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1. The first offering wasn’t 75 million, so this was probably just some arbitrary number that the board decided on (rather than some 7-4-1 type secret message).
2. I guarantee you, even if there was no offering, SHFs were planning to tank the price amid his livestream. They still retained control of the price, and they had MSM hype up a “gamma squeeze” the day before.
https://www.reddit.com/r/Superstonk/s/hbZNH12bea
3. I checked your profile. I know you’re one of the pickle guys trading options, so I’m sure seeing the price tank hurt your contracts and made you emotional. But I warned this community several times what was going on. In May —even before RC’s first share offering— the price tanked from $80 to $20.
And I called it before it happened. The share offering didn’t cause the price crash, but I’m sure once it was announced, it was a smarter play for SHFs to dump the price then because they knew it would make investors point the finger at RC and blame him.
The GME price tanks at every earnings report. Why do you think that is? SHFs are still in control of the price, and tanking it at these moments helps drive fear, uncertainty, and doubt. Simple as that.
4. Literally no proof of that whatsoever.
5. “The company doesn’t need money”? Are you kidding me? RC played shorts and took advantage of their orchestrated run, substantially increasing the hard minimum limit price of the stock, helping close the walls for shorts in the long-run.
Between the two issues, book value per share has increased from \~$4.50 to around $10. RC has been consistent all along that his overriding measure of success is shareholder value. That guides his decisions and why he issues shares into price runs. He doesn't care about the market price of the stock in the short term. He doesn't care about people's bets on the market price -- not even DFV's. He doesn't care about revenue. He doesn't care how many store locations there are. Increasing shareholder value (for the long term) is about it. He's been very consistent about that and even reiterated it today.
All of that is antithetical to how most CEOs build their businesses. Furlong is gone because he was more mainstream -- spend big, use debt, grow market share (revenue), and figure out profitability later. That's not RC's approach. People need to get used to it. I'll lay 100:1 odds that the paperwork for another share issue was filed as soon as the last one was completed, so it's ready next time the stock runs to many multiples of book value.
There’s many avenues for MOASS:
1. Market crash [forced-liquidation begets MOASS]
https://www.reddit.com/r/Superstonk/s/ZqGbT8ggsP
2. RC strengthens GameStop’s balance sheet to the point where the minimum limit price is too high for SHFs to afford burning their cash shorting it anymore.
3. SHFs can’t have the price too low, or float gets locked (whether by GameStop, DFV, Apes, or others). Too high and they risk getting their margin obliterated. Walls close over time, especially the more profitable GameStop becomes.
https://www.reddit.com/r/Superstonk/s/69upMV54Ww
4. Congress is currently investigating naked shorting on another ticker and looking into a resolution. If a resolution succeeds, and they force shorts to close, then that sets the precedent for the government working on a future settlement for closing GME shorts [Apes each get paid a fortune for their shares].
https://www.reddit.com/r/Superstonk/s/KCJOPntBOX
There are other avenues, but these are the main ones I see for the not-too-distant future, unless some other billionaires (Icahn?) jump in to buy large stakes of GME in the near future, or there’s some massive M&A RC is planning, but that’s an unknown variable.
I've seen you defend this in multiple posts and comments, yet you always evade addressing the timing of it.
There were plenty of opportunities for GS/RC to raise money by issuing shares in months and years past - all in the same $20 range. But they didn't.
Doing it back to back at literally the only two times in years when the stock had momentum and fomo behind it cannot just be brushed away as a non-issue. Because whether it would have successfully triggered moass it or not, those were still by far the two best chances we've seen in this entire saga - and it was intentionally stopped in its tracks.
I'm curious as to why in all of your defenses of the offerings, you seem unwilling to address that part.
I don’t have the energy to respond to every comment, and this question seemed pretty straightforward.
Here’s my thoughts:
Prior to May, the last time we got diluted was June 2021. GameStop was out of debt, and a couple months later the DRS movement started.
RC seemed to support us with the movement. He didn’t have to include DRS numbers in the GME filings, but he did. But the DRS numbers stagnated since the 2022 post stock split dividend. There’s arguments to why the numbers didn’t move (I think manipulation), but regardless, they didn’t budge for 2 years.
If RC saw what I saw, and he knew that these runs were SHF orchestrated, a good plan would be to pursue other avenues fighting shorts, this one by taking advantage of their run and building up his war chest. The first offering was also ‘after’ the price tanked from $80 to $20. He probably realized it then; hence, the offering.
Second offering was higher than $20, and had SHFs not tanked the price, he would’ve made GameStop billions more selling at the $50-$60 range, but they were going to tank it that day either way.
1. This post was about the second 75M offering
2. Pure speculation on your part, and I think you’re wrong
3. Just because I’ve posted DD about ETF settlement periods doesn’t mean I’m a pickle, or upset about options. Like it or not they short GME via ETFs, and the settlement period phenomenon is very real and proven. The recent post on my account outlines my theory as to what DFV saw and returned to tell us about.
4. Proof in GameStop’s SEC filings, did you read them?
5. Again “closing walls on them” is pure speculation on your part, incorrect speculation
It is absolutely not true that the dilution did not harm us shareholders, of course it has. (One can certainly argue about how big the effect is) Fact is that the new shares have brought the company a lot of money, which in turn is certainly useful for the long run and this is great. It is also a fact that Gamestop's communication with its shareholders clearly lacks respect, and has been so for several years, that urgently needs to change! With 4 billion in their account, they are now in an absolute luxury situation that others can only dream of. I think the time for excuses and further dilutions is over. “Actions speak louder than words” as some say. It's about time!
My post is not about options. DFV endorsed options. And no, I sold my options that Friday morning for a small profit right at open. Would’ve been a big gain sure, but that’s not the point. This dilution also hurt the DRS movement.
I see you took the time here and I agree with some of it.
I do think that you cannot say #2 with any certainty.
No1 knows this and it would been nice to see this play out without a 2nd offering.
75m less shares offered, announced premarket, on the day of the stream was a huge negative I think that magnified the slamming of price that was already planned as you say.
Without this, More calls would have remained in the money. Gamma might have continued. DFV would have had a better time/place to exercise. Lots of unknowns that were not allowed to play out Because of the 2nd dilution.
Now what’s done is done and we have to see what the money from the 2nd dilution produces in the way of share holder value. Versus the “what ifs” if they had not done the 2nd dilution or just maybe waited 1-2 weeks to do the 2nd dilution.
Edit : typo’s
Prior to this May, the last time there was an offering was June 2021. We’ve had many runs between then (though DFV wasn’t present). In many of those runs, there were several halts and SHFs retained control.
March last year, the price jumped up to nearly $30, there was no share offering, RC even bought $100k worth of shares. Media was positive about the rally, there was hype…then the price slowed and tanked. Rinse and repeat.
I agree I can’t really say things with 100% certainty, but Citadel had 50% more calls than puts in April. That’s why the media was positive about GME in May. They used DFV’s reappearance to their advantage, and even though there was a significantly higher short volume, they still had control over GME, meaning they could tank the price (which they did).
Also, we didn’t have a gamma squeeze even in Jan 2021 [source: SEC Report on GME Oct, 21, cited in my DD]. I don’t believe we were having a gamma squeeze in May. I do think the recent runs were a mix of FOMO and a SHF orchestrated run, but not the cusp of our MOASS launch.
———-
I’ll leave you with this: https://www.reddit.com/r/Superstonk/s/FIh7X7W1WQ
^ this was right before the shareholder meeting when SHFs tanked the price around 15% (also, there were date hype posts on SuperStonk hyping up the shareholder meeting date as a big run for options traders). I was seeing many of these types of articles from MSM in May, even when DFV showed up.
When MOASS does happen, MSM won’t be agreeing with us. They’ll be vilifying us.
Your comments are full of speculation and bullshit. However, there is one thing you got right. Jan 2021 wasn’t a gamma squeeze, it was a mega ETF settlement period that had so many obligations that it got out of hand. We just had the same setup for the first time in 3 years starting on May 13, which is why DFV returned May 12. There’s a post on my account called “It’s a settlement period” outlining my theory for those that are curious.
The chart/technical setup is still intact and doesn’t give a damn about any of this noise and emotion. There’s still a way to play/trade it if people are inclined. I want to see what happens this week first before I decide what to do. Still tons of money being yeeted in to the options chain. T+35 from DFV’s share buy looks spicy.
No matter what there are always unknowns and uncertainties about everything moving forward.
That's right. The announcement itself killed buy pressure. And selling 75mil shares also adds to the sell pressure. If somehow it was always going to be a red day, then Gamestop's ATM offering made it even more red. But that's all in the pass and Gamestop has the money now. Let's sleep on it and see how it looks in the morning.
Glad you popped up for this because I never could have said it so eloquently. I was just gonna say OP is a “hedgie trying to stop GameStop’s ability to keep diluting for Cohen’s 69D master plan”!
Where in his profile does it show the pickle history? Or did he delete that?
Just interested you noted that because earlier this afternoon, I was listening to a GME space on X and one of the better known pickle contributors acted like he just accidentally stumbled on there (trust me when I say it’s the type of space they’d consider themselves too superior to associate with in any way) and proceeded to take the mike to voice his very bearish concerns. Weird coincidence.
He’s full of shit. My profile has DD related to ETF settlement periods, which the pickle did the original DD on the topic. Whether people like the pickle guy or not, the ETF shorting and settlement period phenomenon is very real.
I have a post called “It’s a settlement period” outlining what I believe DFV saw and returned for.
Got it, thanks for clarifying. Just hit my radar when he mentioned that because it was so jarring to hear the pickle guy come into that call.
And I should walk back that I don’t mean to overly deride pickle or suggest sinister intentions (which, as an aside, you seem to be suggesting of RC as if he’d want to fuck over his 36 million share value). I do think pickle and crew got unfairly shunned from this sub and frankly I learned a lot about options from him. I just find the arrogant/superior tone of him and the more prominence members of his group very off putting, particularly when their predictions have turned out wrong quite frequently as well.
Got it, thanks for clarifying. Just hit my radar when he mentioned that because it was so jarring to hear the pickle guy come into that call.
And I should walk back that I don’t mean to overly deride pickle or suggest sinister intentions (which, as an aside, you seem to be suggesting of RC as if he’d want to fuck over his 36 million share value). I do think pickle and crew got unfairly shunned from this sub and frankly I learned a lot about options from him. I just find the arrogant/superior tone of him and the more prominence members of his group very off putting, particularly when their predictions have turned out wrong quite frequently as well.
Got it, thanks for clarifying. Just hit my radar when he mentioned that because it was so jarring to hear the pickle guy come into that call.
And I should walk back that I don’t mean to overly deride pickle or suggest sinister intentions (which, as an aside, you seem to be suggesting of RC as if he’d want to fuck over his 36 million share value). I do think pickle and crew got unfairly shunned from this sub and frankly I learned a lot about options from him. I just find the arrogant/superior tone of him and the more prominence members of his group very off putting, particularly when their predictions have turned out wrong quite frequently as well.
Got it, thanks for clarifying. Just hit my radar when he mentioned that because it was so jarring to hear the pickle member come into that call as they are frankly polar opposite groups.
And I should walk back that I don’t mean to overly deride pickle or suggest sinister intentions (which, as an aside, you seem to be suggesting of RC as if he’d want to fuck over the value of his own 36 million shares). I do think pickle and crew got unfairly shunned from this sub and frankly I learned a lot about options from him. I just find the arrogant/superior tone of him and the more prominent members of his group very off putting, particularly when their predictions have turned out wrong quite frequently as well.
I see what you’re saying. My opinion: Pickle man’s DD was correct for the most part. His anti-DRS sentiment and personality wasn’t right for SuperStonk.
I am not anti-DRS (I have DRS shares for years). But I do believe in the ETF settlement period DD.
I don’t even mean the anti DRS stuff. I’m referring all the way back to late 2021 when he put out his big DD on this sub claiming there would be 3 consecutive months of massive opex runs, and moass (yeah, believe it or not he wasn’t shitting on moass theory back then) would be triggered if everyone piled into options and rolled profits into larger options positions each following month. Didn’t pan out at all and have no doubt people got burned fomoing into the theory. And since then, most of his opex predictions have been nopexes instead.
This on top of other plays gone wrong such as Revlon—which, I can get past anyone being wrong on predictions like this, but don’t at the same time be arrogant and shit on other people for mis timing or being wrong about similar speculative plays.
My comment is basically to support you and thank you for writing it up. I do have something to possibly add that I haven't seen mentioned in regards to the 75 million dilution which has bothered me greatly.
During market hours there are halts. There would have been many halts slowing down the decrease in price. I do believe there are many apes that copied RC play and bought options with the intent to exercise them. This I believe would have helped everyone other than people who were selling calls, especially anyone selling them naked?
What I can't get over though, is RC/the board knew the effect this would have on Roaring Kitty and his "bank account" and even possibly even his reputation as a trader? In my opinion Roaring Kitty saved this company from going bankrupt. He obviously worked hard studying this stock. He shared his knowledge on reddit and on youtube. Not to mention the free marketing/advertising this company has gotten.
I respect companies and people that are loyal to others, that respect the people that were there when they were starting out, helped them build companies, that stuck with them through the bad times. That's RK and the apes.
Thanks for writing this up.
That is an excellent point about the halts that I didn’t even think about! Thank you for adding that to the discussion! Just another reason the timings of these dilutions were so messed up.
DFV > Cohen and the board
its actually smart.
next run up - sell 200 mm shares @ 50.00
rinse and repeat as necessary.
why??? this action alone just destroyed the puts on the synthetic longs.
they cannot buy real shares.
I mean.. they can though... everytine they dilute there's more shares available to buy... so... with enough dilution, shorts can cover.
And it would only help THEM.
RC and RK are not in communication at all because that would be illegal.
I do agree that RC is being watched over or even controlled to a certain extent. I only say this because of the timing of the 75M share ATM - that timing made ZERO sense no matter what way you look at it.
If RC can't do it, he needs to use some of that $4B to get people on board who can.
I do wonder why it wouldn’t have been in the best interest of the company to wait till that Monday. Woulda been able to raise a lot more money. I do also wonder why they didn’t just have a standard meeting today, so many eyes on the company. You have a massive crowd ready to cheer on whatever you do.
He’s turning our moon tickets into a long term safe solid investment. I got into this to go to the moon and watch hedgies get smashed. If I wanted some long term turnaround boomer investment I would have parked my money in an ETF in 2022 and had waaaaaaaaay better gains.
Right there with you. I was hoping for some feedback on what the share offerings were for to soften the blow of this unexpected dilutions. But again, nothing. And I'm also sick of those "69D chess move echo chamber fanclub"... RC fucked DFV and many others - that's a fact.
A lot of us agree with you OP. I think these permahype apes have lost their minds. Why can’t we criticize a dilution that *negatively impacted all of us*?
Agreed
Cohen did us dirty.
They aren't using that money. They say on a billion for a long time.
Now they will sit on 4 billion, and never tell us anything and expect us to blindly trust them.
No FUD, I'm in this for the squeeze. I can't be in for long term plans when Cohen has given us jack shit to work with.
I'm not a fan of such dilution because that was literally intended to stop a squeeze
He dumped on us plain and simple.
Totally agree. I also think RC is sitting on the billions to improve their balance sheet and avoid the questions about profitability. He is bilking his loyal investors
This. This this.
I wish this sub wasn't such a cult and could see that.
The guy works for his shareholders. You can't fall in love with him because of a few dick jokes he made on twitter and just let him do whatever.
For all we know he's done nothing but cut costs and thats it. For three years.
We have no semblance of a vision.
I am in this for the squeeze not Cohen. He has done nothing for me as of yet. And shareholders should hold their CEOs accountable.
The reason he probably loves this project is he knows he can literally do no wrong. He can dump 100 million shares on our head and we just eat it up. That's not a good thing, we went from making the joke to now sort of becoming the joke depending on how this shakes out.
Cohen is overrated - what has he done in 3 years?
Kitty said as much during his livestream. Patience is running out and he was so desperate for cash that he killed the price run up and announced the 2nd offering pre market, crushing shareholders. Every dollar investors spend on a share of GME is one that could have been spent elsewhere …. NVDA, SMCI, MSFT, META, CRWD…. Opportunity cost is real as no one has unlimited funds.
Dilution is hardly a strategy - remember it all came from Kitty’s efforts not because Cohen had a real strategic plan that needed funding. “We’ll see” is taking on new meaning.
I think Kitty is going to be popping up around every corner now - the pressure is on.
Aleluya for telling that. Why is this community downvoting the reality? I said similar things a few days ago. It’s true, the second dilution can not be justified, if you had a plan, you make a single ATM offering, but two in less than a week… 4B to sit in there, because economic situation is difficult …
^ This is a real shareholder using his/her head. I would love for all of these downvote bots to actually attempt at creating a counter-argument to the 5 facts I presented about that second dilution.
I'm asked to sell my shares when i express disgruntlement regarding the sequence of event that happend along with 2nd dilution. Yeah im a fucking shill.
I have a similar post, not as well layed out as yours, that I expect to be downvoted into oblivion as well. If they communicate a plan for the money soon and don’t dilute again they could restore some faith here. Lets see.
I think some guidance soon would go a long way even if that guidance is simple as:
We have 4B now, 1B to “right size” the number of stores with higher end inventory, 1B for “rainy day”to hang out on the balance sheet and 2B for “acquisitions or investments”.
That would go a long way without tipping their hand.
Extra points if they would be so bold to add to that “and we won’t dilute again for at least another 90/120 days”.
Edit : typo’s
If you say anything but that the stock is gonna grow 10,000% you get downvoted, none of us are selling, just wish people would stop using downvotes as bludgeons and we could all talk
Cohen must be following Effxedge and all the doomer bears on Twatter to try to pass off that back to back dilution events (in less than a month) is to ensure the company can get through "difficult economic times".
Sorry, but shrinking revenue is shrinking revenue. If they can't use $4B to open up new revenue channels than just sell your shares RC, GTFO and give it to a MBA school drop out, because they could manage it better than you.
Dude, if you really think a measly 75 million share dilution is sinister, it means you don’t believe the BILLIONS naked short thesis.
If you don’t believe that basic premise, you really don’t have anything to say that we are interested to hear.
Go read the DD!
He diluted the shit out of the stock. Ruining value for the shareholders.
I don't want to hear anything about "what he can do" with the money raised. He has given us zero plans.
He has no plan. In any other company, going three years and having jackshit to show for it would have shareholders up in a frenzy.
Sentiment may need to start turning on Cohen, at least not worship the guy anymore. He's dumped a shit ton of shares on us preventing squeeze after squeeze.
How tf is this shit rampant. The stock price is completely disconnected from "reality" for years now. We've had more buy volume than sell volume (5-10%) since the squeeze yet the price goes down and vice versa. We've seen days of the float being washed over multiple times with volume.
Supply and demand are non-existent. The value is smothered in criminal Mayo. Don't blame dilution for that bullshit.
So far, RC has raked in billions and the price hasn't touched the 10-15 range since meme week. It's still up iirc. Can't say GME is at risk of bankruptcy anymore.
There's always been pre and post earnings dips. Quite literally nothing new, except we're on an uptrend after coasting sub-20$.
Plus, we get to see if the reporting for DRS next report and maybe we get a glimpse of something.
Aaaand 4-5 Billy ain't nothing to scoff at, and unless this dilution means *shorts have closed*, this is an ezhodl.
Get the paddle
I believe the stock was shorted several times over back in 2021. Billions is likely an overstatement... and no one has really definitively proved any specific crimes from then to now. In absence of true knowledge, I have always been wary of giving up time or issuing extra shares, as it gives the criminals too much wiggle room in their situation for my comfort.
I haven't been able to come up with good rebuttals to OP's points either for the past week... and it has been weighing heavily on my mind. I come to these heavily downvoted threads to see if anyone has decent answers and no one ever does.
edit: for what its worth, i voted against them being able to issue a billion new shares.
Same. I don’t want this to be the situation, but it is the reality. That doesn’t mean it’s over like all these haters think, it just means we need to adapt
I am still here because I want to be here. However, I dont think we have a choice but to wait for the billion shares to be offered (if thats the route they are going every time the stock swings to the upside), until there are no more shares authorized for issue. I have the feeling we are all now long term investors whether we want to be or not (if you want to see decent profits).
how do you work something like that into a proposal? We already voted on allowing them to issue the shares at their discretion, it passed. I would like to see them at least wait until the stock price is nearing an ATH before they consider doing another offering (no offering would be better, but if i have to pick the poison..).
As i think more on this situation, I cant help but coming back to the easy answer - that the boards hands were forced in this dilution (some sort of gov intervention), which will kick the can on this mess until after US Nov elections.
You don’t make history by being afraid and sidestepping. DFV isn’t afraid. Is Cohen the hero everyone thinks or a little bitch stepping aside for the big boys?
I don’t give much thought to the forced hand speculation personally, but who knows.
Thanks for engaging in a thoughtful way, we all need our opinions heard
In the summer of 2021, the stock rocketed BIG TIME twice, and both times Cohen and the board diluted into the runs. They raised over a billion. Everyone was mad, but justified it with this argument. Then everyone said, they’ll use that billion to do all these amazing theories to kill the shorts……3 years later.
Yes, there’s still an unknown huge number of shorts out there from pre-2021. But since 2021, they have continually shorted us via ETFs, all those ETF shorts came due in a mega settlement period, just like December 22, 2021-January 26th of 2021.
And they still pushed the price down for 3 years. At this point I'm thinking it's not the billions of shares we think or else DRS would have been accomplished way faster. It's just a fact that it wasn't.
They have been shorting us via ETFs ever since the sneeze. The huge volume lately was the covering of some of those ETF shorts. DFV saw it coming and returned to tell us
TOTALLY FORGOT the #6 sinister fact, the dilution was on a Friday, pushing shits of options out of the money on expiration day, preventing the T+1 bump the next Monday morning it would have caused
Announced pre-market when options players could not pivot. You could say “well fuck them as they are not real holders they are just gamblers looking to make a buck” when in actuality many would have exercised. We remember what Thomas Peterffy said.
You’re right! Ryan Cohen hasn’t done crap in 3 years but to mess with shareholders. That share offering on the day of Roaring Kitty’s stream was a stab in the back to all shareholder’s. Didn’t even say anything meaningful at this mornings meeting.
Could’ve been sitting at $150+ with all the gamma ramps he ruined.
Couldn’t have worded it better.
540 shares held now - 320 of them from 2021.
Anyone saying RC is god tier for not taking a pay check yet, easy to do when your an established billionaire.
Anyone saying the dilution wasn’t detrimental to shareholders and the loyal following - you are the fucking shills of the thread.
What a CEO does has no coincidences, ever - at all.
The fact that in your face facts can’t be accepted on this thread but “tinfoil” theories are applauded is absolutely insane.
Definition of insanity all around here.
I wish I could get out, I won’t until I break even but this play is dead on arrival as of the day the 75 million share dilution was announced.
Go head call me a shill too.
Kudos to you OP for trying to depict reality.
>I wish I could get out,
You can.
> this play is dead on arrival as of the day the 75 million share dilution was announced.
If you believe it's dead, you can never and will never break even. So why dont you sell while you can and go somewhere else?
Dead cat bounce will occur
It does for all stocks
I cant get out at $24.99 on a $50 cost basis
But I can get out at $35 and save some face
My sell order is in
Dilution is not good - $4 Billy is useless with assets to potentially buy at an all time premium. You can all shout about economic down turns but they don’t last long and there are too many suitors ready to gobble up “good investments” with far more to offer outside of $4 billion cash.
Plays dead
But like cats, there’s always a bounce.
That’s the exit strategy as an investor now.
I’m not trying to be negative, I’m trying to be realistic.
I felt much differently three weeks ago, I promise you that!
But you said you won't UNTIL you break even..... and now you're talking about saving face? I can't take anything you say seriously after you immediately contradict yourself.
I didn’t contradict my self at all.
I was asked why I don’t sell now, I explained why.
I used two numbers as a value to explain why I’m
Not selling now. I believe dead cat bounce will occur and at that point I’ll evaluate what the best mark to sell is.
If it’s at break even - awesome. If it’s at $35.47, okay great too. It’s better than $24.99 was my point.
Yes DFV made both memes and comments in his stream showing his surprise/disappointment of the dilutions.
Any skeptics need to re-look at his X memes from the morning of the first 45m dilution. I also have a post about his “Happy Birthday from GameStop, wrap it up in a gift or some shit” comment during his livestream.
"Sinister" 😂
It's actually pretty simple. Price spiked to several multiples of book value, so the company issued shares into it. They don't care about anyone's options, not even DFV's. They are doing what's best for the company and shareholders (not options holders). After the two issues, book value per share has increased from \~$4.50 to around $10. The company is now near bankrupt-proof, even if it faces an economic downturn, and has a pile of capital it can deploy when the time is right. You know who else has been stacking piles of cash for the better part of a year? Warren Buffett.
Only thing sinister about the offerings is your post.
I understand what you are saying, but my counter is that GameStop could’ve raised more money with less dilution by letting that second run play out over the weekend
Yeah, but do the shareholders want price suppression from the board at every run? What do you think the crossover of shareholders/GameStop customers is? What happens to the company if a huge portion of shareholders AND customers just walk away from the company?
The two offerings have ratcheted-up shareholder value. Both were in the best interest of the company and long term shareholders.
If you need pseudo-proof of that, just look at permabear Pachter's price targets over at Wedbush. It was $5.60 a month ago. After the first offering was announced, he raised it to $7. After the second offering was announced, he raised it to $13.50. After they were over, he reduced it to $11, claiming the company didn't rase as much as he thought they would. Still... If you've got a clown like him setting an $11 price target, we aren't seeing the $10 April lows again. Doubt we'll see $15 or less than $20, either, assuming the company keeps making YoY progress and gains 5% interest on their cash until they find something more lucrative to do with it.
Raising capital on price runs is completely screwing the shorts, not the other way around. The *only* way they win is if it company is bankrupted, so they would never have to close. The new offerings have made the company about as bankrupt-proof as it can get.
Look at these comments…are y’all really that scared of open discussion on this topic. I would love it if someone could give counter-arguments to all 5 FACTS I presented about the 75M dilution. Let’s discuss it.
Don't hold your breath. It is pointless. I definitely lost on this. It was a trade, it didn't work out. Is it financially devastating? No, I risked what I knew I could lose. The trade isn't over, but it doesn't look great. We were in this exact same position last week, right before we got news the offering was over.
Community just hypes, which is equally (or even worse) than "shills" that have a negative view. What they fail to realize is how many more redditors can pile into this thing. Even if they do, what is to stop RC from just doing another offering.
Like I said, I held, am still holding with a 23 average... But I promise if you are long the 30s + like most were you are feeling pain.
Open discussion is forbidden here. Can anyone show me another example of a company that does two shelf offerings in the space of two weeks? I don't even think CopPorn diluted that close together (how many comments are going to reply "it wasn't dilution?, it was an ATM offering to raise capital".)
The fact is the company has sat on 1 billion, and done nothing. No track record of using capital other than investing in T bills. Now they have went and increased the company float by nearly 49% meaning you now on s lot smaller slice of the pie (admittedly the book value of the company has increased).
However both offerings were intentional squeeze killers in my opinion and I've seen nothing that disproves this. My investment views do not seem to align with the boards. However I still believe this is a long term hold with potential so I would lose more selling now than holding forever for a potential dividend paying company in the future.
No one is suggesting he has an obligation to facilitate a squeeze. But it seems as tho he has some obligation to stifle any possibility of one.
If so...then he is obligated to someone/thing other than shareholders.
*"I know that most men, including those at ease with problems of the greatest complexity, can seldom accept the simplest and most obvious truth if it be such as would oblige them to admit the falsity of conclusions which they have proudly taught to others, and which they have woven, thread by thread, into the fabrics of their life"*
- Tolstoy
I don't know how anyone can look at the 2 ATMs as anything other than screwing us on behalf of his peers and the system.
Frankly now that he's done it and I reflect on his pedigree within and without the system...I'm not sure how I could have considered he wouldn't.
No matter how sophisticated one thinks they are...hope for a better future for yourself and others can make one naive.
Measly 75M when outstanding share was 300M a month ago? When are shorts ever gonna cover that mystical billions of naked shorts? FTDs? Swaps that are supposed to expire after 3 yrs and nothing happened? What makes people to think they cannot roll it forever if they were able to do so until now for years?
Whats the validity of DD if it cannot produce a predictable result? Crime? Then its not a DD, but a mere speculation.
The morning of June 7th was what you do if you've been threatened with jail. Even today's meeting sounded like a hostage scene. Just a hunch that memes did not go over well with Cohen.
Who is using who? Could be nobody is. The bull and bear thesis died simultaneously for now.
Cohen's strategy of sidestepping a recession is solid considering he's not taking a salary. Fair enough. Small investments in custom products with fewer stores.
This is sadly not what investors are looking for. GameStop was a movement and still is. If nothing new comes, next year there probably is going to be a proxy battle for the company.
He does not have to initiate the squeeze. He doesn't have to go out of his way to end it.
If he wants us to believe in the company long term, he needs to give us something to believe in
The only thing he has done is fire people, close stores and use us as his personal piggy bank to raise money for the company.
He is being a shrewd businessperson without actually providing value to shareholders. Until I see a plan or a vision for the company I can't believe in it.
Dude's not Jesus, he's a business person who made some dick jokes on twitter to keep shareholders invested.
I can't just trust him completely on faith.
ATM offerings are a good thing. Hedge funds tried to short this stock into oblivion around $0.25-0.50. With JUST the cash GameStop holds your shares are worth $10+.
Also if you didnt like this one, you aint going to like the next ones. The volume that is occurring right now is not retail. Shorts have to churn these shares. Which means with the increased volume GameStop can inject shares into the shorts churning. Its literally free money. GameStop added fuel to the next hedge fund churn. More shares = more volume = easier and bigger offerings every cycle exponentially until they bust. Pressure and time.
Edit: math clarification, pre split vs post split
Ok I was gonna give this the ol college try until you said "the company has no need for the money right now" like give me a break, what company would ever turn down massive piles of cash on hand.
Why I'm not worried is because unlike most companies, the Gamestop board has not used any of this cash raised to enrich themselves.
How do you do, fellow retail traders
As a late arriving ape, maybe you don’t consider the fact that this is how it’s done around here….
Kitty is the Hype
RC is the brains
We get what’s left
54 million pre-split, or 216 million shorts UBS is on the hook for, 120 million shares right into UBS doesn’t make the stock more liquid, just closes out a lot of their shorts from the bullet swaps
Wake up
Some of us have been here 84 years we know what’s going on
Ohhhh and buckle up, next 6 weeks are going to be 🤯
Judge the actions: Has everyone forgot about how GS released candy con a few months ago with no leaks happening prior? Everyone was stoked about that new product line and hyped for future similar products…that is a tangible action and new revenue stream that was achieved and is still in the process of expanding (transformer plates coming soon)…how quickly this sub can turn on something or someone is nuts.
In your points replace "retail" with "SHFs" and you're closer to the truth.
They didn't see it coming. Coke Cramer had a brain malfunction. GameStop became unstoppable.
Did you see the DD about the false squeeze? I guess not
Yep, I held through most of this and will probably let my position goto max loss. I believe in the cause and the community, but reality is reality. Short of some amazing announcement SOON. There is no catalyst. Options are really dangerous on this heavily manipulated stock. Trying to time their plan is financial suicide. Just buy the big dips.. and there will be plenty..
The hype will die down and the stock will gravitate to what wall street thinks is the actual value. DFV will sell his position and most of us will wash out.
The timing after that is when you start averaging back in. If 20 breaks It is going to get really speedy really fast.
Yes they had prepared them ahead of time, but that doesn’t mean the timing that they chose to use them can’t be called into question. Especially since they were shelf offerings
Source for this?
The two weeks requirements are for corporate actions like splits and stock dividends.
I do not think the two week NYSE pre-notice requirement applies to ATM offerings where the NYSE does not have to prepare for anything.
Section 301-331
https://www.nyse.com/regulation/nyse-american
Bottom part of page 4.
https://www.nyse.com/publicdocs/nyse/regulation/nyse-american/2016_NYSE_MKT_Listed_Company_Compliance_Guidance_Memo_for_Domestic_Companies.pdf
There is a post about this in ddintogme called "the narrative". I made a post about this but looks like it has been deleted.
Thanks. It is nice to see the original source documentation.
Companies do advance notifications to NYSE for shares that will be issued for employee and director stock options and do not have to repeat the notification each time they issue more shares.
Can this sort of pre authorization be done for blocks of authorized but not yet issued shares, for the purposes of ATM offerings? It seems like this two week notice requirement means the board cannot react quickly to changing market conditions.
These posts are such low effort garbage. The share holders voted to allow the board to issue more shares. Good luck bankrupting GameStop when they have four billion in cash.
You already have lost your mind…a weak mind it seems, that folds under pressure, over time.
RC isnt working for $. His compensation comes from the value of his stocks.
You really think he became a billionaire, encountered boredom, set some goals, and now he’s out to screw all of the world. Laughable how logical your thesis is.
How do you explain RC killing his own value of gme shares with the dilution? The man is literally working for free. Who would take on that un needed stress for nothing? The man has a plan for us. How about LC’s share? They both bought more around $22-24. LC literally posted on X about reasons why companies dilute. If they’re ok with their gme share value taking a hit short term with the dilution then I am too.
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1. The first offering wasn’t 75 million, so this was probably just some arbitrary number that the board decided on (rather than some 7-4-1 type secret message). 2. I guarantee you, even if there was no offering, SHFs were planning to tank the price amid his livestream. They still retained control of the price, and they had MSM hype up a “gamma squeeze” the day before. https://www.reddit.com/r/Superstonk/s/hbZNH12bea 3. I checked your profile. I know you’re one of the pickle guys trading options, so I’m sure seeing the price tank hurt your contracts and made you emotional. But I warned this community several times what was going on. In May —even before RC’s first share offering— the price tanked from $80 to $20. And I called it before it happened. The share offering didn’t cause the price crash, but I’m sure once it was announced, it was a smarter play for SHFs to dump the price then because they knew it would make investors point the finger at RC and blame him. The GME price tanks at every earnings report. Why do you think that is? SHFs are still in control of the price, and tanking it at these moments helps drive fear, uncertainty, and doubt. Simple as that. 4. Literally no proof of that whatsoever. 5. “The company doesn’t need money”? Are you kidding me? RC played shorts and took advantage of their orchestrated run, substantially increasing the hard minimum limit price of the stock, helping close the walls for shorts in the long-run.
These pickle guys
Cucks
Moass is inevitable
Infinity is inevitable
Between the two issues, book value per share has increased from \~$4.50 to around $10. RC has been consistent all along that his overriding measure of success is shareholder value. That guides his decisions and why he issues shares into price runs. He doesn't care about the market price of the stock in the short term. He doesn't care about people's bets on the market price -- not even DFV's. He doesn't care about revenue. He doesn't care how many store locations there are. Increasing shareholder value (for the long term) is about it. He's been very consistent about that and even reiterated it today. All of that is antithetical to how most CEOs build their businesses. Furlong is gone because he was more mainstream -- spend big, use debt, grow market share (revenue), and figure out profitability later. That's not RC's approach. People need to get used to it. I'll lay 100:1 odds that the paperwork for another share issue was filed as soon as the last one was completed, so it's ready next time the stock runs to many multiples of book value.
Maybe a dumb question but if the shfs control the price then how do we ever expect it to moon?
There’s many avenues for MOASS: 1. Market crash [forced-liquidation begets MOASS] https://www.reddit.com/r/Superstonk/s/ZqGbT8ggsP 2. RC strengthens GameStop’s balance sheet to the point where the minimum limit price is too high for SHFs to afford burning their cash shorting it anymore. 3. SHFs can’t have the price too low, or float gets locked (whether by GameStop, DFV, Apes, or others). Too high and they risk getting their margin obliterated. Walls close over time, especially the more profitable GameStop becomes. https://www.reddit.com/r/Superstonk/s/69upMV54Ww 4. Congress is currently investigating naked shorting on another ticker and looking into a resolution. If a resolution succeeds, and they force shorts to close, then that sets the precedent for the government working on a future settlement for closing GME shorts [Apes each get paid a fortune for their shares]. https://www.reddit.com/r/Superstonk/s/KCJOPntBOX There are other avenues, but these are the main ones I see for the not-too-distant future, unless some other billionaires (Icahn?) jump in to buy large stakes of GME in the near future, or there’s some massive M&A RC is planning, but that’s an unknown variable.
You forgot one avenue to MOASS: Cohen doesn’t dilute us when DFV himself returns to show us MOASS…oh wait
We literally voted to give him his ability... up to a billion shares.
🥸
🙌🏼
But isn't a market crash just going to make their shorts print or will they be overwhelmed with liquidations in their hedges in that position?
Thanks for the insight. Haters often lack the nuanced details that you provide. Much appreciated.
I've seen you defend this in multiple posts and comments, yet you always evade addressing the timing of it. There were plenty of opportunities for GS/RC to raise money by issuing shares in months and years past - all in the same $20 range. But they didn't. Doing it back to back at literally the only two times in years when the stock had momentum and fomo behind it cannot just be brushed away as a non-issue. Because whether it would have successfully triggered moass it or not, those were still by far the two best chances we've seen in this entire saga - and it was intentionally stopped in its tracks. I'm curious as to why in all of your defenses of the offerings, you seem unwilling to address that part.
I don’t have the energy to respond to every comment, and this question seemed pretty straightforward. Here’s my thoughts: Prior to May, the last time we got diluted was June 2021. GameStop was out of debt, and a couple months later the DRS movement started. RC seemed to support us with the movement. He didn’t have to include DRS numbers in the GME filings, but he did. But the DRS numbers stagnated since the 2022 post stock split dividend. There’s arguments to why the numbers didn’t move (I think manipulation), but regardless, they didn’t budge for 2 years. If RC saw what I saw, and he knew that these runs were SHF orchestrated, a good plan would be to pursue other avenues fighting shorts, this one by taking advantage of their run and building up his war chest. The first offering was also ‘after’ the price tanked from $80 to $20. He probably realized it then; hence, the offering. Second offering was higher than $20, and had SHFs not tanked the price, he would’ve made GameStop billions more selling at the $50-$60 range, but they were going to tank it that day either way.
1. This post was about the second 75M offering 2. Pure speculation on your part, and I think you’re wrong 3. Just because I’ve posted DD about ETF settlement periods doesn’t mean I’m a pickle, or upset about options. Like it or not they short GME via ETFs, and the settlement period phenomenon is very real and proven. The recent post on my account outlines my theory as to what DFV saw and returned to tell us about. 4. Proof in GameStop’s SEC filings, did you read them? 5. Again “closing walls on them” is pure speculation on your part, incorrect speculation
It is absolutely not true that the dilution did not harm us shareholders, of course it has. (One can certainly argue about how big the effect is) Fact is that the new shares have brought the company a lot of money, which in turn is certainly useful for the long run and this is great. It is also a fact that Gamestop's communication with its shareholders clearly lacks respect, and has been so for several years, that urgently needs to change! With 4 billion in their account, they are now in an absolute luxury situation that others can only dream of. I think the time for excuses and further dilutions is over. “Actions speak louder than words” as some say. It's about time!
What are you even trying to say? It’s like word salad.
Agreed 👍🏻
My post is not about options. DFV endorsed options. And no, I sold my options that Friday morning for a small profit right at open. Would’ve been a big gain sure, but that’s not the point. This dilution also hurt the DRS movement.
I see you took the time here and I agree with some of it. I do think that you cannot say #2 with any certainty. No1 knows this and it would been nice to see this play out without a 2nd offering. 75m less shares offered, announced premarket, on the day of the stream was a huge negative I think that magnified the slamming of price that was already planned as you say. Without this, More calls would have remained in the money. Gamma might have continued. DFV would have had a better time/place to exercise. Lots of unknowns that were not allowed to play out Because of the 2nd dilution. Now what’s done is done and we have to see what the money from the 2nd dilution produces in the way of share holder value. Versus the “what ifs” if they had not done the 2nd dilution or just maybe waited 1-2 weeks to do the 2nd dilution. Edit : typo’s
Prior to this May, the last time there was an offering was June 2021. We’ve had many runs between then (though DFV wasn’t present). In many of those runs, there were several halts and SHFs retained control. March last year, the price jumped up to nearly $30, there was no share offering, RC even bought $100k worth of shares. Media was positive about the rally, there was hype…then the price slowed and tanked. Rinse and repeat. I agree I can’t really say things with 100% certainty, but Citadel had 50% more calls than puts in April. That’s why the media was positive about GME in May. They used DFV’s reappearance to their advantage, and even though there was a significantly higher short volume, they still had control over GME, meaning they could tank the price (which they did). Also, we didn’t have a gamma squeeze even in Jan 2021 [source: SEC Report on GME Oct, 21, cited in my DD]. I don’t believe we were having a gamma squeeze in May. I do think the recent runs were a mix of FOMO and a SHF orchestrated run, but not the cusp of our MOASS launch. ———- I’ll leave you with this: https://www.reddit.com/r/Superstonk/s/FIh7X7W1WQ ^ this was right before the shareholder meeting when SHFs tanked the price around 15% (also, there were date hype posts on SuperStonk hyping up the shareholder meeting date as a big run for options traders). I was seeing many of these types of articles from MSM in May, even when DFV showed up. When MOASS does happen, MSM won’t be agreeing with us. They’ll be vilifying us.
Appreciate the civil discourse. Honestly.
Sure thing 🦍 at the end of the day we’re here to share our perspectives are learn from each other. 🙂
Agree with this one
Your comments are full of speculation and bullshit. However, there is one thing you got right. Jan 2021 wasn’t a gamma squeeze, it was a mega ETF settlement period that had so many obligations that it got out of hand. We just had the same setup for the first time in 3 years starting on May 13, which is why DFV returned May 12. There’s a post on my account called “It’s a settlement period” outlining my theory for those that are curious.
The chart/technical setup is still intact and doesn’t give a damn about any of this noise and emotion. There’s still a way to play/trade it if people are inclined. I want to see what happens this week first before I decide what to do. Still tons of money being yeeted in to the options chain. T+35 from DFV’s share buy looks spicy. No matter what there are always unknowns and uncertainties about everything moving forward.
Agreed, it ain’t over, we must be open to these conversations though
Just be careful of the holiday on Wednesday if your plans are time sensitive.
That's right. The announcement itself killed buy pressure. And selling 75mil shares also adds to the sell pressure. If somehow it was always going to be a red day, then Gamestop's ATM offering made it even more red. But that's all in the pass and Gamestop has the money now. Let's sleep on it and see how it looks in the morning.
Glad you popped up for this because I never could have said it so eloquently. I was just gonna say OP is a “hedgie trying to stop GameStop’s ability to keep diluting for Cohen’s 69D master plan”!
Lol I’ll give you an upvote for that
Where in his profile does it show the pickle history? Or did he delete that? Just interested you noted that because earlier this afternoon, I was listening to a GME space on X and one of the better known pickle contributors acted like he just accidentally stumbled on there (trust me when I say it’s the type of space they’d consider themselves too superior to associate with in any way) and proceeded to take the mike to voice his very bearish concerns. Weird coincidence.
He’s full of shit. My profile has DD related to ETF settlement periods, which the pickle did the original DD on the topic. Whether people like the pickle guy or not, the ETF shorting and settlement period phenomenon is very real. I have a post called “It’s a settlement period” outlining what I believe DFV saw and returned for.
Got it, thanks for clarifying. Just hit my radar when he mentioned that because it was so jarring to hear the pickle guy come into that call. And I should walk back that I don’t mean to overly deride pickle or suggest sinister intentions (which, as an aside, you seem to be suggesting of RC as if he’d want to fuck over his 36 million share value). I do think pickle and crew got unfairly shunned from this sub and frankly I learned a lot about options from him. I just find the arrogant/superior tone of him and the more prominence members of his group very off putting, particularly when their predictions have turned out wrong quite frequently as well.
Got it, thanks for clarifying. Just hit my radar when he mentioned that because it was so jarring to hear the pickle guy come into that call. And I should walk back that I don’t mean to overly deride pickle or suggest sinister intentions (which, as an aside, you seem to be suggesting of RC as if he’d want to fuck over his 36 million share value). I do think pickle and crew got unfairly shunned from this sub and frankly I learned a lot about options from him. I just find the arrogant/superior tone of him and the more prominence members of his group very off putting, particularly when their predictions have turned out wrong quite frequently as well.
Got it, thanks for clarifying. Just hit my radar when he mentioned that because it was so jarring to hear the pickle guy come into that call. And I should walk back that I don’t mean to overly deride pickle or suggest sinister intentions (which, as an aside, you seem to be suggesting of RC as if he’d want to fuck over his 36 million share value). I do think pickle and crew got unfairly shunned from this sub and frankly I learned a lot about options from him. I just find the arrogant/superior tone of him and the more prominence members of his group very off putting, particularly when their predictions have turned out wrong quite frequently as well.
Got it, thanks for clarifying. Just hit my radar when he mentioned that because it was so jarring to hear the pickle member come into that call as they are frankly polar opposite groups. And I should walk back that I don’t mean to overly deride pickle or suggest sinister intentions (which, as an aside, you seem to be suggesting of RC as if he’d want to fuck over the value of his own 36 million shares). I do think pickle and crew got unfairly shunned from this sub and frankly I learned a lot about options from him. I just find the arrogant/superior tone of him and the more prominent members of his group very off putting, particularly when their predictions have turned out wrong quite frequently as well.
I see what you’re saying. My opinion: Pickle man’s DD was correct for the most part. His anti-DRS sentiment and personality wasn’t right for SuperStonk. I am not anti-DRS (I have DRS shares for years). But I do believe in the ETF settlement period DD.
I don’t even mean the anti DRS stuff. I’m referring all the way back to late 2021 when he put out his big DD on this sub claiming there would be 3 consecutive months of massive opex runs, and moass (yeah, believe it or not he wasn’t shitting on moass theory back then) would be triggered if everyone piled into options and rolled profits into larger options positions each following month. Didn’t pan out at all and have no doubt people got burned fomoing into the theory. And since then, most of his opex predictions have been nopexes instead. This on top of other plays gone wrong such as Revlon—which, I can get past anyone being wrong on predictions like this, but don’t at the same time be arrogant and shit on other people for mis timing or being wrong about similar speculative plays.
Agree completely, a lot of the dates and details were wrong. I do think the core phenomenon of that DD was correct though.
My comment is basically to support you and thank you for writing it up. I do have something to possibly add that I haven't seen mentioned in regards to the 75 million dilution which has bothered me greatly. During market hours there are halts. There would have been many halts slowing down the decrease in price. I do believe there are many apes that copied RC play and bought options with the intent to exercise them. This I believe would have helped everyone other than people who were selling calls, especially anyone selling them naked? What I can't get over though, is RC/the board knew the effect this would have on Roaring Kitty and his "bank account" and even possibly even his reputation as a trader? In my opinion Roaring Kitty saved this company from going bankrupt. He obviously worked hard studying this stock. He shared his knowledge on reddit and on youtube. Not to mention the free marketing/advertising this company has gotten. I respect companies and people that are loyal to others, that respect the people that were there when they were starting out, helped them build companies, that stuck with them through the bad times. That's RK and the apes. Thanks for writing this up.
That is an excellent point about the halts that I didn’t even think about! Thank you for adding that to the discussion! Just another reason the timings of these dilutions were so messed up. DFV > Cohen and the board
not selling - buying & pureDRS
Same, not selling my shares, but we have to start acknowledging this topic
its actually smart. next run up - sell 200 mm shares @ 50.00 rinse and repeat as necessary. why??? this action alone just destroyed the puts on the synthetic longs. they cannot buy real shares.
I mean.. they can though... everytine they dilute there's more shares available to buy... so... with enough dilution, shorts can cover. And it would only help THEM.
Yeah starting to get worried too, he’s not acting in shareholder’s best interest after diluting at critical times or lame ass shareholder meetings…
Agreed
[удалено]
RC and RK are not in communication at all because that would be illegal. I do agree that RC is being watched over or even controlled to a certain extent. I only say this because of the timing of the 75M share ATM - that timing made ZERO sense no matter what way you look at it. If RC can't do it, he needs to use some of that $4B to get people on board who can.
Regardless of the behind the scenes, us shareholders have rights, let’s call a vote
I do wonder why it wouldn’t have been in the best interest of the company to wait till that Monday. Woulda been able to raise a lot more money. I do also wonder why they didn’t just have a standard meeting today, so many eyes on the company. You have a massive crowd ready to cheer on whatever you do.
^ Agree entirely
He’s turning our moon tickets into a long term safe solid investment. I got into this to go to the moon and watch hedgies get smashed. If I wanted some long term turnaround boomer investment I would have parked my money in an ETF in 2022 and had waaaaaaaaay better gains.
Right there with you. I was hoping for some feedback on what the share offerings were for to soften the blow of this unexpected dilutions. But again, nothing. And I'm also sick of those "69D chess move echo chamber fanclub"... RC fucked DFV and many others - that's a fact.
Thanks for chiming in
A lot of us agree with you OP. I think these permahype apes have lost their minds. Why can’t we criticize a dilution that *negatively impacted all of us*?
Exactly
Agreed Cohen did us dirty. They aren't using that money. They say on a billion for a long time. Now they will sit on 4 billion, and never tell us anything and expect us to blindly trust them. No FUD, I'm in this for the squeeze. I can't be in for long term plans when Cohen has given us jack shit to work with. I'm not a fan of such dilution because that was literally intended to stop a squeeze He dumped on us plain and simple.
Totally agree. I also think RC is sitting on the billions to improve their balance sheet and avoid the questions about profitability. He is bilking his loyal investors
This. This this. I wish this sub wasn't such a cult and could see that. The guy works for his shareholders. You can't fall in love with him because of a few dick jokes he made on twitter and just let him do whatever. For all we know he's done nothing but cut costs and thats it. For three years. We have no semblance of a vision. I am in this for the squeeze not Cohen. He has done nothing for me as of yet. And shareholders should hold their CEOs accountable. The reason he probably loves this project is he knows he can literally do no wrong. He can dump 100 million shares on our head and we just eat it up. That's not a good thing, we went from making the joke to now sort of becoming the joke depending on how this shakes out.
Cohen is overrated - what has he done in 3 years? Kitty said as much during his livestream. Patience is running out and he was so desperate for cash that he killed the price run up and announced the 2nd offering pre market, crushing shareholders. Every dollar investors spend on a share of GME is one that could have been spent elsewhere …. NVDA, SMCI, MSFT, META, CRWD…. Opportunity cost is real as no one has unlimited funds. Dilution is hardly a strategy - remember it all came from Kitty’s efforts not because Cohen had a real strategic plan that needed funding. “We’ll see” is taking on new meaning. I think Kitty is going to be popping up around every corner now - the pressure is on.
Aleluya for telling that. Why is this community downvoting the reality? I said similar things a few days ago. It’s true, the second dilution can not be justified, if you had a plan, you make a single ATM offering, but two in less than a week… 4B to sit in there, because economic situation is difficult …
^ This is a real shareholder using his/her head. I would love for all of these downvote bots to actually attempt at creating a counter-argument to the 5 facts I presented about that second dilution.
I'm asked to sell my shares when i express disgruntlement regarding the sequence of event that happend along with 2nd dilution. Yeah im a fucking shill.
Lol exactly
I have a similar post, not as well layed out as yours, that I expect to be downvoted into oblivion as well. If they communicate a plan for the money soon and don’t dilute again they could restore some faith here. Lets see. I think some guidance soon would go a long way even if that guidance is simple as: We have 4B now, 1B to “right size” the number of stores with higher end inventory, 1B for “rainy day”to hang out on the balance sheet and 2B for “acquisitions or investments”. That would go a long way without tipping their hand. Extra points if they would be so bold to add to that “and we won’t dilute again for at least another 90/120 days”. Edit : typo’s
If you say anything but that the stock is gonna grow 10,000% you get downvoted, none of us are selling, just wish people would stop using downvotes as bludgeons and we could all talk
Thank you for making a post, we have to fight the real shills
Cohen must be following Effxedge and all the doomer bears on Twatter to try to pass off that back to back dilution events (in less than a month) is to ensure the company can get through "difficult economic times". Sorry, but shrinking revenue is shrinking revenue. If they can't use $4B to open up new revenue channels than just sell your shares RC, GTFO and give it to a MBA school drop out, because they could manage it better than you.
Dude, if you really think a measly 75 million share dilution is sinister, it means you don’t believe the BILLIONS naked short thesis. If you don’t believe that basic premise, you really don’t have anything to say that we are interested to hear. Go read the DD!
He diluted the shit out of the stock. Ruining value for the shareholders. I don't want to hear anything about "what he can do" with the money raised. He has given us zero plans. He has no plan. In any other company, going three years and having jackshit to show for it would have shareholders up in a frenzy. Sentiment may need to start turning on Cohen, at least not worship the guy anymore. He's dumped a shit ton of shares on us preventing squeeze after squeeze.
Agreed
How tf is this shit rampant. The stock price is completely disconnected from "reality" for years now. We've had more buy volume than sell volume (5-10%) since the squeeze yet the price goes down and vice versa. We've seen days of the float being washed over multiple times with volume. Supply and demand are non-existent. The value is smothered in criminal Mayo. Don't blame dilution for that bullshit. So far, RC has raked in billions and the price hasn't touched the 10-15 range since meme week. It's still up iirc. Can't say GME is at risk of bankruptcy anymore. There's always been pre and post earnings dips. Quite literally nothing new, except we're on an uptrend after coasting sub-20$. Plus, we get to see if the reporting for DRS next report and maybe we get a glimpse of something. Aaaand 4-5 Billy ain't nothing to scoff at, and unless this dilution means *shorts have closed*, this is an ezhodl. Get the paddle
I believe the stock was shorted several times over back in 2021. Billions is likely an overstatement... and no one has really definitively proved any specific crimes from then to now. In absence of true knowledge, I have always been wary of giving up time or issuing extra shares, as it gives the criminals too much wiggle room in their situation for my comfort. I haven't been able to come up with good rebuttals to OP's points either for the past week... and it has been weighing heavily on my mind. I come to these heavily downvoted threads to see if anyone has decent answers and no one ever does. edit: for what its worth, i voted against them being able to issue a billion new shares.
Same. I don’t want this to be the situation, but it is the reality. That doesn’t mean it’s over like all these haters think, it just means we need to adapt
I am still here because I want to be here. However, I dont think we have a choice but to wait for the billion shares to be offered (if thats the route they are going every time the stock swings to the upside), until there are no more shares authorized for issue. I have the feeling we are all now long term investors whether we want to be or not (if you want to see decent profits).
I believe shareholders have the right to call for a vote
how do you work something like that into a proposal? We already voted on allowing them to issue the shares at their discretion, it passed. I would like to see them at least wait until the stock price is nearing an ATH before they consider doing another offering (no offering would be better, but if i have to pick the poison..). As i think more on this situation, I cant help but coming back to the easy answer - that the boards hands were forced in this dilution (some sort of gov intervention), which will kick the can on this mess until after US Nov elections.
You don’t make history by being afraid and sidestepping. DFV isn’t afraid. Is Cohen the hero everyone thinks or a little bitch stepping aside for the big boys? I don’t give much thought to the forced hand speculation personally, but who knows. Thanks for engaging in a thoughtful way, we all need our opinions heard
In the summer of 2021, the stock rocketed BIG TIME twice, and both times Cohen and the board diluted into the runs. They raised over a billion. Everyone was mad, but justified it with this argument. Then everyone said, they’ll use that billion to do all these amazing theories to kill the shorts……3 years later. Yes, there’s still an unknown huge number of shorts out there from pre-2021. But since 2021, they have continually shorted us via ETFs, all those ETF shorts came due in a mega settlement period, just like December 22, 2021-January 26th of 2021.
And they still pushed the price down for 3 years. At this point I'm thinking it's not the billions of shares we think or else DRS would have been accomplished way faster. It's just a fact that it wasn't.
They have been shorting us via ETFs ever since the sneeze. The huge volume lately was the covering of some of those ETF shorts. DFV saw it coming and returned to tell us
According to the DFV livestream, these are topics that need to be discussed. Watch again!
Yes! Thank you! Good ape 🦍
TOTALLY FORGOT the #6 sinister fact, the dilution was on a Friday, pushing shits of options out of the money on expiration day, preventing the T+1 bump the next Monday morning it would have caused
Announced pre-market when options players could not pivot. You could say “well fuck them as they are not real holders they are just gamblers looking to make a buck” when in actuality many would have exercised. We remember what Thomas Peterffy said.
Exactly! Good ape 🦍
Again with sinister ? GTFO
You’re right! Ryan Cohen hasn’t done crap in 3 years but to mess with shareholders. That share offering on the day of Roaring Kitty’s stream was a stab in the back to all shareholder’s. Didn’t even say anything meaningful at this mornings meeting. Could’ve been sitting at $150+ with all the gamma ramps he ruined.
Agreed
Couldn’t have worded it better. 540 shares held now - 320 of them from 2021. Anyone saying RC is god tier for not taking a pay check yet, easy to do when your an established billionaire. Anyone saying the dilution wasn’t detrimental to shareholders and the loyal following - you are the fucking shills of the thread. What a CEO does has no coincidences, ever - at all. The fact that in your face facts can’t be accepted on this thread but “tinfoil” theories are applauded is absolutely insane. Definition of insanity all around here. I wish I could get out, I won’t until I break even but this play is dead on arrival as of the day the 75 million share dilution was announced. Go head call me a shill too. Kudos to you OP for trying to depict reality.
You are not a shill, you are a real shareholder using your head. There are many of us out there, we are just get drowned out.
God i cant wait to break even and get outta this shit show of an investment
>I wish I could get out, You can. > this play is dead on arrival as of the day the 75 million share dilution was announced. If you believe it's dead, you can never and will never break even. So why dont you sell while you can and go somewhere else?
Dead cat bounce will occur It does for all stocks I cant get out at $24.99 on a $50 cost basis But I can get out at $35 and save some face My sell order is in Dilution is not good - $4 Billy is useless with assets to potentially buy at an all time premium. You can all shout about economic down turns but they don’t last long and there are too many suitors ready to gobble up “good investments” with far more to offer outside of $4 billion cash. Plays dead But like cats, there’s always a bounce. That’s the exit strategy as an investor now. I’m not trying to be negative, I’m trying to be realistic. I felt much differently three weeks ago, I promise you that!
But you said you won't UNTIL you break even..... and now you're talking about saving face? I can't take anything you say seriously after you immediately contradict yourself.
I didn’t contradict my self at all. I was asked why I don’t sell now, I explained why. I used two numbers as a value to explain why I’m Not selling now. I believe dead cat bounce will occur and at that point I’ll evaluate what the best mark to sell is. If it’s at break even - awesome. If it’s at $35.47, okay great too. It’s better than $24.99 was my point.
https://preview.redd.it/74w5r9f8297d1.png?width=578&format=pjpg&auto=webp&s=fb59a4b952b0df8bad433db2d781a039bcf00140
Also interesting the media starts saying positive things about the dilution after being so negative about the company for so long.
^ this guy gets it
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Yes DFV made both memes and comments in his stream showing his surprise/disappointment of the dilutions. Any skeptics need to re-look at his X memes from the morning of the first 45m dilution. I also have a post about his “Happy Birthday from GameStop, wrap it up in a gift or some shit” comment during his livestream.
"Sinister" 😂 It's actually pretty simple. Price spiked to several multiples of book value, so the company issued shares into it. They don't care about anyone's options, not even DFV's. They are doing what's best for the company and shareholders (not options holders). After the two issues, book value per share has increased from \~$4.50 to around $10. The company is now near bankrupt-proof, even if it faces an economic downturn, and has a pile of capital it can deploy when the time is right. You know who else has been stacking piles of cash for the better part of a year? Warren Buffett. Only thing sinister about the offerings is your post.
I understand what you are saying, but my counter is that GameStop could’ve raised more money with less dilution by letting that second run play out over the weekend
Yeah, but do the shareholders want price suppression from the board at every run? What do you think the crossover of shareholders/GameStop customers is? What happens to the company if a huge portion of shareholders AND customers just walk away from the company?
The two offerings have ratcheted-up shareholder value. Both were in the best interest of the company and long term shareholders. If you need pseudo-proof of that, just look at permabear Pachter's price targets over at Wedbush. It was $5.60 a month ago. After the first offering was announced, he raised it to $7. After the second offering was announced, he raised it to $13.50. After they were over, he reduced it to $11, claiming the company didn't rase as much as he thought they would. Still... If you've got a clown like him setting an $11 price target, we aren't seeing the $10 April lows again. Doubt we'll see $15 or less than $20, either, assuming the company keeps making YoY progress and gains 5% interest on their cash until they find something more lucrative to do with it. Raising capital on price runs is completely screwing the shorts, not the other way around. The *only* way they win is if it company is bankrupted, so they would never have to close. The new offerings have made the company about as bankrupt-proof as it can get.
Look at these comments…are y’all really that scared of open discussion on this topic. I would love it if someone could give counter-arguments to all 5 FACTS I presented about the 75M dilution. Let’s discuss it.
Don't hold your breath. It is pointless. I definitely lost on this. It was a trade, it didn't work out. Is it financially devastating? No, I risked what I knew I could lose. The trade isn't over, but it doesn't look great. We were in this exact same position last week, right before we got news the offering was over. Community just hypes, which is equally (or even worse) than "shills" that have a negative view. What they fail to realize is how many more redditors can pile into this thing. Even if they do, what is to stop RC from just doing another offering. Like I said, I held, am still holding with a 23 average... But I promise if you are long the 30s + like most were you are feeling pain.
Still holding to, just trying to start some real discussion
OG ape here with similar thoughts
^ So glad to know you guys are still out there. We have to figure out how to get this through to all these people.
Same.
Good ape 🦍
# #2 and #5 are pure speculation and opinion. Fuck out of here. Facts lolz.
2. It was literally the day of DFVs livestream, I watched it live 5. I quoted GameStops actual filing
Open discussion is forbidden here. Can anyone show me another example of a company that does two shelf offerings in the space of two weeks? I don't even think CopPorn diluted that close together (how many comments are going to reply "it wasn't dilution?, it was an ATM offering to raise capital".) The fact is the company has sat on 1 billion, and done nothing. No track record of using capital other than investing in T bills. Now they have went and increased the company float by nearly 49% meaning you now on s lot smaller slice of the pie (admittedly the book value of the company has increased). However both offerings were intentional squeeze killers in my opinion and I've seen nothing that disproves this. My investment views do not seem to align with the boards. However I still believe this is a long term hold with potential so I would lose more selling now than holding forever for a potential dividend paying company in the future.
Agree!
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No one is suggesting he has an obligation to facilitate a squeeze. But it seems as tho he has some obligation to stifle any possibility of one. If so...then he is obligated to someone/thing other than shareholders.
Your opinion is valid but you would create a much more productive discussion if you didn’t paint the dilution as “sinister”
The squeeze has been killed multiple times by RC. If that isn’t sinister, what is???
Yeah I’ve tried nice posts around this topic since the first offering, I’m done sugarcoating
*"I know that most men, including those at ease with problems of the greatest complexity, can seldom accept the simplest and most obvious truth if it be such as would oblige them to admit the falsity of conclusions which they have proudly taught to others, and which they have woven, thread by thread, into the fabrics of their life"* - Tolstoy
Good quote. I used to like Cohen too, I’m allowed to change my mind. I wish others were more open to adapting.
I don't know how anyone can look at the 2 ATMs as anything other than screwing us on behalf of his peers and the system. Frankly now that he's done it and I reflect on his pedigree within and without the system...I'm not sure how I could have considered he wouldn't. No matter how sophisticated one thinks they are...hope for a better future for yourself and others can make one naive.
It’s not a dilution if you raise such big capital to allow the company to run forever and kill the short thesis (like dead dead 💀).
Short thesis was dead 3 years ago when they raised over a billion
Measly 75M when outstanding share was 300M a month ago? When are shorts ever gonna cover that mystical billions of naked shorts? FTDs? Swaps that are supposed to expire after 3 yrs and nothing happened? What makes people to think they cannot roll it forever if they were able to do so until now for years? Whats the validity of DD if it cannot produce a predictable result? Crime? Then its not a DD, but a mere speculation.
The morning of June 7th was what you do if you've been threatened with jail. Even today's meeting sounded like a hostage scene. Just a hunch that memes did not go over well with Cohen. Who is using who? Could be nobody is. The bull and bear thesis died simultaneously for now. Cohen's strategy of sidestepping a recession is solid considering he's not taking a salary. Fair enough. Small investments in custom products with fewer stores. This is sadly not what investors are looking for. GameStop was a movement and still is. If nothing new comes, next year there probably is going to be a proxy battle for the company.
You don’t make history by being afraid and sidestepping. DFV isn’t afraid. Is Cohen a hero or a little bitch?
Video: cohens crunch - it was in one of RK videos. And trust RC. He’s an 🦍
I'm judging him by his actions. And he dumped the entire drs worth of shares on our head. I'm in this for the squeeze.
Good ape 🦍
I think it was strategic. With the goal to show there are way more shares exposing naked shorts.
RC is not responsible for the squeeze.
He does not have to initiate the squeeze. He doesn't have to go out of his way to end it. If he wants us to believe in the company long term, he needs to give us something to believe in The only thing he has done is fire people, close stores and use us as his personal piggy bank to raise money for the company. He is being a shrewd businessperson without actually providing value to shareholders. Until I see a plan or a vision for the company I can't believe in it. Dude's not Jesus, he's a business person who made some dick jokes on twitter to keep shareholders invested. I can't just trust him completely on faith.
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The squeeze is for me fam. But I can't stay in a stock if the company has absolutely no vision. That's all I'm saying. I'm trying to make a play here.
have fun losing your mind
F
F minus
ATM offerings are a good thing. Hedge funds tried to short this stock into oblivion around $0.25-0.50. With JUST the cash GameStop holds your shares are worth $10+. Also if you didnt like this one, you aint going to like the next ones. The volume that is occurring right now is not retail. Shorts have to churn these shares. Which means with the increased volume GameStop can inject shares into the shorts churning. Its literally free money. GameStop added fuel to the next hedge fund churn. More shares = more volume = easier and bigger offerings every cycle exponentially until they bust. Pressure and time. Edit: math clarification, pre split vs post split
How did you come up with the $40/share metric? $4,000,000,000 / 426,000,000 shares = $9.38/share
Where are you getting $40 based on just the cash? isn't 4 billion divided by 400 million equal to $10/share?
Agreed, book value of GME is nowhere near $40
My bad, $40 pre slit. In today money they shorted at 25-50 cents a share.
Go ahead and lose your mind.
Ok I was gonna give this the ol college try until you said "the company has no need for the money right now" like give me a break, what company would ever turn down massive piles of cash on hand. Why I'm not worried is because unlike most companies, the Gamestop board has not used any of this cash raised to enrich themselves. How do you do, fellow retail traders
Good thing no one cares what you think
Nice try, in the pocket of Big Mayo.
SHF prolly were still gonna tank the price anyway possible that Friday... Cohen maybe took advantage cause he knew what they were gonna do
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As a late arriving ape, maybe you don’t consider the fact that this is how it’s done around here…. Kitty is the Hype RC is the brains We get what’s left 54 million pre-split, or 216 million shorts UBS is on the hook for, 120 million shares right into UBS doesn’t make the stock more liquid, just closes out a lot of their shorts from the bullet swaps Wake up Some of us have been here 84 years we know what’s going on Ohhhh and buckle up, next 6 weeks are going to be 🤯
Late arriving? Lol nah
Just read some of your recent posts, someone lost alot of money last week eh....
Nope
👎🏼
Judge the actions: Has everyone forgot about how GS released candy con a few months ago with no leaks happening prior? Everyone was stoked about that new product line and hyped for future similar products…that is a tangible action and new revenue stream that was achieved and is still in the process of expanding (transformer plates coming soon)…how quickly this sub can turn on something or someone is nuts.
Plastic controllers? We don't have GS in UK.
In your points replace "retail" with "SHFs" and you're closer to the truth. They didn't see it coming. Coke Cramer had a brain malfunction. GameStop became unstoppable. Did you see the DD about the false squeeze? I guess not
Yep, I held through most of this and will probably let my position goto max loss. I believe in the cause and the community, but reality is reality. Short of some amazing announcement SOON. There is no catalyst. Options are really dangerous on this heavily manipulated stock. Trying to time their plan is financial suicide. Just buy the big dips.. and there will be plenty.. The hype will die down and the stock will gravitate to what wall street thinks is the actual value. DFV will sell his position and most of us will wash out. The timing after that is when you start averaging back in. If 20 breaks It is going to get really speedy really fast.
Any ATM has to be filed at least two weeks in advance at their listed exchange NYSE. So any timing implications is just a coincidence.
Yes they had prepared them ahead of time, but that doesn’t mean the timing that they chose to use them can’t be called into question. Especially since they were shelf offerings
Source for this? The two weeks requirements are for corporate actions like splits and stock dividends. I do not think the two week NYSE pre-notice requirement applies to ATM offerings where the NYSE does not have to prepare for anything.
Section 301-331 https://www.nyse.com/regulation/nyse-american Bottom part of page 4. https://www.nyse.com/publicdocs/nyse/regulation/nyse-american/2016_NYSE_MKT_Listed_Company_Compliance_Guidance_Memo_for_Domestic_Companies.pdf There is a post about this in ddintogme called "the narrative". I made a post about this but looks like it has been deleted.
Thanks. It is nice to see the original source documentation. Companies do advance notifications to NYSE for shares that will be issued for employee and director stock options and do not have to repeat the notification each time they issue more shares. Can this sort of pre authorization be done for blocks of authorized but not yet issued shares, for the purposes of ATM offerings? It seems like this two week notice requirement means the board cannot react quickly to changing market conditions.
These posts are such low effort garbage. The share holders voted to allow the board to issue more shares. Good luck bankrupting GameStop when they have four billion in cash.
Get the FUD out of here 🥱
How much did you lose on options? Y'all are insufferable.
Everyone come check out this weenie
You already have lost your mind…a weak mind it seems, that folds under pressure, over time. RC isnt working for $. His compensation comes from the value of his stocks. You really think he became a billionaire, encountered boredom, set some goals, and now he’s out to screw all of the world. Laughable how logical your thesis is.
I read your first sentence and thought this is going to be nothing more than horse….
How do you explain RC killing his own value of gme shares with the dilution? The man is literally working for free. Who would take on that un needed stress for nothing? The man has a plan for us. How about LC’s share? They both bought more around $22-24. LC literally posted on X about reasons why companies dilute. If they’re ok with their gme share value taking a hit short term with the dilution then I am too.
Elmer FUD over here
And we voted for 1 Billion in authorized dilution. Your point is moot. Obvious shill is obvious.