Deep F______ Value

[Luke]

9 minutes ago, FCharlie said:

Yes. But you have less ownership in a much larger equity base. This is how Tesla burned all the haters and shorts. They issued stupidly inflated stock to pay for their Giga factories. If GM or Ford needed to build a factory they had to earn money the old fashioned way, or borrow it and pay interest. Every share Tesla sold solidified their market cap. And every share GameStonk sells at $40 further solidifies the $40 valuation. If they issue 75 million more shares at $40 they will have $5 billion of cash and no debt. Interest income will be $250 mil/year. 

You are right, especially shareholders who bought at 3-5b are now sitting on quite the cash pile compared to the price paid. The crazy thing is that the stock isn't going down much due to the issuance so yes, this is quite a weird phenomenon. They should continue to issue every share they can at these valuations. 

Edited June 7 by Luca

[DooDiligence]

They should use the capital to turn all their stores into vape shops. /s

 

Seriously though, what should Cohen do with the money?

Are there any transformational opportunities?

[gfp]

13 minutes ago, DooDiligence said:

They should use the capital to turn all their stores into vape shops. /s

 

Seriously though, what should Cohen do with the money?

Are there any transformational opportunities?

https://www.cnbc.com/2023/12/07/-gamestops-potential-new-strategy-let-ryan-cohen-buy-other-stocks-with-company-cash.html

[matthew2129]

50 minutes ago, FCharlie said:

 If they issue 75 million more shares at $40 

LOL. this is ATM offering

[Castanza]

They should offer shares till they have enough to buy PARA

[DooDiligence]

5 minutes ago, gfp said:

https://www.cnbc.com/2023/12/07/-gamestops-potential-new-strategy-let-ryan-cohen-buy-other-stocks-with-company-cash.html

 

Wouldn't it be hilarious if this became the next Berkshire? Does he have a Mungerish partner?

Edited June 7 by DooDiligence

[gfp]

Just now, DooDiligence said:

 

Wouldn't it be hilarious if this became the next Berkshire?

 

After several decades, Cohen reluctantly closed down the final money losing video game shops but kept the company name and continued at the money offerings, which he liked to refer to as "float" or free money

[Gamecock-YT]

1 minute ago, DooDiligence said:

 

Wouldn't it be hilarious if this became the next Berkshire? Does he have a Mungerish partner?

I hear the Boston Omaha guys are available

[ValueArb]

Crazy how fast its dropping, you couldn't even put in a limit order without it running away from you. Down below $36 now, Keith has lost hundreds of millions.

[aws]

There's no reason for the company to do an unscheduled report except to be able to cash in on the pump yesterday after the DFV hype. It's like a battle between Ryan Cohen and DFV to see who can be fastest to extract the money from their delusional followers.

[matthew2129]

21 minutes ago, matthew2129 said:

LOL. this is an ATM offering they'll be lucky to avg $20/share by the time they're done

 

[gfp]

10 minutes ago, ValueArb said:

Keith has lost hundreds of millions.

well that's one way of looking at it

[Spekulatius]

8 hours ago, Luca said:

This nope_its_lily gal is a quant trader. Have been following her account on and off.

 

She is not an “Ape”. I do think her posts are irony- she has done similar posts before.

 

[ValueArb]

$32 now.  The MOAS is over and apes are done, never to be tried again. Borrow with 75M fresh shares is going to be wide open again, and if the share price pops again GME will be right there to drop another ATM offering and cool it off.

 

Keith Gill's kryptonite was never the shorts, it was always the company itself.

 

"The call is coming from inside the house"!!!!!!

[FCharlie]

38 minutes ago, matthew2129 said:

LOL. this is ATM offering

Yep. The last ATM they completed in just days. I'm hoping they are hitting every bid in sight. The stock has already traded 131 million shares as of 11:15am EST and trading about a million shares every minute or two

[LC]

3 minutes ago, ValueArb said:

Keith Gill's kryptonite was never the shorts, it was always the company itself.

 

 

The company should be compensating Gill as they would any other IBank bringing shares to market.

Gamestop was able to raise a significant amount of funds due to Gill, should he not be compensated?

[Dalal.Holdings]

2 minutes ago, LC said:

 

The company should be compensating Gill as they would any other IBank bringing shares to market.

Gamestop was able to raise a significant amount of funds due to Gill, should he not be compensated?

 

If they did that, they’d be in legal trouble. The separation is what makes this un-prosecutable (so far…)

[Luke]

51 minutes ago, ValueArb said:

Crazy how fast its dropping, you couldn't even put in a limit order without it running away from you. Down below $36 now, Keith has lost hundreds of millions.

[ValueArb]

GME must have run out of shares, its popped up to $38 after a brief halt.

 

The Reddit crew of stock pumping apes is over, at least in GME. Every time they get it to pop, the next day GME is gonna drop another ATM to take advantage. Impossible to have a short squeeze when new shares are dumped on the market every day.

 

[Luke]

 

[Luke]

2 minutes ago, ValueArb said:

GME must have run out of shares, its popped up to $38 after a brief halt.

 

The Reddit crew of stock pumping apes is over, at least in GME. Every time they get it to pop, the next day GME is gonna drop another ATM to take advantage. Impossible to have a short squeeze when new shares are dumped on the market every day.

 

Brilliant actually. 

[TwoCitiesCapital]

3 hours ago, FCharlie said:

Another 75 million share ATM!! How much cash does this company want? $5 billion? And ironically, the more shares they sell up here the more it solidifies the current elevated share price. 

 

Yup. It sucks for the shareholders, but is 100% the right call by the executives. 

 

2 hours ago, FCharlie said:

Yes. But you have less ownership in a much larger equity base. This is how Tesla burned all the haters and shorts. They issued stupidly inflated stock to pay for their Giga factories. If GM or Ford needed to build a factory they had to earn money the old fashioned way, or borrow it and pay interest. Every share Tesla sold solidified their market cap. And every share GameStonk sells at $40 further solidifies the $40 valuation. If they issue 75 million more shares at $40 they will have $5 billion of cash and no debt. Interest income will be $250 mil/year. 

 

This is why I gave up being bearish on Tesla. Could never get comfortable owning the stock, but stopped shorting/puts and etc. because it was clear they were actually buying billions in hard assets worth money with magic internet money financed by their shareholders. Stock could still go down 50-75% and be expensive, but it definitely did A LOT to take $0 off the table and build a floor for the share price. 

 

GameStop is doing the exact same thing. It's an unsustainable business model, but now all they need to do is shut down stores and sit on a pile of treasuries waiting for "strategic alternatives" to come along and the C-suite can continue to pay themselves enormous salaries for doing nothing. 

 

1 hour ago, ValueArb said:

$32 now.  The MOAS is over and apes are done, never to be tried again. Borrow with 75M fresh shares is going to be wide open again, and if the share price pops again GME will be right there to drop another ATM offering and cool it off.

 

Keith Gill's kryptonite was never the shorts, it was always the company itself.

 

"The call is coming from inside the house"!!!!!!

 

This has been my argument for MSTR too. Everyone buying it thinking the premium to book is justified because BTC/sh can grow - but they're putting themselves in direct opposition to the CEO who has every incentive to issue more shares at premiums to buy more BTC and grow NAV or BTC per share. 

 

Perhaps they can keep it up long enough where each additional share issue brings up the NAV/sh until it gets above their entry price, but ultimately there are going to be a large number of people underwater from the premium disappearing OR, at the very least, dramatically underperforming Bitcoin over the same period of time. 

[fareastwarriors]

We're here for the live stream.

 

Let's gooooooo

[ValueArb]

OMG he looks like he's on all the drugs.

[Gregmal]

He'll get investigated and banned from trading platforms but Andrew Left goes on CNBC to do the EXACT same thing, just in a more polished and slimy institutional speak way.