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Why doesn’t GME issue some shares at these prices and pay off all its debt and add cash to the balance sheet?
by voisin 6y ago
Why doesn’t GME issue some shares at these prices and pay off all its debt and add cash to the balance sheet?
- dannyw 6y agoBecause GME already has more cash than it’s debt. It’s always had a great balance sheet. Shorts were not very justifiable: it was hardly going to go bankrupt.
- kgwgk 6y agoIt doesn’t have to go to bankrupt, it just has to go down.
- odiroot 6y agoMatt Levine is speculating that they're doing exactly that.
- jdjfktkrnj 6y agoSome say that would be illegal, since GME knows these prices are wrong, and thus they would be guilty of fleecing whomever buys them. But supposedly they could make the investors sign a waiver that they acknowledge this?
- voisin 6y agoThis is not accurate. There is no such thing as “prices are wrong”. The price is being set by arm’s length third parties transacting. Their motivations may be questionable but that doesn’t make the price “wrong”.