Part 2
In June of 2022, at the annual shareholders meeting, it was announced that shareholders approved the stock split. At this point, we don’t know when the split will occur or what the ratio of the split will be. However, what we do know is that typically when stocks split, the price goes up. This is because it’s easier for investors to justify buying whole shares of a stock. For example, if Gamestop, which currently trades around $135, does a 7 for 1 stock split, this would bring the price down to under $20 per share. Investors are attracted to owning whole shares and are more willing to buy a share at $20 versus $135. Although it doesn’t change the total value of the company (market capitalization), by making the share price more attractive, an increase in market cap could ensue. There’s more to a dividend stock split that I’ll touch on, which is a potential share recall. If a share recall is issued, all short positions on GameStop must be closed. That means the time bomb has been set. Tick tock.
New Leadership
If you’re not familiar with Ryan Cohen, he founded Chewy - yes, the online pet supply company, In 2011 at 26 years of age. Ryan created a rapidly expanding company that delivered a delightful customer experience in a very crowded space. He was able to not only compete, but crush much larger rivals with big checkbooks and national name recognition. One such rival that you’ve probably heard of - Petsmart ultimately bought his company 6 years later for $3.35 billion.
After taking a few years to figure out what he wanted to do next, he came back onto the scene and surprised many by acquiring a 12.9% stake in GameStop back in December 2020. This investment led him to become the Executive Chairman of the board. This was the beginning of the new GameStop regime and the creation of one of the most exciting company transformations in recent history.
One of the most telling indicators for me was looking at how the new leadership team is being compensated. They are primarily issued minimal salaries compared to others in similar roles with an incentive structure heavily based in shares of stock. This means they have a unified incentive to increase value for shareholders, themselves included. Also, the SEC requires insider selling to be reported. There has been virtually no insider selling since the company began this transition. In fact, many, including Ryan Cohen, are buying more shares. Those who know the most are on the inside and their actions are speaking volumes!
New Sector
GameStop is transforming away from a brick and mortar retailer to an ecommerce and technology company. Technology companies trade at a higher multiple than retail stocks. A move away from the NYSE to the tech heavy NASDAQ alone could imply an increase in share value. On average, retail stocks trade around a 65 P/E ratio, while tech stocks trade around a 20-25 P/E ratio (generally speaking, the lower P/E ratio, the better). Simply being reclassified as a technology stock could send GameStop up.
New Products
GameStop is actively increasing their product offerings to be a direct competitor with Amazon and Walmart. Some investors have speculated that the product offerings are increasing at around 5,000 new products a week. I’ve seen first hand how GameStop is venturing outside of games by offering batteries, computers and office furniture. I’ll limit my speculation on where they’re heading, but I’ll say that a rumored name change that is more encompassing to being more than a gaming company is on the table.
New Distribution Centers
GameStop has opened new distribution centers in the US to handle additional inventory and expedite delivery. New fulfillment centers have recently opened in Reno, Nevada and York, Pennsylvania, allowing them to offer rapid shipments to both east and west coasts.
New Delivery Methods
GameStop is now offering same day and expedited delivery domestically. This is a game changer. This is the clearest indicator I’ve seen yet at showing the direction GameStop is heading. Combining this with the increase in new products and fulfillment centers, it’s not difficult to see where this is going.
New Markets
Digital assets are the future. In fact, depending on where you look, they’ve already been here for over a decade. To be able to transact with digital assets and digital currencies, a digital wallet is instrumental. Guess what, GameStop has already created and released one. This will be the centerpiece of their soon to launch NFT marketplace. The creation of the NFT marketplace is just the beginning, GameStop is tight lipped about what else is on the horizon as to not tip off competitors and those with nefarious interests. With blockchain partners like Immutable X and Loopring, GameStop is creating web3 applications on Ethereum.
To recap, the top reasons on why I believe GameStop is the most incredible investment in our lifetime:
Potential for the Mother of All Short Squeegees (MFOASS)
Passionate investor base - GameStop has developed a very dedicated following of investors who buy the stock both during ascents and declines
Direct registering of shares (DRS) - Investors have removed around 44% (at the time of this writing and increasing daily) of the available float to Computershare for safe keeping
Stock split- GameStop shareholders have already approved the board to split shares. The announcement could come at any point in time
As if the above items weren’t exciting enough, additional reasons making GME attractive are:
New leadership - GameStop is attracting some of the best from Amazon, Chewy and Zulily to join as executives and other leadership roles
New sector - GameStop is transforming away from a brick and mortar retailer to an ecommerce and technology company
New products - GameStop is actively increasing their product offerings to be a direct competitor with Amazon and Walmart
New distribution centers - GameStop has opened new distribution centers in the US to handle additional inventory and expedite delivery
New delivery methods - GameStop is now offering same day and expedited delivery domestically
New markets - the creation of the NFT marketplace is just the beginning, GameStop is tight lipped about what else is on the horizon
Closing Thoughts
An investment in GameStop stock represents a perfect storm of events and circumstances that I’ve never seen before. Some of what I’m seeing is provable through SEC filings and data released directly from GameStop, while other insights are speculative, but highly credible. There has never been a stock as researched by people representing all walks of life and professions with experience across the board. This includes ex-SEC employees, Attorneys, Financial advisers and professional analysts. Collectively, there have been hundreds of thousands of hours spent creating due diligence reports, engaging in constructive discussions and sharing theories based on findings uncovered by a multitude of individual investors.
The “Mother of all short squeegees” (or MFOASS) theory has never been disproven - only muted by the mainstream media. The underground movement is very much alive and not only thriving, but intensifying. Investors are buying GameStop (GME) when the price goes up and down. There has been very little news released from GameStop over the past 18 months during the transformation that is occurring. This is intentional and part of the strategy that Ryan Cohen has brought over that he implemented at Chewy.
A note of caution, for several reasons, investing in GameStop is not for the faint of heart. If you can’t stomach extreme declines and volatility, this may not be an investment you should consider. However, if you are looking for hope and an opportunity to get in on one of the most exciting investments (or movements - or both) consider buying a few shares, or, like my wife and I, a lot! We maxed out our retirement and investment accounts and reduced our crypto exposure to increase our GameStop position over the last 18 months. In fact, like many others, we continue buying GameStop when the price drops and rises.
You may choose to invest in GameStop simply because you think it’ll be worth more in the future. Or, like literally hundreds of thousands of others, you may want to join the movement. People are tired of these legacy systems we’ve been born into full of corruption by corporations and government, suppressing the working class. By investing in GameStop and then removing your shares from the corrupt system, you are fighting back, and potentially setting yourself up to enjoy a very lucrative future. The journey may be brief or take longer than we all hope, but hope is what it gives us. Life is all about taking calculated risks and taking a stand. I’m placing my trust in Ryan Cohen and standing up against corruption.
There is so much more to discover as I’ve only scratched the surface with this writing. My goal was to share enough to entice you to do some digging on your own and provide you with a concise summary of what you won’t find on mainstream media.
Thanks for posting all of that. The only thing I don't understand is why he says squeegee instead of squeeze. Is that another ape meme thing? Or did squeegee actually become an accepted term?
Part 2 In June of 2022, at the annual shareholders meeting, it was announced that shareholders approved the stock split. At this point, we don’t know when the split will occur or what the ratio of the split will be. However, what we do know is that typically when stocks split, the price goes up. This is because it’s easier for investors to justify buying whole shares of a stock. For example, if Gamestop, which currently trades around $135, does a 7 for 1 stock split, this would bring the price down to under $20 per share. Investors are attracted to owning whole shares and are more willing to buy a share at $20 versus $135. Although it doesn’t change the total value of the company (market capitalization), by making the share price more attractive, an increase in market cap could ensue. There’s more to a dividend stock split that I’ll touch on, which is a potential share recall. If a share recall is issued, all short positions on GameStop must be closed. That means the time bomb has been set. Tick tock.
New Leadership
If you’re not familiar with Ryan Cohen, he founded Chewy - yes, the online pet supply company, In 2011 at 26 years of age. Ryan created a rapidly expanding company that delivered a delightful customer experience in a very crowded space. He was able to not only compete, but crush much larger rivals with big checkbooks and national name recognition. One such rival that you’ve probably heard of - Petsmart ultimately bought his company 6 years later for $3.35 billion.
After taking a few years to figure out what he wanted to do next, he came back onto the scene and surprised many by acquiring a 12.9% stake in GameStop back in December 2020. This investment led him to become the Executive Chairman of the board. This was the beginning of the new GameStop regime and the creation of one of the most exciting company transformations in recent history.
One of the most telling indicators for me was looking at how the new leadership team is being compensated. They are primarily issued minimal salaries compared to others in similar roles with an incentive structure heavily based in shares of stock. This means they have a unified incentive to increase value for shareholders, themselves included. Also, the SEC requires insider selling to be reported. There has been virtually no insider selling since the company began this transition. In fact, many, including Ryan Cohen, are buying more shares. Those who know the most are on the inside and their actions are speaking volumes!
New Sector
GameStop is transforming away from a brick and mortar retailer to an ecommerce and technology company. Technology companies trade at a higher multiple than retail stocks. A move away from the NYSE to the tech heavy NASDAQ alone could imply an increase in share value. On average, retail stocks trade around a 65 P/E ratio, while tech stocks trade around a 20-25 P/E ratio (generally speaking, the lower P/E ratio, the better). Simply being reclassified as a technology stock could send GameStop up.
New Products
GameStop is actively increasing their product offerings to be a direct competitor with Amazon and Walmart. Some investors have speculated that the product offerings are increasing at around 5,000 new products a week. I’ve seen first hand how GameStop is venturing outside of games by offering batteries, computers and office furniture. I’ll limit my speculation on where they’re heading, but I’ll say that a rumored name change that is more encompassing to being more than a gaming company is on the table.
New Distribution Centers
GameStop has opened new distribution centers in the US to handle additional inventory and expedite delivery. New fulfillment centers have recently opened in Reno, Nevada and York, Pennsylvania, allowing them to offer rapid shipments to both east and west coasts.
New Delivery Methods
GameStop is now offering same day and expedited delivery domestically. This is a game changer. This is the clearest indicator I’ve seen yet at showing the direction GameStop is heading. Combining this with the increase in new products and fulfillment centers, it’s not difficult to see where this is going.
New Markets
Digital assets are the future. In fact, depending on where you look, they’ve already been here for over a decade. To be able to transact with digital assets and digital currencies, a digital wallet is instrumental. Guess what, GameStop has already created and released one. This will be the centerpiece of their soon to launch NFT marketplace. The creation of the NFT marketplace is just the beginning, GameStop is tight lipped about what else is on the horizon as to not tip off competitors and those with nefarious interests. With blockchain partners like Immutable X and Loopring, GameStop is creating web3 applications on Ethereum.
Part 3 Summary
To recap, the top reasons on why I believe GameStop is the most incredible investment in our lifetime:
Potential for the Mother of All Short Squeegees (MFOASS)
Passionate investor base - GameStop has developed a very dedicated following of investors who buy the stock both during ascents and declines
Direct registering of shares (DRS) - Investors have removed around 44% (at the time of this writing and increasing daily) of the available float to Computershare for safe keeping
Stock split- GameStop shareholders have already approved the board to split shares. The announcement could come at any point in time
As if the above items weren’t exciting enough, additional reasons making GME attractive are:
New leadership - GameStop is attracting some of the best from Amazon, Chewy and Zulily to join as executives and other leadership roles
New sector - GameStop is transforming away from a brick and mortar retailer to an ecommerce and technology company
New products - GameStop is actively increasing their product offerings to be a direct competitor with Amazon and Walmart
New distribution centers - GameStop has opened new distribution centers in the US to handle additional inventory and expedite delivery
New delivery methods - GameStop is now offering same day and expedited delivery domestically
New markets - the creation of the NFT marketplace is just the beginning, GameStop is tight lipped about what else is on the horizon
Closing Thoughts
An investment in GameStop stock represents a perfect storm of events and circumstances that I’ve never seen before. Some of what I’m seeing is provable through SEC filings and data released directly from GameStop, while other insights are speculative, but highly credible. There has never been a stock as researched by people representing all walks of life and professions with experience across the board. This includes ex-SEC employees, Attorneys, Financial advisers and professional analysts. Collectively, there have been hundreds of thousands of hours spent creating due diligence reports, engaging in constructive discussions and sharing theories based on findings uncovered by a multitude of individual investors.
The “Mother of all short squeegees” (or MFOASS) theory has never been disproven - only muted by the mainstream media. The underground movement is very much alive and not only thriving, but intensifying. Investors are buying GameStop (GME) when the price goes up and down. There has been very little news released from GameStop over the past 18 months during the transformation that is occurring. This is intentional and part of the strategy that Ryan Cohen has brought over that he implemented at Chewy.
A note of caution, for several reasons, investing in GameStop is not for the faint of heart. If you can’t stomach extreme declines and volatility, this may not be an investment you should consider. However, if you are looking for hope and an opportunity to get in on one of the most exciting investments (or movements - or both) consider buying a few shares, or, like my wife and I, a lot! We maxed out our retirement and investment accounts and reduced our crypto exposure to increase our GameStop position over the last 18 months. In fact, like many others, we continue buying GameStop when the price drops and rises.
You may choose to invest in GameStop simply because you think it’ll be worth more in the future. Or, like literally hundreds of thousands of others, you may want to join the movement. People are tired of these legacy systems we’ve been born into full of corruption by corporations and government, suppressing the working class. By investing in GameStop and then removing your shares from the corrupt system, you are fighting back, and potentially setting yourself up to enjoy a very lucrative future. The journey may be brief or take longer than we all hope, but hope is what it gives us. Life is all about taking calculated risks and taking a stand. I’m placing my trust in Ryan Cohen and standing up against corruption.
There is so much more to discover as I’ve only scratched the surface with this writing. My goal was to share enough to entice you to do some digging on your own and provide you with a concise summary of what you won’t find on mainstream media.
Thanks for posting all of that. The only thing I don't understand is why he says squeegee instead of squeeze. Is that another ape meme thing? Or did squeegee actually become an accepted term?
Anyway, I appreciate it.