GME approves 4:1 stock split dividend.
(media.greatawakening.win)
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Good post on SS:
This is a genius two-pronged attacked that is going to make life difficult for two different groups for two different reasons!
Attack #1– hit the DTCC hard. By doing a dividend split the DTCC is going to be handed a limited number of shares (they’ll get theirs after CS distributes shares to insiders and DRS accounts). This puts serious pressure on the DTCC because there’s going to be a ton of people expecting stocks to show up in their account and the DTCC is going to have to find them. (There have been a lot of posts focusing on this scenario— but not on the second prong of the attack.)
Attack #2– Forcing price action that will trigger margin calls and liquidations. The last 18 months price actions have shown the SHF have price ceilings where margin calls would be triggered. In January ‘21 it looks like it was $500. By March ‘21 it had come down to $350. Their efforts to kick the can and to live to fight one more day have increased their debt, their fees and interest, and have lowered their margin threshold. There was some speculative DD recently that suggested the line may lie to under $200 and may be as low as $150.
Every time a stock splits the price begins to climb again. So this move is going to result in prices rising— and they won’t have to rise much to begin to trigger margins. If the stock is at $120 on July 18 it will start trading at $30 a share. Juicy right? But that $30 is really 4 for $120. A rise in price to $50 a share is equivalent to $200. And when it hits $75, it’s $300.
And this isn’t even considering the effect this will have on options and the ramp that’s going to push prices up. Hedgies are fukd.
I know there is concern that the system will somehow cheat and screw apes. I think though this move puts multiple pressure points on different parties such that their options are going to be limited. Hedgies need the price to stay low. The DTCC needs to buy shares. Two of our biggest enemies have just been pitted against each other. Both are fukd bcs my price to sell has lots of numbers in it.
So genius move RC! Hit the DTCC and hit SHF! Buckle up!
TLDR- the dividend split attacks the DTCC by forcing them to close shorts/buy shares since they won’t receive enough from CS to distribute to the brokerages AND attacks the Hedgies by creating upward price pressure that will trigger margin calls and then liquidations.
This is a stupid statement.
GME knows EXACTLY who gets how many shares. That is WHY there is an Ex-Dividend Date. Anyone listed as shareholder on that date, whether direct or street name, gets the shares on the distribution date.
There is no scratching the head and trying to figure it out.
The only real issue if there are hidden naked shorts is that there are also hidden naked longs that created those naked shorts. And THOSE are the guys who have to do some accounting tricks to make it all work out. But those guys BUILT the system. You think they can't figure out how to handle a stock split or dividend?
KEK.