4 ms·

The company could issue new stock (to get a lifeline of cash from inflated price) I know someone who tried to convince VW management to do that during the Porc

by drited 6y ago

The company could issue new stock (to get a lifeline of cash from inflated price) I know someone who tried to convince VW management to do that during the Porche/VW squeeze. They didn't but I see no reason why another management team wouldn't act differently.

psychlops 6y ago
This would be the most hilarious resolution to the madness. However, the cynic in me sees management spending their time selling their entire portfolio to buy back when it hits $20 again.
SpicyLemonZest 6y ago
The SEC spiked Hertz's attempt to sell stocks into a similar rally, so even if they try it's unlikely IMO that they would succeed.
- djbebs 6y ago
  Htz had declared bankruptcy at the time they tried. Gamestop hasn't and that is a very big diference.
  - SpicyLemonZest 6y ago
    Bankruptcy makes it a bit different, I guess, but Gamestop executives can't possibly make a good faith argument that +1000% price in the middle of a short squeeze is a correct valuation of their stock. The SEC has a lot of discretion here (both by law and in practice), and they're just not going to let a company bilk its investors like that.
    - adolph 6y ago
      Discretion * The U.S. Securities and Exchange Commission (SEC) had previously conducted multiple investigations into his business practices but had not uncovered the massive fraud.* https://en.wikipedia.org/wiki/Bernie_Madoff https://en.wikipedia.org/wiki/Bernie_Madoff
    - listenallyall 6y ago
      "bilking investors?" Gamestop is a mature company in a mature industry w/ 20 years of annual reports, earnings releases, investor calls, SEC filings, etc. There's far more information upon which to make a decision about Gamestop than virtually any IPO, or tons of low-float, low-volume stocks out there. Could easily say you know way more about Gamestop future prospects than Uber, Airbnb, Beyond Meat, plenty more.
nradov 6y ago
It takes time to put a secondary stock offering together. Unless they already had it primed and ready to go the bubble will probably pop first.
- drited 6y ago
  Yes true but a green shoe (to the hedge funds who need to exit) could be done more quickly.

by drited 6y ago

psychlops 6y ago

This would be the most hilarious resolution to the madness. However, the cynic in me sees management spending their time selling their entire portfolio to buy back when it hits $20 again.

SpicyLemonZest 6y ago

The SEC spiked Hertz's attempt to sell stocks into a similar rally, so even if they try it's unlikely IMO that they would succeed.

djbebs 6y ago
Htz had declared bankruptcy at the time they tried. Gamestop hasn't and that is a very big diference.
- SpicyLemonZest 6y ago
  Bankruptcy makes it a bit different, I guess, but Gamestop executives can't possibly make a good faith argument that +1000% price in the middle of a short squeeze is a correct valuation of their stock. The SEC has a lot of discretion here (both by law and in practice), and they're just not going to let a company bilk its investors like that.
  - adolph 6y ago
    Discretion * The U.S. Securities and Exchange Commission (SEC) had previously conducted multiple investigations into his business practices but had not uncovered the massive fraud.* https://en.wikipedia.org/wiki/Bernie_Madoff https://en.wikipedia.org/wiki/Bernie_Madoff
  - listenallyall 6y ago
    "bilking investors?" Gamestop is a mature company in a mature industry w/ 20 years of annual reports, earnings releases, investor calls, SEC filings, etc. There's far more information upon which to make a decision about Gamestop than virtually any IPO, or tons of low-float, low-volume stocks out there. Could easily say you know way more about Gamestop future prospects than Uber, Airbnb, Beyond Meat, plenty more.

nradov 6y ago

It takes time to put a secondary stock offering together. Unless they already had it primed and ready to go the bubble will probably pop first.

drited 6y ago
Yes true but a green shoe (to the hedge funds who need to exit) could be done more quickly.