I don't believe the run up was caused by hedgies in my view. I also don't believe Roaring Kitty was the domino that started the run up. Here's why I say that.
For the entire month of April GME had danced in between $10-11.50 or so. No real movement. In fact one could say it was being driven down from the month prior where it spent most of its time in the $15 range. As April ended it fell into the $10 range.
On 5/1 it opened at $11.03 and by 5/10 it closed that Friday at $17.46.
It was clearly on an upward trend and breakout 10 days into May.
This is where I believe an opportunity was seized.
(This is all speculation and opinion on my behalf from what I've been able to see. So take it for what it's worth)
Keep in mind a firm doesn't simply decide to dilute their stock in order to raise funds. It's planned well in advance and for a purpose. It also doesn't do it when the stock is in a weak position. They want to raise as much funds as possible given that a dilution will do exactly that, dilute the price of the stock.
So GME knew it was going to raise cash and wanted to do it at a time when it was best for the firm while also hurting it's stock holders the least.
As forward momentum was noticed a key player decided to strike.
On 5/12 RoaringKitty decided to come out of hiding after 3 years. So Kitty didn't drop the first domino this go-round but instead used his clout to push the momentum.
I want you to imagine for a second being in Kitty's shoes. You've stayed quiet for 3 years but likely knew you would re-emerge but only when the time was right. You want it to be meaningful. As meaningful as you are to the community. Why? Well because you understand your impact and the power you wield. You also don't want it wasted. You don't want to go the way of the boy who cried wolf.
5/12 was a Sunday and Kitty begins to prep the GME community by dropping his first post in 3 years just in time to kick off the new trading week on the heels of 10 days of upward trend.
5/17 (Friday pre-market) Game Stop announces a new stock offering. GME closes on Friday at $21.30.
This new stock offering is likely to be finished by Monday and GME stands to raise $900M cash. If this would have been done just 30 days prior it would have only raised $450M IF, IF the stock stayed at the going rate of $11 then. That would have likely not been the case since, presumably, the $11 stock would have been beaten up as a result of that announcement. Likely would have cut itself in half which would have yielded somewhere around $250M.
That would have meant $650M lost cash revenue opportunity. Absolutely massive!
What the run up and subsequent further push by RoaringKitty did, in effect, was to cause the hedgies to expend resources to suppress the stock from a high of $57 during that run up down to $22 only to have GME raise $900M while they were struggling to suppress it.
This was and continues to be well coordinated in my opinion.
It is likely that any dilution and damage to the stock price from the stock offering has already been inflicted. I could be wrong but I think this thing still has legs.
Also keep in mind that the fact that Game Stop has just over $2 billion dollars in cash reserves places the stock at the very lowest cash price of $7.50.
Meaning that the company, by definition, can not go bankrupt. It is cash rich with zero debt therefore any short below that price is fucked. Game Stop is going to post profits the rest of the year from it's business and that $2B nets them $2M a week just on earned interest. They are going to continue to build that cash reserve and continue to push that $7.50 higher and as a result push more and more short sellers out of the game. And by push them out I mean placing them in a position to have to cover their short positions.
Was the run up done by hedgies? Not in my opinion.
Was the draw down done by the hedgies? Likely. And at a great cost.
Did the draw down work in their favor? Not in the slightest.
I don't think he intended to cover what's in the background but instead speaking on GME's 1st quarters financial filing and placing the filing in perspective when comparing last year's financial results to this year's 1st quarter. Placing emphasis on the company's financial (great) health and throwing out ideas as to GME's possible reason for it's massive cash reserves.
It is extremely rare that any company would sit on such massive reserves without intending to use them. It is also rare that a company with zero debt and massive cash reserves would further dilute it's stock in an effort to raise more cash in order to build an even larger cash reserve to simply sit on it.
What appears to be happening is that GME is building a massive war chest in order to deploy it in the near future to bolster the value of it's stock in order to further mire hedge funds in their short position.
What has happened to GME in the past is common knowledge (and important) but that wasn't the videos intent.
Edit: To Add something.
In short (pun intended) if GME were to make a value adding and brand diversifying acquisition it would put to bed the idea that the brick and mortar game retailer is a dying animal therefore the reason for shorting the company.
If such an acquisition is made and reason or rational for shorting the company is removed than hedge funds could no longer hold to the idea of a GME bankruptcy and hedge fund payoff. Hedge funds, at the very least, would fail as a result of maintaining their short position for an infinite timeline. Since margin interest would eat them alive on a long enough timeline.
What is likely to happen instead is that they would see their future ruin and instead opt out for a lesser ruin now.
Keep in mind hedge funds are playing with their investors money and using it to short GME. Investors would see no light at the end of the tunnel in the face of a diversified GME with staying power. They would divest and as a result hedge funds means to continue to pay margin interest would dwindle leaving no option but to get out from under their short position.
I also hold no illusion that the majority of these hedge funds would be able to cover the shorts. It is simply going to lead to the hedge funds and their investors financial ruin.
Clayton Morris is using exact BRICS account's X post that said "Prepare for US Dollar Collapse, IMF Warns" and claims it as "BRICS just announced the U.S. Dollar is about to COLLAPSE". DO you see that or not?
I do not. Provide me a time stamp on the video or show me where it is with evidence or quit making things up out of thin air.
You still have not made one single convincing argument on why article is junk.
I do not need to convince. It is self evident to anyone who understands words. The article is weak. It is 5 paragraphs. The title does not match the claim. It is void of any data. The quote Attributed to the Russian IMF rep doesn’t make that statement.
One doesn’t need to be BRICS member or a Russian to have a vested interest in dollar collapse. Pretty much everyone on this board has the same interest to collapse worthless paper petro dollar so we can usher in asset backed currency.
Ok. What’s your point?
What does anyone else’s opinion on the matter have to do with the article and it’s title and claim? The articles validity is weighed on its own merits.
I also provided you a link to an article on the IMF website claiming the opposite. That article can be attributed, officially, to the IMF and it’s well written and analyzed.
Who are we to believe the official statement is coming from? The link you provided that has 5 paragraphs. Incorrectly attributes a statement to a couple of quoted sentences from an author who makes assumptions. Or Are we to believe a statement directly from the IMF that is well written full of data and analysis?
Again. This is not a question on whether one is right over the other but what the official statement is.
JUST TO BE CLEAR. I WILL NOT ALLOW YOU TO WASTE ANYMORE OF MY TIME. ANSWER THE QUESTION IN YOUR RESPONSE OR DO NOT RESPOND AT ALL. I WILL NOT LET YOU DANCE AND CHANGE SUBJECTS. IF THE QUESTION IS NOT ANSWERED IN YOUR RESPONSE I WILL NOT BE REPLYING AND WILL ASSUME YOU ARE UNWILLING TO ANSWER BECAUSE IT IS NOT CONVENIENT TO YOUR ARGUMENT.
Once again comes back to your original nonsensical phrase “IMF as a body didn’t make that statement”. Every organization has multi-national, multi-cultural, multi-interest group people. Every country has that too. In order to qualify “IMF made a statement” it doesn’t need to be coming from everyone in IMF or even director of IMF. Same goes with any representatives of any group.
It is evident you don’t have a clue what you are talking about on this claim. Any major organization such as the IMF has channels, methods and processes in place on how to release official statements that speak for the organization. Organization of this size and importance make massive waves when any statement is released therefore as a matter of policy is vetted before release. You are simply wrong.
I am not looking down on you, if I did, I wouldn’t continue to debate with you. So, you just called me a moron, is it not feeling superior yourself? I took the time to carefully read the article, only then I started responding to you showing my humility and not ignoring your comments. With each reply you keep projecting your own mental state that has nothing to do with me.
I responded very logically to every one of our exchanges up until the point you felt superior. Do not walk back your comment. Either state you misspoke or embrace it but do not treat me as a fool. With that being said. I will call anyone a moron who feels superior while calling themselves humble. A response to “superiority” by calling it moronic is at the very least humble since you are lucky I did not respond worse since it is deserved.
In closing. Since I don’t expect for you to respond. Embrace your words or don’t say them at all. Know what the hell your talking about or be willing to be wrong.
You have the lowest human habit of shooting messengers than focusing on concepts and subjects...
First off. The only messenger I have continued to criticize is clandestine. Sorry if it's your buddy or sorry if you think the guy is enlightening. He's not.
Furthermore. I always focus on the message as I did with your post. (With the exception of clandestine since he is a bit full of himself). The fact that you take took offense to the fact that I called out that article as inaccurate says more about you than anything else.
Not a junk subject as you perceived. This is where you are at a lowest point of understanding of the world.
Once again I'll ask you to read my words carefully. I called out a junk article not the subject. It's pretty obvious why I called it out.
Not sure I would call out anyone for any "understanding" if I were you since you fail to understand the words I clearly stated.
Your failure to comprehend what you read may be at the root. You failed to catch a bad article stating half truths and assumptions and now you fail to comprehend my clearly stated words.
Someone else also posted it today with video: BRICS just announced the U.S. Dollar is about to COLLAPSE for good!looks like Oct. some big stuff. maybe - maybe not...Redacted , which you have already seen and commented, but didn't call it a junk post?
Correct.
And yet another example of your failure to comprehend words.
That video states that the BRICS made a statement of 'dollar collapse' and not the IMF. Which again proves my point on your posted article. A Russian IMF rep who's nationality is a member of the BRICS. Therefore it makes perfect sense that someone who is Russian would make a statement on dollar collapse since he has a vested interest in that collapse since he is a member of a BRICS nation who would benefit from a dollar collapse. The IMF would NOT benefit from a dollar collapse there the reason why they are pushing the idea of a stable dollar in the article I provided you.
Again. This conversation is NOT about whether the IMF or BRICS is correct. It is about whether or not an article is junk. And now you have made it about something else entirely. Again you took personal offense on the call out.
Not my problem. You deal with your own insecurities and inability to keep your personal feelings separate from something you post.
But they have consequences, like exposing yourself of your low intellect and lack of comprehension.
Your right. Everything has consequences as I have proven your low reading comprehension. Figure that part out and people like myself won't have to embarrass you.
Humility? I am talking to you, ain't I? It reflects high humility.
And once again you prove your ignorance.
Speaking as if your above me then presume to tell me that the mere fact that you spoke to me is humility.
Priceless.
No. Humility is not thinking your superior to begin with moron.
Is that five paragraph junk link you provided 5th generation information warfare?
After that embarrassing post and defense of I don't believe you have a clue.
Also since when is people's levels of understanding an excuse for posting half truths and junk?
Then to later come back and use that concept as a defense for posting junk? It's laughable!
"See I was just adjusting to different levels of understanding"
Mann....get outa' here with that junk. I'm not the one. I'll call you out every time. 😂
With regard to:
If you don't resonate concepts presented in this board, may be you should GTFO...
Bold words there buddy. I don't think I'll be doing that despite you thinking you own this forum. Apparently. Pfff...
I'll give you a clue as to when I'll leave this forum. I'll leave when it is no longer permitted to criticize junk posts. How about that young Padawan.
You have a lot to learn. How about you start with humility.
That's funny.
I would read the article again if I were you. Carefully.
The fact is that not even the Russian IMF rep makes that statement. Out of that 5 paragraph anemic, void of data, article that you posted a link to, here is the only statements attributed to that Russian IMF representative.
“Such a proposal is being discussed,” the director told RIA Novosti. “In the event of the collapse of the dollar and the international monetary system, it will be necessary to turn the said BRICS accounting unit into a real currency, backed by exchange goods.”
Not a single time did he mention to "prepare for the dollar collapse" even if we are going to take his words as speaking for the organization.
He is speaking of the BRICS preparation "in the event" of a dollar collapse to have a currency that the IMF can use as a replacement.
That does not mean it is happening or that the IMF is preparing for that to happen.
You have a fire extinguisher in your kitchen IN THE EVENT a fire happens. That is not saying that a fire IS happening.
Here why don't you try posting data that people can analyze and make a decision for themselves with and not some shotty 5 paragraph article void of data written by an author full of assumption.
Here is the IMF on the same day speaking on that subject directly from their website chalk full of data sets and analysis. THIS we can attribute directly to the IMF.
Despite increased geopolitical risks, the latest data show that the U.S. dollar remains dominant. According to SWIFT, it accounts for over 80 percent of trade finance, likely because much of commodity trade continues to be invoiced and settled in dollars.
Maybe you should take a break from reading your buddy clandestine. It's starting to rub off on you.
You'll convince none who disagree with that article and your statement.
They'll call out the articles weakness as click bait and you'll be left with only the statement you just made as your response.
"Well. It's gonna happen"
And they'll walk away just as they came. Only this time with more reason to dismiss you in the future.
Our side is fully aware of the impending collapse. What we need is solid and accurate evidence to prove to those that still need convincing.
This article is a joke.
"Prepare for US Dollar Collapse, IMF Warns"
IMF didn't make that statement yet the title appears to credit them.
A Russian representative made that statement. He happens to also be a member of the IMF.
They lead the reader to believe that the IMF made the statement while using the Russian representatives membership status to bolster the claim.
The reality is that the representative made that statement independent of the IMF as a body.
Article title is misleading at best. Outright fabricating at worst.
Not exactly.
"According to a Russian IMF representative, BRICS is ready to offer an alternative to the US Dollar..."
Nothing in that article, so far as I can tell, indicates that the IMF said anything that resembles what the title claims.
I did not make a claim of the French soldier. I made a claim of leadership.
Leadership makes orders that soldiers follow. It is the blunder of leadership that results in a retreat not that of a soldier. Whether that be a formal surrender or an informal falling apart of an army that causes them to retreat in the face of insurmountable odds.
You seem to be, willingly or by fault, ignoring what I have clearly stated.
Carefully read my words again.
You may be failing to understand the forum that you have found yourself in. This forum is, if anything, independent thinking citizens of all walks of life who first and foremost call out the failures of leadership in the role they have been entrusted with by The People. The People make up armies. The People are led to slaughter by failed, weak and incompetent leadership.
The People are who I defend. Leadership is who I criticize.
Napoleon failed to recognize his blunder and rather than do the honorable thing and recalculate he led his army to slaughter in the Russian tundra.
Your criticism of Americans lacking world history knowledge, to the extent it may exist, only speaks to a misunderstanding of the original point.
If you feel Americans lack world history knowledge, fine, and that discussion can be had. But to misconstrue the original point then bloviate on an unrelated topic only speaks of your lack of knowledge with regard to the point being expressed.
You also ignore that of Napoleon's 600,000 invading force about 112,000 made it out on retreat.
Just to be clear. I'm not detracting from Napoleon's ability to put fourth a formidable and we'll trained force. But this example may be one of lessons learned rather than astute and we'll placed leadership.
Seems to me the French citizenry may be best served by not listening to cocky and greedy leadership who does not appear to have their best interest in mind.
To further clarify. This is a lesson Americans should also take notice of. Our leadership has done us no favors either.
I wonder how many "honor" points they gained by purchasing Russian natural gas?
How many "honor" points did they gain by sending their citizens treasure to Ukraine to fight those same Russians?
Did they reach bonus "honor" point level by funding both sides of that war?
Sometimes honor is best gained when doing the right thing and living with those consequences whatever they may be. Otherwise one runs the risk of becoming a meme.
An 'ATM Agreement' requires that the stock is sold at the "current market" price when they decide to sell.
So they do not determine the sales price but they do determine at which point in time to sell.
Also. I'm curious. Why would it be "stupid" to sell at current market now?