GameStop can issue shares at the higher price and use the cash to revitalise their business. Note I'm not familiar with the company so I can't assess whether the company is salvageable.
So you think GameStop shares are genuinely worth $375? GameStop traded around $20 a share for the past couple of years. You think that right now the company is worth almost 20 times what it was worth two years ago?
buy a single share of Gamestop on Computershare. you will be able to sell it for over $100 million after MOASS. you do not want to be holding IOUs when banks and brokers get liquidated.
I am ignorant on finance. But if GameStop had considered to offer new shares, wouldn’t some investment bank have to agree to buy them on an exorbitant price, or could they just sell them on open market?
Then they bail out the shorts who have been driving done the price for ages. GameStop also file some form for a shelf offering for 100M with the SEC recently. Note the 100M is dollar amount, so you want to sell when you know the stock is at peak, you will get the 100M but less stock unit.
Why should it be worth $8 a share? Do you really want GameStop in your retirement portfolio? It's pretty clear to me that it will, and should, be worth $0 eventually.
An argument could actually be made that Gamestop should be worth about $250 a share, assuming they capitalize on this short squeeze by issuing new shares and turn things around/pivot well.
Why would anyone accept Gamestop stock as compensation for anything right now? Especially when they almost-definitely wouldn't be able to turn around and sell it right away.
Quick question: is anything stopping GameStop itself from authorizing a whole bunch new shares and selling them at this all-time-high price? I understand the Redditors trust each other, but what makes them think they can trust GameStop?
Maybe GameStop could leverage its position and “acquire” something with actual value, something private looking to go public. Afterwards the result would be worth more than GME did when this started?
Why wouldn't they double down? Fundamentally, Gamestop isn't a thirty billion dollar company. The odds that retail investors stay greedy long enough to force the current shorts to cover are not very high, IMO. Some of these redditors are going to want to cash in their gains, and when that happens I guess it's going to collapse very quickly.
I don't buy individual stocks and even I'm tempted to get in on the short side right now. Seems like an easy way to turn $1k into $10k. Take my wife out for a nice dinner or something.
> There's no bull case for Gamestop at $468.50 a share this moment as I type.
Yes there is. The bull case is for those people who have options contracts that they need to fulfill.
If they do not fulfill those contracts there will be consequences: perhaps reputation loss, perhaps law suits, perhaps SEC investigations (with fines and/or jail time).
For those people, GME at even at $1000/share may be "cheap" compared to the consequences they face.
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