this post was submitted on 07 Jun 2024
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DRS Your GME

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Not a shill, I'm a Jan 21 ape that is mostly DRS'd and still holding.

When AA and AMC were selling shares we were vilifying them.

How is another 75 mil share offering by GME any better? I feel like they're giving the shorts a chance to unwind.

Help me understand, I'm smooth af.

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[–] [email protected] 9 points 2 months ago (1 children)
  • They sell the shares on the market, for market price during market hours. I might be wrong, but I think AMC shares were diluted directly to hedge funds. I might be misremembering.
  • Gme is not in debt, like AMC is
  • RC is still holding all his shares unlike AA who sells as soon as he can.

There's probably a plan at Gamestop for the money. We don't know what it is.

If anything it absolves gamestop from any manipulation accusations. And gives them an out by saying they offered shares to prevent MOASS.

[–] [email protected] 2 points 2 months ago

That all makes great sense. Thanks ape!

[–] [email protected] 6 points 2 months ago (1 children)

Adam Aaron keeps diluting, because AMC needs money to pay off debt. Ryan Cohen doesn't need to dilute, since GameStop has no real debt. But he still does it because he's planning on doing something with the money. And considering the amount of it, it is something very big.

People don't seem to understand that "dilution" is a negative term, designed for you to immediately disapprove of it. They aren't just diluting though, they are actually "raising capital". The truth is, that the value of your shares may decrease, but the "lost value" isn't lost. It transforms into a different value, on the portfolio of GME. RC has proven, that he is interested in generating value for shareholders. He also firmly believes in delayed gratification. While the capital he raises goes into building a strong company, the capital that Adam raises goes straight to the banks, paying interest for AMC's debt.

[–] [email protected] 1 points 1 week ago

dilution is a negative term because it means everyone holding that stock watches as their stock becomes less valuable. It's also completely accurate to describe the share offering as dilution because that's exactly what it did. Trying to present the dilution as a positive thing is desperate hopium by followers of the ryan cohen personality cult.

[–] [email protected] 5 points 2 months ago* (last edited 2 months ago) (1 children)

GameStop's filings seem to suggest the money is for an acquisition. Could probabaly buy a lot with 2B in the bank now

[–] [email protected] 2 points 2 months ago (1 children)

I thought they already had 2B and this would add even more. Buy something already!!!

[–] [email protected] 1 points 2 months ago

I think 1B went into inventory though I'd have to double check that

[–] [email protected] 2 points 2 months ago

When AMC diluted, it was to make a bad balance sheet look better - while the overpaid CEO continued to make bank and run the business like a vulture.

When GME dilutes, it holds onto that cash, the balance sheet is constantly improving, the fat is being cut, they're exporing new angles. The RC / GMEDD interview shows that the C-suite understands how to run a business amid hawkish monetary policy and are acting accordingly.

Turnarounds take time. At today's prices, we're talking about a ~$10bn company with maybe a third that much in cold hard cash on hand. The world's only video game retailer that has global reach is worth less than one (1) aircraft carrier. They have a strong balance sheet, an activist investor CEO, and hundreds of thousands of supportive retail investors. AMC has an overpaid CEO with hardly any skin in the game and no plan to make the business work on its own merits. These are not similar investments.

[–] [email protected] 2 points 2 months ago

I’m smooth too so take this with a grain of salt. This is long term bullish. They aren’t going to let the price go too low, they’re just slowly stacking cash for future plans. Shorts didn’t even begin to close on this run up. It was simply a gamma ramp and those long dated swaps that all stacked up around June. This allows GME to take advantage of the temporary price volatility. Not financial advice.

[–] [email protected] 1 points 2 months ago (1 children)
[–] [email protected] 1 points 2 months ago

Sure did, thank you.

[–] [email protected] 1 points 2 months ago

Since they are debt-free they can use the billions to buy US Treasuries or similar and use the interest as revenue for profitability or a dividend, for as long as they want. If the share price continues to go up and they issue more shares then they can further increase their interest revenue from treasuries.