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.
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.