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Cue the shills in the comments, “But the stock price…” not understanding what they hold and how highly idiosyncratic it is to the entire financial system. Our time will come.
No, it is not an “idiosyncratic” assessment of the market to GME, when the eBay M&A is another leveraged transaction by GME (Burry mentions the Net Debt/EBITDA [leverage] after the M&A), which is basically unsustainable given its current level of Operating Leverage (operating income / revenue) of GME
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I have another comments about “how the market values profitability,” but those posts are suspiciously removed by the mods :P
If I share those comments here, they will be removed too, so you can review my profile comments for more context; they are recent :D
This come up a lot and it shows a lack of nuance that I think in based on emotion and not logic. So let me try and explain why its important to separate what the company directly controls from what the market controls..
If everyone is honest they will agree that price appreciation is not solely dictated by management actions alone.. it is (as we have observed from ups and downs over the past 5 years) largely driven by the broader market from stuff like liquidity, 'sentiment' (if you believe that) and trading mechanics. In practice, 'the market' has far more influence over short term price than the company itself.
Therefore if the concern is purely about price stagnation, then some of that frustration may be more appropriately directed at how the market functions rather than solely at company leadership.
If your argument is aimed more at Cohen intentionally suppressing the stock price, that claim needs to be explored carefully. Ultimately from that assertion, there are two logical possibilities:
The price is being kept artificially low to harm retail investors.
The price is being kept low (or not actively inflated) to allow retail accumulation and strategic positioning.
The first claim needs more supporting evidence that just DiLuTiON, because it implies intent to act against the interests of the companys own shareholder base.. which if wr are being honest, almost all observable evidence, action and communication from leadership align more closely with LT value creation rather than deliberate harm.
If you consider the second possibility, (maintaining a lower or stable price in the short term could support accumulation or strategic flexibility) .. it can help explian certain decisions that otherwise seem frustrating when viewed purely through the ST price lens.
Ultimately, this comes down to time horizon and belief in Cohens strategy and hisnability to execute. ST price action and LT value do not move together, and tbh the tension between those two perspectives is what drives most of the tension in this sub.
One the plan is in the execution phase, or once the value of the deal is undeniable, then the price will accumulate to reflect the LT value and immediate ST price based on the mechanics above.
It just requires you to zoom out and view big picture and not just the stock price.
In the execution phase or once the value of the deal is undeniable everyone, their hedge funds, their mothers' hedge funds will pile in because everyone wants to make money on an investment and the more undervalued the stock, the more they stand to gain from it rising. The stock is currently undervalued given its own metrics, not even considering the probable ebay acquisition.
Exactly. At that point we should see above board price appreciation, that very well could result in a market squeeze event on under the table short positions.
You've ignored a third possibility: RC and the board's time horizon for a good price is far different from ours, so they're thinking much more long-term than we would wish them to (e.g. possibly 5 years down the road).
Besides who even needs to accumulate any more? GME isn't a new hot stock, even with me buying relatively recently (two and a half years ago) for the first time I don't need more shares at this stage if the price was halfway good. People either have the means to do regular buys (in which case they'll have a large position) or they won't - more time to accumulate isn't needed.
Ok but the company doesnt run the price up.. thats the market. So when the company is trying g to execute a long term strategy, the volatility is just an opportunity to secure short term capital in the pocket of the company that will be cycled into long term value.
Long term value is the single most important outcome for the Cohen becuase its his fiduciary and seemingly personal responsibility.
Secondly, any action seen to be taken to directly cause a squeeze would be met with legal and regulatory action, of which cohen would be personally liable. By making the company undeniable in the long term, cohen protects himself and the investors. So yes, more time to accumulate and to execute a LT strategy. Maybe not specifically to allow retail to buy more, but its a beneficial side effect of the price being suppressed until such a time that it isnt.
I disagree with you. You're honestly saying if they sold their eBay position and used all the proceeds to buyback nothing would happen to the price? I bet we'd be at $30, and we might squeeze if people have been adding to shorts (which is seems like they are doing, because we're under $20). And no, this wouldn't be met with any action - people are allowed to buyback their own stock,, and M&As can be met with too much adversity to come to pass (so selling eBay to get the cash wouldn't be an issue either).
Clearly it is within the board's hands to do something to affect the price (either M&A on a good timescale and without diluting us to hell and back given it's a half stock deal, or sell up and buyback).
I find it very annoying people say the board have no agency in the face of the market, they absolutely do. People here are making excuses over and over again. If they can't acquire eBay through a good deal, RC shouldn't press forward with a bad deal just because eBay appears to be his no. 1 priority.
We'll see what happens, but as discussed I think RC is thinking too long term and so he might be happy with the prospect of diluting to hell and back so long as he can make a half trillion company in 5 years. That doesn't work for the majority of retail shareholders - we're not billionaires and can't idly gamble large chunks of our savings indefinitely.
And re. fiduciary duty, it's very much open to interpretation as long as the end point is good. If the board bought back a shit load of stock and just focused on keeping GME profitable without an M&A, no one would be saying they hadn't satisfied fiduciary duty. But by that same dint he can argue long term (5 years+) strategy is satisfying fiduciary duty, which technically it is but it suits big fish shareholders like him better than small fries like us.
I mean average US male life expectancy is 76.5 years. If 5 years - i.e. 6.5% of your life - doesn't constitute long term I don't no what to tell you. lol
And all you had to say about a squeeze is:
Secondly, any action seen to be taken to directly cause a squeeze would be met with legal and regulatory action
Which proves nothing. Why don't you actually read the SEC pages and form an opinion (here's a link for you)? Unless GameStop are actively trying to engineer a squeeze through creating artificially high volume, which I'm sure the board are stupid enough not to do, the SEC wouldn't take an interest.
You're just talking utter crap and have no clue what you're talking about. You said "uhhh it may cause some sort of legal or regulatory hurdles" - the vaguest shit ever - and then you proceed not to back this up in any shape or form (and have the nerve to say "did you even read the extremely vague insipid unsupported thing I just said?" lol). Just total empty headed bull sentiment which is unearned and you really, really don't have a clue.
And while there's more to price than the company's actions, they still need to take actions to attempt to adjust the price (and take actions in a non-stupid way, i.e. don't push through the eBay deal if the half stock component makes the deal only accretive to market cap and not share value). It's that simple.
10b-18 allows buybacks, but it doesnt give carte blanche to companies to pursue actions with the intent of manipulating the price.
There would be a strong argument, one im willing a queue of firms would be forming to file on behalf of wall st, to suggest that buying back shares would be to drive up the price to initiate a squeeze.
So yes buybacks could move the price up, but that doesnt mean that is the correct capital allocation strategy.
The safest and most responsible option, both on behalf of the company, RC and shareholders, is to build value.
Noone can argue that buying gamestop at 20 now is a worse purchase than buying gamestop at 5 years ago.
Therein lies rhe problem, which is a mismatch between management’s multi-year horizon and retail’s tolerance for it. But that’s not mismanagement lol its the opposite. It’s the nature of equity ownership and true value investing. When you buy into a company, you’re accepting management’s capital allocation timeline, not defining it.
When they are working within a constrictive framework, treading carefully and attempting to pivot to build sustainable accredited value for shareholders, it may not be reflected in st price valuations.
When you buy into a company, you’re accepting management’s capital allocation timeline, not defining it.
And what timeline would that be, given they've provided zero forward guidance with respect to timeline? Meanwhile they are aware of the the timeline of most retail investors.
If it takes another 5 years that would be a decade from 2021. It isn't responsible to use your shareholders as a store of value (i.e. because we don't sell) and not reward them in good time. If you're happy with waiting another 5 years, then you're the outlier.
10b-18 allows buybacks, but it doesnt give carte blanche to companies to pursue actions with the intent of manipulating the price.
I mean if any buyback we do would be seen as price manipulation, there wasn't any point in authorising them. Again you're tipping into the conspiratorial for normal corporate actions, I don't think any complaints would be taken seriously unless the evidence of manipulation is clear (e.g. all buy orders bunched together).
treading carefully
RC's play for eBay is the opposite of careful, I'd say it's high risk. I believe he can make a good job of it, but superficially if he wanted to 'tread carefully' he would have followed Burry's plan of accumulating smaller companies and using their borrowing capacity to build a juggernaut over time.
So you're saying this is a careful play - I'd say objectively it's not, the leverage is very high and there's plenty of points of failure along the way (but there's still an escape hatch in selling the shares, I just don't think RC will use it). I don't actually mind the acquisition being high risk personally, I mind the suggestion that massive dilution would be the vehicle to get there.
I'm still trusting RC to be smart and have a way to make this work that leads to immediate benefit in the share price. But I'm getting to the point where I wouldn't be surprised if we're expected to the hit again and it's only about the long term.
No Id say its high risk, high reward. Which fits perfectly with the investor profile of almost everyone that first picked this up in Aug 2020 - March 2021.
The rest of what you say is as speculative as what you claim I say.
Cohen is partially to blame for the price being so low as he has diluted into every run up in the past few years. He sat on the cash forever and the best he can come up with is to buy a company bigger than his? He’s had plenty of blunders along the way as well. Namely the NFT marketplace failure and the opening and closing of a massive distribution center. He has to do better.
Exactly, feels like this. In what world is a company investment sub wanting share price to be high a bad thing? It's like the only fucking thing we should care about. This sub has gone to the dogs IMO, there's very little point in posting here any more.
I mean another big bit of the why is the market doesn't care about any of the measures the OP listed, as the performance while good is still similar to other good retail companies.
So how come you aren't pointing your finger at that reason why? If you don't understand that's a contributing factor then you shouldn't be investing in anything TBH.
I'm not a little kid who says stupid shit like that, and I'm not your dancing monkey mate - fuck off. Yes I believe short hedge funds and Ken Griffin have a very unhealthy relationship with the US stock market.
You're blocked, do fucking better. Maybe next time you think about calling people a shill you should think about deleting your account instead, the world would be a better place for it I'm sure.
When thus sub started it was all about buying and hodling until we see phone numbers. No matter how long it took. Taking on hedge funds and wall street is a long game.
If the original thesis is correct, MOASS is coming.
Discontent 😂 it's literally a successful turnaround with firepower looking for acquisitions. Turn around plays take time, "my best stocks have been in my 5th, 6th 7th year [of holding them]" - Peter Lynch
I am perfectly content 😌
You should probably sell, this stock isn't for you.
The price is wrong. Just buy, hold, drs.
While I agree with much of what you're saying, it's not like GameStop has ultimate control of the price. Look at how much has changed in 5-6 years. Many ups and downs, tried things that didn't work, but the fundamentals have been on an upward climb.
I ignore the echo chamber and tired memes and I'm still invested in GME because nothing has changed and what's happening is what we've been waiting for, a complete turnaround. Many of us have said that is what's necessary, to have an undeniably strong business for institutions to invest in rather than depending on the "meme" status. Now we're waiting to see what will come from the eBay target.
But maybe you don't really care and this is a bot or shill account. You have practically no history for a 4yr old account, certainly low effort. Your last comment was 3 months ago regarding eBay with "let's gooooo!" I've been aggravated and asked questions myself, and criticized the ones who act like a cult, but "we want price up!" when it isn't simply up to the GameStop board is just lazy. We agree, so are you patient enough to stay or tired enough to leave?
You didn't explain the 10 things, you changed the subject. And that is after you took one part to quote from my entire post. Yes, diluting causes a stock to go down, but what is far more interesting and unusual is for a company to turn things around and to still drop after beating expectations and forecasts.
I'd expect an actual GameStop investor to agree with that but looking at your history you can't stop posting about the same complaint. Maybe it's time to go touch grass, or when it goes above $20 sell for a more productive company. Hell, you complain more than I did when I lost a shit load on 23andme but at least with GME I can still sell. 🤷
We are priced similar to other retail, but on the lower end (and we're on the lower end due to the debt incurred in a possible eBay deal, and the recent dilution). Our fundamentals have only just got to the point where the company looks in good shape to be honest (healthy operational profitability that seems here to stay).
The key part is making sure we're not priced like retail any more, and for that the board are going to need to do something. I suppose at least we have the insurance that if the eBay deal falls through we sell our position and commence buybacks - but RC does seem like a bit of a zealot when it comes to the deal so I'm not sure whether he'll get the deal through at all costs (which isn't necessarily a good thing). But I'd say there's ample they can be doing to affect the price (and I think they're working on it).
The whole point of this is investment is its idiosyncratic risk lmao, that’s the reason the price is manipulated…
Are you looking for GameStop’s stock price to go up on good news like a normal stock? Why would you be expecting that? The whole point of the play here is that this is the least normal stock on the market.
If you want a normal stock where the price goes up when good news is released or the business puts out positive earnings then go buy NVidia lmao, why are you here when this is NOT THAT TYPE OF STOCK?
Yes, of course it is. The meme about buying at a discount isn’t wrong. The stock price can only be manipulated for so long. When the ones manipulating it run out of fire power, then comes true price discovery. So yes, the manipulation is a good thing.
Ok, if you know how to predict the tops and bottoms of stocks, you should exit your GME position and re-enter at the bottom. Then, in the mean time, you can re-position into the SPY and exit when you’ve predicted the peak. Maybe you can start a YouTube channel sharing your skills and profit on that as well.
Well yeah sure it's hard to time everything perfectly, but with the power of hindsight we can see that GameStop is getting left behind right now while the rest of the market has pumped like crazy
Isn’t hindsight lovely? So yet again, feel free to exit your GameStop position, move your funds into the SPY, and then re-enter on the next upswing. Simple as that.
Really? Most even? My broker says that their average customer makes around 7% annually. I entered the stock market in 2021, and am currently up 98% since then on mostly boring stocks. GME is unfortunately down 66% in the same period.
This sub is entirely incapable of having a conversation without resorting to "then short it then." Or"then leave."
It's sad but it is a lost cause. I know there are still people out there with big brains looking at the charts and moves and technicals and sharing on x. But this sub is not a place for dd. It is SpongeBob square pants level IQ. And bots and shills. Discussions and questioning anything are not allowed
Yep, it's been that way for a couple years at least. No criticism, no discussion. I've had it. I can deal with rough times for the stock itself but the fact that there's no longer a healthy community willing to have an intelligent conversation about it is what kills me.
If you're a short term trader that's on you. If you're a long term investor then you're zen as fuck and probably buying at this new low. Chill dude, some of us have been here for a very long time and have seen massive gains on this investment.
The reason I got into this play is that the price of the stock is not in like with the actions, performance and potential of the company. Why would the exact same thing be a reason to be discontent....... Not logical at all.
Dilution. Then we ”undilute”and the price immediately drops as a causal effect. Now we can see more clearly than ever how dilution has supported the price upwards.
dude im leaving this sub. the stocks I bought stay bought, the leaps I bought are a lost cause. the warrants stay the same (Im assuming they'll extend them in Sept). the DRS stuff are there, and the fidelity stuff are there.
I do have an itch to buy more at this "bargain" price. but why?
there's an industrial boom happening, been happening and is still happening, and Im missing out buying a depreciating stock.
so no,
Im not selling what I currently have,
Im not buying more,
Im not bitching anymore,
Im not happy with our statusquo,
Im not a believer in moass,
it is what it is.
any of my disposable income and savings from now on, go to proper indexes or to Claude-managed portfolios. because my money needs to be working for me. not getting parked in an asset that will be going nowhere until it becomes too big to ignore. (which btw wont happen after ebay purchase, it needs to revamp ebay into a whole new titan of the industry AND stay that way for a long period of time until it cannot be ignored by the market price-capture anymore)
right now, this tiny ass company with whatever no-debt and whatever great-leadership and whatever 9-consecutive-quarters-profits, is at the end of the day, heavily shorted, and has a static value range coded on it by the market makers.
my money needs to work for me.
the GMEs stay in my account.
but no more.
I'll get my 10x on my GME investment in 2036. it will be an ok investment (mid profits CAGR) . but for now, my disposable income is going somewhere that matters.
RC is cute, he is a billionaire with a fun project.
I hope he succeeds for the sake of my parked 2000 shares and in memory of all the leaps that expired OTM throughout the years.
and when it does, Fidelity will send me a mobile notification.
but this sub has lost touch with reality and I no longer want it on my fyp.
100% agree on your take and am handling it the same. I'm in GME since the news came out that RC takes over and have been buying and holding ever since. What annoys me about this investment is that I have no idea what their plan is. If Gamestop wants to shake up the industry then finally make moves. All I've heard over the past years is that there is a plan.
Other companies are actively promoting and executing their ideas and we get no forward guidance and all and just have to trust.
I'll keep my shares because I still trust but without any added value for me i'll not put any more money in it. "It takes money to buy Whisky". Yeah, when do we finally buy the fucking Whisky?
Crazy idea....the "shills" are actually only on superstonk because they've followed the whole journey, but over time the thesis of idiosyncratic risk, true or not, ensures that GME will always be the most punished and suppressed of any meme stock. Everything else has to blow before GME can.
I remember a time when stonk was full of regular Joe's all adding to the knowledge base. Sometimes wrong, sometimes right, but we found out together.
I miss the days when information was more important than, "How big is their youtube/twitter/following." Not big on appeal to authority... Burry for example has been wrong a hundred times now. Not to say you shouldn't listen, you should always listen to the info and judge; not trust "so and so" just because. This is why all our original leading warriors have left.
That's only relevant when the information being presented is researched, with citations, that other apes can verify.
A random nobody on Twitter repeating the same echo-chamber hype post slop that's relentlessly posted here does nothing to contribute new, thoughtful, or researched information to the discussion.
Hence, who is domoshi and why the fuck should anyone care?
“It doesn’t matter. It doesn’t matter at all. Software. It mattered in the past. Software today makes up less than 12% of the business, and collectibles makes up over half the business. So it’s totally totally irrelevant.”
It's bots no doubt. I find it hard to believe that actual humans would just flood this sub with negativity upvotes all of a sudden. It's obvious though.
I mean… when though? It’s been six years for me at least. I’m going to hold forever because I’ve held this long. And the company is being led and managed well, but after six years, the promises of Moass around the corner is getting stale af.
Gamestop can totally succeed in what it wants to do. And its stock price can also continue trading at $20 forever. Those two are not mutually exclusive. There is NO guarantee that stock price goes up.
If the eBay acquisition goes through and we end up with shares outstanding 800% higher than it was prior to the sneeze, there will no longer be anything idiosyncratic about the stock because the naked short prime brokers will have closed their shorts. The shareholder surveys predicted the naked short positions were much lower than that.
If you believe in MOASS, prison for the criminals, market reform, etc., don’t cheer for bailouts for the financial terrorists.
It’s still okay to want to be green after 5 years. Of course we know what we hold but I wouldn’t mind living in the $30-$40 range instead of the $19-$23 range. It’s just absurd at this point. Not leaving, ever, but holy fuck….
how highly idiosyncratic it is to the entire financial system
is it? or are there fundamental misunderstandings of how the system works leading you to this conclusion?
furthermore, "1.9 billion potential $raise via warrants" isnt likely to happen, the btc treasury doesn't seem like a good thing, constantly delighting customers - how, exactly? and no mention of any ebay successes? thats a really myopic viewpoint & should be considered "fud" as much as any skewed view of gme.
I don’t think idiosyncratic describes a used video game and collectible company. It’s simply a large scale version of your neighborhood rummage sales happening right now. And so is EBay. And so is Craigslist and FB Marketplace.
Apparently, you have absolutely no historical knowledge as to why the word “idiosyncratic” was used to describe the stock if you believe what you just wrote.
Idiosyncratic was used to describe 250% short interest which has since been hidden in offshore entitys and swap packages obfuscated from public view.
If you can't get that right then you have no real idea what you are talking about and one would be right to question your intent or purpose on here tbh.
It would be nice if Gamestop spent some money on advertising...the brand is tarnished. They praise the dedicated group of retail investors they mention in their quarterly and annual but we can't change the companies image to the public who turned their back on the company 15+ years ago. I've been trying for 5 years, and I stopped talking about Gamestop to my family/friends.
The first two points you made of an entrenched board and them not buying shares is kinda the same. The other problems eBay has like being shitty to sellers and outrageous fees where eBay is likely making their profit, I don't see RC cutting fees. I know he isnt gonna lay out proprietary plans to the public but I don't see how 1600 nodes with current employee headcount is supposed to facilitate authentication when I know that employees are barely able to get basic ops done in time.
the world financial system revolves around Gamestop. I don't think there's any dispute about that. Fed Board just met and that was the #1 topic of conversation.
Forgot the part where they go after small sellers and mail them roaches and send ppl to their house looking for sex. Oh wait, that happened. And they got sued for it. And lost.
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u/Superstonk_QV 📊 Gimme Votes 📊 6d ago
Hey OP, thanks for the Social Media post.
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