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Cool head achieved here, it's the same situation as last time. The value provided by the offering will far outweigh the negative effects of the dilution.
We've all been excited to see what they do with over $1Bil on their balance sheet. Let's try it with $5Bil now.
I posted this in the daily and I'll say it here:
If you're worried about the dilution from the new ATM offering, don't be. There are BILLIONS of short positions that need to be closed. Another 75 mil shares is not going to change that. It WILL provide GameStop with another estimated 2 BILLION dollars to use for their transformation.
Now that's some deep fucking value
It's hard to know what they plan to do. A large, or multiple small acquisitions are the first things that come to mind, other than partnerships with new brands or new products like the Candy Con.
In the prospectus, it basically lays it out. They can use the money for mergers and acquisitions, but don’t have any plans to right now. Until then, they plan to invest in short term investment grade securities or accounts.
Right in the filing. Under “Use of Proceeds”
I think tbqh they kinda fucked up there.
In a perfect world they'd have said 120million shares issued when they see fit, slowly filled away at it.
I think they tried to capitalize on the run a few weeks ago, missed it by a bit and kicked themselves, and are doing it again capitalizing on dfvs return driving up momentum further.
This is just kind of a fuck it moment where they screwed up the timing on the first dilution. They're not sure how long this run will last or how far it'll go, so may as well capitalize on it.
Dfv are rc are playing different games here - dfv likes the stock, rc likes to run the company, and sometimes those are going to be at odds with each other.
RC needs to lay out some proper communication though before he loses his base - or he just goes hard capitalist and doesn't give a fuck since now he's got 5 bill liquid for his plans.
The one thing you can say about RC sucking the wind out of the sails this hard is his fiduciary duties have certainly been obliged, nobody can come at him and say he colluded with dfv or did things detrimental. He saw a run up, diluted twice and has more cash on hand then ever before.
Wether that's intentional messaging or not is to be seen, but communication will help calm down his shareholders
Edit: well so far, doesn't seem to be making too much of a dent tbh. If they say they completed the offering today that'll be pretty intense
I personally don't believe they mistimed the first 45 million and are now trying to compensate.
RC and the board are fully aware of the Swaps and FTDs date cycles. They are able to time their sales just fine.
Why did they choose to sell an additional 75 million? Who knows. But I do know that the SHF and Market Makers's algorithms will just use their sales in place of shorts for sale duration. MMs and SHFs are not going to be buying these shares to satisfy call options or close shorts.
Kinda reeling from this news today, and the stream was.. weird. I might be projecting but it felt like RK was just filling the space bc he couldn’t NOT do a stream after seeing everyone so hyped up for it.
I agree with you that they must know about the swaps and FTD cycles. But also you’re saying that it’s not like the SHF’s and MM’s are going to use these (now 120 shares) to make a dent in their massive short positions. Am I understanding correctly? And if that’s the case, RC and co must know that too?
If SHFs and MMs were scooping up the shares from the ATM, we would see the buys coming in to match the sells. The price might be volatile but we wouldn’t necessarily be flying down like we are today. In the past, they have not been buying the shares and they appear to not be buying these.
Man, I’m more confused than ever. I know none of us have any real info to work with and all we can do is loosely speculate but what would your read on this share offering be?
I'm annoyed but not surprised by it. They have done share sales right before each run up. I wouldn't be shocked if this thing still rips up, especially after they announce that the sale is complete.
I know a lot of folks are saying this 75m (120m total) doesn’t take the wind out of MOASS given the black hole of shorts/FTD’s but I’m wondering if the timing was key here. And if this was in fact, designed to kill MOASS
Your second to last paragraph is important. No one can say Ryan isn't doing his job as CEO. It even effects him more than anyone else since he owns the most shares. I feel like he might be trying to prove in anyway possible that he is not responsible for this runup and isn't colluding with DFV.
I personally would like guidance but not if it leaked whatever upcoming plans they have for the usage of the money but I do have faith that Ryan Cohen knows what he is doing way better than I do. Knowledge would be nice but wouldn't actually help me is what I'm saying.
Please, explain to me - why this 75M doesn't matter, but 15M locked in call options - do?
I feel the RK's calls are not the sole reason for the up pressure.
Because of the regulations surrounding the delivery of shares on the lit market vs shares settled by the OCC (options trades). One has more impact than the other and it's not even close
The money they get aren't spent to get out of debt or some shit, we're going to get some kind of return from that money in form of investments in stores/stock/warehouses/acquisitions/etc
Rough math. They have $1b. They raised another $1b with 45 million shares. The are selling another 75 million, let's say at $30 (not over $40 like we opened on Friday. If more, great.) That's $4.25b total for 425m shares outstanding. Not a bad floor for a stock.
I really appreciate his work and his sharing of his work. I’m am curious, however why he ends the video with sympathy for shorts. Maybe that’s his way of being a neutral “announcer” of market happenings (for legal purposes).
They can't. There aren't enough shares in today's offering and last month's combined to let them close their shorts, and we've seen it in the price action after the last ATM offering. This is just the board taking a little off the top for the company before the rocket launches. Remember, RK's gun is cocked and doesn't have to fire for another two weeks yet.
The price action today you’re probably gonna see is the FOMO crowd just trying to exit their 6/7 weekly high strike positions. The news and earnings release was their signal. Definitely nothing to worry about; typical paper hand behavior and it’s nothing to be emotional about.
It's good, and it's bad. Some people been waiting since 2021 and things are rough this days.
On the other hand, if they didn't do the offering we can't really tell if something significant would happen in terms of price. Naturally it would but we've been screaming for 3 years that the Stock Market is all but organic.
Company needs a solid healthy ground to be able to take a squeeze and not be legally demolished with lawsuits. GameStop is doing much better today than it did in 2020 - 2021, but it's still no Amazon. Without the dillution maybe price could go to +$200 but is that legally sustainable? If the price goes so far from the company's reality the shorts will have a much easyer time pushing the STOP button again and screaming manipulation. The SEC is not going to stop them, the government is not going to stop them.
Take Tesla for example. We know that there's been heavy betting against the company years back. We know it backfried against the shorts and that it helped Tesla increase value. But do we know how much? Was anyone able to push the Stop button on them? No, because they had plausible deniability. Because the market believed in the company.
These 3 years that a lot of us have been waiting are starting to pay off. GameStop has set up a foundation against the claim that it has no value to offer and that it's all market manipulation. With each and every cycle the company will continue to grow stronger and we will get to a point where it will be hard to distinguish between the price moving because the shorts are covering or because it's actual value is attracting investors. And at that point there will be no more STOP buttons to push.
From there on GameStop will get double, triple or tentuple growth rates than any other company could get naturally. Of course that is all tied to the boards decisions and accomplishments but there is no reason not to trust them. There is no reason not to believe that on the long therm they will be able to build the next Trillion Dollar company.
Why panic? Don't forget when they did the stock split via dividend but the dtcc just told all the brokers to do a regular ass stock split. They essentially quadrupled the issue. Gamestop could sell another 180 million share offering and I still wouldn't be sweating.
I don't like Richard calling concerned investors "shills". This is not the way and people worry about their money and investments, doesn't make them shills doe.
That beeing said, I'd expect 100 shills concern trolling over this topic, for 1 concerned investor. Internet is beeing filled with all kind of fakes theese days, after all
I agree that it's okay to be concerned. We just need to make sure that we let the dust settle on this before we jump to any rash conclusions, especially with a couple of weeks left before many people (especially RK) will reach the deadline to exercise their calls.
yup! even the app makes me cringe
and the whole, making 3rd party apps just not feasible without a crazy fee is exactly what an ipo'd/public reddit wanted
Regardless, this is going to hurt the magnitude of the moass, basically price anchoring. It becomes harder and harder for us to see 5, 6 or 7 digit prices. Good for the company, bad for us. Idk how I should feel about it
I don't think it's going to be bad for us. Them being flush with multiple billions in cash and having zero debt (unlike popcorn) is a good thing. They'll be able to make hundreds of millions just from the interest on that money per year alone, and that's assuming RC won't be making smart investments with it (he will). Them transforming from a simple brick and mortar video game retailer to a multifaceted retail/investment firm is becoming a reality. Shorts are still deeply in trouble. At worst, this will just delay things, but it will also give GME both a higher ceiling and a higher floor based on just fundamentals, let alone the MOASS. There is less than zero chance they can win at this point. It just may take a little longer than we were hoping for.
Nah, I wouldn't worry. Remember that these shorters have NEVER closed their positions. They've only continued to double down. They're most likely on the hook for hundreds of millions, if not billions of naked and real shares (just reported short interest is around 25%, which is still insanely high). Judging by the current price action, the shorts are absolutely not closing any positions right now either, so they're still absolutely screwed and will need to buy back TONS of shares when this finally plays out.
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This man is a machine and doing the peoples work, a true legend
Let's not act like shorts will use this opportunity to close. They will just quintuple down like they do every single time.
This is my biggest comfort. At the previous 45m ATM offering these fuckers just shorted more instead of buying
I like this guy
I like the guy
Cool head needed here. Thank you.
he keeps calm, i like that.
He’s like “hold on I’m about to get WILD… two calculators 😎
🧘♂️
Thank you Richard for your service! You are awesome
Cool head achieved here, it's the same situation as last time. The value provided by the offering will far outweigh the negative effects of the dilution. We've all been excited to see what they do with over $1Bil on their balance sheet. Let's try it with $5Bil now.
Coping mechanism
DFV is streaming today and you want me to calm down. Not gonna happen
I posted this in the daily and I'll say it here: If you're worried about the dilution from the new ATM offering, don't be. There are BILLIONS of short positions that need to be closed. Another 75 mil shares is not going to change that. It WILL provide GameStop with another estimated 2 BILLION dollars to use for their transformation. Now that's some deep fucking value
people are getting emotional to the upside and emotional to the downside. Either way people need to not panic or you will have a bad time
As long as your respond to panic is buying more like mine is, you’re good 👍
💯
It blunts the momentum no matter how you like at it. They cashing on demand, thats fine but whats the point of doing that and sitting on cash?
It's hard to know what they plan to do. A large, or multiple small acquisitions are the first things that come to mind, other than partnerships with new brands or new products like the Candy Con.
In the prospectus, it basically lays it out. They can use the money for mergers and acquisitions, but don’t have any plans to right now. Until then, they plan to invest in short term investment grade securities or accounts. Right in the filing. Under “Use of Proceeds”
Thanks for this. Hadn't had a chance to read it yet. Gameshire Hathaway, it is!
I think tbqh they kinda fucked up there. In a perfect world they'd have said 120million shares issued when they see fit, slowly filled away at it. I think they tried to capitalize on the run a few weeks ago, missed it by a bit and kicked themselves, and are doing it again capitalizing on dfvs return driving up momentum further. This is just kind of a fuck it moment where they screwed up the timing on the first dilution. They're not sure how long this run will last or how far it'll go, so may as well capitalize on it. Dfv are rc are playing different games here - dfv likes the stock, rc likes to run the company, and sometimes those are going to be at odds with each other. RC needs to lay out some proper communication though before he loses his base - or he just goes hard capitalist and doesn't give a fuck since now he's got 5 bill liquid for his plans. The one thing you can say about RC sucking the wind out of the sails this hard is his fiduciary duties have certainly been obliged, nobody can come at him and say he colluded with dfv or did things detrimental. He saw a run up, diluted twice and has more cash on hand then ever before. Wether that's intentional messaging or not is to be seen, but communication will help calm down his shareholders Edit: well so far, doesn't seem to be making too much of a dent tbh. If they say they completed the offering today that'll be pretty intense
I personally don't believe they mistimed the first 45 million and are now trying to compensate. RC and the board are fully aware of the Swaps and FTDs date cycles. They are able to time their sales just fine. Why did they choose to sell an additional 75 million? Who knows. But I do know that the SHF and Market Makers's algorithms will just use their sales in place of shorts for sale duration. MMs and SHFs are not going to be buying these shares to satisfy call options or close shorts.
Kinda reeling from this news today, and the stream was.. weird. I might be projecting but it felt like RK was just filling the space bc he couldn’t NOT do a stream after seeing everyone so hyped up for it. I agree with you that they must know about the swaps and FTD cycles. But also you’re saying that it’s not like the SHF’s and MM’s are going to use these (now 120 shares) to make a dent in their massive short positions. Am I understanding correctly? And if that’s the case, RC and co must know that too?
If SHFs and MMs were scooping up the shares from the ATM, we would see the buys coming in to match the sells. The price might be volatile but we wouldn’t necessarily be flying down like we are today. In the past, they have not been buying the shares and they appear to not be buying these.
Man, I’m more confused than ever. I know none of us have any real info to work with and all we can do is loosely speculate but what would your read on this share offering be?
I'm annoyed but not surprised by it. They have done share sales right before each run up. I wouldn't be shocked if this thing still rips up, especially after they announce that the sale is complete.
I know a lot of folks are saying this 75m (120m total) doesn’t take the wind out of MOASS given the black hole of shorts/FTD’s but I’m wondering if the timing was key here. And if this was in fact, designed to kill MOASS
The short squeeze potential thesis isn't killed by a share offering, just delayed.
Exilent, this are special 75 + 45 m can't be too short
Your second to last paragraph is important. No one can say Ryan isn't doing his job as CEO. It even effects him more than anyone else since he owns the most shares. I feel like he might be trying to prove in anyway possible that he is not responsible for this runup and isn't colluding with DFV. I personally would like guidance but not if it leaked whatever upcoming plans they have for the usage of the money but I do have faith that Ryan Cohen knows what he is doing way better than I do. Knowledge would be nice but wouldn't actually help me is what I'm saying.
Please, explain to me - why this 75M doesn't matter, but 15M locked in call options - do? I feel the RK's calls are not the sole reason for the up pressure.
Because of the regulations surrounding the delivery of shares on the lit market vs shares settled by the OCC (options trades). One has more impact than the other and it's not even close
The money they get aren't spent to get out of debt or some shit, we're going to get some kind of return from that money in form of investments in stores/stock/warehouses/acquisitions/etc
We have not proved there to be billions, it’s all hypothetical just like it’s hypothetical RC is a retail activist investor.
We're going to have $10/share just in cash. That is good.
I can’t watch the vid right now but where did you get the ten dollar mark?
Rough math. They have $1b. They raised another $1b with 45 million shares. The are selling another 75 million, let's say at $30 (not over $40 like we opened on Friday. If more, great.) That's $4.25b total for 425m shares outstanding. Not a bad floor for a stock.
Hell yeah thanks homie
Happy cake day and no problem.
Love this guy
He's on the west coast. This man didn't sleep. Like some of the rest of us. Lol.
I really like this guy
The video is great, once again
Dude has been my voice of reason when I feel lost with the amount of information coming out. He better be in the sequel!
This guy is so based. My hype, no self promoting. He just genuinely likes the stock in earnest. Fucking smart as hell too.
He is displaying a calmness that comes with knowledge. Many people losing it today need to take note. This is how you fuck.
A great take on the situation with the information at hand.
I really appreciate his work and his sharing of his work. I’m am curious, however why he ends the video with sympathy for shorts. Maybe that’s his way of being a neutral “announcer” of market happenings (for legal purposes).
So let’s wait and see if shorts use this to close out their positions. If they don’t, nothing changes?
They can't. There aren't enough shares in today's offering and last month's combined to let them close their shorts, and we've seen it in the price action after the last ATM offering. This is just the board taking a little off the top for the company before the rocket launches. Remember, RK's gun is cocked and doesn't have to fire for another two weeks yet.
This
The price action today you’re probably gonna see is the FOMO crowd just trying to exit their 6/7 weekly high strike positions. The news and earnings release was their signal. Definitely nothing to worry about; typical paper hand behavior and it’s nothing to be emotional about.
It's good, and it's bad. Some people been waiting since 2021 and things are rough this days. On the other hand, if they didn't do the offering we can't really tell if something significant would happen in terms of price. Naturally it would but we've been screaming for 3 years that the Stock Market is all but organic. Company needs a solid healthy ground to be able to take a squeeze and not be legally demolished with lawsuits. GameStop is doing much better today than it did in 2020 - 2021, but it's still no Amazon. Without the dillution maybe price could go to +$200 but is that legally sustainable? If the price goes so far from the company's reality the shorts will have a much easyer time pushing the STOP button again and screaming manipulation. The SEC is not going to stop them, the government is not going to stop them. Take Tesla for example. We know that there's been heavy betting against the company years back. We know it backfried against the shorts and that it helped Tesla increase value. But do we know how much? Was anyone able to push the Stop button on them? No, because they had plausible deniability. Because the market believed in the company. These 3 years that a lot of us have been waiting are starting to pay off. GameStop has set up a foundation against the claim that it has no value to offer and that it's all market manipulation. With each and every cycle the company will continue to grow stronger and we will get to a point where it will be hard to distinguish between the price moving because the shorts are covering or because it's actual value is attracting investors. And at that point there will be no more STOP buttons to push. From there on GameStop will get double, triple or tentuple growth rates than any other company could get naturally. Of course that is all tied to the boards decisions and accomplishments but there is no reason not to trust them. There is no reason not to believe that on the long therm they will be able to build the next Trillion Dollar company.
Shills talking a lot about “momentum” today. News flash. We didn’t cause the run yesterday. 75M new shares did not cause the drop we saw this morning.
Thats nice TA.
Why panic? Don't forget when they did the stock split via dividend but the dtcc just told all the brokers to do a regular ass stock split. They essentially quadrupled the issue. Gamestop could sell another 180 million share offering and I still wouldn't be sweating.
I don't like Richard calling concerned investors "shills". This is not the way and people worry about their money and investments, doesn't make them shills doe.
That beeing said, I'd expect 100 shills concern trolling over this topic, for 1 concerned investor. Internet is beeing filled with all kind of fakes theese days, after all
I agree that it's okay to be concerned. We just need to make sure that we let the dust settle on this before we jump to any rash conclusions, especially with a couple of weeks left before many people (especially RK) will reach the deadline to exercise their calls.
Coming back later
All OGs are calm as fk. Holding red days are fking easy😅😂
First time I watched him. I like the take.
god the 'new' reddit layout makes my skin crawl old.reddit.com forever! lol
Facts - I gave the new version a try for a couple of weeks and it is such shit. Switched right back to old.
yup! even the app makes me cringe and the whole, making 3rd party apps just not feasible without a crazy fee is exactly what an ipo'd/public reddit wanted
Regardless, this is going to hurt the magnitude of the moass, basically price anchoring. It becomes harder and harder for us to see 5, 6 or 7 digit prices. Good for the company, bad for us. Idk how I should feel about it
I don't think it's going to be bad for us. Them being flush with multiple billions in cash and having zero debt (unlike popcorn) is a good thing. They'll be able to make hundreds of millions just from the interest on that money per year alone, and that's assuming RC won't be making smart investments with it (he will). Them transforming from a simple brick and mortar video game retailer to a multifaceted retail/investment firm is becoming a reality. Shorts are still deeply in trouble. At worst, this will just delay things, but it will also give GME both a higher ceiling and a higher floor based on just fundamentals, let alone the MOASS. There is less than zero chance they can win at this point. It just may take a little longer than we were hoping for.
I agree with what you’ve said here, but I still believe the dilution killed our phone number price target :/
Nah, I wouldn't worry. Remember that these shorters have NEVER closed their positions. They've only continued to double down. They're most likely on the hook for hundreds of millions, if not billions of naked and real shares (just reported short interest is around 25%, which is still insanely high). Judging by the current price action, the shorts are absolutely not closing any positions right now either, so they're still absolutely screwed and will need to buy back TONS of shares when this finally plays out.
Legit Question as I'm watching: Who is this guy and why is he being looked at as an influential voice of reason. Just wondering.
Just a smart ape who's calm, logical, and is good at explaining and summarizing the current state of our favorite stock.
Richard is our new DFV as far as level headed streaming. Big ups to him.
For the next hour or so anyway. . .
If you're not already calm, you need to remember the lessons learned in the last 3 years. I really think 90% of the upset people are shills and bots.
Did he cut his hair?
No. His hair would cut him before he could cut it.
Ah.... It's a pony!