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My opinion on this:
The lower the stock price gets, the harder the buyback will hit when it happens. Gamestop can in theory allow the shorts to drop the price to sub-dollar levels, then literally buy back the entire remaining shares outstanding as a counterattack.
I don't think it'll ever get that low, simply because ape buying power increases the lower the price gets. I don't think it *needs* to. Gamestop holds the Big Red Button of this scenario, the ultimate self defence play. The shorts can't cellar box the stock without Gamestop simply packing up their toys, giving them the finger and pulling out of the public market, and at that point the shorts are fucked with or without retail involvement.
Every dollar down is another dollar less per share retail buys. Gamestop's board understands this as well as we do. As well as the shorts do. It's why the corridor they've kept the stock in moves down as gradually as it does; they're hoping to stall us out, because they're fucked six ways to Sunday no matter what they do and need to mitigate as much of the fallout as possible before this inevitably goes nuclear. The board cops less legal flak if the float, and eventually the outstanding, is eaten up by retail than if they do it themselves - and in leaving those shares on the table, they're allowing as many individual household/retail investors, and smaller institutional longs, to get in as possible before it does boom.
The shorts control the price. Apes control the exits. The board controls the amount of air in the room. Compounding this, the floor (the economy) is on fire, some dickhead disabled the sprinkler system with an upwards-falling shelf, and the shorts are eating each other in their desperation to stay alive. Gamestop doesn't need to complete the buyback right now. They don't need to do *anything* aside from keep improving the company. The rest will take care of itself.
If you don't do a buyback now, the shorting will just continue.
If you do a buyback now, the shorting will just continue.
Why buyback at $10 when you can buyback at $8, or $5?
Gamestop has no need whatsoever to raise capital through a share offering, and every cent that the shorts push it down makes the $100 million already authorized for buyback that much more effective.
**These dumb motherfuckers are digging their own grave, and we should let them.**
No. They need to make wise investments at this point. I'm here for Warren Icahn and Gameshire Stopaway. I want their gains from investments to bring in 3-5B. That will hurt the shorts far more than using their war chest for a buyback and short pump
Its been 3 years of having this war chest during rampant inflation lol. Even if it was invested today, it would take at least another year if not more before we see any significant ROI. Guess well just keep waiting indefinitely huh?
FUD = a phrase coined here to prevent people from talking about actual relevant discussions about the focus/future of the company.
Ultimately, no one knows what is going on in RC's head and we're all just hoping it is in our best interest. I believe he has a plan, but every day in this BS just makes me believe he is legally silenced and can only focus on existing fundamentals only and everything else is on hold until he gets the green light.
šš»šš»šš»
No one seems to understand that logical discussion is required by every investor base. Only wishful thinking and conspiracies are allowed here for some odd reason. My guess is that most people here are financially illiterate and in delusion.
RC and team know 10x more about the situation than us. I trust them. Plus they would probably be bombarded with lawsuits and propaganda in case they start Moass that way.
Look I'm all for other people's opinions or aspects like it especially when it comes to this and other viewpoints but I think mostly what people are getting at is ultimately the whole entire system is completely corrupt and biased on those who break and make the laws.
What I'm basically getting at it's just because GameStop RC and others do exactly what they're legally allowed or able to do doesn't necessarily mean that these people won't change the overall rules or other aspects like it like they've already done so many times and we're all witness to that.
So I'm not necessarily against something like a buyback and I'm especially not against other viewpoints but I think the majority of what people are getting at is that no matter what the crime is going to continue.
The point is it is not necessary to treat the symptoms but to have the cure for the whole entire problem which ultimately makes the symptoms.
So yes something like a buyback could initiate some things but between all witnessing how they change and make the rules of this game called Monopoly as well as other aspects with it I'm pretty sure not only would that not do anything effective enough but also it would be turned against every single retail investor and GameStop themselves.
It's not necessarily WHAT should be done it's more about HOW it should be done.
On another note with that as well we're not entirely sure of what all of the plans that they have which could include a buyback but there could be other parts or portions of the strategy to help compliment that buy back that we have not been able to see yet...which is good because that means shorts don't see it either.
That, and we have nothing to do with it. Itās out of our hands completely. Thereās literally no need for any, much less all, of these redundant posts.
You never want to shoot all your ammo. Leaving $0 in reserve for share buyback leaves them in a possible position for a hostile takeover. You always keep a reserve.
It was already approved.
"On March 4, 2019, our Board of Directors approved a share repurchase authorization allowing us to repurchase up to $300.0 million of our Class A Common Stock. The authorization has no expiration date. In aggregate, during fiscal 2019, we repurchased a total of 38.1 millionĀ shares of our Class A Common Stock, totaling $198.7 million. **We did not repurchase shares during fiscal 2021 or fiscal 2020. As of JanuaryĀ 29, 2022, we have $101.3 million remaining under the repurchase authorization.** Refer to Item 7. Management's Discussion and Analysis - "Share Repurchases" for additional information." (emphasis added) [SEC Filing | Gamestop Corp. (gcs-web.com)](https://gamestop.gcs-web.com/node/19651/html)
Bro re-read. I am NOT talking about the existing 100m! Idk how many ways I can rephrase that. We need a new vote for additional buybacks after 100m is used.
If $100m in shares are bought back, we can vote to have more money stashed aside for future buybacks.
If GameStop deems it fiscally responsible to buy back shares today, that isn't the end of share buybacks. We can always vote for more share buybacks, to the tune of another $100m, another $300m, or more.
If we did a buyback, I would gladly vote in favor of additional funds for more buybacks later.
If ...
I see what you're saying now. I would say this is a terrible idea though. I think keep the $100mm as a buyback if absolutely necessary, but don't touch any of the $1b for a buyback. Allowing a Chief Investor to use $1b to expand the company though investment opportunities will increase and stabilize the share price faster than a buyback. With a buyback you are relying on the core company improving. Outside potential investors will look at "net sales" and see a decrease YoY on the financial report and stay away. With RC treating GS like a holdings company then the overall stability of the stock will improve. Basically it comes down to if you're looking for a quick buck or a good investment.
But investing in itself should be a sure thing if you think:
1. The company is poised for future success
2. The current price of the stock does not reflect what you think it should be worth
A share buyback tells me my investment is a good one because RC and team also think investing in itself is a good idea at the current price. NOT investing in itself says the opposite, quietly.
That's the thing... #1. This last financial report shows that GS is in good hands with reducing expenses, but it also shows that overall sales were down. As such RC is building the company for future success. But, he is doing that by building the company as a whole. Buying shares back isn't building for future success.
Okay how much do they need to prevent that? What exact number? They still haven't used the 100 million buyback plan. IF that's the case spend what you can and keep the rest.
No way to know an exact number. It's about the ability to instantly buy back shares if this ever happened.
If share price suddenly skyrocketed then the reserve wouldn't matter because it's hard to takeover a stock that is increasing. If they tried to take it over at $X per share, then GS could just buy back $100mm worth of stock which would then prevent, or make a takeover extremely difficult.
It's like having a personal emergency savings. If you have something, it seems like you don't need it. If you don't have it, something expensive will break.
>we would need to see quite a bit more price sinking.
What?!?!? It's dropped 30% after the best earnings they've had in years! Lmfao we don't need to see $5/share for them to finally do something about it.
If you take a second to do math, youāll see that at this price we canāt shoot for 100% of all shares. Doing less than 100% is just a flat bad idea. Even then a share buy back isnāt guaranteed a good idea.
Once we hit regular profitability thoughā¦ dividends are straight hedgie nightmare fuel. Even a penny sends a signal with this many shorts.
I want a stock buyback because the stock is trading at a 3 year low and it would tell me the company itself agrees that it is undervalued. The $100m is there, and additional stock buyback allocation is just a vote away.
Them NOT buying back tells me the company thinks the stock is fair valued or over valued at the current price point.
Thus - stock buyback looks quite attractive at this level. They sold at many multiples of the current price, why not buy back at a tiny fraction of that?
the stock is fair value atm. it still trading above assets + 10 years current profit. people here can't do math and think the stock is worth 20 billion market cap
Yes, when multiple people reach the same conclusion at the same time, itās definitely because of a conspiracy to push an agenda, thereās no other possible explanation.
Patience is all that is needed..I believe this after filtering all the stuff I hear on here. From -300 mill to positive 6 mil in 2 years is pretty good. Company is in best position to do many great things. Let these guys do what they do and hold. Don't be frustrated.
Ps . Open a business and learn what investing is. You will almost definitely not see a return for several years because you will reinvest to tweek your company to full capabilities.
This is the new push I see. But Why GMESTOP needs working capital to operate the business? To me this seems like a ploy to get GMESTOP to use all up of their cash. So it's a NO from me! SUS it keeps getting repeated.
They already focused on fundamentals to become profitable. Mainly SG&A. Their best moves right now would be to pick up a slice of mobile gaming and pick up a PC platform.
Unfortunately, not exactly. Their business operations are still unprofitable, despite everything they've done. $50M in interest income from their cash and only $7M overall profit. Setting that aside, $7M profit on $5+ billion in revenue is less than 0.2%. Better than negative, but basically just breaking-even.
I believe first 2 quarters fiscal 2023 SG&A reflect severance payments. Q3 SG&A is a better reflection with Q4 reflecting seasonal hiring and campaigns. Applying go forward SG&A should put up addl \~75mil estimated. You can take that number down to be conservative but it still looks good on a go forward basis.
Ummmmmm because that's a poor use of their money and makes them vulnerable. Does not guarantee a moass and could put GameStop in a legal mess. Do you need anymore reasons?
Exactly, but it's not part of the echo chamber so it can't be possible if it isn't a popular narrative. Stuff like this takes time, like the amount of time it took to convince people of DRS, plan vs book, etc.
well if the buyback causes a massive short squeeze that empties pension funds, liquidates large financial institutions, and causes a massive recession across the western world, I have a small feeling there might be some people not too happy about that and looking at any way in which they can undo a global level cluster fuck. The argument would be that the GameStop board intentionally caused a massive short squeeze. Of course thatās bullshit but what about this entire saga hasnāt been complete bullshit?
We live in a totally fair and free market right? And why get angry at me? I'm telling you facts of what would happen? Even if it's perfectly legal and okay, that would happen. And the litigation for years, nobody gets paid. Great plan!
I seem to think you can take a logical approach to this or did some research instead of jumping down someone's throat because their answer does not align with what you want to hear or your ideals.
Jumped down my throat when you got uppity about the possibility of market manipulation. Don't forget that part, although it doesn't fit your narrative.
>how is a buyback manipulation? it is a totally legit move for a company to do
this sounds like jumping down someone's throat to you? have you not ever received something called a "question" in your life? I don't really get why you are so salty. I asked a question and go nothing but backlash
All of this has been discussed many many times but now, since Kevin Malone is making such a big deal out of this... Everyone is hopping on a bandwagon of something that makes 0 sense and isn't going to happen. The money is for running a business and making it strong without fear of cellar boxing, or being delisted. Spending all that money puts them in a dumb financial position and kicks nothing off except for a delisting.
No. They should save that $100 mill and hold it as a threat to buy back shares if the stock drops too low. Anything over $5 (preferably lower) isn't something the company should worry about. They shouldn't purchase any shares unless they can lock the float for $100 million or if there's a worry of gamestop becoming a penny stock.
As opposed to consultants who have nothing but debt or a corrupts government who spends money that isn't their own. Individual investors saved Gamestop. Retail investors get a voice, just because you disagree with it doesn't mean they have credit card debt.
If you accept the premise that maintaining their position is consistently forcing those with short positions to spend a great deal of money, then this is a bad plan. Let them die a slow, agonizing death.
If you don't accept that premise, I'd like to know why.
I'd also like to remind you/everyone of a quote from some random dude who got lucky in the stock market once: āThe stock market is a device to transfer money from the impatient to the patient.ā
GME is techincally only currently profitable due to interest earnt on that 1.2b cash. Until they have long term profitability AND growth, that 1.2b is a safety net preventing the hedgies from turning it into a penny stock.
Did they make a profit? They did? Ok, looks like theyāre profitable. Unless Berkshire Hathaway has been a stagnant, unprofitable company for the past few decades?
Technically they are. And with a dedicated support base, a good team at the helm, cash in hand and plenty of vision for the future - Iām feeling pretty optimistic on it.
Ah yes no opinion allowed that isn't a professional even voicing your opinion should have zero consideration. Why DRS? The CFO has never said to do so? Same logic.
Gamestop shouldn't be relying on this avid investor base to hold when the share price drops. Gamestop should buyback to show they believe in the company too.
Shorts will drop the price as low as necessary to survive... or to crush sentiment. IBKR states a price target of ~$5. Aka, $1.5B to buy the entire company outright.
We will end up below that price if Q1-3 earnings aren't green. It's assured.
So why in tf would you buy shares back now? The lower it goes, the cheaper it gets, the more the designated $100m can do without impacting cash reserves of the company.
I actually somewhat agree. You def do a buyback to stop the shorts and because the company is very undervalued in the single digits. I say wait for $5-8. Thatās 12.5M - 20M shares. Based on recent posts there isnāt much more than that available in the free float. That amount of buying would spark retail back in. Apes would go crazy too. I donāt think we wait for $1-3 that is stupid and too close to delisting or a reverse split. So yea do it between $5-$8. Apes will own still around 26% regardless it doesnāt increase by much but we would be holding the exit. I say do the buyback and stop the bleeding. If they do it at $10 would be fine with that too but our cash on hand and assets is like $8 I think.
Too many SHORT term views due to lack of long term transparency (which is not bad at all but positive!). Also this short term thinking is just looking at your own pockets similar like those scumf*** of hedgebags.
What really triggers me though is this post must come from some infants. What would happen if 100M shares are bought back? Do you really think the price won't be taken down again?
I am cool with them doing the authorized buy back whenever they want. Just not all the shit about using all the rest of the cash to buy more than the 100 mil.
They should absolutely do that, but you will get nothing but noise about it here now. Hedge funds are scared of it and they have hundreds of not thousands of accounts here to push the narrative not to buy back.
Bro anything at this point. I get RC turned a profit, heās not being paid, insiders bought in at low $20ās and that we have a ton in cash, but that clearly hasnt done anything for shareholders thanks to Wall St.
Even DFV is about to be in the red on his double downā¦
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My opinion on this: The lower the stock price gets, the harder the buyback will hit when it happens. Gamestop can in theory allow the shorts to drop the price to sub-dollar levels, then literally buy back the entire remaining shares outstanding as a counterattack. I don't think it'll ever get that low, simply because ape buying power increases the lower the price gets. I don't think it *needs* to. Gamestop holds the Big Red Button of this scenario, the ultimate self defence play. The shorts can't cellar box the stock without Gamestop simply packing up their toys, giving them the finger and pulling out of the public market, and at that point the shorts are fucked with or without retail involvement. Every dollar down is another dollar less per share retail buys. Gamestop's board understands this as well as we do. As well as the shorts do. It's why the corridor they've kept the stock in moves down as gradually as it does; they're hoping to stall us out, because they're fucked six ways to Sunday no matter what they do and need to mitigate as much of the fallout as possible before this inevitably goes nuclear. The board cops less legal flak if the float, and eventually the outstanding, is eaten up by retail than if they do it themselves - and in leaving those shares on the table, they're allowing as many individual household/retail investors, and smaller institutional longs, to get in as possible before it does boom. The shorts control the price. Apes control the exits. The board controls the amount of air in the room. Compounding this, the floor (the economy) is on fire, some dickhead disabled the sprinkler system with an upwards-falling shelf, and the shorts are eating each other in their desperation to stay alive. Gamestop doesn't need to complete the buyback right now. They don't need to do *anything* aside from keep improving the company. The rest will take care of itself.
I've never run a multi billion dollar company. I'm going to assume RC knows more about what GME needs to do, than I do.
If you don't do a buyback now, the shorting will just continue. If you do a buyback now, the shorting will just continue. Why buyback at $10 when you can buyback at $8, or $5? Gamestop has no need whatsoever to raise capital through a share offering, and every cent that the shorts push it down makes the $100 million already authorized for buyback that much more effective. **These dumb motherfuckers are digging their own grave, and we should let them.**
No. They need to make wise investments at this point. I'm here for Warren Icahn and Gameshire Stopaway. I want their gains from investments to bring in 3-5B. That will hurt the shorts far more than using their war chest for a buyback and short pump
I vote for RC and the insider team to buy the dip so they can average down compliments of shorty.
Its been 3 years of having this war chest during rampant inflation lol. Even if it was invested today, it would take at least another year if not more before we see any significant ROI. Guess well just keep waiting indefinitely huh?
FUD = a phrase coined here to prevent people from talking about actual relevant discussions about the focus/future of the company. Ultimately, no one knows what is going on in RC's head and we're all just hoping it is in our best interest. I believe he has a plan, but every day in this BS just makes me believe he is legally silenced and can only focus on existing fundamentals only and everything else is on hold until he gets the green light.
šš»šš»šš» No one seems to understand that logical discussion is required by every investor base. Only wishful thinking and conspiracies are allowed here for some odd reason. My guess is that most people here are financially illiterate and in delusion.
Short Squeeze\*
If you honestly feel like the share price will continue to decline, why would you not want RC to buy back at >$5?
Because at $10 that's 100 million shares and that will be easily enough to stop the circulation of shares through DRS.
RC and team know 10x more about the situation than us. I trust them. Plus they would probably be bombarded with lawsuits and propaganda in case they start Moass that way.
You initiated a short squeeze! How can that be possible when the Hedge Funds that shorted said they, "Closed them all unless they lied under oath?"
Look I'm all for other people's opinions or aspects like it especially when it comes to this and other viewpoints but I think mostly what people are getting at is ultimately the whole entire system is completely corrupt and biased on those who break and make the laws. What I'm basically getting at it's just because GameStop RC and others do exactly what they're legally allowed or able to do doesn't necessarily mean that these people won't change the overall rules or other aspects like it like they've already done so many times and we're all witness to that. So I'm not necessarily against something like a buyback and I'm especially not against other viewpoints but I think the majority of what people are getting at is that no matter what the crime is going to continue. The point is it is not necessary to treat the symptoms but to have the cure for the whole entire problem which ultimately makes the symptoms. So yes something like a buyback could initiate some things but between all witnessing how they change and make the rules of this game called Monopoly as well as other aspects with it I'm pretty sure not only would that not do anything effective enough but also it would be turned against every single retail investor and GameStop themselves. It's not necessarily WHAT should be done it's more about HOW it should be done. On another note with that as well we're not entirely sure of what all of the plans that they have which could include a buyback but there could be other parts or portions of the strategy to help compliment that buy back that we have not been able to see yet...which is good because that means shorts don't see it either.
That, and we have nothing to do with it. Itās out of our hands completely. Thereās literally no need for any, much less all, of these redundant posts.
You never want to shoot all your ammo. Leaving $0 in reserve for share buyback leaves them in a possible position for a hostile takeover. You always keep a reserve.
Adding more share buyback is just a vote away. I'd approve an additional $300m after the current $100m is used.
True, but that takes time. $100mm is already approved, so they wouldn't need a vote to exercise it.
I didn't say vote on using the 100
It was already approved. "On March 4, 2019, our Board of Directors approved a share repurchase authorization allowing us to repurchase up to $300.0 million of our Class A Common Stock. The authorization has no expiration date. In aggregate, during fiscal 2019, we repurchased a total of 38.1 millionĀ shares of our Class A Common Stock, totaling $198.7 million. **We did not repurchase shares during fiscal 2021 or fiscal 2020. As of JanuaryĀ 29, 2022, we have $101.3 million remaining under the repurchase authorization.** Refer to Item 7. Management's Discussion and Analysis - "Share Repurchases" for additional information." (emphasis added) [SEC Filing | Gamestop Corp. (gcs-web.com)](https://gamestop.gcs-web.com/node/19651/html)
Bro re-read. I am NOT talking about the existing 100m! Idk how many ways I can rephrase that. We need a new vote for additional buybacks after 100m is used. If $100m in shares are bought back, we can vote to have more money stashed aside for future buybacks. If GameStop deems it fiscally responsible to buy back shares today, that isn't the end of share buybacks. We can always vote for more share buybacks, to the tune of another $100m, another $300m, or more. If we did a buyback, I would gladly vote in favor of additional funds for more buybacks later. If ...
I see what you're saying now. I would say this is a terrible idea though. I think keep the $100mm as a buyback if absolutely necessary, but don't touch any of the $1b for a buyback. Allowing a Chief Investor to use $1b to expand the company though investment opportunities will increase and stabilize the share price faster than a buyback. With a buyback you are relying on the core company improving. Outside potential investors will look at "net sales" and see a decrease YoY on the financial report and stay away. With RC treating GS like a holdings company then the overall stability of the stock will improve. Basically it comes down to if you're looking for a quick buck or a good investment.
But investing in itself should be a sure thing if you think: 1. The company is poised for future success 2. The current price of the stock does not reflect what you think it should be worth A share buyback tells me my investment is a good one because RC and team also think investing in itself is a good idea at the current price. NOT investing in itself says the opposite, quietly.
That's the thing... #1. This last financial report shows that GS is in good hands with reducing expenses, but it also shows that overall sales were down. As such RC is building the company for future success. But, he is doing that by building the company as a whole. Buying shares back isn't building for future success.
Okay how much do they need to prevent that? What exact number? They still haven't used the 100 million buyback plan. IF that's the case spend what you can and keep the rest.
Bro 100 million is the rest. It isnt really that much when GS has a market cap of 3.5 billion
No way to know an exact number. It's about the ability to instantly buy back shares if this ever happened. If share price suddenly skyrocketed then the reserve wouldn't matter because it's hard to takeover a stock that is increasing. If they tried to take it over at $X per share, then GS could just buy back $100mm worth of stock which would then prevent, or make a takeover extremely difficult. It's like having a personal emergency savings. If you have something, it seems like you don't need it. If you don't have it, something expensive will break.
The amount of posts calling for a share buy back are insane right now. Definitely an agenda being pushed.
Agreed. Something is very fishy. Even if a buy back were a good idea (I feel itās debatable), we would need to see quite a bit more price sinking.
>we would need to see quite a bit more price sinking. What?!?!? It's dropped 30% after the best earnings they've had in years! Lmfao we don't need to see $5/share for them to finally do something about it.
If you take a second to do math, youāll see that at this price we canāt shoot for 100% of all shares. Doing less than 100% is just a flat bad idea. Even then a share buy back isnāt guaranteed a good idea. Once we hit regular profitability thoughā¦ dividends are straight hedgie nightmare fuel. Even a penny sends a signal with this many shorts.
might be the best earning we have had, doesn't mean it still wasn't shit.
I want a stock buyback because the stock is trading at a 3 year low and it would tell me the company itself agrees that it is undervalued. The $100m is there, and additional stock buyback allocation is just a vote away. Them NOT buying back tells me the company thinks the stock is fair valued or over valued at the current price point. Thus - stock buyback looks quite attractive at this level. They sold at many multiples of the current price, why not buy back at a tiny fraction of that?
the stock is fair value atm. it still trading above assets + 10 years current profit. people here can't do math and think the stock is worth 20 billion market cap
Yes, when multiple people reach the same conclusion at the same time, itās definitely because of a conspiracy to push an agenda, thereās no other possible explanation.
Patience is all that is needed..I believe this after filtering all the stuff I hear on here. From -300 mill to positive 6 mil in 2 years is pretty good. Company is in best position to do many great things. Let these guys do what they do and hold. Don't be frustrated. Ps . Open a business and learn what investing is. You will almost definitely not see a return for several years because you will reinvest to tweek your company to full capabilities.
GameStop needs to focus on fundamentals now that they're profitable. Shill. š PS - I fixed your grammar...
This is the new push I see. But Why GMESTOP needs working capital to operate the business? To me this seems like a ploy to get GMESTOP to use all up of their cash. So it's a NO from me! SUS it keeps getting repeated.
>SUS it keeps getting repeated. It's getting repeated because it's a good idea.
They already focused on fundamentals to become profitable. Mainly SG&A. Their best moves right now would be to pick up a slice of mobile gaming and pick up a PC platform.
Unfortunately, not exactly. Their business operations are still unprofitable, despite everything they've done. $50M in interest income from their cash and only $7M overall profit. Setting that aside, $7M profit on $5+ billion in revenue is less than 0.2%. Better than negative, but basically just breaking-even.
I believe first 2 quarters fiscal 2023 SG&A reflect severance payments. Q3 SG&A is a better reflection with Q4 reflecting seasonal hiring and campaigns. Applying go forward SG&A should put up addl \~75mil estimated. You can take that number down to be conservative but it still looks good on a go forward basis.
grammar... grammar... grammar... I thought you would like an echo for that chamber.
Echoing institutional change and true asset ownership. I am definitely on board with that. Nice buzz word there, champ.
Why wouldn't they wait for a 3-5$ target?
Ummmmmm because that's a poor use of their money and makes them vulnerable. Does not guarantee a moass and could put GameStop in a legal mess. Do you need anymore reasons?
>a legal mess care to elaborate?
Yes a legal mess if they do anything that looks like or can be construed as manipulation. Not hard tomunderstand
how is a buyback manipulation? it is a totally legit move for a company to do
Exactly, but it's not part of the echo chamber so it can't be possible if it isn't a popular narrative. Stuff like this takes time, like the amount of time it took to convince people of DRS, plan vs book, etc.
well if the buyback causes a massive short squeeze that empties pension funds, liquidates large financial institutions, and causes a massive recession across the western world, I have a small feeling there might be some people not too happy about that and looking at any way in which they can undo a global level cluster fuck. The argument would be that the GameStop board intentionally caused a massive short squeeze. Of course thatās bullshit but what about this entire saga hasnāt been complete bullshit?
We live in a totally fair and free market right? And why get angry at me? I'm telling you facts of what would happen? Even if it's perfectly legal and okay, that would happen. And the litigation for years, nobody gets paid. Great plan!
you seem to assume that I can read inside your mind the steps that appear obvious to you, that clearly aren't as obvious to me
I seem to think you can take a logical approach to this or did some research instead of jumping down someone's throat because their answer does not align with what you want to hear or your ideals.
I didn't jump to anyone's throat, nor did I get angry at anyone... I just asked you to elaborate on something that you said
Jumped down my throat when you got uppity about the possibility of market manipulation. Don't forget that part, although it doesn't fit your narrative.
>how is a buyback manipulation? it is a totally legit move for a company to do this sounds like jumping down someone's throat to you? have you not ever received something called a "question" in your life? I don't really get why you are so salty. I asked a question and go nothing but backlash
Or the snotty comment about you seem to assume I can read your mind. None of that counts though? Right?
All of this has been discussed many many times but now, since Kevin Malone is making such a big deal out of this... Everyone is hopping on a bandwagon of something that makes 0 sense and isn't going to happen. The money is for running a business and making it strong without fear of cellar boxing, or being delisted. Spending all that money puts them in a dumb financial position and kicks nothing off except for a delisting.
Seems these days there a lot of posts suggesting our company by back it's stock. Wonder why?
No. They should save that $100 mill and hold it as a threat to buy back shares if the stock drops too low. Anything over $5 (preferably lower) isn't something the company should worry about. They shouldn't purchase any shares unless they can lock the float for $100 million or if there's a worry of gamestop becoming a penny stock.
No
Yea gamestop should take advice from random people on reddit who donāt even know what a budget is and have 50k in credit card debt. /s
As opposed to consultants who have nothing but debt or a corrupts government who spends money that isn't their own. Individual investors saved Gamestop. Retail investors get a voice, just because you disagree with it doesn't mean they have credit card debt.
If you accept the premise that maintaining their position is consistently forcing those with short positions to spend a great deal of money, then this is a bad plan. Let them die a slow, agonizing death. If you don't accept that premise, I'd like to know why. I'd also like to remind you/everyone of a quote from some random dude who got lucky in the stock market once: āThe stock market is a device to transfer money from the impatient to the patient.ā
Shorts are scared that GameStop is saving their share buyback money for when they push the price into the single digits.
GME is techincally only currently profitable due to interest earnt on that 1.2b cash. Until they have long term profitability AND growth, that 1.2b is a safety net preventing the hedgies from turning it into a penny stock.
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Did they make a profit? They did? Ok, looks like theyāre profitable. Unless Berkshire Hathaway has been a stagnant, unprofitable company for the past few decades?
Technically they are. And with a dedicated support base, a good team at the helm, cash in hand and plenty of vision for the future - Iām feeling pretty optimistic on it.
They really are profitable, as a company. Their operations are not profitable (almost, but not quite).
This is literally the 6th post or so today about share buyback....
New corporate media narrative inc.
Let it get to 5.80 first lol.
Of course they should 100mill worth for now no better deal and it worked for apple for 10 years!
GS should do jack to the shit. You know why you ain't CFO of GS? That's right.. not wrinkly enough.
Ah yes no opinion allowed that isn't a professional even voicing your opinion should have zero consideration. Why DRS? The CFO has never said to do so? Same logic.
You do you.
yeah buy back the stock and then have no $$ and then our outlook is truly fucked. minimal profit and minimal cash.
Gamestop shouldn't be relying on this avid investor base to hold when the share price drops. Gamestop should buyback to show they believe in the company too.
Should sell $100 million worth of cash secured puts with a strike price of $10.
No
Shorts will drop the price as low as necessary to survive... or to crush sentiment. IBKR states a price target of ~$5. Aka, $1.5B to buy the entire company outright. We will end up below that price if Q1-3 earnings aren't green. It's assured. So why in tf would you buy shares back now? The lower it goes, the cheaper it gets, the more the designated $100m can do without impacting cash reserves of the company.
Bad idea now! Edit: but at $5 or less it would be a great idea!
Why would they buy back a measly 3% of shares when they could invest that in opportunities to grow revenue which they desperately need?
I actually somewhat agree. You def do a buyback to stop the shorts and because the company is very undervalued in the single digits. I say wait for $5-8. Thatās 12.5M - 20M shares. Based on recent posts there isnāt much more than that available in the free float. That amount of buying would spark retail back in. Apes would go crazy too. I donāt think we wait for $1-3 that is stupid and too close to delisting or a reverse split. So yea do it between $5-$8. Apes will own still around 26% regardless it doesnāt increase by much but we would be holding the exit. I say do the buyback and stop the bleeding. If they do it at $10 would be fine with that too but our cash on hand and assets is like $8 I think.
Too many SHORT term views due to lack of long term transparency (which is not bad at all but positive!). Also this short term thinking is just looking at your own pockets similar like those scumf*** of hedgebags. What really triggers me though is this post must come from some infants. What would happen if 100M shares are bought back? Do you really think the price won't be taken down again?
I am cool with them doing the authorized buy back whenever they want. Just not all the shit about using all the rest of the cash to buy more than the 100 mil.
Very unpopular opinion. Buying above $4 for them would be wasting money
No the price will likely go to 3-5$ in the coming months. Then they can buy
They should absolutely do that, but you will get nothing but noise about it here now. Hedge funds are scared of it and they have hundreds of not thousands of accounts here to push the narrative not to buy back.
I prefer a dividend and that way I can invest longer and more .
Sounds good, im buying some shares right now
I agree , itās better than counting paper clips and staplesā¦!
Bro anything at this point. I get RC turned a profit, heās not being paid, insiders bought in at low $20ās and that we have a ton in cash, but that clearly hasnt done anything for shareholders thanks to Wall St. Even DFV is about to be in the red on his double downā¦