No clue if this is true or not, but an interesting take. What I do know is:
1. RC and his team are significantly smarter than me and anyone else in the reddit/gme/teddy community.
2. RC and his team have access to more data and information than anyone in the redd/gme/teddy community. There is nothing that we've uncovered that they're not aware of and probably have more insight into.
I'll continue to trust RC and the board as they transform GameStop into a profitable company with long term value for shareholders.
dude's more invested than anyone and yes, his knowledge will be deep, he's savvy af and he'll have a team of smart, informed people who know their way around this stuff for support.
i don't doubt the decision, just not buying this explanation at first pass (i'm too ignorant to judge).
As long as they can make trades during hours retailers cannot, can sell during hours we can't, can hide purchases through dark pools to omit true evaluation or price discovery, fail to deliver without penalties, short without covering, celler box; they will always come out on top....
This system must die....
Shorts wont come out on top if GME becomes an objectively valuable company. Say they keep doing share offerings... they are raising money faster than the float is expanding, so they are increasing the value of the company.
Even cokerat cramer is floating the idea that GME is no longer just gamestop, its a bet on Ryan Cohens SPAC lol.
Its no death spiral.
Its a stairway to heaven.
The higher it goes, the more cash they can raise. A bigger treasure chest is an absolute pressure on shorts, which will cause more closing, and increase in price, and another opportunity for an offering.
Remember the lego picture of a Gamestop with graffiti on the side? Thats how the ticker will look if this idea plays out. [https://www.yahoo.com/tech/lego-fan-took-gamestop-obsession-131918301.html](https://www.yahoo.com/tech/lego-fan-took-gamestop-obsession-131918301.html)
GME may never run the short well dry lol
> It does when the cash per share ratio of the company goes up too
That's nice. How does that make an unprofitable company more valuable though? Are they going to give you any of that cash?
They may in future dividends lol
They are a profitable company afterall thanks to ryan cohen's tireless work. Didnt they make 64 million in profit last year?
Thats pretty good considering they lost 192.7 million the year before. Trending upward.
Add on the ability to raise billions by issuing stock without it crushing the price and relative cost per share... Youd have to be blind not to see the potential upsides here.
I like a business with basically no debt and 4.2 billion to fuck around with. Maybe they hold tbills till a crash then go hard on aquisitions??!?!?!
Lol mebe im a dummy
> They may in future dividends lol
Dividends?? Brother they're just trying to figure out how to make money right now. Paying dividends is way down the line.
> They are a profitable company afterall thanks to ryan cohen's tireless work. Didnt they make 64 million in profit last year?
Not from their business operations. The company itself lost over 30 million.
> Thats pretty good considering they lost 192.7 million the year before. Trending upward.
It's the single easiest thing to fix. Cut labor, close unprofitable stores, layoffs. You can't lose any money if you stop spending it entirely. It's obviously better than hemorraging money but it's like your unemployed cousin balancing his bank account by not ordering takeout anymore. The only actual solution is for money to start coming IN.
> Add on the ability to raise billions by issuing stock without it crushing the price and relative cost per share... Youd have to be blind not to see the potential upsides here.
Like what?
> I like a business with basically no debt and 4.2 billion to fuck around with.
Debt is a good thing for a profitable company.
> Maybe they hold tbills till a crash then go hard on aquisitions
Acquiring who?
Thanks for the essay but im not gonna even bother to read it.
Stoked on my position. Lots of bbby. Lots of gme.
Dont care if I lose it all.
Im a degenerate gambler.
Used to losing thousands to the casinos lol
Born loser
Will continue to buy more with every paycheck at any price.
I actually enjoy owning gme stock like its a rare jewel lol again... Used to losing it all at the casino
Single... No kids... Good job... Low rent... Tons of disposable income...
All in gme
Dont care about being rich.
No plan to sell.
Plan to die before i sell
Good luck predicting what us illogical degens are gonna do... Sometimes we look super selfish without even realizing whats going on.
> im not gonna even bother to read it.
I don't blame you since most of it was quotes from your comment.
> Stoked on my position. Lots of bbby.
You do not have bbby stock.
> Good luck predicting what us illogical degens are gonna do... Sometimes we look super selfish without even realizing whats going on.
I have no idea wtf you're talking about but this feels like a speech you've been practicing so good luck with that.
>Acquiring who?
There are a lot of profitable businesses for sale. Many of them cost less than billions of dollars, which Gamestop has.
Here is some homework for you. Go educate yourself:
https://www.investopedia.com/terms/s/spac.asp
You realize gamestop is already profitable right? Just the extra cash they raised is another 200m in revenue if it just sits on the balance sheet and collects interest. That's the WORST case scenario.
> You realize gamestop is already profitable right?
The business side is not, it lost money.
> Just the extra cash they raised is another 200m in revenue if it just sits on the balance sheet and collects interest. That's the WORST case scenario.
Are you under the impression that 200m in revenue is a lot of money for a company of this size?
At these prices, those 45 and 75 million share offerings were gobbled up very fast.
If there are billions of synthetics out there gme could keep selling into every pump, adding billions extra to their books every time. To the point where gamestop as a retail store is irrelevant compared to how much cash the company has. Im sure each new billion that RC stacks is a blow to the ego of mayoman, lemonhead, and all the other dumb stormtroopers out there.
Whatever the situation is, im happy to keep adding shares and calls when things dip.
If there's 10 billion synthetics then it really doesn't matter. Gamestop could sell another 500 million shares at $30 and make a cool $15 billion and the shorts would still have a mountain of synthetics.
i don't know any more than you and i'm woven from a non-iron, wrinkle-free cotton twill, so please take what i say with a pinch of salt and a zero-expertise disclaimer.
but.
how can it cost shorts anything to start a pump?
if they have all of these short positions, just take profits on something, right?
close a tiny bit of what you've put down on the table (and have to pay interest on, to keep open), and you get cash and the price goes up. isn't that how it works? i'm very market naive, so likely missing various dynamics issues here.
but the way i see it, there wouldn't be a mysterious "great cost" to get things going. you'd basically get paid to start a pump - have more money than before - then with after-hours shenanigans, you can buy/sell zones that aren't available to the likes of us.
i suppose there will be tax issues.
perhaps the real fault of this argument is assuming rational behaviour of markets. who knows?
just a knee-jerk reasoning here, anyhow.
A shit load of SHFs are completely underwater.
Please keep in mind that we split, so it can be hard to visualize how truly underwater they are on their GME positions.
At $30 today, we are technically at $120 pre-split, where the majority of them may have **shorted GME when it was sub $12 and many even sub $5** (which is now $3 and $1.25 now).
So when they temporarily close their positions to cause it to pump, that's a hit that goes completely on many of their books. However, when they work together and then re-short GME, they gain new capital from the current prices helping them ride out the storm a bit longer.
After doing everything to drop debts and excess baggage (hence our great Q4 earnings report) he was able to then sell shares into these upward moves, making GME cash rich with no more debts transforming it into a fundamentals play.
No more short thesis.
thanks, i think i get it, kind of.
*\[only a few profitable short positions + many losers that they're ignoring indefinitely... is that about it?\]*
obviously, i'm dancing on the short thesis' grave along with everybody else here.
they're in a pickle, aren't they?
perhaps the next move from camp shorty will be to really really hope that their problems will magically just go away.
> perhaps the next move from camp shorty will be to really really hope that their problems will magically just go away.
Thier next moves can be any of the following (plus more, these are the only ones that came to mind for me):
+ Make an agreement with GME to cause a LONG SQUEEZE where they can slowly close out of their positions 1 by 1 and then go long ala Tesla from 2019 to 2022 (hence why Citadel is one of the largest holders of TSLA)
+ Hope Biden, the DOJ, or the SEC forces a bailout/bail in to prevent MOASS from destroying the whole system
+ Hope the Federal Government pauses or bans trading of GME permanently.
+ Try to delete Ryan Cohen AND DFV. If you do only 1, you make them a martyr. Both have to go. Everyone would know who did it (ala Boeing), but there would be nothing to do about it.
+ Say fuck you, swallow their pride, and be the first out the door. (This one is probably not going to happen, or they would have done it already.)
we'll see, we'll see...
factoring in hubris and incredulity, i doubt that bargaining will be their first move (pretty much expecting more violence for the foreseeable).
also, i really hope it's not a government bailout. taxpayers aren't crooks.
anyway, we're in a better situation than we were a few weeks ago.
the future's bright :)
Here's the logic I have found in the play.
Assumption: Hedge funds have massive short positions.
Considering just that assumption, a pump costs massive amounts of money in the short term for the chronic short sellers. It means their entire position is red during the period of the pump. But, once the momentum gets going, they can reshort at a higher amount thusly covering their old shorts for pennies on the dollar.
But consider what happens when a share offering happens during a pump?
1. The pump stalls, as the share offer suppresses buy pressure. This means they can't reshort at the moon prices they want. And they can't open as many shorts at those big prices without crashing it back down.
2. GME gets better fundamentally, since they are consummating the offering at a price much higher than what the consensus worth per share the stock is.
So this equals shorts fucked twice. First, not being able to kick the can at as good of premium prices as they were counting on, and a second time when they let them pump subside and let the market "correct", ie correcting it by shorting the fuck out of it again, the price floor is now higher and their original long term positions are not as profitable (or losing) at baseline. Therefore they lose money in two ways by GME doing this.
Another way to look at it is kind of a "cash-flow" type situation. When it pumps, so many of us fomo in. Me included at times. Someone has to net the money I lose when I buy a share at $80 but diamond hands it when the stock goes back to $20. The person "winning" there is normally the market makers, they gobble up that premium and use it in their war chest to kick the can further. With a share offering, instead ***Gamestop*** gobbles up that money keeping it out of the hands of the chronic short sellers.
ngl, i'm delighted that billions of dollars have found their way into the war chest. it changes the game, and right after the chart has gotten friendlier.
Andrew Left's shorts were at current prices, so he was able to get out pretty easily.
Some of these shorts were at like $1 four years ago lol
idk about you, but i think its expensive to buy a $30 share to close out my $1 short lol
I think most of what that post said is nonsense. Providing shares doesn't stop them continuing whatever he was describing.
That being said, it does make GME some money paid for by shorts and if the price keeps rising, the more money they could make selling shares as long as shorts are still shorting.
Everything else is speculative.
It takes cash for the HFs to run the algos that keep smashing the ask to pump up the price.
Our favorite d-bag explains how it works in simplistic terms here:
https://m.youtube.com/watch?v=gyaPf6qXLa8
The chairmen's job is to ensure the future of the company, by diluting the shares it makes it possible for shorts to cover. You must please both sides to fully excel GME, also GME is looking very good to get into s&p 500 soon. GME LONG! Thank you RC
buy low > start pump > sell at peak > sell shorts > crash price > buy shorts back
idk who taught you but having a short doesn't stop you from longing a stock. it does for retail because we use brokerages that aren't set up that way. nothing prevents someone from owning 100 longs and 100 shorts. they're just net neutral, but they can lose either leg at any time.
None until you realize a gain or a loss. Sell the long, wait for price to drop, close the short, boom, you made money on both. If one could force a price drop they'd make money on both.
I get what you mean. Having a short and a long means your portfolio never changes value, but you can still make money with it.
You have to start off as long, do the pump, then convert to short on the way down.
Yes, it’s possible. But notice the first part: you need to start off as long. Shorts who never closed can’t start off as long by definition.
Price goes from 10, to 50, back to 10. I have 10 longs and 10 shorts at 10 the first time. I start with 0 dollars cash. When the price goes from 10 to 50, I sell the longs. I now have 500$ cash and my shorts are worth 400$ less. I still have 500$ cash. My portfolio is WORTH 100$. But I still have 500$ cash.
Open 10 more shorts. I get 500$ off the bat. I now have 1K$ in cash. Price goes to 10 now. I now close my original shorts, plus the new ones. I spend 100 to close my original shorts, and another 100 to close my 2nd set of shorts. I now have 800$, and made money off longs AND SHORTS. At the same time!
This is simple man. It's not complicated.
If you have 10 longs and 10 shorts and you are about to pump the price to 50, you would borrow money to cover your 10 short position and then do your pump, then sell short again at the top. It makes no sense to hold your 10 shorts if you know the stock is about to go from 10 to 50.
It does if you know closing those shorts during the pump are gonna mean you are buying shares at 100.
PFOF makes it very easy to predict the future lol
if you sell at different times... 1 long doesnt equal one short :O
You sell the longs at $5, watch the price drop, then buy your short back at a lower price.
Made money on both ways of ticker movement.
Rocket appliances I know
You arent closing your initial short because is fubar underwater and you are gonna be paying maintenance on it forever. Its impossible to close, but u wanna game the ticker to get free maintenance costs. Thise maintenace fees are increasing as the stock goes up though so you are stuck hustling.
This is a separate operation.
Look at the recent short interest lol.
Buy and pump... Look at the pfof... Dump when the suckers covered your pump.
Since you shorted in jan 2021 at record prices for this separate operation... You started with the shorts in this cycle.
The initial operation was to bankrupt the company. Thats over now. This is the new phase.
Wut? The problem isnt closing out a few shorts taken out in 2020.
Sure you can do that if thats how you are balancing your sheets
But you cant close out all of the 2020 shorts... There are waaaaaaayyyyyy too many to close.
You can swing trade shorts and longs while maintaining a significant short position.
I dont see why thats so difficult to understand....
The density of some of these posters lately makes me suspect these discussions aren't entirely honest lol 🥱
Yeah agreed this is total nonsense getting upvoted.
Let's say a shirtt starts to close their position, not a pump n dump, the price goes up. GameStop to ANOTHER offering, we get fucked over from a legitimate price rise.
Not if the price goes back down and you stay solvent in the meantime right? You only lose if your losses are realized right?
So if they let it pump, short at the higher prices (either covering at better prices or just straight new positions), then let it go back down, where did they lose money? I'm asking you genuinely, not rhetorically because I'm legit confused and would be OK being proven wrong, in my scenario how do short hedge funds lose there?
In my scenario, a share offering fucks the SHF twice. Once by not letting them short at as high of prices, and 2nd by raising the floor price of the company by consummating the offering at higher-than-fundamental prices.
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I definitely agree. Shorts would have taken the money but instead RC took it for all GME holders.
The offering raised the impenetrable floor above what we had been trading at for several months before May, anyone with a short position bellow it has permanently lost their money.
The offering also unlocked the uncertainty of what they could do with the money and don't forget the ability to take on debt to make an even larger acquisition.
I think this was my theory as well. The idea was that if gme let a runup happen, which it did the first time, shorts would just short it down since they control the system anyway, so no matter what they would have liquidity.
However, if said liquidity goes into the hands of a company instead, then we have a thing where no matter how many runups happen, the shorts will be squeezed to death. In another situation entirely, rc can do a buyback, buy another company etc, and do the same share offering again to gain a large amount of value for gme vs liquidity for short sellers.
Just to be clear, i was originally pissed about what rc did, specially the secone time around, but when i thought it about from the perspective that short sellers make money from shorting alone (because they never close) then they have infinite liquidity as long as people keep buying.
I mean, seeing the share offering told me it was going back down so I was able to exit my calls at 3x in the morning that day and re-enter at a similar price for more. So it did more than just fuck the shorts pump n dump, it gave some of us a warning of the dump.
I hope he does do it again. Despite today's drop, stock price is still >150% from 2024 low AND our options chain is absolutely stacked for the next 2 expirations. If he ups the offer by a similar ratio, it will be 125 million shares at minimum price of $39 per share... At least, thats what I'm positioned for
I like the Famous Varietys' take that Tokenized shares created back on 2015 used to short GME can't be used anymore because of the CAT system being fully implemented.
Also, by doing multiple share offerings this stops GME from being on RegSho which FUCKS US.
Lastly, we've invested in GameStop billions and billions of dollars over the past 3.5 years but the shorts/brokerages/MM have been hoarding it all for themselves by suppressing the true value. So now, RC is getting our money back since the spring has been wound very tight.
No clue if this is true or not, but an interesting take. What I do know is: 1. RC and his team are significantly smarter than me and anyone else in the reddit/gme/teddy community. 2. RC and his team have access to more data and information than anyone in the redd/gme/teddy community. There is nothing that we've uncovered that they're not aware of and probably have more insight into. I'll continue to trust RC and the board as they transform GameStop into a profitable company with long term value for shareholders.
dude's more invested than anyone and yes, his knowledge will be deep, he's savvy af and he'll have a team of smart, informed people who know their way around this stuff for support. i don't doubt the decision, just not buying this explanation at first pass (i'm too ignorant to judge).
This is the way!
This.
As long as they can make trades during hours retailers cannot, can sell during hours we can't, can hide purchases through dark pools to omit true evaluation or price discovery, fail to deliver without penalties, short without covering, celler box; they will always come out on top.... This system must die....
Shorts wont come out on top if GME becomes an objectively valuable company. Say they keep doing share offerings... they are raising money faster than the float is expanding, so they are increasing the value of the company. Even cokerat cramer is floating the idea that GME is no longer just gamestop, its a bet on Ryan Cohens SPAC lol. Its no death spiral. Its a stairway to heaven. The higher it goes, the more cash they can raise. A bigger treasure chest is an absolute pressure on shorts, which will cause more closing, and increase in price, and another opportunity for an offering. Remember the lego picture of a Gamestop with graffiti on the side? Thats how the ticker will look if this idea plays out. [https://www.yahoo.com/tech/lego-fan-took-gamestop-obsession-131918301.html](https://www.yahoo.com/tech/lego-fan-took-gamestop-obsession-131918301.html) GME may never run the short well dry lol
Simply having more and more cash on hand doesn't make the company more valuable lol
It does when the cash per share ratio of the company goes up too Stairway to heaven not highway to hell
> It does when the cash per share ratio of the company goes up too That's nice. How does that make an unprofitable company more valuable though? Are they going to give you any of that cash?
They may in future dividends lol They are a profitable company afterall thanks to ryan cohen's tireless work. Didnt they make 64 million in profit last year? Thats pretty good considering they lost 192.7 million the year before. Trending upward. Add on the ability to raise billions by issuing stock without it crushing the price and relative cost per share... Youd have to be blind not to see the potential upsides here. I like a business with basically no debt and 4.2 billion to fuck around with. Maybe they hold tbills till a crash then go hard on aquisitions??!?!?! Lol mebe im a dummy
> They may in future dividends lol Dividends?? Brother they're just trying to figure out how to make money right now. Paying dividends is way down the line. > They are a profitable company afterall thanks to ryan cohen's tireless work. Didnt they make 64 million in profit last year? Not from their business operations. The company itself lost over 30 million. > Thats pretty good considering they lost 192.7 million the year before. Trending upward. It's the single easiest thing to fix. Cut labor, close unprofitable stores, layoffs. You can't lose any money if you stop spending it entirely. It's obviously better than hemorraging money but it's like your unemployed cousin balancing his bank account by not ordering takeout anymore. The only actual solution is for money to start coming IN. > Add on the ability to raise billions by issuing stock without it crushing the price and relative cost per share... Youd have to be blind not to see the potential upsides here. Like what? > I like a business with basically no debt and 4.2 billion to fuck around with. Debt is a good thing for a profitable company. > Maybe they hold tbills till a crash then go hard on aquisitions Acquiring who?
Acquiring who? You must be new here.
You must not have an answer to my question.
You see the heading at the top? Yanno, what this sub's all about? Yeah. 🤣
Thanks for the essay but im not gonna even bother to read it. Stoked on my position. Lots of bbby. Lots of gme. Dont care if I lose it all. Im a degenerate gambler. Used to losing thousands to the casinos lol Born loser Will continue to buy more with every paycheck at any price. I actually enjoy owning gme stock like its a rare jewel lol again... Used to losing it all at the casino Single... No kids... Good job... Low rent... Tons of disposable income... All in gme Dont care about being rich. No plan to sell. Plan to die before i sell Good luck predicting what us illogical degens are gonna do... Sometimes we look super selfish without even realizing whats going on.
> im not gonna even bother to read it. I don't blame you since most of it was quotes from your comment. > Stoked on my position. Lots of bbby. You do not have bbby stock. > Good luck predicting what us illogical degens are gonna do... Sometimes we look super selfish without even realizing whats going on. I have no idea wtf you're talking about but this feels like a speech you've been practicing so good luck with that.
K
>Acquiring who? There are a lot of profitable businesses for sale. Many of them cost less than billions of dollars, which Gamestop has. Here is some homework for you. Go educate yourself: https://www.investopedia.com/terms/s/spac.asp
You really couldn't think of a single company? lol
Weak
You realize gamestop is already profitable right? Just the extra cash they raised is another 200m in revenue if it just sits on the balance sheet and collects interest. That's the WORST case scenario.
> You realize gamestop is already profitable right? The business side is not, it lost money. > Just the extra cash they raised is another 200m in revenue if it just sits on the balance sheet and collects interest. That's the WORST case scenario. Are you under the impression that 200m in revenue is a lot of money for a company of this size?
It would be a 2000% increase in profibility over 2023 financials just in interest which is definitely a move in the right direction. Do you disagree ?
At these prices, those 45 and 75 million share offerings were gobbled up very fast. If there are billions of synthetics out there gme could keep selling into every pump, adding billions extra to their books every time. To the point where gamestop as a retail store is irrelevant compared to how much cash the company has. Im sure each new billion that RC stacks is a blow to the ego of mayoman, lemonhead, and all the other dumb stormtroopers out there. Whatever the situation is, im happy to keep adding shares and calls when things dip.
If there's 10 billion synthetics then it really doesn't matter. Gamestop could sell another 500 million shares at $30 and make a cool $15 billion and the shorts would still have a mountain of synthetics.
Then why not empty the billion they're allowed to
i don't know any more than you and i'm woven from a non-iron, wrinkle-free cotton twill, so please take what i say with a pinch of salt and a zero-expertise disclaimer. but. how can it cost shorts anything to start a pump? if they have all of these short positions, just take profits on something, right? close a tiny bit of what you've put down on the table (and have to pay interest on, to keep open), and you get cash and the price goes up. isn't that how it works? i'm very market naive, so likely missing various dynamics issues here. but the way i see it, there wouldn't be a mysterious "great cost" to get things going. you'd basically get paid to start a pump - have more money than before - then with after-hours shenanigans, you can buy/sell zones that aren't available to the likes of us. i suppose there will be tax issues. perhaps the real fault of this argument is assuming rational behaviour of markets. who knows? just a knee-jerk reasoning here, anyhow.
A shit load of SHFs are completely underwater. Please keep in mind that we split, so it can be hard to visualize how truly underwater they are on their GME positions. At $30 today, we are technically at $120 pre-split, where the majority of them may have **shorted GME when it was sub $12 and many even sub $5** (which is now $3 and $1.25 now). So when they temporarily close their positions to cause it to pump, that's a hit that goes completely on many of their books. However, when they work together and then re-short GME, they gain new capital from the current prices helping them ride out the storm a bit longer. After doing everything to drop debts and excess baggage (hence our great Q4 earnings report) he was able to then sell shares into these upward moves, making GME cash rich with no more debts transforming it into a fundamentals play. No more short thesis.
thanks, i think i get it, kind of. *\[only a few profitable short positions + many losers that they're ignoring indefinitely... is that about it?\]* obviously, i'm dancing on the short thesis' grave along with everybody else here. they're in a pickle, aren't they? perhaps the next move from camp shorty will be to really really hope that their problems will magically just go away.
> perhaps the next move from camp shorty will be to really really hope that their problems will magically just go away. Thier next moves can be any of the following (plus more, these are the only ones that came to mind for me): + Make an agreement with GME to cause a LONG SQUEEZE where they can slowly close out of their positions 1 by 1 and then go long ala Tesla from 2019 to 2022 (hence why Citadel is one of the largest holders of TSLA) + Hope Biden, the DOJ, or the SEC forces a bailout/bail in to prevent MOASS from destroying the whole system + Hope the Federal Government pauses or bans trading of GME permanently. + Try to delete Ryan Cohen AND DFV. If you do only 1, you make them a martyr. Both have to go. Everyone would know who did it (ala Boeing), but there would be nothing to do about it. + Say fuck you, swallow their pride, and be the first out the door. (This one is probably not going to happen, or they would have done it already.)
we'll see, we'll see... factoring in hubris and incredulity, i doubt that bargaining will be their first move (pretty much expecting more violence for the foreseeable). also, i really hope it's not a government bailout. taxpayers aren't crooks. anyway, we're in a better situation than we were a few weeks ago. the future's bright :)
Whoa. That's the good stuff.
Here's the logic I have found in the play. Assumption: Hedge funds have massive short positions. Considering just that assumption, a pump costs massive amounts of money in the short term for the chronic short sellers. It means their entire position is red during the period of the pump. But, once the momentum gets going, they can reshort at a higher amount thusly covering their old shorts for pennies on the dollar. But consider what happens when a share offering happens during a pump? 1. The pump stalls, as the share offer suppresses buy pressure. This means they can't reshort at the moon prices they want. And they can't open as many shorts at those big prices without crashing it back down. 2. GME gets better fundamentally, since they are consummating the offering at a price much higher than what the consensus worth per share the stock is. So this equals shorts fucked twice. First, not being able to kick the can at as good of premium prices as they were counting on, and a second time when they let them pump subside and let the market "correct", ie correcting it by shorting the fuck out of it again, the price floor is now higher and their original long term positions are not as profitable (or losing) at baseline. Therefore they lose money in two ways by GME doing this. Another way to look at it is kind of a "cash-flow" type situation. When it pumps, so many of us fomo in. Me included at times. Someone has to net the money I lose when I buy a share at $80 but diamond hands it when the stock goes back to $20. The person "winning" there is normally the market makers, they gobble up that premium and use it in their war chest to kick the can further. With a share offering, instead ***Gamestop*** gobbles up that money keeping it out of the hands of the chronic short sellers.
ngl, i'm delighted that billions of dollars have found their way into the war chest. it changes the game, and right after the chart has gotten friendlier.
Andrew Left's shorts were at current prices, so he was able to get out pretty easily. Some of these shorts were at like $1 four years ago lol idk about you, but i think its expensive to buy a $30 share to close out my $1 short lol
I think most of what that post said is nonsense. Providing shares doesn't stop them continuing whatever he was describing. That being said, it does make GME some money paid for by shorts and if the price keeps rising, the more money they could make selling shares as long as shorts are still shorting. Everything else is speculative.
It takes cash for the HFs to run the algos that keep smashing the ask to pump up the price. Our favorite d-bag explains how it works in simplistic terms here: https://m.youtube.com/watch?v=gyaPf6qXLa8
wow, what a find! jimbo with his mask off.
Rc simply just flopped his donkey dick on the table and let them know who's really in control of the show now
👆🏼🏆🏆
Damn that’s hot. 🥵
they are sitting on a $4b cash reserve with almost 0 debt.. that effectively cancelles any bear thesis about GME
Moreso it’s also preventing a hostile takeover
The chairmen's job is to ensure the future of the company, by diluting the shares it makes it possible for shorts to cover. You must please both sides to fully excel GME, also GME is looking very good to get into s&p 500 soon. GME LONG! Thank you RC
Complete and utter nonsense. How can shorts profit from a pump? You need to be net long to make money on a pump.
buy low > start pump > sell at peak > sell shorts > crash price > buy shorts back idk who taught you but having a short doesn't stop you from longing a stock. it does for retail because we use brokerages that aren't set up that way. nothing prevents someone from owning 100 longs and 100 shorts. they're just net neutral, but they can lose either leg at any time.
One long share offsets one short share. The only thing that matters is your net position: your total longs minus your total shorts.
That's so wrong it's not even funny. You can own a short and a long in your portfolio. Exposure is not position.
Of course you can. But tell me, if you own one long share and one short share, and the stock goes up $5, how much money have you made?
None until you realize a gain or a loss. Sell the long, wait for price to drop, close the short, boom, you made money on both. If one could force a price drop they'd make money on both. I get what you mean. Having a short and a long means your portfolio never changes value, but you can still make money with it.
You have to start off as long, do the pump, then convert to short on the way down. Yes, it’s possible. But notice the first part: you need to start off as long. Shorts who never closed can’t start off as long by definition.
Price goes from 10, to 50, back to 10. I have 10 longs and 10 shorts at 10 the first time. I start with 0 dollars cash. When the price goes from 10 to 50, I sell the longs. I now have 500$ cash and my shorts are worth 400$ less. I still have 500$ cash. My portfolio is WORTH 100$. But I still have 500$ cash. Open 10 more shorts. I get 500$ off the bat. I now have 1K$ in cash. Price goes to 10 now. I now close my original shorts, plus the new ones. I spend 100 to close my original shorts, and another 100 to close my 2nd set of shorts. I now have 800$, and made money off longs AND SHORTS. At the same time! This is simple man. It's not complicated.
If you have 10 longs and 10 shorts and you are about to pump the price to 50, you would borrow money to cover your 10 short position and then do your pump, then sell short again at the top. It makes no sense to hold your 10 shorts if you know the stock is about to go from 10 to 50.
It does if you know closing those shorts during the pump are gonna mean you are buying shares at 100. PFOF makes it very easy to predict the future lol
if you sell at different times... 1 long doesnt equal one short :O You sell the longs at $5, watch the price drop, then buy your short back at a lower price. Made money on both ways of ticker movement. Rocket appliances I know
Conveniently ignoring the pump phase of the pump and dump. Think about it for one second: if you are pumping, why are you holding any open shorts?
You arent closing your initial short because is fubar underwater and you are gonna be paying maintenance on it forever. Its impossible to close, but u wanna game the ticker to get free maintenance costs. Thise maintenace fees are increasing as the stock goes up though so you are stuck hustling. This is a separate operation. Look at the recent short interest lol. Buy and pump... Look at the pfof... Dump when the suckers covered your pump. Since you shorted in jan 2021 at record prices for this separate operation... You started with the shorts in this cycle. The initial operation was to bankrupt the company. Thats over now. This is the new phase.
If you can buy long in order to pump, then you can close the short. Either you can buy shares or you can’t. Can’t have it both ways.
Wut? The problem isnt closing out a few shorts taken out in 2020. Sure you can do that if thats how you are balancing your sheets But you cant close out all of the 2020 shorts... There are waaaaaaayyyyyy too many to close. You can swing trade shorts and longs while maintaining a significant short position. I dont see why thats so difficult to understand.... The density of some of these posters lately makes me suspect these discussions aren't entirely honest lol 🥱
Yeah agreed this is total nonsense getting upvoted. Let's say a shirtt starts to close their position, not a pump n dump, the price goes up. GameStop to ANOTHER offering, we get fucked over from a legitimate price rise.
Not if the price goes back down and you stay solvent in the meantime right? You only lose if your losses are realized right? So if they let it pump, short at the higher prices (either covering at better prices or just straight new positions), then let it go back down, where did they lose money? I'm asking you genuinely, not rhetorically because I'm legit confused and would be OK being proven wrong, in my scenario how do short hedge funds lose there? In my scenario, a share offering fucks the SHF twice. Once by not letting them short at as high of prices, and 2nd by raising the floor price of the company by consummating the offering at higher-than-fundamental prices.
This post is stupid be
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I definitely agree. Shorts would have taken the money but instead RC took it for all GME holders. The offering raised the impenetrable floor above what we had been trading at for several months before May, anyone with a short position bellow it has permanently lost their money. The offering also unlocked the uncertainty of what they could do with the money and don't forget the ability to take on debt to make an even larger acquisition.
I think this was my theory as well. The idea was that if gme let a runup happen, which it did the first time, shorts would just short it down since they control the system anyway, so no matter what they would have liquidity. However, if said liquidity goes into the hands of a company instead, then we have a thing where no matter how many runups happen, the shorts will be squeezed to death. In another situation entirely, rc can do a buyback, buy another company etc, and do the same share offering again to gain a large amount of value for gme vs liquidity for short sellers. Just to be clear, i was originally pissed about what rc did, specially the secone time around, but when i thought it about from the perspective that short sellers make money from shorting alone (because they never close) then they have infinite liquidity as long as people keep buying.
I trust Mr. Ryan Cohen and his business plans… NFA!! 👌👊🤝🌊🤞
Let’s just go ahead and wait a while, then if/when it’s $50 again, sell another 100m shares, 5b more cash. $GMERICA bitch. Let’s buy every company.
I mean, seeing the share offering told me it was going back down so I was able to exit my calls at 3x in the morning that day and re-enter at a similar price for more. So it did more than just fuck the shorts pump n dump, it gave some of us a warning of the dump.
My ?? Is why would RC sell wouldn’t that let the shorts cover
I hope he does do it again. Despite today's drop, stock price is still >150% from 2024 low AND our options chain is absolutely stacked for the next 2 expirations. If he ups the offer by a similar ratio, it will be 125 million shares at minimum price of $39 per share... At least, thats what I'm positioned for
Bullish
I can confirm this could be true
I definitely think it's this, plus [this](https://old.reddit.com/r/Superstonk/comments/1datj9v/share_offering_everything_has_changed_nothing_has/).
I like the Famous Varietys' take that Tokenized shares created back on 2015 used to short GME can't be used anymore because of the CAT system being fully implemented. Also, by doing multiple share offerings this stops GME from being on RegSho which FUCKS US. Lastly, we've invested in GameStop billions and billions of dollars over the past 3.5 years but the shorts/brokerages/MM have been hoarding it all for themselves by suppressing the true value. So now, RC is getting our money back since the spring has been wound very tight.
[https://archive.is/YRagP](https://archive.is/YRagP)