I do believe that the Reddit promoters are frauds.
However, let's say they are right. I will tell you what will happen (or may have already happened) ...
Goldman Sachs, or some other big player, will have a meeting with the big shorts.
They will offer to buy back all their shares, in exchange for a handsome fee.
GS will then buy and sell in the market to exit their position, over time. They will create money out of thin air, just like the Federal Reserve does, and they will call on the Fed to "borrow money" from, if necessary.
The entire position will be unwound, and that will be that.
GME will go to bankruptcy court, most likely. Or maybe the company will survive, but there will be no killing, other than by GS.
I suspect that was already done long ago, but will be interesting to see if there any fireworks (doubt it, but let's see).
Than short it. So let me ask why all of the talent they have hired over the last two years are all taking stock incentives instead of fat salaries? If this thing is dead on arrival, why hasn’t any of the executives cashed in while the price is still 10x higher than it was pre-January 2021?
GameStop is sitting on like a billion of unused capital
I explained that (a) it is not "unused capital," and (b) it is not enough capital.
You just ignore my response to your own point, as if it never happened?
Very dishonest of you.
You want to instead change the subject to giving me stock advice, salaries of GME employees, and stock transactions of insiders.
Why don't you respond to my Working Capital points?
Maybe you can't because your "DD" does not include actually understanding the company. I dunno.
Regarding the employees, maybe the company can't afford to pay much in salaries, so they hope people will work for peanuts and maybe a score on the stock price. The price DOES move up (and down) wildly, so maybe they can catch a move up and cash in.
Why did Aaron Rogers take a chunk of his salary in bitcoin, if bitcoin was gonna crash? Cuz he didn't know that it would. Duh. Insiders have no clue what a stock price will do. That's why they are employees and not full-time investors.
The salaries of the employees and the stock transactions of the execs have NOTHING TO DO with the point you made, or my response to your point.
Why can't you ever discuss anything of substance? Gotta keep changing the goalposts, huh?
I do not believe that the shorts have a problem.
I do believe that the Reddit promoters are frauds.
However, let's say they are right. I will tell you what will happen (or may have already happened) ...
Goldman Sachs, or some other big player, will have a meeting with the big shorts.
They will offer to buy back all their shares, in exchange for a handsome fee.
GS will then buy and sell in the market to exit their position, over time. They will create money out of thin air, just like the Federal Reserve does, and they will call on the Fed to "borrow money" from, if necessary.
The entire position will be unwound, and that will be that.
GME will go to bankruptcy court, most likely. Or maybe the company will survive, but there will be no killing, other than by GS.
I suspect that was already done long ago, but will be interesting to see if there any fireworks (doubt it, but let's see).
This makes zero sense. GameStop is sitting on like a billion of unused capital. How the hell are they going bankrupt here?
Unused? Do you know what Working Capital is?
They have $1.2 billion cash.
They have $1.3 billion in current liabilities.
They lose money at $365 million per quarter, or $1.5 billion per year (and Cash Flow Negative of almost $1.6 billion per year).
All that cash is spoken for, and they will need ... MOAR ... assuming they wanna stay in business.
Plus ... a business model that ... SUCKS. That's why they are "playing games" with the business model now.
I wrote about this almost 2 years ago when the story was hot. Today, it's the same fucking story.
Nothing has changed, except the shorts are no longer in trouble -- especially now that we are in a bear market.
Why do you think the shorts shorted this thing in the first place? Just for kicks?
Than short it. So let me ask why all of the talent they have hired over the last two years are all taking stock incentives instead of fat salaries? If this thing is dead on arrival, why hasn’t any of the executives cashed in while the price is still 10x higher than it was pre-January 2021?
You are the one who said:
I explained that (a) it is not "unused capital," and (b) it is not enough capital.
You just ignore my response to your own point, as if it never happened?
Very dishonest of you.
You want to instead change the subject to giving me stock advice, salaries of GME employees, and stock transactions of insiders.
Why don't you respond to my Working Capital points?
Maybe you can't because your "DD" does not include actually understanding the company. I dunno.
Regarding the employees, maybe the company can't afford to pay much in salaries, so they hope people will work for peanuts and maybe a score on the stock price. The price DOES move up (and down) wildly, so maybe they can catch a move up and cash in.
Why did Aaron Rogers take a chunk of his salary in bitcoin, if bitcoin was gonna crash? Cuz he didn't know that it would. Duh. Insiders have no clue what a stock price will do. That's why they are employees and not full-time investors.
The salaries of the employees and the stock transactions of the execs have NOTHING TO DO with the point you made, or my response to your point.
Why can't you ever discuss anything of substance? Gotta keep changing the goalposts, huh?
How can a company with no debt and 1 billion in liquid cash go bankrupt?