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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 Re
by robbmorganf 6y ago
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?
- isatty 6y agoThey can but they have not yet. They’re not going to be able to do it by 29th (doubtful) and it’s a day of max pain. On the other hand, pissing off a whole bunch of your customers and investors does not seem like a wise idea. Hell, they’ve more money to buy things now. I should also mention that the GME balance sheet wasn’t even bad back in July, and they’re doing everything to improve it, even without the short squeeze (think closing stores etc).
- Yoofie 6y agoI don't know much about this but apparently they can. I read [1] that AMC did just that and raised money to survive the rest of the year based on the inflated valuation. My AMC info from Matt Levine, under the "AMC ATM" section of the article. [1]:https://www.bloomberg.com/opinion/articles/2021-01-28/knowing-when-to-sell-gamestop-stock-at-the-top-is-impossible https://www.bloomberg.com/opinion/articles/2021-01-28/knowin...
- mitch3x3 6y agoI believe they are limited to issuing 100k at a time and spaced out much larger than is currently needed to take advantage of the situation. This is all part of the calculated short squeeze.