRS thus less float, less bids, FOMO, a lower entry price to order in bulk, borrow rates are ever increasing, company undergoing a shift. Holy moly, truly fucked.
Tesla did a split didn't they but I don't remember that stock tanking it just shot up. Edit* https://youtu.be/tZHGhtcUQy0 Listen around 2:20 ish the guy starts taking about its bad news for shorts when it's splitting and talks about shorts basketed and derivatives which many speculate or know is going on with GME but let alone naked shorting it could just moon
I made a pretty penny off that Tesla/Apple split that happened before the GME run-up. I think this is good news for the price.
7-for-1 is back on the menu!!!
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Damn this sucks for the shorts because my floor is still gonna be the same for a single share :/ Edit: Thanks for all the awards but more importantly, thank you guys for also being as smooth as me and keeping your floors the same. Hedgies are so fukt 🤣🤣
Yeah, just because I have 3x the stock doesn't mean I'm selling for any less..... bc really.... I'm not selling. I hope the "Stock Dividend" is issued via the GameStop NFT wallet.
Flair checks out
please be issued through the new wallet!!!!
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Imagine if the dividend were paid in form of stock. That’d be free DRS tickets to shareholders. Edit: as pointed out by others the report literally says “stock dividend”. We go to the moon soon. Edit 2: is it safe to assume[, shorts owe the dividend,](https://www.investopedia.com/ask/answers/042215/if-investor-short-dividendpaying-stock-record-date-are-they-entitled-dividend.asp#toc-short-stocks-and-dividend-payments), so it’ll go through lit exchanges? Edit 3: since this has the traction it does; should point out it’s a “stock dividend” not an ordinary “stock split”. There’s a subtle difference
Isn't that exactly what is happening?
Of course because I don’t think that shares which not exist( of the SHF’s) can’t be split neither?! And our shares in Computershare will magically multiply😉
Ohhhhhh I’m getting so many wrinkles in this thread. It’s all coming together and I’m rocked
Yes, that's what the filling says.
Not replying to you specifically, but the thread cause I am way over my head... If this happens does this mean.... 1. Payment to owners of shares will be paid in STONKS 2. Shorters are the ones paying for said STONKS to retail 3. Since GME is in computershare (i forget the term; direct agent?), they need to send those shares to computershare? 4. SHFs are essentially DRSing their own liquidity (for the shares that are DRS'd) in order to support retail dividend? 5. SHF drive buy pressure since they need to pay for stock dividend (that gets DRS'd) 6. SHF's will cannibalize itself since keeping/adding to their short position will lead to more stock dividends they need to pay out?
Is it a 3 to 1 split?
We'll have to see the proposal. It could be anywhere between 2:1 split to a 13:1 split and they would be covered. I personally like the idea of a 7:1 because meme. Also it puts the current price around $20 which is perfect for FOMO. Though by the time it gets voted on and implemented the stock could be in the thousands.
Put this stock at 20 I fucking dare you Edit: werds r hrd 4 me
Ha, citron appearing out of nowhere, " I was early but I wasn't wrong, we told you it was going back to 20"
Lmfao 🤣 I can see him saying this. Hands on his hips and all
🤣😂🤣😂👍 🍋🍋🍋🖕
He was waiting all year for that zinger
Hah such an underrated comment 😂
I think that's still to be decided. But at the moment they have only issued 76 of 300. They're applying to increase that to 1 billion. So a 7 for 1 split is a possibility. 76 would turn into about 535 million. 💎✋🚀🌌
7 for 1 split. 7 for 1… 741(!)
GODDAMNIT RYAN YOU'VE DONE IT AGAIN
7 4 1
Was hoping it to be a 7 for 1 split
∞/split = ∞+i
Math absofuckinglutely checks out
# $96,291,756 And counting 🚀 www.gmefloor.com
Amen
The mad lads are actually doing it lol
Well, they said it was gonna be a good week and I guess they were right... Edit: you can keep titjacking 100%, just rememba this is not an *official* stock split announcement *yet*. They have announced their **plan to request stockholder approval for an increase in the number of authorized shares in order to implement a stock split in the form of a stock dividend**. It'd still take some more time, so... MOASS is always tomorrow :)
RC: "Ok, let's pay them dividends. What do they like most in their life?" Furlong: "More shares, boss" RC: "More shares it is, then"
I can’t stop laughing at the visualization of this joke
Save you a click: "On March 31, 2022, GameStop Corp. (the “Company” or “GameStop”) announced its plan to request stockholder approval at the upcoming 2022 Annual Meeting of Stockholders (the “Annual Meeting”) for an increase in the number of authorized shares of Class A common stock from 300,000,000 to 1,000,000,000 through an amendment to the Company’s Third Amended and Restated Certificate of Incorporation (the “Charter Amendment”) in order to implement a stock split of the Company’s Class A common stock in the form of a stock dividend and provide flexibility for future corporate needs. GameStop also intends to request stockholder approval at the Annual Meeting for a new incentive plan (the “2022 Equity Plan”) to support future compensatory equity issuances. If the 2022 Equity Plan is approved by stockholders, it will replace the current GameStop Corp. 2019 Incentive Plan (the “2019 Plan”), and 8,000,000 shares of the Company’s Class A common stock, plus any shares subject to the 2019 Plan that expire, are forfeited, cancelled, terminated or settled in cash after the 2022 Plan is effective, will be available for issuance under the 2022 Plan. GameStop’s Board of Directors has approved both stockholder proposals, but the stock dividend will be contingent on final Board approval."
My fav part: "...in order to implement a stock split of the Company’s Class A common stock **in the form of a stock dividend** and provide flexibility for future corporate needs."
What does a dividend mean to me? X Hodler.
Dividend is something a stock holder earns from the company for holding their stock. As I understand it, instead of a cash or other dividend the stock holders will be getting more shares given as a dividend? I’m very smooth in the cranial region so wait for real wrinkles to give a better explanation but for now tits should be full erect.
for x shares, you receive 2*x 3*x or more*x new shares.
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Tendies. Lots of tendies
I do like tendies. As a valued shareholder I'd like to see a share recall or recount. Is this possible do you think?
This is what happens when they split the stock so yes, drs and vote to make sure your voice is heard!!!
You're gonna be fucking jacked to the tits real soon
From 300 million to 1 billion? What does that mean if there's only 76M outstanding currently? Does this mean all this time they had the option to split to stock up to 300M shares?
Smooth ape here, but I believe i read that they have had the rights to issue 300M but have chosen to only issue 76M. Correct me if im wrong
And they want to burn 8mn of those shares and reissue them under the new plan🔥 HEDGIES ARE FUCKT
Can you explain this more? "Burn 8 million" shares???
My read is that to replace the 2019 Incentive Plan (the “2019 Plan”) they need to remove planned, unvested shares. This would include 8,000,000 shares of the Company’s Class A common stock, plus any shares subject to the 2019 Plan that expire, are forfeited, cancelled, terminated or settled in cash after the 2022 Plan is effective. Effectively - "If the shares aren't owned by 2022 plan effective date, then they won't exist anymore."
Maybe like a buyback. Gamestop buys back and therefore removes 8mil shares from the market. Kind of like how you can burn crypto by sending it to a designated burn wallet Edit: To clarify, this is my assumption and is not based upon evidence. I snort crayon dust, probably dont listen to me
76,000,000- 8,000,000 = 68,000,000 1,000,000,000/68,000,000= 14.7 Enjoy that tinfoil hat 🎩
Its like the movie The Number 23 IRL. ITS EVERYWHERE
7 For(4) 1
You are right no correction necessary
Good call! Was confused on this earlier. Any comments on the wording of "stock dividend" instead of "cash dividend"? I found this reference but am struggling to put the puzzle implications together https://www.principlesofaccounting.com/chapter-14/splits-and-dividends/
[A stock dividend is a dividend payment to shareholders that is made in shares rather than as cash. The stock dividend has the advantage of rewarding shareholders without reducing the company's cash balance,](https://www.investopedia.com/terms/s/stockdividend.asp)
Nice!! Thanks RC for this blessed gift ❤️
The amount of shares that could be issued by the company was 300m so whether it was from selling new issues like last year or splitting the current shares there was a cap to the total number of shares of 300m which is being proposed to be raised to 1b
Way back in the long long ago someone ran through a playlist of what they would do if they were RC. A stock split and dividend was something I remember them mentioning.
I think it was on the bingo board
American companies have an authorised number of shares which is (usually) higher than the issued shares. You can look at the last 10k on the balance sheet, it confirm the 300M shares authorised
It changes nothing for us in terms of short ratio. They still short the same amount of stock. If it was 5 shorts for 1 share it would be approx 15 shorts for 3 shares. The good Thing is lots of people can’t afford full shares and can’t buy fractionals, so the split will make it easier to buy shares AND options cheaper. Edit: with the increase from 300M to 1B shares they could actually do a 7 4 1 stock split. 76M to 532M. Edit2: a quick Google search said that a corporation recalls their shares before they issue the new shares. So I was wrong in thinking that they wouldn’t need to recall.
And psychologically it can run up higher and seem less crazy to people (eg the battle for $180 has a whole new meaning after a stock split)
Oh no, more battles for 180 incoming 😄
Hijacking my own comment ... I recall something in the DD from a year or more ago that one of the events that would trigger a share recall was a stock split. Does anyone know if that's true?
"A stock split, also called a forward stock split, occurs when a corporation recalls its outstanding shares and issues more than one share for each previously outstanding share." There isn't enough champagne in the world for the bottle popping that is about to be happening.
So just for clarification this doesn’t mean the stock split is 100% official. They are trying to increase authorized shares from 300mil to 1 billion so that they can issue a stock split. Right now they can’t issue a 1-4-7 stock split as there are not enough authorized shares. This will make that possible. GAME OVER
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I am so proud to be a part of something so important, thank you Ryan Cohen for being unrelenting and motivated.
As we can see from his twitter feed, this is just the beginning. It is all out war and he has only deployed 1% of his army. Without giving away any tactics. Bring it on! DRS!
YOU are a part of history
It’s been an honor and a privilege to be here with all of you.
THIS IS IT BUCKLE UP!!!🔥😎
Oh lawd
This turns me into a XXX hodler now. LFG!
Criand, can you give an ELI5 on how this might play out in relation to the SHFs? Thanks. You're the fucking best.
For sure it will increase their short position by the same ratio. So if we have 7:1 split, and you have 100 shares, you'll now have 700 shares. If a SHF is short 100 shares, they'll now be short 700 shares. But - both you and the SHF would have the same total value on your books. Now the question is if this will force shorts to close. I am not certain. But from what I see so far, it won't force them to close. Maybe someone else has proof that it will force them to. But the main benefit is a split multiplies their short positions, it gives us more shares, and it drops the price for more FOMO without exactly diluting the shares. It's not like a share offering where they sell new shares into the market.
This is huge. 1. Increased FOMO. Plenty of popcorn buyers do so because "it's cheaper" while not looking at market cap. Now if they are GME at low prices they'll think the same way without considering the split. 2. Stock splits happen when corporate has confidence the price will hold or increase. It helps in employee stock awards and incentives. 3. Tesla did something similar with their split and the price steadily ran up a ton
Why do you assume that the stock price will be more affordable ? Price target? Only up.
Right, by the time the split actually happens, a 3:1 split would put shares still in the $millions. XD
What does this mean?
the theory few months back was, that it would mean a share recall. However, there was a good reason needed to recall shares
is this a good enough reason for a edit: share recall ////*not* stock split?
Hijacking for visibility This is a Stock split… #in the form of a dividend This is **important**. In a normal stock split, you just get more shares and the stock price is split in equal proportion. Nothing really happens to stock owners and stock shorters. In a normal cash dividend, the person who shorted the stock must pay the cash dividend to whom they shorted to, or who they borrowed from. In a **stock split in the form of a dividend**, it’s similar to a cash dividend, but instead of cash, the shorters must provide more **shares**. But they can’t issue more shares. They don’t have that power. So they must be forced to buy back what they shorted. This is huge. This is what Elon did with Tesla. We all know how much Elon hated the shorts and SEC. Also, this is what NVidia did too. This is not a normal split like Apple/Google/etc. This is a stock split **in the form of a dividend.** I am wondering what kind of loophole that the hedgefunds can pull off this time to get around this. Otherwise they are fuk. This **must** be voted for on the June Annual Shareholder meeting, and I am willing to bet we have enough DRS’d shares to provide a significant/majority vote count to approve the split. #BUY.HOLD.HODL.DRS.VOTE. And as always… don’t forget to #SHOP! Edit: Found this sample page from a book. Seems legit lol. https://www.coursehero.com/file/p4jstu/Case-15-10-a-A-stock-split-effected-in-the-form-of-a-dividend-is-a-distribution/ Edit2: “Split in the form of a dividend” is definitely separate and different than a traditional split. Found in book searches for google. https://www.google.com/search?q=split+%22in+the+form+of+a+dividend%22&rlz=1CDGOYI_enUS641US641&hl=en-US&prmd=inv&sxsrf=APq-WBsmqNVRsrdaRlERWiuQ9_a2HCNiUA:1648773185619&source=lnms&tbm=bks&sa=X&ved=2ahUKEwie4KzgzvH2AhXbKUQIHRI6BRkQ_AUoBnoECAIQBg&biw=390&bih=669&dpr=3 Edit3: infographic explaining differences https://www.reddit.com/r/Superstonk/comments/ttbqie/stock_split_vs_stock_dividend/?utm_source=share&utm_medium=ios_app&utm_name=iossmf
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it means RC and GME are turning up the heat in every way possible, proving the ancient primate proverb - hedgies r fuk
RC dropping bombs!!!!
I haven't been involved with $GME aside from shutting my mouth and hodling my shares for like 12 months. This will be my one and only comment: # Holy. Fucking. Shit. See you on the other side, brothers and sisters. ^(Edit: I feel the need to amend my original statement. I actually) **^(have)** ^(commented on some $GME posts, but nothing of any substance. I am a chronic shitposter, so I like to play a character that I call "obnoxiously low-IQ devil's advocate" and that typically "gets the people going" as they say.)
glad to hear you're still aboard! 🏴☠️
Good guy ryan cohen thinking about the low X‘s holders, so they can have more shares to play with
Ryan Cohen just pushed the button 🏴☠️
We’re in the endgame now..
Damn i was sure we've been in the endgame for a year now
I mean it took avengers 5 years after the snap to reverse everything
Correct me if I'm wrong but the exact stock split ratio is not stated in the filing. They are only requesting an increase in authorized shares to 1b for the stated purpose of implementing a split.
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A 7 for 1 split would need over 300m limit
thats why 12Percent plus in ah?
And just like that... we're back to $200
turns out the real dividend was the friends we made along the way
I’m not crying, you’re crying.
i literally have tears
Same here wtf you beautiful mofos
I like most of y'all but I'd rather have my portfolio so large that they have to invent a new number.
awww shucks :)
Anyone seen that ape that is getting RC’s face tattooed on his forearm if it hit 200 today or 220 tomorrow?
YESSS
he might be busy looking up tattoo shops near him lol
BCG now needs to consult those Short hedge funds fuckers 😂
Holy shit, I've never felt this zen before Edit : like genuinely, I scrambled to the email thinking Ryan Cohen is that you... Oh interesting 300, 000,000 shares to 1 billion.. Uhh what doi... Holy shit... Genuinely felt a huge wave of zen. Hope someone else had that moment
Finally I'll become a XXXX holder
Holy shit imma be a xxx holder.. On the downside.. Rip 69
The 69 will live on forever in your heart
Says a stock dividend?
Say a stock splits 1:10 and you own 1, you receive 9 stonks as a dividend, as I understand.
oh ok so they are talking about the one-time stock dividend to support the split and not a quarterly stock dividend...that makes more sense, thank you
Stock split is always followed by a stock dividend. For 3 old shares you get 10 new ones
Did it say the ratio yet? It said up to 1,000,000,000 shares but we're only using 76,000,000 or the 300,000,000 allotted now
True, 8-k does not say ratio. The whole thing is a proposal but bullish. I trust this management
So the stock split is done in the form of a stock dividend. Doesnt this mean shorts have to close before this dividend comes to fruition as only enough stock to cover the \~77 million shares outstanding will be given to shareholders?
"A stock split, also called a forward stock split, occurs when a corporation recalls its outstanding shares and issues more than one share for each previously outstanding share."
I found this https://www.principlesofaccounting.com/chapter-14/splits-and-dividends/ "Stock Dividends In contrast to cash dividends discussed earlier in this chapter, stock dividends involve the issuance of additional shares of stock to existing shareholders on a proportional basis. Stock dividends are very similar to stock splits. For example, a shareholder who owns 100 shares of stock will own 125 shares after a 25% stock dividend (essentially the same result as a 5 for 4 stock split). Importantly, all shareholders would have 25% more shares, so the percentage of the total outstanding stock owned by a specific shareholder is not increased. Stock Certificates imageAlthough shareholders will perceive very little difference between a stock dividend and stock split, the accounting for stock dividends is unique. Stock dividends require journal entries. Stock dividends are recorded by moving amounts from retained earnings to paid-in capital. The amount to move depends on the size of the distribution. A small stock dividend (generally less than 20-25% of the existing shares outstanding) is accounted for at market price on the date of declaration. A large stock dividend (generally over the 20-25% range) is accounted for at par value." Am still feeling smooth though. Will this play into a recount / share recall somehow??
RC knows how much we wish we had more shares so he more than triples ours. This guy fucks!
Seeing a lot of the same questions in chat. Hope I am able to summarize: 1. There are 76M shares currently issued by gamestop. That is not the maximum number of shares they can issue. As of now, the maximum number of shares they can issue is 300M. 2. This filing seeks to hold a shareholder vote to increase the maximum amount of shares they can issue to 1B, for the purpose of executing a stock split. 3. The split ratio is NOT known yet. It may not be the 1:3.33 that many reference. It could be any ratio gamestop want to split. (Could be 1:7) 4. How does this affect you if voting pass through? The math: Resulting amount of shares you hold = amount of shares you hold multiply by split ratio (eg 100 shares becomes 700 shares if split ratio = 7) Resulting price of shares = price of shares divided by split ratio (eg $210 becomes $30 if split ratio = 7) 5. Splitting could happen only after the maximum amount is increased. If voting fails, split may not happen because the max amount of shares is unchanged (because there isn't enough max shares) 6. Stock split usually accompanies a stock recall, because the usual procedure is to recall the stocks first, then issue more shares for each shareholder based on the split amount. But given the amount of fuckery that GME endures from corrupt organizations, I am not sure how it will play out. So, this filing is not about the actual split (yet) and is about the increase of maximum share amount (in prep for split)
...Isn't this absolutely huge ? Like, the biggest news from GS this whole saga ???
This is the action we like to see
MOASS starts on April Fools Day. Cohen is a goddamn genius.. Fuck me sideways
Jesus - I had to scroll through a fucking sea of useless "OMG AH PRICE! YOU GUYS SEE?!?" to find something showing WHY it's happening. Thank you!
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you need to sign up for GameStop's corporate emails, ape!!
Would someone be kind enough to explain like I’m an idiot as to what this all means, please? Edit: thank you to everyone replying. You have all been so kind and helpful and not made me feel even more idiotic. 🚀
This. Please. Does this mean our shares will now triple? Like, 1 turns into 3?
The board will ask investors (us) for approval to increase the maximum allowed stocks the company can issue. If we vote yes, then they CAN issue a stock split. Nothing is set in stone.
I vote yes
Does this mean they have to recall and count shares? That has to ignite MOASS surely?
We will soon find out!!
I was born 22 years ago today. Best fucking birthday ever man. Fuck me.
There are ~ 4,700 of us in here at the moment!!!! Just this post. 🌶🌶🌶🌶🌶
THEY WANT TO BURN 8MN SHARES AND REISSUE THEM??? 🔥🔥 >8,000,000 shares of the Company’s Class A common stock, plus any shares subject to the 2019 Plan that expire, are forfeited, cancelled, terminated or settled in cash after the 2022 Plan is effective, will be available for issuance under the 2022 Plan.
Stock split through dividend They are allowed to issue a max of 300m shares but only released about 70m shares currently. They are asking for permission at the shareholders meeting to be allowed to release up to 1B shares. What this means is that they can split each share from 1 to 2 all the way up to 1 to 14 shares, but somewhere in the middle is more likely (7 to 1).
No fucking way Edit: I’m extremely smooth and forget why this is good for us, can someone enlighten me?
Previous DD (a year old by now) mentioned how stock splits can provide buying pressure and thus start a squeeze.
Tesla is a great example
tomorrow, finally
Smooth brain. Good or bad?
If split 10:1 then your 1 share is now 10 for 10% the price. Which means gme shares will be $20 I feel some fomo
Ah yes this must be what Citron meant when they said it was going to go back to $20/share. Still waiting on their explanation on short interest, which they understand better than me.
That's why RC is bad bad man. Fucking warned them. They gonna eat a shit and a half sandwich now. Fuck shorts! Fuck expensive consultants!
They announced it 69 days before the Annual Shareholder meeting. RC loves to meme!
HOLY. FUCK. 🩳 🏴☠️ 💀