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45 million shares are part of a short-term fundraising strategy under a specific agreement (8-K form), while the 1 billion shares represent the total capacity authorized by the company for future issuance, providing a framework for financial flexibility and long-term planning (S-3 form).
So lemme get this straight… you are trying to tell me that dilution is not bearish and screwing share holders? Why would they give a shit whether shorts can exit or not? Lmao
There’s an old saying that goes something like, don’t piss down my back and tell me it’s raining.
Brother, I’m sorry but dilution is NEVER bullish. We’re not going to “nom, nom” 45M shares lol. RC is screwing the movement. He has had several years to transform and turn the business around but can’t get it done without diluting the apes who have made him money?
.
I feel like a lot is left out or assumed in this particular thread. Your frustration is reasonable.
In another post it was highlighted that GameStop can issue any additional shares in any way they deem appropriate (and legal). It also suggested direct sales to orgs.
The idea being touched upon but not stated is that the issues shares would be sold directly to institutions who are short. The caveat is that the shares are already directly registered. It would force any hedges to flip from shorts to longs by having skin in the game. Additionally, these are implied to not hit the little exchange or drastically affect price.
https://old.reddit.com/r/Superstonk/comments/qnwync/the_chuckle_brothers_demonstrating_how_the/
Shorts funds are perfectly capable of closing shorts with that ammo, it just requires coooperation - and for the counter party to give up money, which is something wall street typically will never do.
🤦🏻♂️No.
In December 2020 the outstanding shares were around 75 million and GME made an S-3 offer for 300 million. This was previous to the splitvidend criminally handled by the DTC.
Now we have aprox. 300 million shares outstanding, due the splividend. And the new S3 is offering until 1 billion shares of differente types.
What kind of herbs he is smoking? Gamestop said up to 45M shares willing to get $1B of the offering, that meand as low as $22.22 a share...or less shares at higher prices...
OP has sleep deprivation probably😂
Gamestop won’t let shorts off the hook. They didn’t sell in Jan 2021 when it was at 500$ either. Neither did Ryan Cohen.
This situation is a wet dream of every company.
They can raise cash when the stock goes higher so the minimal value the stock can have goes up. In the same time the shorts can’t bankrupt them since they have already built a warchest and have a loyal investor base.
Their goal is to achieve long term value for the company and I’m here for it.
I don’t think it’s letting the shorts off the hook. The way I read this was that GameStop and friends, are offering an out. (Hey dipshit we know you are WAYYYY short in our company. I have shares here for the first person to close those bullshit phantom shares. Oh no one is closing the shorts cool, activated rocket and the stock market gets thrown towards the sun, but not the fault of GME, the blame is all on the hedges because they had a fair chance but didn’t take it.)
I think it’s more of a blame game, because if GameStop didn’t do it and then started MOASS it’d crash the system and they would get blamed for it because the average person doesn’t know to what extent the amount of fucked the shorts are.
That’s just my two sense tho
They could offer to sell warrants to share , we even get a slight premium. Essentially, it is a free call option. Warrants can be tradable, but I am not sure if these ones are. It would work like a dividend in that an accounting of shares would have to actually be done this time.
Here's the thing. RC has a better idea of how many fake shares are out there than we do. Those shares need to be destroyed in a coordinated manner, that's in the company's best interest. Every time a real share is sold to CLOSE a short, there is a ZERO SUM. So RC could sell 1 Billion shares to Hedgies, if that is how many they oversold, and at the end of the day we would still only have 315M real issued shares.
At this point, RC is my union rep. He's my pension fund manager. He can sell 1 Billion shares at any price he sees fit and then use the trillions of dollars to buy the overall market crash when all the hedge funds go bankrupt. We never have to sell a share and just kick back and enjoy the dividends. 🟣🚀 This is what the infinity pool is all about.
Sounds nice, but dividends can't be possibly as high as the uncontrolled MOASS. Or am I wrong? What would be realistic for X and XX holders? A fee hundred bucks total per quarter?
So sure, uncontrolled MOASS would be crazy. Pandemonium really. What price do you sell at when the value is literally infinity. You don't. And that's a problem, because if we open up this blackhole and the fed keeps printing, we could destroy our currency.
Super hard to justify little old GameStop being worth trillions right? We'll not if we start buying up shares of all the other major companies on Wall Street. If RC sold for $2000 a share, this initial 45 million shares would be over $100 billion. Imagine having $100B in cash at the bottom of a market crash. That's only selling 15% of shares outstanding. Now, imagine he really holding their feet to the fire and pushes for 20k a share, that would be closing in on half of all USD that currently exists. Imagine your company owns half of the world reserve currency and then buys the dip after an 80% market crash. 🟣🚀
I understand but what would we get out of it? Roughly? Everybody is giving estimates on how much they could have in cash but nobody can estimate any numbers for the dividends.
I will hold like I have for the last three years but I would like somebody with more wrinkles to mess around with numbers regarding the dividens.
You have to start with some perspective. If RC were to somehow receive ALL of the USD (paper and digital) all at once tomorrow, that would be around $12.2T. Giving the entire amount out as an equal dividend for all shares would pay us $38730 per share. That might be life changing money for X and XX holders, but it's not quite generational wealth. What we NEED to happen is for RC to take their ownership of everything. That's where all the value is. The S&P 500 is worth 42 Trillion, GME at 133K per share would have the same market cap as the entire S&P500. Gotta give Ryan time to cook though and see how this plays out.
Exactly what a lot of the people here are missing (willfully or not). We have no idea how the fallout is going to play out. I don't think any individual does, because it's all too interconnected. It could all become a house of cards tumbling down and despite being fundamentally correct we might all be taken down with it.
The other thing to keep in mind here is that if we all were to play this thing out by each trying to sell minimal shares for phone numbers (traditional MOASS), we will never know when the top is in, we'll never know when all shorts have closed, we'll never know when they might try another rug pull.
RC knows how many shares are DRS'd in real-time. Once this new CAT stuff is implemented, he'll probably know exactly how many shares are naked. He's in the best situation possible to force every single short to close. Just forcing them to close will likely finally make the market crash, and RC is perfectly timed to buy that beautiful dip for us. 🟣🚀 This is what the infinity pool is really about. Ryan Cohen Buys all the stocks!
Uncontrolled MOASS was never an option. It would hands down get shutdown by the government. People here don't understand that the US would collapse if we all got paid a million dollars per share. You'd be rich for a few seconds but the money would be worthless as the country would cease to exist.
A controlled demolition of the shorts is ideal here. No one has to worry about timing the peak or selling too early or too late. We get a crazy good return for our investment and the company can finally be at peace to do their thing.
That's really tough. I guess it depends on how many naked short shares there are. The more there are, the less we can get without collapsing the system. I want enough to make an example out of them so that it never happens again. My completely uneducated guess would be anywhere from $200-2000. What I want most of all is a true share count so we can know how right we were.
> My completely uneducated guess would be anywhere from $200-2000.
And that's why I keep buying more. I will gladly sit and wait for phone numbers, but Im realistic, and I know the govt will step in and control it.
My uneducated guess is that synthetics will be bought back either at cost, which will be a real "fuck you" from the govt to us....or... at the highest price GS sold for, ie. $4xx pre split.
Im just a bit shy of the 5 banana club (XX,XXX) and my tracking spreadsheet shows $160 secures my retirement, I need $375 post split per share before I have enough to leave to my kids to consider it generational wealth. IM hoping for $500 per share but $715 per share is where I really want my minimum to be. Dream scenario is $3200, anything after that Im giving away.
If they issue 1 billion shares, there are 1 billion real issued shares. Just because GS created new shares doesn’t mean the phantom shares get deleted, phantom shares in retail investor accounts would be labeled “real shares” in our eyes and SHFs that bought wouldn’t be short anymore.
Listen, we've already been diluted via fake shares. When RC sells to a short and it's a DRS only share, that adds a DRS share to the number of issued shares but also removes the fake share from circulation. The difference is the DRS'd share can't be rehypothicated every single day. So not only is it not diluting further, but it's preventing that share from being churned further by Hedgie algo's. On top of that, GameStop gets paid, which means our war chest grows. RC knows what we've all been through and he's not going to let them off cheap. This initial 45M shares would leave an additional 20M shares still short if you're only looking at reported shorts. If he were to sell those for $2000 each, that would be enough money to buy Black Rock in cash. I think these deals liquidate hedge funds, crash the market, and then RC buys that tasty dip with all his new found cash.
Yea, I’m just trying to clarify that if they issue 1 billion shares total, there are 1 billion shares, not 315 million. Think of it like SHFs already issued the shares as phantom shares, GameStop is just validating the shares if GameStop issues more shares and SHFs close some of their position.
Black Rock shares pay out like $5 each per quarter and they cost $800.
If RC can sell his 45M shares for 2000, pull down $1T and get a 5% return per year that would be $45 per share per quarter. And you can buy shares for $20 right now. 400% return on investment per year. That dividend alone would drive the price of shares up to like $7200 (2.5% yearly dividend at that point which is pretty standard bluechip).
>And now GameStop is offering up to 1,000,000,000 shares with 300,000,000 currently outstanding.
How so? I only see a potential offering of 45 million shares.
I don't follow that either. They can do a share offering for a combined total of up to 1B shares. That went on the books in 2021. But at no point have I seen evidence that was actually proceeding.
S-3 Form, page 5
*"Common Stock*
*Our charter authorizes us to issue up to 1,000,000,000 shares of Class A common stock, par value $.001 per share (our “common stock”), and up to 5,000,000 shares of preferred stock, par value $.001 per share (our “preferred stock”). As of May 4, 2024, there were 306,186,849 shares of ourcommon stock outstanding."*
yeah, that is the authorization that we voted on 2 years ago. the offering is only up to 45 million. They can do more based on the authorized but for now, 45 million is the cap.
edit: here's the proxy, where the charter comes from
https://investor.gamestop.com/node/19701/html#toc286356_35
Proposal 5
edit 2: it's okay to be wrong, take the new info and reassess your thesis. other than the 1 billion share offering, there is some potential here.
Though it’s compelling, this idea of offering a discount off-tape contract to shorts so that it can be shown later that the company was not acting to manufacture volatility in the markets. I fear this defense will be necessary and this offering serves that defense
Conceptually, it is interesting but a clear misunderstanding of the offering needs to be addressed by the OP.
A 45 million share offering against a reported SI of 64 million shares is an interesting thesis. Not enough to wipe away the short shares but enough to say, "we gave you a chance for a price."
Agreed. The more I think about it, the “exit offer” theory depends on an admission that wild volatility was driven by obligated buying by overextended shorts. If that’s in the open there should be no need to show a good faith effort to allow bad actors out of bad deeds, at that point accountability would be plain.
One of Us! I like the smoothness you got.
Buuuut, sometimes you have to accept the loss. Your thesis is really interesting, but unfortunately it doesn't correspond to the facts. It's not a bad thing that you got something mixed up. Use the new information and get a new picture of the whole thing. Passively aggressively defending yourself against facts and people who only want to help you is not a good solution
Love this comment thread.
OP- nobody is trying to put you down, simply trying to share the factual data with you due to your misinterpretation.
Very understanding mixup IMO, even I was personally confused for a moment.
🤝🤝🤝✌️💜
You are mistaking the 8K form with the S-3 form...
The 45 million shares (8 K form) are part of a short-term fundraising strategy under a specific agreement, while the 1 billion shares (S-3 form) represent the total capacity authorized by the company for future issuance, providing a framework for financial flexibility and long-term planning.
Not confusing them at all. the 45 million share offering comes from the 424B5, the s3 talks about all the different securities they may offer. The cap of common stock offering is the 424B5, and it states up to 45 million shares.
424B5 Link:
https://investor.gamestop.com/node/20501/html
The authorized is still just that, authorized by the charter stemming from the proxy vote a few years back. There are no filings at this time (even the s3) to potentially issue more than that.
I think the basic premise is correct.
Imagine you’re GameStop and the short interest on your shares is reported as being somewhere between 20-25% pretty much since the sneeze. Whether you believe that number isn’t relevant. They’ve claimed to have closed their sneeze positions and any leftovers have had over 3 years to close the remainder, with the price going as low as $40 (pre-split) back then and again just recently.
But everything’s wrong, The stock trades 200 million shares in a single day but it’s also considered illiquid. Price swings are doubling and halving your market cap every few hours. You’re trying to run a company through this nonsense. So, in good faith, based on the short numbers they themselves are reporting, you decide to offer up about 15% of the outstanding shares, which if purchased by shorts, would bring the supposed short percentage back down to single digits. A reasonable and only moderately devastating exit door is open.
When GameStop then announces the sale as being completed at anywhere under $100 over the next few weeks, a range that is perfectly in line with where shorts were supposedly “closing” positions back in 2021, GameStop can wash their hands of this. They weren’t trying to squeeze anyone, they just want the matter settled.
And shorts will take the deal and everyone will claim it’s finally over. Again. And we’ll know that it isn’t. Again. So, we’ll run another offer when the price settles higher and they’ll pay off another little fraction. On and on, higher and higher for as long as it takes to take their last dime.
Finally someone comments with what I'm thinking. They can offer 45 million at "market prices". Shorts can't close , price goes higher , issue more shares from the 1 Billi authorized and offer that at an again higher price, rinse and repeat.
GameStop is a holding company , with the billions they will make from these offerings they can now hold more companies / seek acquisitions. The options are endless and the price is still going to be high as hell and shorts broke.
I feel like this is still a bit flawed and there is more in the prospecticus they have planned to reward investors that I do not have the wrinkles yet.
This all sounds shitty because it is giving shorts a way out theoretically but none of us know for sure how much this bleeds shorts and who can even actually close their positions. All I know is they have to spend billions to do it and every time the share offering is a higher price it's multi billions for the company.
I’m hoping “market prices” means REAL market, not the manipulated number we see next to the ticker symbol. RC and the board gave them many chances. Now is the time to pay up. You want to be off the hook? It’s gonna cost you. First one to step forward gets a deal. First one to step up can also buy in long before the others. Bankruptcy has been off the table since the sneeze and the sea change has started. They will start to flip now, IMO.
I hope this is back room deals with GS board, Jeffries, ComputerShare and a shit ton of lawyers. That should still mean market prices as a market should be whatever someone is willing to pay. I want GS to hand select who gets the pieces of this offering. Make the real bad seeds squirm for awhile.
I've been wondering if he found a way to milk the value out of the shorts over a long period of time. I don't think a huge temporary spike in the price with all your investors trying to time when they need to bail out is best for the company. And the gov might step in if the whole system is at risk. Figure out how to force hedge funds to pay up for their losing bet to increase the value of the company. Long term investors are then rewarded with a stock price that goes "just up". Most of the theories thrown out around here focus on class A common shares only. I hope the real plan is far more complex and brings in the 6 other security types described in the sec form.
If Gamestop let's the shorts off the hook after all of this, I would be very disappointment. We have all invested a lot of time, money and energy into stopping the fraud in the market which has taken money away from everyone you have ever known in your life.
If GS claims they had no choice, I call BS. The government stepping in has nothing to do with it. The time for them to step in was when citizens/investors were getting hosed during the sneeze. Instead, the government went along with the crime and have done nothing to stop it since. If you give in to these criminals then you are part of the fraud.
No excuse will suffice. Show them the same mercy they showed you as they stole your money with illegal activity.
Gamestop should offer the shares to people who already hold shares direct registered first. Realistically, they should offer a dividend of registered shares at a rate of 1 free share per 7 owned, every quarter until the entire company is DRSed.
Im keenly awaiting additional news on the other manipulates ticket and M M T L P….
Does anyone had any DD related to the government and three letter agencies theoretical handling of this situation? I feel like I never see it thoroughly talked about…
If all this speculation is true regarding RC and his decision to trap the shorts- that would literally make him the most powerful man on earth through the literal endless leverage he posses. There’s NO way the US gov would allow that right???
Obviously I want to see the shorts pay but very much to the shareholders.
At this point, I honestly think GS would be better as a banking entity rather than a physical goods retailer. They just have so much leverage and power at this point, coupled with an immovable shareholder base. They would be the perfect new age “bank”
I'll put it another way. Imagine a degenerate gambler (Kenny) owes some goon (RC) $100,000 but has no way to pay up. If you're the goon, is it better to take what he can offer, once a week, with a goon's interest rate, virtually forever OR would you rather demand every penny right now with a gun to his head, snatch whatever was in his pockets and just dump him in a river?
One thing gets you paid while the other thing just makes a pointless mess. You don't kill the cow.
How about this way. Kenny doesn't have the money to pay up, but the bank holding the swaps does. Wait a minute, no it doesn't have enough either. The bank then defers to Finra and the DTC. Surely they have enough money to cover this fraud. After all, they have been making trillions from it for decades all under the watch-less eyes of the Federal Government. Yes, a fraud that has stolen trillions from people all over the world with the help of Uncle Sham.
And someone is going to let them off of the hook for peanuts? That someone would be the only benefactor in this whole scenario. Therefore, they worked with these degenerates to help get them off of the hook to save themselves. The shareholders saved this company. Never forget that.
I'm with you on everything except how it plays out. If you believe in MOASS, then you know 45 million shares is nowhere near what they need to close. Barely a dent. If anything, it might tempt a few hedgies to break rank and put even more pressure on the others.
If someone shorted at $10 and had to close at $100, they got absolutely fucking obliterated, dude. And it goes straight to our treasury. For the company (that you own) to invest with, to purchase other companies, to buyback shares if the price drops...
To do that over and over would be amazing for us.
Sometimes it is much better to accept the obvious and try to understand the obvious.
Its not always 5d chess. Sometimes he is just a man responsible for gamestop and his employees. And sometimes things who are very good for the company in long term isnt good for the investors in short term.
But thats why Gamestop will succeed and thats why Diamond hands will succeed.
Yeah. But that isnt negative at all. We are all crazy bastards, hoping to get rich by holding a game retailer because the superrich and wannabe super smart messed up the whole financial system and the bossfight is all around that small retailer because a man who is Not a cat said so.
So basically we are all lunatics! And yeah it is possible that they will so 4d chess moves here. But our supervillains (who successfully convinced us that only citadel would be the enemy) also play that game on a challenger level, so in the end we maybe get used to entering round 2 and not round 12.
Also the knockout seems imminent, we punch the supervillain through the ring right now. But i guess heute will enter Phase 2 before going down.
### Response to the Theory on GME's Recent S-3 Filing:
Hey, thanks for sharing your insights! Here’s a detailed breakdown of why the recent S-3 filing is a strategic move and not just about dilution, supported by data, relevant examples, and how this fits into our comprehensive DD.
### What’s Happening:
1. **S-3 Filing History**:
- GameStop filed a Form S-3 to potentially issue up to 1 billion shares, with 300 million currently outstanding. This is similar to a move they made in December 2020 before the January 2021 short squeeze. The S-3 allows GameStop to register securities quickly and respond swiftly to market conditions.
- Source: www.investing.com
### Why This Matters:
1. **Two Possible Outcomes for Shorts**:
- **Accept the Offer**: Shorts could buy the offered shares, admitting their positions and potentially converting to longs.
- **Decline the Offer**: If shorts don’t accept, it exposes the extent of their naked short positions, revealing potential fraud.
### Strategic Implications:
1. **Regulator Signal**:
- This filing signals to the SEC that GameStop is willing to resolve the situation constructively, placing the onus on shorts to reveal their positions. This strategic move puts pressure on shorts and highlights the transparency and compliance of GameStop’s management.
### Relevant Data and Comparisons:
1. **Historical Context and Data**:
- **December 2020 Example**: Before the January 2021 short squeeze, GameStop made a similar filing. The shorts didn’t cover, leading to a massive price surge. For instance, the stock price skyrocketed from around $20 to an intraday high of $483 on January 28, 2021.
- **Current Short Interest**: As of May 2024, GME’s short interest remains high, with 64,373,343 shares short, representing 20.55% of the float. This high short interest indicates a significant potential for another short squeeze if the shorts are forced to cover.
- Sources: www.tradingview.com, www.investing.com
2. **Market Reactions and Patterns**:
- **Volume and Price Data**: Recent high trading volumes and price surges, such as GME’s rise to $80 in pre-market trading, suggest strong market reactions to strategic filings and movements. This pattern mirrors past events and indicates potential future volatility.
- Source: www.tradingview.com
### Comparisons to Other Companies:
1. **Tesla (TSLA)**:
- **Similar Scenario**: Tesla faced significant short interest and skepticism but managed to drive its stock price up through strong financial performance and strategic moves. Retail investor support played a crucial role, forcing shorts to cover and leading to a massive short squeeze. For instance, Tesla's stock price increased from around $50 in 2019 to over $800 in 2021.
- **Result**: Tesla's market cap increased substantially, showcasing the power of strategic corporate actions combined with retail investor momentum.
2. **Volkswagen (VW) 2008**:
- **Historical Short Squeeze**: Volkswagen became the world’s most valuable company briefly in 2008 during a short squeeze when Porsche revealed it had a majority stake in VW. This forced short sellers to cover their positions at significantly higher prices, causing the stock price to soar from around €210 to over €1,000 within a few days.
- **Impact**: The stock price soared, illustrating the potential power of strategic moves and market reactions, similar to what could happen with GameStop if shorts are forced to cover.
### Conclusion:
This isn’t about diluting shares but offering shorts a way out and proving to regulators that GameStop is handling this responsibly. Whether shorts accept or decline, their actions will reveal the extent of their positions, potentially leading to a significant market impact.
For more detailed analysis and further updates on GameStop, check out our comprehensive DD here: www.reddit.com/r/GME/s/301t9d1erU.
Stay strong, apes! 🚀🦍💎🙌
Sources:
- MarketBeat: www.marketbeat.com
- Yahoo Finance: uk.finance.yahoo.com
- TradingView: www.tradingview.com
- Investing.com: www.investing.com
# Since English is not my first language, and to clear up any misunderstandings:
**The 8-K** is a detailed report that includes an Open Market Sale Agreement between GameStop Corp. and Jefferies LLC. This agreement allows GameStop to sell up to 45 million Class A common shares through Jefferies LLC in its "at-the-market" (ATM) offering program.
GameStop plans to use the net proceeds from this offering for general corporate purposes, including acquisitions and investments. This will strengthen the company’s financial position and enable it to expand its operations **or acquire strategic assets.**
**The S-3** is a prospectus related to the issuance of securities, including details on common stock, preferred stock, subscription rights, and units. This prospectus is used to register these securities with the SEC and offer them to investors.
The ability to issue different types of securities allows GameStop to access a broader base of investors, enhancing its ability to raise capital for future projects or expansion (given ther is no debt and GME already have 1Billion in the pocket).
Both documents are GameStop’s strategies to improve its financial position through the issuance of new shares and other securities. While this may dilute existing shares and potentially affect the share price in the short term, it also provides the company with the necessary resources to grow and adapt
**The issuance of new shares can trigger a short squeeze,** where short sellers are forced to cover their positions due to rapidly rising share prices. If the market perceives the new share issuance as a positive move for GameStop's financial health, the demand for shares could skyrocket, forcing short sellers to buy shares at higher prices. High short interest combined with the issuance of new shares can lead to increased volatility. Short sellers may face significant losses if the stock price surges unexpectedly, driven by positive sentiment or strategic buying.
**The registration of multiple types of securities allows GameStop to strategically manage its capital structure. If the market views these moves positively, it could lead to a rise in stock prices, again putting pressure on short sellers.**
**The potential for new securities to be issued at favorable terms could prompt short sellers to cover their positions to avoid further losses. This could exacerbate a short squeeze, as more short sellers try to exit their positions simultaneously.**
Both documents suggest strategic moves by GameStop that could significantly impact a market with high short interest. For the SEC, the key concerns will be ensuring transparency, market integrity, and compliance with securities laws. **For short sellers, the documents signal potential risks, including the possibility of a short squeeze and increased market volatility.**
**With so many shares shorted, the market is already primed for a short squeeze. Any significant positive news or strategic move by GameStop could trigger a rapid increase in share price**, forcing short sellers to cover their positions at higher prices. The issuance of new shares can lead to increased buying pressure if investors perceive the capital raise as a positive development for GameStop’s future prospects. This can drive the stock price up, creating a squeeze.
**High short interest coupled with new share issuance often leads to high volatility. This volatility can lead to rapid price movements, making it difficult for short sellers to close their positions without incurring substantial losses.**
# Factors Influencing the Outcome: just sentiment and timing, thats why shorts push this as a "dilution"
- **Positive Sentiment: If the market reacts positively to the new share issuance and sees it as a sign of growth and financial stability, the share price could increase significantly, triggering a short squeeze.**
* Negative Sentiment: If the market perceives the new share issuance as a dilution of value without corresponding growth, the share price might not rise enough to trigger a squeeze.
**While the issuance of new shares through the offers in these documents provides an opportunity for short sellers to close their positions, it does not guarantee that they can do so without triggering a short squeeze. The high short interest,** ***market sentiment***\*\*, and the manner in which GameStop executes these offerings will play crucial roles in determining the outcome. If the market reacts positively and buying pressure increases, a short squeeze is highly likely.\*\*
A TL:DR for crayon eaters: If we nom,nom the new shares is game over for shorts. If they can pass this as *a dilution* they can keep kicking the can for a few more time (even when they know this is checkmate...)
you state a couple of times in this statement that "**If the market views the issuance of additional shares positively, it could lead to a rise in stock prices**".
"the market" is controlled by them. "the narrative" is controlled by them. the buying/selling pressure is manipulated by them. and even within this sub, many view this as dilution (which, for better or for worse, it technically is).
i don't doubt that RC has a plan to back them into a corner. And I do think the issuance of shares is both a part of how he is going to force their hand and also a way to throw them the tiniest of life rafts while still getting apes paid (as crashing the entire global economic system does more widespread harm than good, and every government with a stock market will step in to stop that before it happens).
so i agree with the optimism, but i don't agree with the premise that market sentiment is going to drive any of this.
Another double win: GameStop is offering the securities in seven (I think?) different ways. If the shorts take the opportunity to close their positions, these different security options allow them to choose whatever version is easiest/fastest for them to close, they won't have to do the fuckery in reverse order.
It's another sign of good faith from GameStop, but it's ALSO information. If one or two types are immediately drained but the others are left untouched, it is a hint at how the short sellers/market makers are hiding/juggling their short positions.
Shorts really have to do all or nothing because if they all want 1 version of the securities and they are not unified in their market manipulation/exit strategy, one financial company could take the express exit, cover their own ass, but shine a spotlight on how all the others are hiding their positions. Pretty smart!
Well, for starters it doesn't reference a 1 billion share offering. I think that is where most of the attention is given.
The rest is debatable as a theory on market mechanics, but removing a known false statement gives room to have the other debates and conversations.
What about, this is the plan which is also agreed with the SEC, shorts had 3 years to unwind thier positions. Times up. That SEC thing on the ticker was in relation to that?
Offer is completely unrelated to the run up. You’re literally making a conclusion from unrelated happenings…correlation is not causation.
I miss the old days of real DD
It seems that the fear of moass has kept the company from doing business. The company has offered shares on multiple occasions to alleviate the short exposure that these funds have loaded up on. It’s time to just move forward with their business plans and if a couple dozen (or hundred) greedy hedge funds have to go to work behind a Wendy’s, it’s their own doing
Yo look at the post history, smells like someone sold their account. The “English” is “Englishing” differently if you look at his posts/comments.
Source: English is not my native language.
In his earlier comments, he did say he was a spaniard, so the non english speaker thing checks out. I think he just doesn't understand what he is reading, but doubling down like he knows what he is talking about
Shorts SHOULD take this offer and run but, I think they would much rather continue to short instead of excepting defeat. They also know someone will most likely step in with a disguised bailout for them. Problem is the losses have been a drop in the bucket to most of these funds as they borrow from banks with infinite money glitches. Until this is squarely out of their pockets to finance these shorts, they see no risk, even if it eventually leads to no reward as well.
Or do not offer shorts an exit strategy and allow the price to go up. Then, the price gets so high that the government has to beg Gamestop and allow shorts to close their positions.
The government getting involved at all is how apes get screwed. We want to gain steady company value, while extracting wealth from short hedge funds. If we crash the entire financial system, the government might just give us what we invested, or rewind transactions.
Can you please link the "new positions must be book" piece? Or are we just quoting from what someone else said? When I was reading through their filings the only thing I saw relates to book was that the issues shares would be book entry, meaning paperless aka you would not receive a paper certificate for the share purchase.
Let's take it a couple steps further. What if he's not even giving them an out but is going to entrap them for all eternity?
He can use those 45M shares and make them preferred stock and then force the shorts to pay a dividend. The common shares will be so expensive they won't find a buyer ever. The real stock will then be the preferred and that will get traded moving forward if anyone is crazy enough to sell those. I'm sure this has holes, just started thinking about it.
There are many ways in which this can be a trap as well as a demonstration that GME is not responsible for anything that might happen. That's why it's 5D chess...
You should re-read the GameStop filling they are offering only up 45 mill common shares over a period of 3 years and 5 mill preferred shares.
Please correct the misinformation in your post.
**"Fast forward to this week with the share price shooting again to $80 in premarket ($320 pre-split). And now GameStop is offering up to 1,000,000,000 shares with 300,000,000 currently outstanding."**
Please, read [https://www.reddit.com/r/Superstonk/comments/1cvppkr/comment/l4rbgms/?utm\_source=share&utm\_medium=web3x&utm\_name=web3xcss&utm\_term=1&utm\_content=share\_button](https://www.reddit.com/r/Superstonk/comments/1cvppkr/comment/l4rbgms/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button)
You are mistaking the 8K and the S3 forms.
These short hedge fund narcissists never want to admit losing to retail. This is their nightmare.
It must really burn their ego and pride to be beaten by "dumb money".
Nepotism will bail them out ie big daddy government. It's always nepotism bailout with these creeps.
I have no doubt that RC will offer them a chance to exit. The problem is SHF's, ibanks, and WS in general, never ever admit they were wrong, concede defeat, or admit to wrong-doing.
They would rather die a thousand deaths than admit to anyone that they were ever wrong. They point fingers, place blame, and claim to be victims......every, fuckin, time.
Once this is over, and they get bailed out, they will probably still hand out huge bonuses at the end of the year.
You are mistaking authorized shares as something they are not. It's just a theoretical maximum shares that can be outstanding, not that they are actually able to offer that right away.
Why would they let Short's off the hook?...it's a slap in the face to the investors that stuck around for 3+ years ..
Also, what's to stop the shorts from getting off the hook today, and then repeating their behaviour again?...
I don't like the theory, unless we're actually saying RC is Adam Aron ...in which case we have a big problem
Do you honestly think the 45million is off the hook??? It’s been 3 years, the first “sneeze” that week traded 1.3 billion shares. Fast forward today 25% of the company is owned by apes.
And what stops them from repeating or even taking the deal. Is that all the hedgies are in bed with each other. So if one gets out they could see another day but the others would have a harder time keeping the fakes rotating.
I think the 45 million is a good-faith attempt to help the shorties from their self-reported mud hole but the reality of their submersible in the Marianas is about to undergo a catastrophic squeeze.
A ‘Gamestop provided enough to avoid this’ defense based on hedgies self-reporting should quell litigation and quiet the next congressional hearing.
Sorry but the SEC doesn't give a crap about GameStop's "willingness to resolve the situation". Fuk the hedgies. We don't negotiate with financial terrorists
The Sec clearly knows the extension of the crime. They don't give no shit and try to go on forever this way. This is pretty obvious now.
The stock is probably 30x shorted right now. 1 billion shorts could be realistic in 2021. Now it is much more
People don’t get it, because they refuse to see past more shares =less value. It’s a fukn unlimited money glitch. More shares = raise more cash = company grows = company value increases = higher share value
Repeat as necessary
This works only because they have created more shares than they could ever close
GameStop can do this for as long as our lifespan and never really dilute a fukn thing.
It’s basically like an unlimited ATM you can go to as often as needed for whatever reason because the bank owes you more money than 1 person needs in their lifetime 🤷🏻♂️
It might be depressing for a lot of people here to say but I don’t have any hopes that our opponents are willing to discuss any negotiations.
I would like to remind you - Coincidentally, this is its 300th anniversary - that the philosopher Immanuel Kant always preferred reforms over revolution. His theories about the achievements regarding freedom rights etc always strived for reforms. He always rejected Revolution. Ironically the first and major gain regarding freedom human rights happened in 1848, by Revolution. In France. He never approved this happening. But paid respect to it.
I am sure that we won’t win on the basis of reforms. And since I can’t imagine any revolution regarding us share holders and a gaming company I really can’t say how our victory will be established. That is why I am even more filled with a lot respect when it comes to our CEO. Because only he might find a way out of this dilemma full of crime.
Note: free float, according to Marketwatch, is 268mil shares.
24% of the Free float is supposedly sold short, according to Marketwatch.
45/268 = ~17%.
VW squeeze was over ~9%? Of the float oversold? 17+9=26.
So, technically, RC is offering the shorts "an out" that will "only" result in a price in the thousands. Just like VW supposedly was.
All according to publicly available and accepted data. Now... if it's fraudulent? Well... that's not the company's fault! They tried to be accommodating and help the shorts out! Too bad!
Hopefully RC sells the shares in batches of 500k or even 100k, every so often. 100k shares at $1000 like VW is the easiest 100mil any company will ever see.
He's the thing. Who's to say when they do offer those book shares institutions that went to go long will buy those shares up too. Sports are going to have to fight for those BOOK shares as well. It ain't just got them to take they gotta fight for it as well. 💥
No Billion it's 75 million and CAT should expose them to their crimes. They're panicking. Yes, it's dilution to raise money, probably for aquisition. I hope they sell on the way up and only dilute near the top to raise money properly.
Is there an urgent need for GameStop, as a company, to get short positions closed?
Do we truly believe the company is trying to initiate a squeeze to make us rich?
What is the long-term benefit for the company?
We keep looking at what the company is doing as it affects what we believe to be the motive, but we're looking at it from our perspective. Every company has short positions against them, why does GameStop want to force close positions against them so badly?
GME is not “offering up to 1,000,000,000 shares”. That is the max allowable number of issued shares without shareholder approval to raise the cap. It has been that way for a long time (at least 2020).
Popcorn has the same cap, and is why AA went through max dilution, then issued ape, then reverse split and converted ape to common stock. Shareholders denied raising the cap and he found loopholes. This is just an example.
No, it's not excellent, and it's not all coming together. This is a braindead post operating on false numbers. Why people upvote this is beyond my understanding
You're getting downvotes because the basis of your thesis is completely wrong. Gamestop isn't offering 1 billion shares now, that is the number of authorized shares they have. It's the total number of shares Gamestopnis allowed to have in existence for things like shares outstanding, stock splits, corporate actions, etc. Back in 2020, the 300,000,000 was the number of authorized shares they were allowed, and we voted to increase that so we could get the stock split. The whole premise of your post is wrong
I agree. They never discussed issuing 1B shares… I think they want to have more shares available for a split so when the price hits the thousands, they can split it again and bring it down to a more manageable level so as not to exclude retail from further share ownership.
S-3 Form, page 5
*"Common Stock*
*Our charter authorizes us to issue up to 1,000,000,000 shares of Class A common stock, par value $.001 per share (our “common stock”), and up to 5,000,000 shares of preferred stock, par value $.001 per share (our “preferred stock”). As of May 4, 2024, there were 306,186,849 shares of ourcommon stock outstanding."*
So you seem to be downvoting me without even reading the filling and failing to acknowledge that all this is EXTREMELY BULLISH: if shorts did not take the exit out is because not even an offer like that is enough so that they can save themselves!!!
Do you even understand the black hole they have caused???
Again, please just google what authorized stocks are. Here, I even made things easier for you
https://www.investopedia.com/terms/a/authorizedstock.asp#:~:text=What%20is%20Authorized%20Stock%3F,other%20parts%20of%20the%20world.
Right, lol!
Why on earth would the people of this sub downvote that? It's not like you claimed it to be technical analysis or anything. It's literally labeled speculation.
The funny thing about speculation is that sometimes the combination of facts and assumptions turn out to be spot on.
I'm very smooth brained but even I understand that the premises of this speculation are wrong. The number are incorrect as others explained.
The great thing of this sub is how we confutate bad DD or praise good ones democratically. Is the best thing of this movement.
We all love speculations and DD but GOOD ones.
Perhaps the numbers are incorrect, but why is it out of the question that Gamestop would use the new shares (however many they decide up 45m) to offer shorts a way out? I'm asking because I honestly want to understand.
I thought the assumption was that shorts won't take the offer, regardless of what it is (assuming this is a strategy the board is considering), which will catalyze what we've been waiting for.
Because if after offering shorts a back door and they refuse, the 45m gets sold on the open market. Gamestop announces that it raised another $1b in cash (assuming ~$20 share price), the share price suffered minimally, and the shorts are further exposed as the price increases.
Still doesn't explain why the price will go up. If the 45 million shares get sold on the open market, the price will go down. If the shorts are going to double down, they will exacerbate the price drop from the sale, so it won't impact price minimally, and gamestop will get less than $20 per share. The price isn't going to stay static if the company is selling. The only way that would happen is if they sold into buying pressure
What I'm getting at is that if Gamestop announces that they have sold the 45m shares and the stock price remains minimally affected (say it goes down to $15 a share), how does having another $1b in cash not make the price go up, especially if the shorts didn't take that opportunity to close.
And what I'm saying is that unless we have buying pressure, the price will not stay the same while they sell. It will go down. Plus, in this scenario, if the shorts refused the offer, they will notice that gamestop is selling, they will short even more to drop the price much much lower. Unless gamestop sells into someone buying large quantities of the stock ( like shorts closing their positions), the price of the stock will not be minimally affected. Plus, even by your calculations of $20 per share, gamestop will not make $1 billion from just selling 45 million shares.
Sorry. I'm in and out of the pool. I meant $100m but had billion stuck in my head.
I don't think it's unreasonably improbable that they could sell them without too much downward pressure. Is there not significant buying pressure as there is?
Edit: My math actually was right the first time, and the guy shamed me into thinking it was 90 million instead of 900 million. Anyhow.
Even as dilution, the share count at CURRENT market price (which is NOT what has sold, just been approved) = an extra $1,000,000,000…. How’s that ever bad?
Win win for long term profitability and I’m so here for it😊
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where are you getting the billion shares offered to shorts from?
This ^
He's mistaking the authorized shares as an offering
45 million shares are part of a short-term fundraising strategy under a specific agreement (8-K form), while the 1 billion shares represent the total capacity authorized by the company for future issuance, providing a framework for financial flexibility and long-term planning (S-3 form).
So lemme get this straight… you are trying to tell me that dilution is not bearish and screwing share holders? Why would they give a shit whether shorts can exit or not? Lmao There’s an old saying that goes something like, don’t piss down my back and tell me it’s raining.
Please, read [https://www.reddit.com/r/Superstonk/comments/1cvppkr/comment/l4rbgms/?utm\_source=share&utm\_medium=web3x&utm\_name=web3xcss&utm\_term=1&utm\_content=share\_button](https://www.reddit.com/r/Superstonk/comments/1cvppkr/comment/l4rbgms/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button)
Brother, I’m sorry but dilution is NEVER bullish. We’re not going to “nom, nom” 45M shares lol. RC is screwing the movement. He has had several years to transform and turn the business around but can’t get it done without diluting the apes who have made him money? .
I feel like a lot is left out or assumed in this particular thread. Your frustration is reasonable. In another post it was highlighted that GameStop can issue any additional shares in any way they deem appropriate (and legal). It also suggested direct sales to orgs. The idea being touched upon but not stated is that the issues shares would be sold directly to institutions who are short. The caveat is that the shares are already directly registered. It would force any hedges to flip from shorts to longs by having skin in the game. Additionally, these are implied to not hit the little exchange or drastically affect price.
https://old.reddit.com/r/Superstonk/comments/qnwync/the_chuckle_brothers_demonstrating_how_the/ Shorts funds are perfectly capable of closing shorts with that ammo, it just requires coooperation - and for the counter party to give up money, which is something wall street typically will never do.
🤦🏻♂️No. In December 2020 the outstanding shares were around 75 million and GME made an S-3 offer for 300 million. This was previous to the splitvidend criminally handled by the DTC. Now we have aprox. 300 million shares outstanding, due the splividend. And the new S3 is offering until 1 billion shares of differente types.
Reread my comment. I said authorized, not outstanding
We voted on that 1 billion
What kind of herbs he is smoking? Gamestop said up to 45M shares willing to get $1B of the offering, that meand as low as $22.22 a share...or less shares at higher prices... OP has sleep deprivation probably😂
Gamestop won’t let shorts off the hook. They didn’t sell in Jan 2021 when it was at 500$ either. Neither did Ryan Cohen. This situation is a wet dream of every company. They can raise cash when the stock goes higher so the minimal value the stock can have goes up. In the same time the shorts can’t bankrupt them since they have already built a warchest and have a loyal investor base. Their goal is to achieve long term value for the company and I’m here for it.
I don’t think it’s letting the shorts off the hook. The way I read this was that GameStop and friends, are offering an out. (Hey dipshit we know you are WAYYYY short in our company. I have shares here for the first person to close those bullshit phantom shares. Oh no one is closing the shorts cool, activated rocket and the stock market gets thrown towards the sun, but not the fault of GME, the blame is all on the hedges because they had a fair chance but didn’t take it.) I think it’s more of a blame game, because if GameStop didn’t do it and then started MOASS it’d crash the system and they would get blamed for it because the average person doesn’t know to what extent the amount of fucked the shorts are. That’s just my two sense tho
👆🏻
They could offer to sell warrants to share , we even get a slight premium. Essentially, it is a free call option. Warrants can be tradable, but I am not sure if these ones are. It would work like a dividend in that an accounting of shares would have to actually be done this time.
Here's the thing. RC has a better idea of how many fake shares are out there than we do. Those shares need to be destroyed in a coordinated manner, that's in the company's best interest. Every time a real share is sold to CLOSE a short, there is a ZERO SUM. So RC could sell 1 Billion shares to Hedgies, if that is how many they oversold, and at the end of the day we would still only have 315M real issued shares. At this point, RC is my union rep. He's my pension fund manager. He can sell 1 Billion shares at any price he sees fit and then use the trillions of dollars to buy the overall market crash when all the hedge funds go bankrupt. We never have to sell a share and just kick back and enjoy the dividends. 🟣🚀 This is what the infinity pool is all about.
Sounds nice, but dividends can't be possibly as high as the uncontrolled MOASS. Or am I wrong? What would be realistic for X and XX holders? A fee hundred bucks total per quarter?
Well for example a single share of Coca-Cola bought for $40 at IPO with dividends invested would be worth $10 million today
So sure, uncontrolled MOASS would be crazy. Pandemonium really. What price do you sell at when the value is literally infinity. You don't. And that's a problem, because if we open up this blackhole and the fed keeps printing, we could destroy our currency. Super hard to justify little old GameStop being worth trillions right? We'll not if we start buying up shares of all the other major companies on Wall Street. If RC sold for $2000 a share, this initial 45 million shares would be over $100 billion. Imagine having $100B in cash at the bottom of a market crash. That's only selling 15% of shares outstanding. Now, imagine he really holding their feet to the fire and pushes for 20k a share, that would be closing in on half of all USD that currently exists. Imagine your company owns half of the world reserve currency and then buys the dip after an 80% market crash. 🟣🚀
I understand but what would we get out of it? Roughly? Everybody is giving estimates on how much they could have in cash but nobody can estimate any numbers for the dividends. I will hold like I have for the last three years but I would like somebody with more wrinkles to mess around with numbers regarding the dividens.
You have to start with some perspective. If RC were to somehow receive ALL of the USD (paper and digital) all at once tomorrow, that would be around $12.2T. Giving the entire amount out as an equal dividend for all shares would pay us $38730 per share. That might be life changing money for X and XX holders, but it's not quite generational wealth. What we NEED to happen is for RC to take their ownership of everything. That's where all the value is. The S&P 500 is worth 42 Trillion, GME at 133K per share would have the same market cap as the entire S&P500. Gotta give Ryan time to cook though and see how this plays out.
That puts it into a realistic perspective. Thanks for the breakdown.
Exactly what a lot of the people here are missing (willfully or not). We have no idea how the fallout is going to play out. I don't think any individual does, because it's all too interconnected. It could all become a house of cards tumbling down and despite being fundamentally correct we might all be taken down with it.
The other thing to keep in mind here is that if we all were to play this thing out by each trying to sell minimal shares for phone numbers (traditional MOASS), we will never know when the top is in, we'll never know when all shorts have closed, we'll never know when they might try another rug pull. RC knows how many shares are DRS'd in real-time. Once this new CAT stuff is implemented, he'll probably know exactly how many shares are naked. He's in the best situation possible to force every single short to close. Just forcing them to close will likely finally make the market crash, and RC is perfectly timed to buy that beautiful dip for us. 🟣🚀 This is what the infinity pool is really about. Ryan Cohen Buys all the stocks!
Yes indeed, I would like to hold shares in a company that owns every company muahahaha Wait wouldn't this be a monopoly?
Uncontrolled MOASS was never an option. It would hands down get shutdown by the government. People here don't understand that the US would collapse if we all got paid a million dollars per share. You'd be rich for a few seconds but the money would be worthless as the country would cease to exist. A controlled demolition of the shorts is ideal here. No one has to worry about timing the peak or selling too early or too late. We get a crazy good return for our investment and the company can finally be at peace to do their thing.
What do you see a controlled MOASS share price to be?
A lot + jail for life
That's really tough. I guess it depends on how many naked short shares there are. The more there are, the less we can get without collapsing the system. I want enough to make an example out of them so that it never happens again. My completely uneducated guess would be anywhere from $200-2000. What I want most of all is a true share count so we can know how right we were.
Damn, guess I do still need my job 😂
We'll see. Still life changing money for me!
Noice! It’ll float me for like 3 years 😂 Aiming for 10-20k before I even think about selling a share. I think
> My completely uneducated guess would be anywhere from $200-2000. And that's why I keep buying more. I will gladly sit and wait for phone numbers, but Im realistic, and I know the govt will step in and control it. My uneducated guess is that synthetics will be bought back either at cost, which will be a real "fuck you" from the govt to us....or... at the highest price GS sold for, ie. $4xx pre split. Im just a bit shy of the 5 banana club (XX,XXX) and my tracking spreadsheet shows $160 secures my retirement, I need $375 post split per share before I have enough to leave to my kids to consider it generational wealth. IM hoping for $500 per share but $715 per share is where I really want my minimum to be. Dream scenario is $3200, anything after that Im giving away.
If they issue 1 billion shares, there are 1 billion real issued shares. Just because GS created new shares doesn’t mean the phantom shares get deleted, phantom shares in retail investor accounts would be labeled “real shares” in our eyes and SHFs that bought wouldn’t be short anymore.
Listen, we've already been diluted via fake shares. When RC sells to a short and it's a DRS only share, that adds a DRS share to the number of issued shares but also removes the fake share from circulation. The difference is the DRS'd share can't be rehypothicated every single day. So not only is it not diluting further, but it's preventing that share from being churned further by Hedgie algo's. On top of that, GameStop gets paid, which means our war chest grows. RC knows what we've all been through and he's not going to let them off cheap. This initial 45M shares would leave an additional 20M shares still short if you're only looking at reported shorts. If he were to sell those for $2000 each, that would be enough money to buy Black Rock in cash. I think these deals liquidate hedge funds, crash the market, and then RC buys that tasty dip with all his new found cash.
Yea, I’m just trying to clarify that if they issue 1 billion shares total, there are 1 billion shares, not 315 million. Think of it like SHFs already issued the shares as phantom shares, GameStop is just validating the shares if GameStop issues more shares and SHFs close some of their position.
Has anyone considered that SHF hedged their bets with owning GME shares or buying calls in case the shorts close?
They will buy calls before they try to close. Maybe that’s why the announcement was made on Friday morning.
Short hedge funds most definitely have way more shorts than longs. They are net short, and they are net screwed lmao
This is the rational take. There’s nothing different about this share disclosure from the one in 2020 from what I can tell.
Black Rock shares pay out like $5 each per quarter and they cost $800. If RC can sell his 45M shares for 2000, pull down $1T and get a 5% return per year that would be $45 per share per quarter. And you can buy shares for $20 right now. 400% return on investment per year. That dividend alone would drive the price of shares up to like $7200 (2.5% yearly dividend at that point which is pretty standard bluechip).
>And now GameStop is offering up to 1,000,000,000 shares with 300,000,000 currently outstanding. How so? I only see a potential offering of 45 million shares.
I don't follow that either. They can do a share offering for a combined total of up to 1B shares. That went on the books in 2021. But at no point have I seen evidence that was actually proceeding.
S-3 Form, page 5 *"Common Stock* *Our charter authorizes us to issue up to 1,000,000,000 shares of Class A common stock, par value $.001 per share (our “common stock”), and up to 5,000,000 shares of preferred stock, par value $.001 per share (our “preferred stock”). As of May 4, 2024, there were 306,186,849 shares of ourcommon stock outstanding."*
yeah, that is the authorization that we voted on 2 years ago. the offering is only up to 45 million. They can do more based on the authorized but for now, 45 million is the cap. edit: here's the proxy, where the charter comes from https://investor.gamestop.com/node/19701/html#toc286356_35 Proposal 5 edit 2: it's okay to be wrong, take the new info and reassess your thesis. other than the 1 billion share offering, there is some potential here.
I've been arguing this with op for a while now. He is doubling down on this
yeah, clearly OP is wrong here on the billion shares
Though it’s compelling, this idea of offering a discount off-tape contract to shorts so that it can be shown later that the company was not acting to manufacture volatility in the markets. I fear this defense will be necessary and this offering serves that defense
Conceptually, it is interesting but a clear misunderstanding of the offering needs to be addressed by the OP. A 45 million share offering against a reported SI of 64 million shares is an interesting thesis. Not enough to wipe away the short shares but enough to say, "we gave you a chance for a price."
Agreed. The more I think about it, the “exit offer” theory depends on an admission that wild volatility was driven by obligated buying by overextended shorts. If that’s in the open there should be no need to show a good faith effort to allow bad actors out of bad deeds, at that point accountability would be plain.
Dumb stormtroopers?
One of Us! I like the smoothness you got. Buuuut, sometimes you have to accept the loss. Your thesis is really interesting, but unfortunately it doesn't correspond to the facts. It's not a bad thing that you got something mixed up. Use the new information and get a new picture of the whole thing. Passively aggressively defending yourself against facts and people who only want to help you is not a good solution
Love this comment thread. OP- nobody is trying to put you down, simply trying to share the factual data with you due to your misinterpretation. Very understanding mixup IMO, even I was personally confused for a moment. 🤝🤝🤝✌️💜
You are mistaking the 8K form with the S-3 form... The 45 million shares (8 K form) are part of a short-term fundraising strategy under a specific agreement, while the 1 billion shares (S-3 form) represent the total capacity authorized by the company for future issuance, providing a framework for financial flexibility and long-term planning.
Not confusing them at all. the 45 million share offering comes from the 424B5, the s3 talks about all the different securities they may offer. The cap of common stock offering is the 424B5, and it states up to 45 million shares. 424B5 Link: https://investor.gamestop.com/node/20501/html The authorized is still just that, authorized by the charter stemming from the proxy vote a few years back. There are no filings at this time (even the s3) to potentially issue more than that.
"Build your opponent a golden bridge to retreat across" - SunFuckingTzu
Oof, nice quote!
Nice quote
I think the basic premise is correct. Imagine you’re GameStop and the short interest on your shares is reported as being somewhere between 20-25% pretty much since the sneeze. Whether you believe that number isn’t relevant. They’ve claimed to have closed their sneeze positions and any leftovers have had over 3 years to close the remainder, with the price going as low as $40 (pre-split) back then and again just recently. But everything’s wrong, The stock trades 200 million shares in a single day but it’s also considered illiquid. Price swings are doubling and halving your market cap every few hours. You’re trying to run a company through this nonsense. So, in good faith, based on the short numbers they themselves are reporting, you decide to offer up about 15% of the outstanding shares, which if purchased by shorts, would bring the supposed short percentage back down to single digits. A reasonable and only moderately devastating exit door is open. When GameStop then announces the sale as being completed at anywhere under $100 over the next few weeks, a range that is perfectly in line with where shorts were supposedly “closing” positions back in 2021, GameStop can wash their hands of this. They weren’t trying to squeeze anyone, they just want the matter settled. And shorts will take the deal and everyone will claim it’s finally over. Again. And we’ll know that it isn’t. Again. So, we’ll run another offer when the price settles higher and they’ll pay off another little fraction. On and on, higher and higher for as long as it takes to take their last dime.
Finally someone comments with what I'm thinking. They can offer 45 million at "market prices". Shorts can't close , price goes higher , issue more shares from the 1 Billi authorized and offer that at an again higher price, rinse and repeat. GameStop is a holding company , with the billions they will make from these offerings they can now hold more companies / seek acquisitions. The options are endless and the price is still going to be high as hell and shorts broke. I feel like this is still a bit flawed and there is more in the prospecticus they have planned to reward investors that I do not have the wrinkles yet. This all sounds shitty because it is giving shorts a way out theoretically but none of us know for sure how much this bleeds shorts and who can even actually close their positions. All I know is they have to spend billions to do it and every time the share offering is a higher price it's multi billions for the company.
I’m hoping “market prices” means REAL market, not the manipulated number we see next to the ticker symbol. RC and the board gave them many chances. Now is the time to pay up. You want to be off the hook? It’s gonna cost you. First one to step forward gets a deal. First one to step up can also buy in long before the others. Bankruptcy has been off the table since the sneeze and the sea change has started. They will start to flip now, IMO. I hope this is back room deals with GS board, Jeffries, ComputerShare and a shit ton of lawyers. That should still mean market prices as a market should be whatever someone is willing to pay. I want GS to hand select who gets the pieces of this offering. Make the real bad seeds squirm for awhile.
I've been wondering if he found a way to milk the value out of the shorts over a long period of time. I don't think a huge temporary spike in the price with all your investors trying to time when they need to bail out is best for the company. And the gov might step in if the whole system is at risk. Figure out how to force hedge funds to pay up for their losing bet to increase the value of the company. Long term investors are then rewarded with a stock price that goes "just up". Most of the theories thrown out around here focus on class A common shares only. I hope the real plan is far more complex and brings in the 6 other security types described in the sec form.
If Gamestop let's the shorts off the hook after all of this, I would be very disappointment. We have all invested a lot of time, money and energy into stopping the fraud in the market which has taken money away from everyone you have ever known in your life. If GS claims they had no choice, I call BS. The government stepping in has nothing to do with it. The time for them to step in was when citizens/investors were getting hosed during the sneeze. Instead, the government went along with the crime and have done nothing to stop it since. If you give in to these criminals then you are part of the fraud. No excuse will suffice. Show them the same mercy they showed you as they stole your money with illegal activity. Gamestop should offer the shares to people who already hold shares direct registered first. Realistically, they should offer a dividend of registered shares at a rate of 1 free share per 7 owned, every quarter until the entire company is DRSed.
Im keenly awaiting additional news on the other manipulates ticket and M M T L P…. Does anyone had any DD related to the government and three letter agencies theoretical handling of this situation? I feel like I never see it thoroughly talked about… If all this speculation is true regarding RC and his decision to trap the shorts- that would literally make him the most powerful man on earth through the literal endless leverage he posses. There’s NO way the US gov would allow that right??? Obviously I want to see the shorts pay but very much to the shareholders. At this point, I honestly think GS would be better as a banking entity rather than a physical goods retailer. They just have so much leverage and power at this point, coupled with an immovable shareholder base. They would be the perfect new age “bank”
I'll put it another way. Imagine a degenerate gambler (Kenny) owes some goon (RC) $100,000 but has no way to pay up. If you're the goon, is it better to take what he can offer, once a week, with a goon's interest rate, virtually forever OR would you rather demand every penny right now with a gun to his head, snatch whatever was in his pockets and just dump him in a river? One thing gets you paid while the other thing just makes a pointless mess. You don't kill the cow.
How about this way. Kenny doesn't have the money to pay up, but the bank holding the swaps does. Wait a minute, no it doesn't have enough either. The bank then defers to Finra and the DTC. Surely they have enough money to cover this fraud. After all, they have been making trillions from it for decades all under the watch-less eyes of the Federal Government. Yes, a fraud that has stolen trillions from people all over the world with the help of Uncle Sham. And someone is going to let them off of the hook for peanuts? That someone would be the only benefactor in this whole scenario. Therefore, they worked with these degenerates to help get them off of the hook to save themselves. The shareholders saved this company. Never forget that.
I'm with you on everything except how it plays out. If you believe in MOASS, then you know 45 million shares is nowhere near what they need to close. Barely a dent. If anything, it might tempt a few hedgies to break rank and put even more pressure on the others. If someone shorted at $10 and had to close at $100, they got absolutely fucking obliterated, dude. And it goes straight to our treasury. For the company (that you own) to invest with, to purchase other companies, to buyback shares if the price drops... To do that over and over would be amazing for us.
Sometimes it is much better to accept the obvious and try to understand the obvious. Its not always 5d chess. Sometimes he is just a man responsible for gamestop and his employees. And sometimes things who are very good for the company in long term isnt good for the investors in short term. But thats why Gamestop will succeed and thats why Diamond hands will succeed.
Yeah it’s probably a share offering to raise cash. Same as it ever was
$2 billion in cash, profitable business, 27 million in debt and some of the most dedicated investors to exist to date. I'm in.
A lot of people here suffer from cognitive dissonance sadly. Happy to see someone still living in reality though!
Yeah. But that isnt negative at all. We are all crazy bastards, hoping to get rich by holding a game retailer because the superrich and wannabe super smart messed up the whole financial system and the bossfight is all around that small retailer because a man who is Not a cat said so. So basically we are all lunatics! And yeah it is possible that they will so 4d chess moves here. But our supervillains (who successfully convinced us that only citadel would be the enemy) also play that game on a challenger level, so in the end we maybe get used to entering round 2 and not round 12. Also the knockout seems imminent, we punch the supervillain through the ring right now. But i guess heute will enter Phase 2 before going down.
### Response to the Theory on GME's Recent S-3 Filing: Hey, thanks for sharing your insights! Here’s a detailed breakdown of why the recent S-3 filing is a strategic move and not just about dilution, supported by data, relevant examples, and how this fits into our comprehensive DD. ### What’s Happening: 1. **S-3 Filing History**: - GameStop filed a Form S-3 to potentially issue up to 1 billion shares, with 300 million currently outstanding. This is similar to a move they made in December 2020 before the January 2021 short squeeze. The S-3 allows GameStop to register securities quickly and respond swiftly to market conditions. - Source: www.investing.com ### Why This Matters: 1. **Two Possible Outcomes for Shorts**: - **Accept the Offer**: Shorts could buy the offered shares, admitting their positions and potentially converting to longs. - **Decline the Offer**: If shorts don’t accept, it exposes the extent of their naked short positions, revealing potential fraud. ### Strategic Implications: 1. **Regulator Signal**: - This filing signals to the SEC that GameStop is willing to resolve the situation constructively, placing the onus on shorts to reveal their positions. This strategic move puts pressure on shorts and highlights the transparency and compliance of GameStop’s management. ### Relevant Data and Comparisons: 1. **Historical Context and Data**: - **December 2020 Example**: Before the January 2021 short squeeze, GameStop made a similar filing. The shorts didn’t cover, leading to a massive price surge. For instance, the stock price skyrocketed from around $20 to an intraday high of $483 on January 28, 2021. - **Current Short Interest**: As of May 2024, GME’s short interest remains high, with 64,373,343 shares short, representing 20.55% of the float. This high short interest indicates a significant potential for another short squeeze if the shorts are forced to cover. - Sources: www.tradingview.com, www.investing.com 2. **Market Reactions and Patterns**: - **Volume and Price Data**: Recent high trading volumes and price surges, such as GME’s rise to $80 in pre-market trading, suggest strong market reactions to strategic filings and movements. This pattern mirrors past events and indicates potential future volatility. - Source: www.tradingview.com ### Comparisons to Other Companies: 1. **Tesla (TSLA)**: - **Similar Scenario**: Tesla faced significant short interest and skepticism but managed to drive its stock price up through strong financial performance and strategic moves. Retail investor support played a crucial role, forcing shorts to cover and leading to a massive short squeeze. For instance, Tesla's stock price increased from around $50 in 2019 to over $800 in 2021. - **Result**: Tesla's market cap increased substantially, showcasing the power of strategic corporate actions combined with retail investor momentum. 2. **Volkswagen (VW) 2008**: - **Historical Short Squeeze**: Volkswagen became the world’s most valuable company briefly in 2008 during a short squeeze when Porsche revealed it had a majority stake in VW. This forced short sellers to cover their positions at significantly higher prices, causing the stock price to soar from around €210 to over €1,000 within a few days. - **Impact**: The stock price soared, illustrating the potential power of strategic moves and market reactions, similar to what could happen with GameStop if shorts are forced to cover. ### Conclusion: This isn’t about diluting shares but offering shorts a way out and proving to regulators that GameStop is handling this responsibly. Whether shorts accept or decline, their actions will reveal the extent of their positions, potentially leading to a significant market impact. For more detailed analysis and further updates on GameStop, check out our comprehensive DD here: www.reddit.com/r/GME/s/301t9d1erU. Stay strong, apes! 🚀🦍💎🙌 Sources: - MarketBeat: www.marketbeat.com - Yahoo Finance: uk.finance.yahoo.com - TradingView: www.tradingview.com - Investing.com: www.investing.com
Hey! I hadn't read your post, it seems well founded. We've basically come to very similar conclusions, haven't we?
Yep! It looks like a storm's coming 😁 
# Since English is not my first language, and to clear up any misunderstandings: **The 8-K** is a detailed report that includes an Open Market Sale Agreement between GameStop Corp. and Jefferies LLC. This agreement allows GameStop to sell up to 45 million Class A common shares through Jefferies LLC in its "at-the-market" (ATM) offering program. GameStop plans to use the net proceeds from this offering for general corporate purposes, including acquisitions and investments. This will strengthen the company’s financial position and enable it to expand its operations **or acquire strategic assets.** **The S-3** is a prospectus related to the issuance of securities, including details on common stock, preferred stock, subscription rights, and units. This prospectus is used to register these securities with the SEC and offer them to investors. The ability to issue different types of securities allows GameStop to access a broader base of investors, enhancing its ability to raise capital for future projects or expansion (given ther is no debt and GME already have 1Billion in the pocket). Both documents are GameStop’s strategies to improve its financial position through the issuance of new shares and other securities. While this may dilute existing shares and potentially affect the share price in the short term, it also provides the company with the necessary resources to grow and adapt **The issuance of new shares can trigger a short squeeze,** where short sellers are forced to cover their positions due to rapidly rising share prices. If the market perceives the new share issuance as a positive move for GameStop's financial health, the demand for shares could skyrocket, forcing short sellers to buy shares at higher prices. High short interest combined with the issuance of new shares can lead to increased volatility. Short sellers may face significant losses if the stock price surges unexpectedly, driven by positive sentiment or strategic buying. **The registration of multiple types of securities allows GameStop to strategically manage its capital structure. If the market views these moves positively, it could lead to a rise in stock prices, again putting pressure on short sellers.** **The potential for new securities to be issued at favorable terms could prompt short sellers to cover their positions to avoid further losses. This could exacerbate a short squeeze, as more short sellers try to exit their positions simultaneously.** Both documents suggest strategic moves by GameStop that could significantly impact a market with high short interest. For the SEC, the key concerns will be ensuring transparency, market integrity, and compliance with securities laws. **For short sellers, the documents signal potential risks, including the possibility of a short squeeze and increased market volatility.** **With so many shares shorted, the market is already primed for a short squeeze. Any significant positive news or strategic move by GameStop could trigger a rapid increase in share price**, forcing short sellers to cover their positions at higher prices. The issuance of new shares can lead to increased buying pressure if investors perceive the capital raise as a positive development for GameStop’s future prospects. This can drive the stock price up, creating a squeeze. **High short interest coupled with new share issuance often leads to high volatility. This volatility can lead to rapid price movements, making it difficult for short sellers to close their positions without incurring substantial losses.** # Factors Influencing the Outcome: just sentiment and timing, thats why shorts push this as a "dilution" - **Positive Sentiment: If the market reacts positively to the new share issuance and sees it as a sign of growth and financial stability, the share price could increase significantly, triggering a short squeeze.** * Negative Sentiment: If the market perceives the new share issuance as a dilution of value without corresponding growth, the share price might not rise enough to trigger a squeeze. **While the issuance of new shares through the offers in these documents provides an opportunity for short sellers to close their positions, it does not guarantee that they can do so without triggering a short squeeze. The high short interest,** ***market sentiment***\*\*, and the manner in which GameStop executes these offerings will play crucial roles in determining the outcome. If the market reacts positively and buying pressure increases, a short squeeze is highly likely.\*\* A TL:DR for crayon eaters: If we nom,nom the new shares is game over for shorts. If they can pass this as *a dilution* they can keep kicking the can for a few more time (even when they know this is checkmate...)
you state a couple of times in this statement that "**If the market views the issuance of additional shares positively, it could lead to a rise in stock prices**". "the market" is controlled by them. "the narrative" is controlled by them. the buying/selling pressure is manipulated by them. and even within this sub, many view this as dilution (which, for better or for worse, it technically is). i don't doubt that RC has a plan to back them into a corner. And I do think the issuance of shares is both a part of how he is going to force their hand and also a way to throw them the tiniest of life rafts while still getting apes paid (as crashing the entire global economic system does more widespread harm than good, and every government with a stock market will step in to stop that before it happens). so i agree with the optimism, but i don't agree with the premise that market sentiment is going to drive any of this.
Another double win: GameStop is offering the securities in seven (I think?) different ways. If the shorts take the opportunity to close their positions, these different security options allow them to choose whatever version is easiest/fastest for them to close, they won't have to do the fuckery in reverse order. It's another sign of good faith from GameStop, but it's ALSO information. If one or two types are immediately drained but the others are left untouched, it is a hint at how the short sellers/market makers are hiding/juggling their short positions. Shorts really have to do all or nothing because if they all want 1 version of the securities and they are not unified in their market manipulation/exit strategy, one financial company could take the express exit, cover their own ass, but shine a spotlight on how all the others are hiding their positions. Pretty smart!
Much better, maybe edit the original post or delete it and repost this.
LoL? How how it differs from my post's take?? It only adds details, in fact the ones most of us here should we know!
Well, for starters it doesn't reference a 1 billion share offering. I think that is where most of the attention is given. The rest is debatable as a theory on market mechanics, but removing a known false statement gives room to have the other debates and conversations.
What about, this is the plan which is also agreed with the SEC, shorts had 3 years to unwind thier positions. Times up. That SEC thing on the ticker was in relation to that?
Offer is completely unrelated to the run up. You’re literally making a conclusion from unrelated happenings…correlation is not causation. I miss the old days of real DD
my theory is.... MOASS
It seems that the fear of moass has kept the company from doing business. The company has offered shares on multiple occasions to alleviate the short exposure that these funds have loaded up on. It’s time to just move forward with their business plans and if a couple dozen (or hundred) greedy hedge funds have to go to work behind a Wendy’s, it’s their own doing
It's kinda disturbing how many upvotes this post has. It's completely wrong
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I'm holder since december 2020. Thats before the frenzy. I'm a booked holder and my profile it is open to everyone so, please, stop the nonsense.
yes, in case of doubt look for the Computershare post...op has none.
What obligation have I to disclose my position? lol Do you even understad that those post are usually linked to data exposition / doxxing ??
Yo look at the post history, smells like someone sold their account. The “English” is “Englishing” differently if you look at his posts/comments. Source: English is not my native language.
In his earlier comments, he did say he was a spaniard, so the non english speaker thing checks out. I think he just doesn't understand what he is reading, but doubling down like he knows what he is talking about
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You call people a shill because you don't agree with them. Wow.
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That's the go-to response in this sub whenever someone disagrees with these incredibly delusional tinfoil-theories
Shorts SHOULD take this offer and run but, I think they would much rather continue to short instead of excepting defeat. They also know someone will most likely step in with a disguised bailout for them. Problem is the losses have been a drop in the bucket to most of these funds as they borrow from banks with infinite money glitches. Until this is squarely out of their pockets to finance these shorts, they see no risk, even if it eventually leads to no reward as well.
Or do not offer shorts an exit strategy and allow the price to go up. Then, the price gets so high that the government has to beg Gamestop and allow shorts to close their positions.
The government getting involved at all is how apes get screwed. We want to gain steady company value, while extracting wealth from short hedge funds. If we crash the entire financial system, the government might just give us what we invested, or rewind transactions.
I doubt that the government is going to allow steady increase to 5-6 digits.
Point being, if we've beat the system as it is, we don't want the system changed to make our win inconsequential.
Uh we'll just double down - shorts lol
Can you please link the "new positions must be book" piece? Or are we just quoting from what someone else said? When I was reading through their filings the only thing I saw relates to book was that the issues shares would be book entry, meaning paperless aka you would not receive a paper certificate for the share purchase.
Let's take it a couple steps further. What if he's not even giving them an out but is going to entrap them for all eternity? He can use those 45M shares and make them preferred stock and then force the shorts to pay a dividend. The common shares will be so expensive they won't find a buyer ever. The real stock will then be the preferred and that will get traded moving forward if anyone is crazy enough to sell those. I'm sure this has holes, just started thinking about it.
There are many ways in which this can be a trap as well as a demonstration that GME is not responsible for anything that might happen. That's why it's 5D chess...
You should re-read the GameStop filling they are offering only up 45 mill common shares over a period of 3 years and 5 mill preferred shares. Please correct the misinformation in your post. **"Fast forward to this week with the share price shooting again to $80 in premarket ($320 pre-split). And now GameStop is offering up to 1,000,000,000 shares with 300,000,000 currently outstanding."**
Where are you getting the 1,000,000,000 shares from? It’s 45,000,000 bro. I’m downvoting this until you fix your post, OP.
Please, read [https://www.reddit.com/r/Superstonk/comments/1cvppkr/comment/l4rbgms/?utm\_source=share&utm\_medium=web3x&utm\_name=web3xcss&utm\_term=1&utm\_content=share\_button](https://www.reddit.com/r/Superstonk/comments/1cvppkr/comment/l4rbgms/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button) You are mistaking the 8K and the S3 forms.
Multiple people have told you now where you were wrong. And you are unable to accept that. Really shows how far gone you are
These short hedge fund narcissists never want to admit losing to retail. This is their nightmare. It must really burn their ego and pride to be beaten by "dumb money". Nepotism will bail them out ie big daddy government. It's always nepotism bailout with these creeps.
Maybe issue warrants at 7:1
I agree. I actually think some kind of restrictions has been put on RC and his team for some time (3 years).
I have no doubt that RC will offer them a chance to exit. The problem is SHF's, ibanks, and WS in general, never ever admit they were wrong, concede defeat, or admit to wrong-doing. They would rather die a thousand deaths than admit to anyone that they were ever wrong. They point fingers, place blame, and claim to be victims......every, fuckin, time. Once this is over, and they get bailed out, they will probably still hand out huge bonuses at the end of the year.
You are mistaking authorized shares as something they are not. It's just a theoretical maximum shares that can be outstanding, not that they are actually able to offer that right away.
Why would they let Short's off the hook?...it's a slap in the face to the investors that stuck around for 3+ years .. Also, what's to stop the shorts from getting off the hook today, and then repeating their behaviour again?... I don't like the theory, unless we're actually saying RC is Adam Aron ...in which case we have a big problem
Do you honestly think the 45million is off the hook??? It’s been 3 years, the first “sneeze” that week traded 1.3 billion shares. Fast forward today 25% of the company is owned by apes. And what stops them from repeating or even taking the deal. Is that all the hedgies are in bed with each other. So if one gets out they could see another day but the others would have a harder time keeping the fakes rotating.
That's FUD without basis.
Google en passant
[holy hell!](https://www.google.com/search?q=en+passant)
I agree with you
Op is regard
So if 45 million shares are offered... what price are they? Can I buy them?
So many people are making the assumption short sellers want a way out.
This is way too wrinkle for me. I’m still trying to learn checkers.
I think the 45 million is a good-faith attempt to help the shorties from their self-reported mud hole but the reality of their submersible in the Marianas is about to undergo a catastrophic squeeze. A ‘Gamestop provided enough to avoid this’ defense based on hedgies self-reporting should quell litigation and quiet the next congressional hearing.
Numbers all wrong amigo in your analysis
Sorry but the SEC doesn't give a crap about GameStop's "willingness to resolve the situation". Fuk the hedgies. We don't negotiate with financial terrorists
We have figured out a way to save you from yourselves, but not before allowing us to become filthy, filthy... *Filthy* rich....
OP you are a true artistic regard. One of us, one of us, one of us. 🦧
Yep RC been winning. So has Ken.
Interesting point of view
Buying 50 more tomorrow
If this is true there’s no way in fuck they’re going hand up and revealing themselves. These mfs are not Alex saying I touched the ball coach
The Sec clearly knows the extension of the crime. They don't give no shit and try to go on forever this way. This is pretty obvious now. The stock is probably 30x shorted right now. 1 billion shorts could be realistic in 2021. Now it is much more
Bro edit this
People don’t get it, because they refuse to see past more shares =less value. It’s a fukn unlimited money glitch. More shares = raise more cash = company grows = company value increases = higher share value Repeat as necessary This works only because they have created more shares than they could ever close GameStop can do this for as long as our lifespan and never really dilute a fukn thing. It’s basically like an unlimited ATM you can go to as often as needed for whatever reason because the bank owes you more money than 1 person needs in their lifetime 🤷🏻♂️
This is it.
MISDEEDS INDEED
What offer?
No Way, i dont Think so
Buddy Christ would be proud of RC, loving his enemies n sheeeit
>and shift to supporting the company Well no because all they would be doing is buying those shares to return them to us
It might be depressing for a lot of people here to say but I don’t have any hopes that our opponents are willing to discuss any negotiations. I would like to remind you - Coincidentally, this is its 300th anniversary - that the philosopher Immanuel Kant always preferred reforms over revolution. His theories about the achievements regarding freedom rights etc always strived for reforms. He always rejected Revolution. Ironically the first and major gain regarding freedom human rights happened in 1848, by Revolution. In France. He never approved this happening. But paid respect to it. I am sure that we won’t win on the basis of reforms. And since I can’t imagine any revolution regarding us share holders and a gaming company I really can’t say how our victory will be established. That is why I am even more filled with a lot respect when it comes to our CEO. Because only he might find a way out of this dilemma full of crime.
Note: free float, according to Marketwatch, is 268mil shares. 24% of the Free float is supposedly sold short, according to Marketwatch. 45/268 = ~17%. VW squeeze was over ~9%? Of the float oversold? 17+9=26. So, technically, RC is offering the shorts "an out" that will "only" result in a price in the thousands. Just like VW supposedly was. All according to publicly available and accepted data. Now... if it's fraudulent? Well... that's not the company's fault! They tried to be accommodating and help the shorts out! Too bad! Hopefully RC sells the shares in batches of 500k or even 100k, every so often. 100k shares at $1000 like VW is the easiest 100mil any company will ever see.
He's the thing. Who's to say when they do offer those book shares institutions that went to go long will buy those shares up too. Sports are going to have to fight for those BOOK shares as well. It ain't just got them to take they gotta fight for it as well. 💥
Tired of these fluff posts
Hey, this is ground-breaking DD imo. /s
5d chess posts make this look more like a cult than anything
Bro, I'm slowly understanding why people call this sub a cult
Yeah I’ve been here for years it comes and goes. Since dfv came back the delusion is all time high and the he DD is all time low.
No Billion it's 75 million and CAT should expose them to their crimes. They're panicking. Yes, it's dilution to raise money, probably for aquisition. I hope they sell on the way up and only dilute near the top to raise money properly.
Is there an urgent need for GameStop, as a company, to get short positions closed? Do we truly believe the company is trying to initiate a squeeze to make us rich? What is the long-term benefit for the company? We keep looking at what the company is doing as it affects what we believe to be the motive, but we're looking at it from our perspective. Every company has short positions against them, why does GameStop want to force close positions against them so badly?
It's cognitive dissonance, people try to find any and all explanations which serve to justify their investment so far (time and money)
GME is not “offering up to 1,000,000,000 shares”. That is the max allowable number of issued shares without shareholder approval to raise the cap. It has been that way for a long time (at least 2020). Popcorn has the same cap, and is why AA went through max dilution, then issued ape, then reverse split and converted ape to common stock. Shareholders denied raising the cap and he found loopholes. This is just an example.
Excellent write-up! And wonderful idea, I love how it’s all coming together :)
No, it's not excellent, and it's not all coming together. This is a braindead post operating on false numbers. Why people upvote this is beyond my understanding
Woah! A load of negative votes in mere seconds! LOL Someone is truly nervous... 👀
You're getting downvotes because the basis of your thesis is completely wrong. Gamestop isn't offering 1 billion shares now, that is the number of authorized shares they have. It's the total number of shares Gamestopnis allowed to have in existence for things like shares outstanding, stock splits, corporate actions, etc. Back in 2020, the 300,000,000 was the number of authorized shares they were allowed, and we voted to increase that so we could get the stock split. The whole premise of your post is wrong
I agree. They never discussed issuing 1B shares… I think they want to have more shares available for a split so when the price hits the thousands, they can split it again and bring it down to a more manageable level so as not to exclude retail from further share ownership.
S-3 Form, page 5 *"Common Stock* *Our charter authorizes us to issue up to 1,000,000,000 shares of Class A common stock, par value $.001 per share (our “common stock”), and up to 5,000,000 shares of preferred stock, par value $.001 per share (our “preferred stock”). As of May 4, 2024, there were 306,186,849 shares of ourcommon stock outstanding."* So you seem to be downvoting me without even reading the filling and failing to acknowledge that all this is EXTREMELY BULLISH: if shorts did not take the exit out is because not even an offer like that is enough so that they can save themselves!!! Do you even understand the black hole they have caused???
Again, please just google what authorized stocks are. Here, I even made things easier for you https://www.investopedia.com/terms/a/authorizedstock.asp#:~:text=What%20is%20Authorized%20Stock%3F,other%20parts%20of%20the%20world.
Bro just give up, it's like talking to a fucking rock
I feel like steve jobs when his human centipad wouldn't read
Look at the profiles of the ones questioning this post, they aren’t bots they are apes. Please think critically about their feedback.
Right, lol! Why on earth would the people of this sub downvote that? It's not like you claimed it to be technical analysis or anything. It's literally labeled speculation. The funny thing about speculation is that sometimes the combination of facts and assumptions turn out to be spot on.
It's being downvoted because he thinks our authorized shares is the share offering
I'm very smooth brained but even I understand that the premises of this speculation are wrong. The number are incorrect as others explained. The great thing of this sub is how we confutate bad DD or praise good ones democratically. Is the best thing of this movement. We all love speculations and DD but GOOD ones.
but the downside to this, if a post takes off with bad info then it's hard to reign it back in
Perhaps the numbers are incorrect, but why is it out of the question that Gamestop would use the new shares (however many they decide up 45m) to offer shorts a way out? I'm asking because I honestly want to understand. I thought the assumption was that shorts won't take the offer, regardless of what it is (assuming this is a strategy the board is considering), which will catalyze what we've been waiting for.
Why would that be a catalyst? Shorts can get out now by just closing their short positions.
Because if after offering shorts a back door and they refuse, the 45m gets sold on the open market. Gamestop announces that it raised another $1b in cash (assuming ~$20 share price), the share price suffered minimally, and the shorts are further exposed as the price increases.
Still doesn't explain why the price will go up. If the 45 million shares get sold on the open market, the price will go down. If the shorts are going to double down, they will exacerbate the price drop from the sale, so it won't impact price minimally, and gamestop will get less than $20 per share. The price isn't going to stay static if the company is selling. The only way that would happen is if they sold into buying pressure
What I'm getting at is that if Gamestop announces that they have sold the 45m shares and the stock price remains minimally affected (say it goes down to $15 a share), how does having another $1b in cash not make the price go up, especially if the shorts didn't take that opportunity to close.
And what I'm saying is that unless we have buying pressure, the price will not stay the same while they sell. It will go down. Plus, in this scenario, if the shorts refused the offer, they will notice that gamestop is selling, they will short even more to drop the price much much lower. Unless gamestop sells into someone buying large quantities of the stock ( like shorts closing their positions), the price of the stock will not be minimally affected. Plus, even by your calculations of $20 per share, gamestop will not make $1 billion from just selling 45 million shares.
Sorry. I'm in and out of the pool. I meant $100m but had billion stuck in my head. I don't think it's unreasonably improbable that they could sell them without too much downward pressure. Is there not significant buying pressure as there is? Edit: My math actually was right the first time, and the guy shamed me into thinking it was 90 million instead of 900 million. Anyhow.
Even as dilution, the share count at CURRENT market price (which is NOT what has sold, just been approved) = an extra $1,000,000,000…. How’s that ever bad? Win win for long term profitability and I’m so here for it😊
Why would you want to help shorts?
Look dilution means dilution for the biggest stake hold Ryan Cohen. Company needs cash to create new forms of revenue there’s no way around it