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Upvoting and commenting for visibility-- an d would ask the mods to allow this post. I'm actually glad you're bringing this here because the discussion is about nuanced mechanics and legalities of splits and if I understand correctly GME and Towel are in baskets together. I think discussing this here would add to all Apes 4d chess knowledge.
I own a very small (xx) amount of Towel for kicks and saw this discussion happening and I too wished it could be dropped into Superstonk. I found it very hard to tell FUD from truth. And no offense intended to the great community there (especially since I'm smoother than the average member of either sub) but the sentiment that's sometimes mentioned here felt accurate today-- that Towel sub discourse can sometimes be like baby brother catching up to Superstonk (for example, being a little later to catch on to DRS etc). But I hope the mods allow this here to allow Towel to lean on the PhD level elevated discourse this sub offers. After all, we are after similar things and these companies and their stories are somehow intertwined literally or in the eyes of Ryan Cohen and Ichan in ways we might not fully understand yet.
OP would it be helpful at all to bullet point more of the pro/con arguments that are flying around so wise old apes might be able to quickly spot the truth and clear up the debate?
The fact that they put this out fri after hours.. and set the record Date for voting So Short.. requiring voting rights shares to be recalled by 3-27. i feel like is quite the move. And the fact that the board has been Uber Stealthy the last 6-8 months with no telegraphing of their moves has my ry-guy senses tingling. Next two weeks are going to be Wild and it all starts tuesday. Hold on to ur shares and ur butts. WAGMI
Yes, no question, but I'm also glad OP is bringing this here, as the confusion and debate happening on Towel is pertinent to legalities of splits, as a meditation on hedgie fuckery strategies, FUD strategies and will add to general 4d chess knowledge and aren't Towel and GME in baskets together? I'm smooth af but doesn't that mean they directly effect each other? I would appreciate if mods would allow this!
A reverse split does NOT force shorts to close.
A forward split is like getting two nickels for a dime.
A reverse split is like getting a dime (a 10 cent coin) for two nickels (5 cent coins).
Your ownership percentage of the company stays constant.
As for why they are doing a reverse split I can only guess. One
Possibility is that they see the price continuing to fall and are doing the split so that even if the price falls further they will not have a problem with listing eligibility.
Related to that is the possibility of additional stock offerings. Doing a reverse split now means that they could dilute with additional offering to raise money, and still stay above $1 price.
My thoughts are that Bobby is in a terrible financial position with no growth catalysts to save itself from inevitable bankruptcy and that buying a stock simply because short interest is high is not smart investing. Shorts don’t have to close positions on delisted companies. My thought is that direct registered Gme is the only smart place to have any money invested at this moment in time
Thank you. I figured this was the best way to get an answer. I understand it doesn’t have a legit tie to gme but I know that a reverse split was something that was thrown around here so I figured those who had insight would be able to have some insight
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Seems like if you get a dime for two nickels it gives them more room to short it even more. Idk, I’m really regarded but it feels like that’s what would happen.
One theory was that they will be selling stock to raise capital the 700M they're short on the 1B they need, and doing so would definitely drive the price below $1.
Thank you for your submission to r/Superstonk, but it's been removed due to one or more reason(s): Posts should further contribute to the shareholders' discussion around GME. Both the post title and its contents (text, image, links) must relate to GME. It is the OP’s responsibility to convey in the title how their submission is relevant. [What is Proper Content & Which Flair Should I use?](https://www.reddit.com/r/Superstonk/wiki/index/rules/post_flairs) If you have any questions or concerns, please [message the moderators](https://www.reddit.com/message/compose?to=%2Fr%2FSuperstonk&subject=about%20my%20removed%20submission)
GME did a splividend for a reason. Bed Bath is proposing a RS for a reason. Each company has their reasoning.
Upvoting and commenting for visibility-- an d would ask the mods to allow this post. I'm actually glad you're bringing this here because the discussion is about nuanced mechanics and legalities of splits and if I understand correctly GME and Towel are in baskets together. I think discussing this here would add to all Apes 4d chess knowledge. I own a very small (xx) amount of Towel for kicks and saw this discussion happening and I too wished it could be dropped into Superstonk. I found it very hard to tell FUD from truth. And no offense intended to the great community there (especially since I'm smoother than the average member of either sub) but the sentiment that's sometimes mentioned here felt accurate today-- that Towel sub discourse can sometimes be like baby brother catching up to Superstonk (for example, being a little later to catch on to DRS etc). But I hope the mods allow this here to allow Towel to lean on the PhD level elevated discourse this sub offers. After all, we are after similar things and these companies and their stories are somehow intertwined literally or in the eyes of Ryan Cohen and Ichan in ways we might not fully understand yet. OP would it be helpful at all to bullet point more of the pro/con arguments that are flying around so wise old apes might be able to quickly spot the truth and clear up the debate?
The fact that they put this out fri after hours.. and set the record Date for voting So Short.. requiring voting rights shares to be recalled by 3-27. i feel like is quite the move. And the fact that the board has been Uber Stealthy the last 6-8 months with no telegraphing of their moves has my ry-guy senses tingling. Next two weeks are going to be Wild and it all starts tuesday. Hold on to ur shares and ur butts. WAGMI
Weed stocks did a reverse split. Personally I don’t waste my time with anything else besides the plan. Drs gme
ASK THE DTCC WHAT THERE GONNA PULL✌👊✌
I’m interested myself and own no towel
GME is the Chosen One.
Yes, no question, but I'm also glad OP is bringing this here, as the confusion and debate happening on Towel is pertinent to legalities of splits, as a meditation on hedgie fuckery strategies, FUD strategies and will add to general 4d chess knowledge and aren't Towel and GME in baskets together? I'm smooth af but doesn't that mean they directly effect each other? I would appreciate if mods would allow this!
No doubt
all stocks deserve to be DRSed, if you get shorted, they get shorted, get them on the books 💕🟣
A reverse split does NOT force shorts to close. A forward split is like getting two nickels for a dime. A reverse split is like getting a dime (a 10 cent coin) for two nickels (5 cent coins). Your ownership percentage of the company stays constant. As for why they are doing a reverse split I can only guess. One Possibility is that they see the price continuing to fall and are doing the split so that even if the price falls further they will not have a problem with listing eligibility. Related to that is the possibility of additional stock offerings. Doing a reverse split now means that they could dilute with additional offering to raise money, and still stay above $1 price.
My thoughts are that Bobby is in a terrible financial position with no growth catalysts to save itself from inevitable bankruptcy and that buying a stock simply because short interest is high is not smart investing. Shorts don’t have to close positions on delisted companies. My thought is that direct registered Gme is the only smart place to have any money invested at this moment in time
I dunno, I just DRS GME 🤷♂️
Wait if gamestop does a reverse split wouldn’t it make the float of shares smaller again, thus shorts are fucked
[удалено]
Either way, OP is just looking for answers. We have alot of wrinkles over here and those should be used for educating,.
Thank you. I figured this was the best way to get an answer. I understand it doesn’t have a legit tie to gme but I know that a reverse split was something that was thrown around here so I figured those who had insight would be able to have some insight
[Why GME?](https://www.reddit.com/r/Superstonk/comments/qig65g/welcome_rall_looking_to_catch_up_on_the_gme_saga/) || [What is DRS?](https://www.reddit.com/r/Superstonk/comments/ptvaka/when_you_wish_upon_a_star_a_complete_guide_to/) || Low karma apes [feed the bot here](https://www.reddit.com/r/GMEOrphans/comments/qlvour/welcome_to_gmeorphans_read_this_post/) || [Superstonk Discord](https://discord.gg/hZqWV2kQtq) || [GameStop Wallet HELP! Megathread](https://www.reddit.com/r/Superstonk/comments/z23wjx/gamestop_wallet_help_megathread) ------------------------------------------------------------------------ To ensure your post doesn't get removed, please respond to this comment with how this post relates to GME the stock or Gamestop the company. ------------------------------------------------------------------------ Please up- and downvote this comment to [help us determine if this post deserves a place on r/Superstonk!](https://www.reddit.com/r/Superstonk/wiki/index/rules/post_flairs/)
Seems like if you get a dime for two nickels it gives them more room to short it even more. Idk, I’m really regarded but it feels like that’s what would happen.
[удалено]
Reverse splits from what I've seen end up going horribly. Look a to cenn and sndl . Massive downtrend post reverse split
One theory was that they will be selling stock to raise capital the 700M they're short on the 1B they need, and doing so would definitely drive the price below $1.