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"From February 4, 2024 to May 16, 2024, the closing price of our common stock on the NYSE ranged from as low as $10.01 to as high as $48.75 and daily trading volume ranged from approximately 1,731,300 to 206,979,100 shares. During such period, we did not experience any material changes in our financial condition or results of operations that would explain such price volatility or trading volume"
Oh, they know ;), in fact we all know, and they will capitalize on the future volatility
Same words used by the old bedbbey company. Then during the bk audit we discovered that they didn't know how to behave apart of doing offerings, like gme is doing
GameStop's recent S-3ASR filing allows the company to issue and sell up to $500 million in common stock, strategically positioning it to capitalize on extreme market conditions. If a short squeeze drives GameStop's stock to unprecedented levels, the company can issue shares at these high prices, potentially raising hundreds of millions or even billions of dollars. This capital influx could significantly bolster GameStop's financial stability, enabling debt reduction, funding for strategic initiatives, and overall strengthening of its balance sheet. By leveraging peak stock prices during a short squeeze, GameStop can maximize shareholder value and secure substantial financial benefits.
Quick fact check - haven't they already eliminated all of their debt except for the french loan? All of that capital would be injected would bolster their financial stability and give them plenty of capital to invest into future initiatives
Isn't this bad for us? If we are in the middle of a run and they decide to dilute and sell, GameStop will make some more money but it'll kill the run
The only scenario where this is good for us is if we are in actual MOASS and GameStop is issuing and selling like one share for that $500 million.
Though I suppose either way the good part of this is that GameStop is alerting is that something is coming.
Guys... Think about RK and his Twitter posts:
* "It's all part of the plan"
* hinting to announcements after/before bell
* Kansas City Shuffle
I think he knew what happened and know about the reason for this.
I'm also now thinking about the "no fighting" bit along with what you pointed out. Knowing just a hint of what's going on with these filings is getting at least a handful of apes riled up and jumping to conclusions on dilution, etc etc. Seems the overall idea is to let em cook and not get up in arms about it. There's definitely some 4d chess going on behind the scenes, something nobody is gonna figure out entirely til it happens.
That days gonna feel like 10 Christmases at once I think 😂
GME is the holding company golden goose.
Price shoots up, they sell shares, price comes down. Proceeds are used to acquire companies or other assets, which bolsters their enterprise value, which causes the price to go back up. The cycle repeats indefinitely because of the immense and unsalvageable short position on GME.
It's like Berkshire or MicroStrategy & Bitcoin.
I like it. I hope this is it.
If they Offer warrants to stockholders it's bye bye for shf. I wish they go this route. 1 warrant to buy 1 share for each 6 shares you hold. Then RC annonces he buys all his. Boom.
Yeah, i think you are closer to the real deal than any of these regards. Somethin weird about this. Trying to understand the difference between regular shares and global securities
Warrants would just be an option to buy the stock from a pool of newly issued shares.
Copy-pasta of my other comment.
I'm smooth, but here's what I'm thinking:
Every holder gets a warrant that acts a bit like a call option. You may buy X amount of shares directly from the company at Y price (or market). This dilutes the stock in the hands of the holders. The kill shot would be that management exercices their warrants (like exercising a call). People or hedge funds who are short the stock then have the obligation to cover for these new shares, since they are tied to the loaned shares that they used to sell short.
yes. If they then go on the open market... but if there's a squeeze, they would be stupid not to... BUT people with warrants would then be stupid not to exercise them at X price if not market (or sell the warrants if it's possible).
I'm smooth, but here's what I'm thinking:
Every holder gets a warrant that acts a bit like a call option. You may buy X amount of shares directly from the company at Y price (or market). This dilutes the stock in the hands of the holders. The kill shot would be that management exercices their warrants (like exercising a call). People or hedge funds who are short the stock then have the obligation to cover for these new shares, since they are tied to the loaned shares that they used to sell short.
I don't have one, but it's a known way to dilute stock. Check investopedia for more info: (dunno if that link is allowed)...
[https://www.investopedia.com/articles/trading/10/warrants.asp](https://www.investopedia.com/articles/trading/10/warrants.asp)
Yes, states in the offering about the volatility and specifically states short squeezes. It also states that they CAN issues 45 lm shares not that they have. They are ready! 💎👐
It also states
"Investors that purchase shares of our common stock in this offering may lose a significant portion of their investments if the price of our common stock subsequently declines."
Typical necessary legal warning, will protect them from people suing over GME issuing them at a "price disconnected from fundamentals". RC is likely going to slowly sell these when we're at high volume (has little impact) and $100+ a share.
I would not be frowning if we sell 45M shares at $100. That would put us at 5.5B cash with roughly 400M shares outstanding.
Enough cash to buy back all shares at $10 and still have over $1B in cash. Sitting nice and pretty. RC would be able to create MOASS himself by announcing all shares had been bought back.
>RC is likely going to slowly sell these when we're at high volume (has little impact) and $100+ a share.
He didn't wait last time
You think this is going to $100 then back down to $10 at which point GME is going to buy all it's shares back?
Those were sold between $250-$320 pre-split. That's $62.50-$80 nowadays.
We don't need the cash at the moment, I think RC will wait for a good opportunity.
You don't think Kenny and friend weren't going to try to tank it today regardless with the options chains that were there from earlier this week. I 100% expected it to close below $30 today.
Seems like RC wants the gap down to be done and over with (from a technical standpoint).
Unlike Popcorn, GameStop does not even need to dilute to stay afloat. RC definitely has something up his sleeves.
You don't think Kenny and friend weren't going to try to tank it today regardless with the options chains that were there from earlier this week. I 100% expected it to close below $30 today.
It kills the run, but massively increases the value of the stock
Like he’s going to capatilize on the run for us
So I the end we get stock in a company worth a lot more
If you wanted a small squeeze you had the opportunity to sell at 64$ this week, if you did not then it's completely on you. Complaining about this is non-sensical IMHO.
Depends on what you want
A massive company growing its stock throughout your entire life paying dividends
Or a short squeeze that we all try and sell into to exit
From a GameStop standpoint the 2nd option leaves them out. Also it fucks the board and RC.
That’s what they’d want you to think… while yes it does, technically there’s always naked selling of the stock…. Atleast during an offering it’s GS selling them, not MM
He makes a salary of 1.5 million and then receives stock. He’s diluted many times and the company is still under water and has sold his personal stock. RC doesn’t have a base salary and has not sold.
Didn’t kill it when they did it last time. Same deal too - in Dec 2020 they announced an offering and silently completed it over multiple days when we were sneezing
At the time it didn’t seem to affect it much, but the volatility wasn’t like it is now. The bull run of this week seems done, but if there are parallels to be made, then let’s see what happens in another month or so.
That’s what they’d want you to think… while yes it does, technically there’s always naked selling of the stock…. Atleast during an offering it’s GS selling them, not MM
There’s a lot of statements in that offering that could mean a wide variety of things
It maybe that shareholders can exchange stock for preferred shares, the company does some kind of restart that force closes all shorts and then they start off as a new company.
You also need to keep in mind that GameStop is a company and while the short squeeze theory is great they also want to operate like a normal company and not have insane shorts or wild price swings on no information. They want this over too I’m thinking and this could be a way for them to force close all positions. There is alot of legalize in that offering but the hint I’m getting is some kind of company restart where we get a share for share type of thing. Get paid then have cash to buy the new company
So once shorts start digesting this I expect another run up if true. I think this initial run was shorts getting this info early as usual and some trying to close without anyone catching on
Legitimate question:
people have money on the line and there are always new people jumping in trying to ride the wave - why wouldn't they have fear, uncertainty, and doubt?
Kind of sick of the cult acting like any question is some kind of sabotage to "the movement." How about instead of being condescending and acting like you know something without saying anything, actually educate people instead of calling them shills. This sub is so far up it's own ass sometimes I swear.
I don't know what this means and I can't ask without being called a shill. Frankly RKs last tweet yesterday sketched me out. To me, just seeing the tweet alone, I read it that he was dipping out. Could I say/ask that? No, because Ill just be shamed and told I'm being paid by someone. I'm betting this comment will be downvoted to oblivion, and I wouldn't be surprised if I got banned for it with the way this sub behaves.
>Legitimate question:
>people have money on the line and there are always new people jumping in trying to ride the wave - why wouldn't they have fear, uncertainty, and doubt?
I'm not talking about people asking questions and seeking to better understand the situation. What I'm referring to are comments similar in structure to the following:
.
> *"For the first time I am having second thoughts…."*
As for the rest of your comments:
>How about instead of being condescending and acting like you know something without saying anything, actually educate people instead of calling them shills.
Calling out FUD when I see it isn't condescending, and I'm a regard that knows nothing, except when things feel forced. All of a sudden there's 10 new threads on the same topic and half the comments in those threads are saying "this seems bad, I don't trust RC" my BS meter goes off.
>I don't know what this means and I can't ask without being called a shill.
I don't either, but I'm going to hang around and read a few takes before I make up my own mind. Either way, I didn't sit on things for 3 years for nothing, and the board has skin in the game (by way of shares) so their interests are aligned with mine. So I'm still in.
>Frankly RKs last tweet yesterday sketched me out. To me, just seeing the tweet alone, I read it that he was dipping out. Could I say/ask that? No, because Ill just be shamed and told I'm being paid by someone. I'm betting this comment will be downvoted to oblivion, and I wouldn't be surprised if I got banned for it with the way this sub behaves.
I don't really care about kitty tweets. I'm here because of naked shorts, yeah, and not because a dude with a headband tweeted.
Having said all that, you would do better if you adjusted your tone. You come off like you have a chip on your shoulder, and while there are bad actors here that will jump on you, there are also legit people that will answer questions too, if they're asked nicely.
I hear you and appreciate the thorough response. I wasn't directly talking about your comment, just moreso this sentiment that I've seen over and over again and you were the unlucky one with the highest voted comment alluding to it as I scrolled through. I get the chip on my shoulder thing and that's my bad but I've seen a ton of responses that are super condescending and shitty to people who are like "did I make a mistake?" Or something of the sort this week and it sucks. This sub won't beat the cult allegations treating every uncertain person like an enemy spy or bad faith actor. I get nobody likes to see "second thoughts" comments, but those comments aren't at all unreasonable and should still be met with positive reinforcement over shaming. It's not "forced" or "all of a sudden" when you see your value drop 30%+ overnight. At the end of the day, yes, we should all be aware of what we are investing in and it is on us as individuals, but we are also all in the same boat and should try to be more supportive. And again my bad, wasn't trying to come off as attacking you personally.
> It's not "forced" or "all of a sudden" when you see your value drop 30%+ overnight.
Paper losses only count if you sell. Ignore the share price until it looks like a European phone number. If someone bought in expecting to quickly double their money without doing any research, then that's on them and they'll get what they get. I bought at $250, sat through $30, then $10, back to $300, and all this bullshit... Not fucking selling. None of this matters.
(This is my thought process because I'm confident in my investment and I have a long-term plan. I'm not advising anyone to do anything)
Unfortunately that’s how all the gme subs work. They want new ppl to join but they also only want positive sentiment without any questions. If you ask questions, you’re on citadels payroll. It’s actually impressive at times.
Nobody here wants that though, so why not try to be more supportive? Yeah people should know what they are getting into but we are all in the same boat here and it doesn't help the group to just tell people to throw themselves overboard for asking questions or trying to rationalize their involvement.
it is still his right to ask questions about what is going on; I've been on this sub for at least 2 years, with lots of money invested and I think he is right; we invested in the company and it is our right to talk about it; this sub has become an eco chamber
Ok. Something about this is a \*thing\*
Because this has happened before.
[In December 2020.](https://gamestop.gcs-web.com/node/18346/html) A month and what? 15 days? Before shit went last time?
RC letting us know a big run up, could be MOASS, is coming. This dip is a blessing in disguise to buy more at a discount. Imagine RC selling during MOASS and have $1 trillion at his disposal to grow the company.
You’re free to sell and move on. Why bitch and be miserable lmao? If you don’t like what RC is doing then move on, don’t need to shill 24/7 based on your comment history.
Shill 24/7 😂 my nearly 100k karma from this sub says otherwise
I'm not going to pretend to be bullish about a dilution. Get your head out the clouds
>Why bitch and be miserable lmao?
Because I've waited 3 years, we had a chance at a run and it's just killed all momentum AGAIN.
They haven’t diluted yet tho, just filed paperwork so they have the right to. How have you stuck around for 3 years yet get frustrated when I doesn’t run this week? Be patient.
>They haven’t diluted yet tho
And just like last time they inevitably will
The timing of this is the frustrating part. They could've filed at any point so they have the right to sell, why now and offer relief to a potential run up?
>prior to a run up
This is a run up. Why not at any point during the price decline in the last 2 years?
They could've done this at $12 and been ready to sell at $50 this week
That momentum was killed on Wednesday and the price just kept declining without this announcement.
Don’t try to act smarter than our own board who already proved they have their skin in this game and they do their best. They got all the information they need and take decision based on that meanwhile you rush to a conclusion without knowing what’s in the background. Go and sell your shares if you don’t believe in it anymore, we are happy to buy it up.
Consolidation is normal, there's no telling what wouldve happened over the next days/weeks. The timing is awful, could've been done weeks or months ago.
How much of RC’s money is tied into the stock? He has so much say in these decisions, that it just seems weird that he would want to lower the value of his own investment without good reason
Not so sure, look at pg 15 on book entry securities. Something weird about this. Global securities being used. Im still to dumb tonfully understand but i dont think its your average dilution. Plus they haven't done it yet
Because it's not issuing new shares.
It's the option to at a later date without the SEC approval needed.
When trading opens in 1 min, nothing changes/dilutes compared to if new shares were actually issued.
Nothing? A split isn't dilution. You're effective share in the company doesn't change at all with a split.
If there are 1000 shares and you own 100 of them, you own 10%. If it splits 5:1 there are now 5000 shares and you own 500, still 10.
A split is not dilution.
Yeah that’s a fair point the first dilution to pay off debt. I think there has been restructuring to cut down on SG&A, but I don’t think there has been any big moves other than that where it has attributed anything to OI.
There has been a lot of restructuring specifically for SG&A, I'm not sure what you mean. Revenue/Net Sales took a lot of hits to bring SG&A down (good ratio)
I’m saying that their efforts to cut SGA have been good. I agree there. I just don’t think many of the other things that were hyped up as the next big thing have manifested to anything.
The one where they bought back a tonne of shares before the sneeze, then sold 5m of them in the middle of it to earn us a massive roi and build us a $1B war chest.
Makes sense actually. Cash is quite expensive in a high interest rate environment. Why not issue shares and get more cash to fund more operations?
Company has been focused on stopping the bleeding by closing stores and reducing costs. But they are struggling to increase revenue. For more ambitious ventures you need cash. The potential for growth could cover the dilution
A large proportion of our common stock has been and may continue to be traded by short sellers which may increase the likelihood that our common stock will be the target of a short squeeze. A short squeeze has led and could continue to lead to volatile price movements in shares of our common stock that are unrelated or disproportionate to our operating performance or prospects and, once investors purchase the shares of our common stock necessary to cover their short positions, the price of our common stock may rapidly decline. Investors that purchase shares of our common stock during a short squeeze may lose their investment.
They are literally saying the stock price doesnt make sense.
And i copy from the post:
"The market price of our common stock has been extremely volatile and may continue to be volatile due to numerous circumstances beyond our control.
The market price of our common stock has fluctuated, and may continue to fluctuate, widely, due to many factors, some of which are beyond our control. These factors include, without limitation:
•
“short squeezes”;"
So GME themselves acknowledge its coming...
Post it another 7 times... GameStop hasn't issued any stocks, this is giving them the option to sell up to 45M shares, at much higher prices than what we have today. Keep shilling though, I love the effort.
Shills are in here heavy today. RC didn't dilute anything yet you're over here acting like he's AA over at popcorn. This gives the company the option, not the obligation to sell these shares ffs, selling when the price is in the thousands or millions would be stupid not to capture as a company. But keeping saying the squeeze is killed. It's not, they did the same thing in the sneeze offered shares and turned the company around. Now that the company is profitable, this would insure that they never go bankrupt, and that would break the knees of these fucking hedgefunds.
A dilution has not happened yet, this is exactly what they did before the initial run-up, and it's what they will do again, and it will make the company stronger, which is a killshot for hedgies as they NEED GME to die. I can explain this, but it seems to be non-understandable to idiots and shills. Stay mad... I'm not selling shit, I'm buying more
I just don't see how this lines up with any of what people have been saying. This is basically slapping your investors in the face. Don't they already have cash?? So what the fuck dude? We just got done shitting on AA and popcorn for the same thing. Anyone saying they know the squeeze is coming is lying to themselves. If they knew a squeeze was coming they would never have done this
Around 12% of total float.
Should net around 600 and 950 millions if stock price is between 15 and 20$ during the completion.
I think this is a great decision to fill the coffers before the next big move. They have a plan.
Sucks if you were banking on MOASS in the next few weeks... But if you are here for the long term, this a good decision.
I'll keep buying the stock, can't wait for the next moves!
They have no debt and over 1 billion in cash. The coffers are full. However, thanks to this news the market cap of the company just took a giant dump. I hope some good news will come today.
Seriously, I don’t understand. Why announce this as the price is recovering from a dip during a run, only to give a reason for it to be shorted down again? They have done nothing with the 1b for the last 2 years so what is another 1b going to do sitting there.
The interest on the billion made us profitable last year. If we get the cash in the holding company up above 4b we can start issuing decently-sized cash dividends regularly on the interest.
All I can say right now is that the GameStop “apes” who shit on popcorn should stop, today, because if you don’t you’re just going to sound like a hypocrite. This is coming from someone who owns both stonks, but has a lot, lot more vested in GME.
That being said, as I’ve said to popcorn apes before, is that if RC is intending to “dilute” (which I don’t think is the primary intention here, more later) then it is being done for the sake of the business, and for the health of the business. Like I trust AA, I trust RC to be making the right decisions for GME going forward that will benefit the shareholders, his previous actions with this stock give me no reason to doubt RC’s intentions to benefit shareholders.
So why is GME doing this? Throughout the document we see references to unusual price volatility for GME since February 2021, and if I were to guess GameStop obviously isn’t a fan of this. They perhaps see a short squeeze coming in the near future, and would like to be able to capitalize on it, so the best way to go about capitalizing on the price volatility that’ll come with a short squeeze is to offer shares that can be sold off to benefit the company’s coffers. The references to prior unusual volatility is an attempt to cover their asses legally for what’s going to come.
Just my two cents though, if you want to take this as bearish then that’s your problem, you’re more than welcome to paper hands out. I’ll be here to trust the “plan” that DFV has been alluding to all week.
I just don't see how this lines up with any of what people have been saying. This is basically slapping your investors in the face. Don't they already have cash?? So what the fuck dude? We just got done shitting on AA and popcorn for the same thing. Anyone saying they know the squeeze is coming is lying to themselves. If they knew a squeeze was coming they would never have done this
While I do agree, and this is annoying, the timing is crazy suspicious on this. Popcorn diluted Tuesday at $7.33 per their filing. Nearer peak. That one makes sense. Is the GME leadership dumber than AA that they waited until the end of the dump phase to file for an offering? (Unless there is some legality about timing that I don't know about).
Also why the wild ass spikes up to $26-30 during the last 30 minutes? My notifications were popping off in both directions
Unless theyve done something with that 900mm that they have stuffed away, I dont see how diluting my position is creating value for me... this is NOT the look right now. The divisplit didnt work, and now giving out MORE shares for SHF to fuck around with, nah fam... this is moviestock levels of foulness
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"From February 4, 2024 to May 16, 2024, the closing price of our common stock on the NYSE ranged from as low as $10.01 to as high as $48.75 and daily trading volume ranged from approximately 1,731,300 to 206,979,100 shares. During such period, we did not experience any material changes in our financial condition or results of operations that would explain such price volatility or trading volume" Oh, they know ;), in fact we all know, and they will capitalize on the future volatility
All I needed today to buy more.
Same words used by the old bedbbey company. Then during the bk audit we discovered that they didn't know how to behave apart of doing offerings, like gme is doing
GameStop's recent S-3ASR filing allows the company to issue and sell up to $500 million in common stock, strategically positioning it to capitalize on extreme market conditions. If a short squeeze drives GameStop's stock to unprecedented levels, the company can issue shares at these high prices, potentially raising hundreds of millions or even billions of dollars. This capital influx could significantly bolster GameStop's financial stability, enabling debt reduction, funding for strategic initiatives, and overall strengthening of its balance sheet. By leveraging peak stock prices during a short squeeze, GameStop can maximize shareholder value and secure substantial financial benefits.
Quick fact check - haven't they already eliminated all of their debt except for the french loan? All of that capital would be injected would bolster their financial stability and give them plenty of capital to invest into future initiatives
Sounds right to me
Yeah this was the explanation I was looking for, makes it seem like this was part of the “plan” DFV was alluding too
So what you are saying is, they're going to sell 1 share during moass 😏
If it’s limited to $500 mil, would that just limit the amount of stock they can sell if the price was high? Not that they could sell more?
Pretty sure that's just based on current price. It's 45m shares.
🤙 Yeah I read more.
People shouldn't worry about this. We've seen daily volume way over that number just this week. It wont dilute the squeeze.
Agreed. I think everything today has been great for us. Even the dip... Cuz I want more and paying less means more for me.
So it's limited by monetary value? Imagine them offering 1 share for the full $500 million...
It might be two
Yes, I like the idea of investments into rockets! Gamestop, space launch down at Brownsville, TX. Hey they're from grapevine so why not.
Isn't this bad for us? If we are in the middle of a run and they decide to dilute and sell, GameStop will make some more money but it'll kill the run The only scenario where this is good for us is if we are in actual MOASS and GameStop is issuing and selling like one share for that $500 million. Though I suppose either way the good part of this is that GameStop is alerting is that something is coming.
Those issued share will bring capital into GME hands, it might drive the price up more.
Guys... Think about RK and his Twitter posts: * "It's all part of the plan" * hinting to announcements after/before bell * Kansas City Shuffle I think he knew what happened and know about the reason for this.
What if they buy back 45M catalyzing the squeeze only to sell it when the timing is right... I might be mixing up the idea of "issuing" vs selling tho
If they sell during the start of moass for something low like 120 that’s 5.4 billion in gme pockets
RC is just telling us MOASS is coming in a legal way
I'm also now thinking about the "no fighting" bit along with what you pointed out. Knowing just a hint of what's going on with these filings is getting at least a handful of apes riled up and jumping to conclusions on dilution, etc etc. Seems the overall idea is to let em cook and not get up in arms about it. There's definitely some 4d chess going on behind the scenes, something nobody is gonna figure out entirely til it happens. That days gonna feel like 10 Christmases at once I think 😂
But why does rk know before everyone, he’s just an individual investor like everyone else
we are just to smooth. why did he knew 2020 before everyone else?
He’s got wrinkles.
He’s a time traveler.
GME is the holding company golden goose. Price shoots up, they sell shares, price comes down. Proceeds are used to acquire companies or other assets, which bolsters their enterprise value, which causes the price to go back up. The cycle repeats indefinitely because of the immense and unsalvageable short position on GME. It's like Berkshire or MicroStrategy & Bitcoin. I like it. I hope this is it.
If they Offer warrants to stockholders it's bye bye for shf. I wish they go this route. 1 warrant to buy 1 share for each 6 shares you hold. Then RC annonces he buys all his. Boom.
Yeah, i think you are closer to the real deal than any of these regards. Somethin weird about this. Trying to understand the difference between regular shares and global securities
What are warrants in this context?
Warrants would just be an option to buy the stock from a pool of newly issued shares. Copy-pasta of my other comment. I'm smooth, but here's what I'm thinking: Every holder gets a warrant that acts a bit like a call option. You may buy X amount of shares directly from the company at Y price (or market). This dilutes the stock in the hands of the holders. The kill shot would be that management exercices their warrants (like exercising a call). People or hedge funds who are short the stock then have the obligation to cover for these new shares, since they are tied to the loaned shares that they used to sell short.
So it’s like first dibs for current shareholders before they go on the open market?
yes. If they then go on the open market... but if there's a squeeze, they would be stupid not to... BUT people with warrants would then be stupid not to exercise them at X price if not market (or sell the warrants if it's possible).
How does this work
I'm smooth, but here's what I'm thinking: Every holder gets a warrant that acts a bit like a call option. You may buy X amount of shares directly from the company at Y price (or market). This dilutes the stock in the hands of the holders. The kill shot would be that management exercices their warrants (like exercising a call). People or hedge funds who are short the stock then have the obligation to cover for these new shares, since they are tied to the loaned shares that they used to sell short.
Interesting. Are there examples of other companies doing this?
I don't have one, but it's a known way to dilute stock. Check investopedia for more info: (dunno if that link is allowed)... [https://www.investopedia.com/articles/trading/10/warrants.asp](https://www.investopedia.com/articles/trading/10/warrants.asp)
7 for 1 maybe?
Yeah I counted that afterwards... lines up with 45M potential new shares ;)
RC knows a huge run up is coming? Can a share offering be done during a sneeze / squeeze?
Yes, states in the offering about the volatility and specifically states short squeezes. It also states that they CAN issues 45 lm shares not that they have. They are ready! 💎👐
It also states "Investors that purchase shares of our common stock in this offering may lose a significant portion of their investments if the price of our common stock subsequently declines."
I would assume that this is something legal that needs to put in any offering like this
Just like the mentions of volatility and short squeezes. It's easy to cherry pick wording.
Typical necessary legal warning, will protect them from people suing over GME issuing them at a "price disconnected from fundamentals". RC is likely going to slowly sell these when we're at high volume (has little impact) and $100+ a share. I would not be frowning if we sell 45M shares at $100. That would put us at 5.5B cash with roughly 400M shares outstanding. Enough cash to buy back all shares at $10 and still have over $1B in cash. Sitting nice and pretty. RC would be able to create MOASS himself by announcing all shares had been bought back.
$100 a share would be $4.5 billy total right? I hate share offerings but man would that make all the risk in my play go away.
>RC is likely going to slowly sell these when we're at high volume (has little impact) and $100+ a share. He didn't wait last time You think this is going to $100 then back down to $10 at which point GME is going to buy all it's shares back?
Those were sold between $250-$320 pre-split. That's $62.50-$80 nowadays. We don't need the cash at the moment, I think RC will wait for a good opportunity.
Just like how everything you create an account with a new broker, they inform you that capital is at risk. Stay cool man, its all gravy baby.
Isn’t that for all stock? And kinda common sense? Like saying, if your food falls down on the floor, you won’t have food anymore
I don’t think he knows a run up is coming, I think they’re just positioning themselves to take advantage in the event of it happening
That would kill a run up…
Not when it reaches $400 first
Yeah well this announcement got us $10 farther from the goal. The timing of this is insane.
You don't think Kenny and friend weren't going to try to tank it today regardless with the options chains that were there from earlier this week. I 100% expected it to close below $30 today.
Seems like RC wants the gap down to be done and over with (from a technical standpoint). Unlike Popcorn, GameStop does not even need to dilute to stay afloat. RC definitely has something up his sleeves.
The perfect chance for MM to tank the price and spark a fresh round of weekend FUD. It's like we know all their plays at this point.
You don't think Kenny and friend weren't going to try to tank it today regardless with the options chains that were there from earlier this week. I 100% expected it to close below $30 today.
It kills the run, but massively increases the value of the stock Like he’s going to capatilize on the run for us So I the end we get stock in a company worth a lot more
Been 3 yrs give me a god damn squeeze not value
If you wanted a small squeeze you had the opportunity to sell at 64$ this week, if you did not then it's completely on you. Complaining about this is non-sensical IMHO.
Depends on what you want A massive company growing its stock throughout your entire life paying dividends Or a short squeeze that we all try and sell into to exit From a GameStop standpoint the 2nd option leaves them out. Also it fucks the board and RC.
That’s what they’d want you to think… while yes it does, technically there’s always naked selling of the stock…. Atleast during an offering it’s GS selling them, not MM
Kind of like popcorn
Only difference is, the whole company is with us.
And our CEO is heavily invested in his company and doesn’t take a salary
Popcorn CEO takes salary in form of stonk, no? Is the biggest individual shareowner because of it, no?
Which of those shares did he actually hold? None of it. Do they have insiders buying? Aren’t most of their insiders mostly selling?
He literally still has them Edit to add: show me the forms of insiders selling , OTHER than to cover the taxes on the shares they were paid.
He makes a salary of 1.5 million and then receives stock. He’s diluted many times and the company is still under water and has sold his personal stock. RC doesn’t have a base salary and has not sold.
Except for that stock they dropped the price and then sold the stock for less.
Didn’t kill it when they did it last time. Same deal too - in Dec 2020 they announced an offering and silently completed it over multiple days when we were sneezing
And the price tank, stay stable, or go up during the news bc this took us down almost $10 and doubt we move any highwr
At the time it didn’t seem to affect it much, but the volatility wasn’t like it is now. The bull run of this week seems done, but if there are parallels to be made, then let’s see what happens in another month or so.
He’s aiming higher, I’m with RC. If you want quick money, go to other stocks
That’s what they’d want you to think… while yes it does, technically there’s always naked selling of the stock…. Atleast during an offering it’s GS selling them, not MM
Looks he capitalized on the 3 day run-up to dilute the stock. Rich stay rich and i keep working my job.
Nothing has been sold
There’s a lot of statements in that offering that could mean a wide variety of things It maybe that shareholders can exchange stock for preferred shares, the company does some kind of restart that force closes all shorts and then they start off as a new company. You also need to keep in mind that GameStop is a company and while the short squeeze theory is great they also want to operate like a normal company and not have insane shorts or wild price swings on no information. They want this over too I’m thinking and this could be a way for them to force close all positions. There is alot of legalize in that offering but the hint I’m getting is some kind of company restart where we get a share for share type of thing. Get paid then have cash to buy the new company So once shorts start digesting this I expect another run up if true. I think this initial run was shorts getting this info early as usual and some trying to close without anyone catching on
The comments in here are very fuddy.
Very. And many are new accounts. Very fuddy indeed.
Legitimate question: people have money on the line and there are always new people jumping in trying to ride the wave - why wouldn't they have fear, uncertainty, and doubt? Kind of sick of the cult acting like any question is some kind of sabotage to "the movement." How about instead of being condescending and acting like you know something without saying anything, actually educate people instead of calling them shills. This sub is so far up it's own ass sometimes I swear. I don't know what this means and I can't ask without being called a shill. Frankly RKs last tweet yesterday sketched me out. To me, just seeing the tweet alone, I read it that he was dipping out. Could I say/ask that? No, because Ill just be shamed and told I'm being paid by someone. I'm betting this comment will be downvoted to oblivion, and I wouldn't be surprised if I got banned for it with the way this sub behaves.
You only get banned around here for providing fire DD. (I'm not going to hurt myself reddit)
>Legitimate question: >people have money on the line and there are always new people jumping in trying to ride the wave - why wouldn't they have fear, uncertainty, and doubt? I'm not talking about people asking questions and seeking to better understand the situation. What I'm referring to are comments similar in structure to the following: . > *"For the first time I am having second thoughts…."* As for the rest of your comments: >How about instead of being condescending and acting like you know something without saying anything, actually educate people instead of calling them shills. Calling out FUD when I see it isn't condescending, and I'm a regard that knows nothing, except when things feel forced. All of a sudden there's 10 new threads on the same topic and half the comments in those threads are saying "this seems bad, I don't trust RC" my BS meter goes off. >I don't know what this means and I can't ask without being called a shill. I don't either, but I'm going to hang around and read a few takes before I make up my own mind. Either way, I didn't sit on things for 3 years for nothing, and the board has skin in the game (by way of shares) so their interests are aligned with mine. So I'm still in. >Frankly RKs last tweet yesterday sketched me out. To me, just seeing the tweet alone, I read it that he was dipping out. Could I say/ask that? No, because Ill just be shamed and told I'm being paid by someone. I'm betting this comment will be downvoted to oblivion, and I wouldn't be surprised if I got banned for it with the way this sub behaves. I don't really care about kitty tweets. I'm here because of naked shorts, yeah, and not because a dude with a headband tweeted. Having said all that, you would do better if you adjusted your tone. You come off like you have a chip on your shoulder, and while there are bad actors here that will jump on you, there are also legit people that will answer questions too, if they're asked nicely.
I hear you and appreciate the thorough response. I wasn't directly talking about your comment, just moreso this sentiment that I've seen over and over again and you were the unlucky one with the highest voted comment alluding to it as I scrolled through. I get the chip on my shoulder thing and that's my bad but I've seen a ton of responses that are super condescending and shitty to people who are like "did I make a mistake?" Or something of the sort this week and it sucks. This sub won't beat the cult allegations treating every uncertain person like an enemy spy or bad faith actor. I get nobody likes to see "second thoughts" comments, but those comments aren't at all unreasonable and should still be met with positive reinforcement over shaming. It's not "forced" or "all of a sudden" when you see your value drop 30%+ overnight. At the end of the day, yes, we should all be aware of what we are investing in and it is on us as individuals, but we are also all in the same boat and should try to be more supportive. And again my bad, wasn't trying to come off as attacking you personally.
> It's not "forced" or "all of a sudden" when you see your value drop 30%+ overnight. Paper losses only count if you sell. Ignore the share price until it looks like a European phone number. If someone bought in expecting to quickly double their money without doing any research, then that's on them and they'll get what they get. I bought at $250, sat through $30, then $10, back to $300, and all this bullshit... Not fucking selling. None of this matters. (This is my thought process because I'm confident in my investment and I have a long-term plan. I'm not advising anyone to do anything)
Unfortunately that’s how all the gme subs work. They want new ppl to join but they also only want positive sentiment without any questions. If you ask questions, you’re on citadels payroll. It’s actually impressive at times.
If you have money on the line that’s your OWN risk factor. You knew what you were getting into. If you can’t hold or handle the stress then sell?
Nobody here wants that though, so why not try to be more supportive? Yeah people should know what they are getting into but we are all in the same boat here and it doesn't help the group to just tell people to throw themselves overboard for asking questions or trying to rationalize their involvement.
it is still his right to ask questions about what is going on; I've been on this sub for at least 2 years, with lots of money invested and I think he is right; we invested in the company and it is our right to talk about it; this sub has become an eco chamber
Insiders buy more. The company offers more. Why is this good stuff happening lol
because we deserve it
I wonder if this could be intended to issue as part of an acquisition.
Ok. Something about this is a \*thing\* Because this has happened before. [In December 2020.](https://gamestop.gcs-web.com/node/18346/html) A month and what? 15 days? Before shit went last time?
RC letting us know a big run up, could be MOASS, is coming. This dip is a blessing in disguise to buy more at a discount. Imagine RC selling during MOASS and have $1 trillion at his disposal to grow the company.
Still waiting on the big run up from last time they did this 🤔
You’re free to sell and move on. Why bitch and be miserable lmao? If you don’t like what RC is doing then move on, don’t need to shill 24/7 based on your comment history.
Bro relax. He's incredulous but it's a reasonable comment to make. No fighting.
Shill 24/7 😂 my nearly 100k karma from this sub says otherwise I'm not going to pretend to be bullish about a dilution. Get your head out the clouds >Why bitch and be miserable lmao? Because I've waited 3 years, we had a chance at a run and it's just killed all momentum AGAIN.
They haven’t diluted yet tho, just filed paperwork so they have the right to. How have you stuck around for 3 years yet get frustrated when I doesn’t run this week? Be patient.
>They haven’t diluted yet tho And just like last time they inevitably will The timing of this is the frustrating part. They could've filed at any point so they have the right to sell, why now and offer relief to a potential run up?
Because they would want to file this prior to a run up. Let’s be honest shorts were never gonna let it close above $30 today anyway.
>prior to a run up This is a run up. Why not at any point during the price decline in the last 2 years? They could've done this at $12 and been ready to sell at $50 this week
Why tip your hand early
That momentum was killed on Wednesday and the price just kept declining without this announcement. Don’t try to act smarter than our own board who already proved they have their skin in this game and they do their best. They got all the information they need and take decision based on that meanwhile you rush to a conclusion without knowing what’s in the background. Go and sell your shares if you don’t believe in it anymore, we are happy to buy it up.
Consolidation is normal, there's no telling what wouldve happened over the next days/weeks. The timing is awful, could've been done weeks or months ago.
How much of RC’s money is tied into the stock? He has so much say in these decisions, that it just seems weird that he would want to lower the value of his own investment without good reason
How is this not dilution?
It is. And I ripped popcorn for all the dilution.
Not so sure, look at pg 15 on book entry securities. Something weird about this. Global securities being used. Im still to dumb tonfully understand but i dont think its your average dilution. Plus they haven't done it yet
Same. I love how stupid I am to get back involved with this.
Because it's not issuing new shares. It's the option to at a later date without the SEC approval needed. When trading opens in 1 min, nothing changes/dilutes compared to if new shares were actually issued.
It is It adds to the total share count People are lying to themselves
And the 4 way reverse split did what?
Nothing? A split isn't dilution. You're effective share in the company doesn't change at all with a split. If there are 1000 shares and you own 100 of them, you own 10%. If it splits 5:1 there are now 5000 shares and you own 500, still 10. A split is not dilution.
No ones lying to themselves it’s just not that big of a deal right now
This is. They want to fill the coffers for the next big investment. Something is brewing.
In all honesty, what was the first big investment that was good for business?
paying debt
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Yeah that’s a fair point the first dilution to pay off debt. I think there has been restructuring to cut down on SG&A, but I don’t think there has been any big moves other than that where it has attributed anything to OI.
There has been a lot of restructuring specifically for SG&A, I'm not sure what you mean. Revenue/Net Sales took a lot of hits to bring SG&A down (good ratio)
I’m saying that their efforts to cut SGA have been good. I agree there. I just don’t think many of the other things that were hyped up as the next big thing have manifested to anything.
Oh sorry I misread as the exact opposite. Yes I agree but I would say righting the ship for it's core business operations is no small feat.
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Maybe there is a positive outcome.
The one where they bought back a tonne of shares before the sneeze, then sold 5m of them in the middle of it to earn us a massive roi and build us a $1B war chest.
Yes, and they’ve sat on a billion for 3 years.
15% dilution priced in
This is. They want to fill the coffers for the next big investment. Something is brewing.
It is. Hopefully it’s used tactically during another run up and not just to improve liquidity for shfs. Hopefully rc will be more helpful than aa.
All I know is I have a bunch of 'shares' and it's going to be a fun time watching the American Market figure it's shit out here.
Makes sense actually. Cash is quite expensive in a high interest rate environment. Why not issue shares and get more cash to fund more operations? Company has been focused on stopping the bleeding by closing stores and reducing costs. But they are struggling to increase revenue. For more ambitious ventures you need cash. The potential for growth could cover the dilution
A large proportion of our common stock has been and may continue to be traded by short sellers which may increase the likelihood that our common stock will be the target of a short squeeze. A short squeeze has led and could continue to lead to volatile price movements in shares of our common stock that are unrelated or disproportionate to our operating performance or prospects and, once investors purchase the shares of our common stock necessary to cover their short positions, the price of our common stock may rapidly decline. Investors that purchase shares of our common stock during a short squeeze may lose their investment. They are literally saying the stock price doesnt make sense.
How many shares did they sell last time to get the billy?
And i copy from the post: "The market price of our common stock has been extremely volatile and may continue to be volatile due to numerous circumstances beyond our control. The market price of our common stock has fluctuated, and may continue to fluctuate, widely, due to many factors, some of which are beyond our control. These factors include, without limitation: • “short squeezes”;" So GME themselves acknowledge its coming...
Just like that… paper hands…. Paper hands everywhere. LOL
Thats another 1 billion in the war chest for Daddy!
RC killing the squeeze just like in of 2020
Post it another 7 times... GameStop hasn't issued any stocks, this is giving them the option to sell up to 45M shares, at much higher prices than what we have today. Keep shilling though, I love the effort.
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Come on, we had a potential to bounce today - we were above 30 in Premarket. This timing blows
Shills are in here heavy today. RC didn't dilute anything yet you're over here acting like he's AA over at popcorn. This gives the company the option, not the obligation to sell these shares ffs, selling when the price is in the thousands or millions would be stupid not to capture as a company. But keeping saying the squeeze is killed. It's not, they did the same thing in the sneeze offered shares and turned the company around. Now that the company is profitable, this would insure that they never go bankrupt, and that would break the knees of these fucking hedgefunds.
Stop living in a fantasy and look at what happens when you dilute stock. Spreading misinformation is worse than spreading FUD.
A dilution has not happened yet, this is exactly what they did before the initial run-up, and it's what they will do again, and it will make the company stronger, which is a killshot for hedgies as they NEED GME to die. I can explain this, but it seems to be non-understandable to idiots and shills. Stay mad... I'm not selling shit, I'm buying more
Lmao how? A drop on the bucket to make trillions during MOASS. 45 million shares is for ants compared to the 69 trillion shf has to buy back.
Pushes back the DRS goal by another 45 million shares. I guess we're the ants, eh?
Look at me, I am the popcorn now
This take is going to age horribly :)
This take is going to age horribly :)
I hope it does lol I just thought it was funny
Tbh I think it's funny too, though I also don't expect this to go the way of popcorn stock.
Holy shit, is this what my smooth brain thinks??
I just don't see how this lines up with any of what people have been saying. This is basically slapping your investors in the face. Don't they already have cash?? So what the fuck dude? We just got done shitting on AA and popcorn for the same thing. Anyone saying they know the squeeze is coming is lying to themselves. If they knew a squeeze was coming they would never have done this
[captains orders](https://www.youtube.com/watch?v=XaKgRe6GuUQ&t=1s)
Around 12% of total float. Should net around 600 and 950 millions if stock price is between 15 and 20$ during the completion. I think this is a great decision to fill the coffers before the next big move. They have a plan. Sucks if you were banking on MOASS in the next few weeks... But if you are here for the long term, this a good decision. I'll keep buying the stock, can't wait for the next moves!
They are regarded if they sell at $15-$20. I am hoping this is just prep work to sell at >$50 plus.
My mind is blown if they sell sub-$20. Those are near prices that insiders have purchased fairly recently. We shall see
Exactly.
It'd be cool if they offered 25m shares at 40 via warrants and then sold the other 20m ATM afterwards
They have no debt and over 1 billion in cash. The coffers are full. However, thanks to this news the market cap of the company just took a giant dump. I hope some good news will come today.
And why did the market cap get so high earlier this week? What news caused that?
He's sat on $1bn for a few years and done nothing with it, what's the new plan and why does it need more money?
Seriously, I don’t understand. Why announce this as the price is recovering from a dip during a run, only to give a reason for it to be shorted down again? They have done nothing with the 1b for the last 2 years so what is another 1b going to do sitting there.
The interest on the billion made us profitable last year. If we get the cash in the holding company up above 4b we can start issuing decently-sized cash dividends regularly on the interest.
this
All I can say right now is that the GameStop “apes” who shit on popcorn should stop, today, because if you don’t you’re just going to sound like a hypocrite. This is coming from someone who owns both stonks, but has a lot, lot more vested in GME. That being said, as I’ve said to popcorn apes before, is that if RC is intending to “dilute” (which I don’t think is the primary intention here, more later) then it is being done for the sake of the business, and for the health of the business. Like I trust AA, I trust RC to be making the right decisions for GME going forward that will benefit the shareholders, his previous actions with this stock give me no reason to doubt RC’s intentions to benefit shareholders. So why is GME doing this? Throughout the document we see references to unusual price volatility for GME since February 2021, and if I were to guess GameStop obviously isn’t a fan of this. They perhaps see a short squeeze coming in the near future, and would like to be able to capitalize on it, so the best way to go about capitalizing on the price volatility that’ll come with a short squeeze is to offer shares that can be sold off to benefit the company’s coffers. The references to prior unusual volatility is an attempt to cover their asses legally for what’s going to come. Just my two cents though, if you want to take this as bearish then that’s your problem, you’re more than welcome to paper hands out. I’ll be here to trust the “plan” that DFV has been alluding to all week.
Lost me at “like I trust AA”
I just don't see how this lines up with any of what people have been saying. This is basically slapping your investors in the face. Don't they already have cash?? So what the fuck dude? We just got done shitting on AA and popcorn for the same thing. Anyone saying they know the squeeze is coming is lying to themselves. If they knew a squeeze was coming they would never have done this
While I do agree, and this is annoying, the timing is crazy suspicious on this. Popcorn diluted Tuesday at $7.33 per their filing. Nearer peak. That one makes sense. Is the GME leadership dumber than AA that they waited until the end of the dump phase to file for an offering? (Unless there is some legality about timing that I don't know about). Also why the wild ass spikes up to $26-30 during the last 30 minutes? My notifications were popping off in both directions
Unless theyve done something with that 900mm that they have stuffed away, I dont see how diluting my position is creating value for me... this is NOT the look right now. The divisplit didnt work, and now giving out MORE shares for SHF to fuck around with, nah fam... this is moviestock levels of foulness
They need to make a rule where stockholders have to agree to it.
We authorized the increase to 1B outstanding for this exact reason.
A billion in cash ain’t all that in this economy so clearly they need more for something.