BUTERBALZ 9 points ago +9 / -0

Must be the TRANSportation authority.

BUTERBALZ 1 point ago +1 / -0

There's a reason he's bringing up crypto/bitcoin and self custody.

Gotta have it top of mind for what may be coming.

Something tells me they are gonna come after crypto currency.

BUTERBALZ 2 points ago +2 / -0

It's not about one being wrong or right. Because honestly, what really matters is the "why?".

Not sure any of us know the answer yet.

But I also know, for me, the things that motivate me to learn the most is when i've realized I failed to catch a blind spot.

I don't know the "why" but here's what I will say; what motivates you or I as an investor doesn't and likely won't motivate the decision a ceo makes with regard to the sale of stock.

You or I are solely focused on profit NOW. In other words what was my cost basis and what is my sale price when I decide to strike. And is it the right time to strike (sell) for maximum profits now.

A CEO's decision may be and likely is FUTURE profits or viability. "Will a decision I make today give the best chances for future viability and therefore profit?"

For example: If the CEO is planning an acquisition of some sort and needs the cash in relative short order, do I sell when the iron is hot? Get the most I can now in order to facilitate that acquisition? In other words, are there enough buyers now at this price to effect the sale now. Will 45M shares sell at $20 vs 45M at $50?

Do I have a buyer now at $20 but do not on any price higher than $20?

Do I have a prospective and trusted buyer at $20?

(I personally believe the 45M shares were sold to a single entity or group of people that are trusted. Remember: stock holders have voting rights. Those voting rights vote on future direction of the company. You and I would likely agree that a Black Rock would have much, much different voting motivations than a, let's say a conservative a mega billionaire investor who wants to see the shorts fail. 45M votes has massive weight when that day may come.)

I think that's the thought process flowing for the CEO. Heck he may be wrong when this all shakes out.

Now with regard to sales price: I completely agree with you that as an investor, selling at $20 is dumb. GME will likely rise by a lot and there's a lot of money to be made (or lost for the shorts). And along that same vain, the other end of that deal (45M shares), the buyer IS motivated by cost basis vs future sale price for their profits. So as I mentioned above, a prospective buyer would have to be enticed by a good purchase price in order to secure profits on their risk. So seller (CEO) and buyer (?) would have to be at a place where the deal makes sense for both. I suspect that $20.57 share price was agreeable for both.

Anyway. I appreciate your honest reply but don't be mistaken, there are many of us, including myself, that have no clue how all this is gonna pan out. 😆

BUTERBALZ 2 points ago +2 / -0

Final solution.

BUTERBALZ 3 points ago +3 / -0

Scum of the earth is every-fucking-where.

Nab all these mother fuckers and jettison them to the center of the sun.

BUTERBALZ 4 points ago +4 / -0

A bigger, badder and more evil model?

Final boss incoming.

BUTERBALZ 3 points ago +3 / -0

(Just my opinion)

Depends on your definition of "moon".

Will some make money? Yes.

Will some make lots of money? Yes.

Will we ever see "moon"? Na. Well not like it has been hyped up to be.

Keep in mind in order for "moon" to happen the shorts would have to cover. To cover a short one would have to purchase a share. The purchase signals to the market an upward or positive trend. A positive trend further signals the market creating more interest in the stock that in theory will create more interest therefore more purchase. Etc etc.

More shorts having to cover means more purchases.

If the price remains elevated, the shorts will have to eventually cover or drown in margin interest.

Ok. Ok. All that is common knowledge. So I'm not telling you anything you don't already know.

But let's logically think through this experiment.

GME is being naked shorted and massively at that.

So hedge funds have been paying margin interest for the past three years at the least to keep the short positions open. Obviously longer than anyone of them ever expected. And all margin interest at a loss so far.

Now let's focus on Game Stop as a company and it's viability to give us some possible insight into a hedge funds strategy.

As we have seen from it's financials, leadership, profitability and cost saving measures it has proven to be a solid business that is projected to be profitable for the foreseeable future. So any illusions, at this point, of bankruptcy has to be out of the question for any hedge funds that shorted to zero or near zero.

Anyone, IMO, shorting below $7.50 knows their day is coming and are simply buying time via margin interest. Game Stop is valued no less than that amount simply as a result of the cash reserves on hand.

(Just over) $2B/280M shares = an estimated $7.5.

Ok so knowing this we now focus on hedge funds.

Are we to assume that hedge funds are oblivious to these company stats? That somehow they are not privy to publicly available data?

Of course they see this data.

So what options do they have?

  1. Continue to short the stock and lose margin interest despite knowing they will never meet their short therefore their bet will never pay out.

  2. Realize their folly. Cover their short positions. Stop the bleeding of margin interest and lose on having to cover the short at an ever increasing price since the purchase to cover drives the price higher. Therefore having pay more and more for every short position they cover.

Option #2 is "moon" for you and I.

So if option #2 is sure hedge fund demise why would they ever choose that option even if they could. Which they can't since they simply can't cover that many naked shorts. But put that aside. Why would they?

Again. If option #2 is bankruptcy for the hedge fund why on earth would they choose that option? Especially if it would make "non-sophistocated" retail traders like you and I rich?

They have no out. And in the face of that they will choose margin interest bankruptcy. They will choose option #1 with a twist.

With a twist? Yup.

They may be buying time via margin interest. They also see a market implosion in the future. They are likely going to hide their folly in the chaos. Amongst a market implosion they will scurry away and avoid prosecution. Or at least hope to avoid prosecution.

Think about it?!

Admitting defeat (covering shorts) now will implode their hedge fund which will lead to investigations into their fiduciary responsibilities to their investors since their mega millionaire investors will demand it. When hedge funds lose, their investors lose.

So why not just let a black swan event implode the economy let it be used for cover. Heck maybe even some padding since no doubt the fed will swoop in to pad their investors since they would be "too big to fail". Sure their investors will lose but they'll be given the ol' "well. At least you didn't lose everything" as they look over a wasteland of retail investors.

And that's how they'll, yet again, avoid investigation and prosecution.

So when will GME "moon"?

Near market implosion we may see a mini "moon".

Not financial advice

BUTERBALZ 1 point ago +1 / -0

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?

BUTERBALZ 3 points ago +3 / -0

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.

BUTERBALZ 4 points ago +4 / -0

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.

BUTERBALZ 1 point ago +1 / -0

Fidelity is still in private hands and owned by the Johnson family. That's probably all that needs to be said on that point.

BUTERBALZ 0 points ago +1 / -1

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.


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.

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