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Shame on Gamestop management for not doing a secondary offering. Tesla did this a few times in the past 18 months to raise like $10-12 billion dollars.

jpgvm 6y ago
It's not clear if they can do an offering at inflated prices without running afoul of SEC. Even if they did it's unclear if it would be enough to end the situation because the shorts clearly think GME is on a one way road to bankruptcy. After initial short positions were unwound new shorts entered when the stock was flying super high so short interest naturally remains high. GME already has a decent pile of cash on the books (which is why attracted Burry in the first place) so it's also not clear if a secondary offering would do much to dissuade the shorts from re-entering their positions after using the offering to cover.
- bo1024 6y ago
  > It's not clear if they can do an offering at inflated prices without running afoul of SEC. To add to this, the SEC issued a statement in the middle of it all that seems to discourage Gamestop from offering more shares. It's unclear to me but that's my interpretation of the last sentence of this paragraph: > In addition, we will act to protect retail investors when the facts demonstrate abusive or manipulative trading activity that is prohibited by the federal securities laws. Market participants should be careful to avoid such activity. *Likewise, issuers must ensure compliance with the federal securities laws for any contemplated offers or sales of their own securities.* https://www.sec.gov/news/public-statement/joint-statement-market-volatility-2021-01-29 https://www.sec.gov/news/public-statement/joint-statement-ma...
wtf_is_up 6y ago
A recent Reuters story claimed they couldn't issue shares without releasing preliminary earnings data per SEC regs. Apparently, they had too much data on the previous quarter. They chose not to release the prelim earnings. I wonder if this has anything to do with the CFO being ousted.
duxup 6y ago
How quickly can you do that / react to these things. Could you 'beat' / get the shares sold before the price dropped dramatically? And let's assume you get them sold / what happens when you just dumped bunch of shares out there and the inevitable price crashes? What value can you ever provide those share holders? But in the first place I kinda wonder if just trying to cash in would trigger the drop...
- CyanLite2 6y ago
  They can do an 'at-the-market' offering. Which allows them to sell XX number of shares at whatever price and whenever they choose to. This is the approach that Tesla took. Also, execs can start cashing in themselves.
vasco 6y ago
Read up: https://www.fool.com/investing/2021/02/05/why-gamestop-couldnt-take-this-golden-opportunity/ https://www.fool.com/investing/2021/02/05/why-gamestop-could... If they have anything to be ashamed of is not repurchasing more shares when Burry told them to. Good riddance to the outgoing CFO.

jpgvm 6y ago

It's not clear if they can do an offering at inflated prices without running afoul of SEC. Even if they did it's unclear if it would be enough to end the situation because the shorts clearly think GME is on a one way road to bankruptcy. After initial short positions were unwound new shorts entered when the stock was flying super high so short interest naturally remains high. GME already has a decent pile of cash on the books (which is why attracted Burry in the first place) so it's also not clear if a secondary offering would do much to dissuade the shorts from re-entering their positions after using the offering to cover.

bo1024 6y ago
> It's not clear if they can do an offering at inflated prices without running afoul of SEC. To add to this, the SEC issued a statement in the middle of it all that seems to discourage Gamestop from offering more shares. It's unclear to me but that's my interpretation of the last sentence of this paragraph: > In addition, we will act to protect retail investors when the facts demonstrate abusive or manipulative trading activity that is prohibited by the federal securities laws. Market participants should be careful to avoid such activity. *Likewise, issuers must ensure compliance with the federal securities laws for any contemplated offers or sales of their own securities.* https://www.sec.gov/news/public-statement/joint-statement-market-volatility-2021-01-29 https://www.sec.gov/news/public-statement/joint-statement-ma...

wtf_is_up 6y ago

A recent Reuters story claimed they couldn't issue shares without releasing preliminary earnings data per SEC regs. Apparently, they had too much data on the previous quarter. They chose not to release the prelim earnings. I wonder if this has anything to do with the CFO being ousted.

duxup 6y ago

How quickly can you do that / react to these things. Could you 'beat' / get the shares sold before the price dropped dramatically? And let's assume you get them sold / what happens when you just dumped bunch of shares out there and the inevitable price crashes? What value can you ever provide those share holders? But in the first place I kinda wonder if just trying to cash in would trigger the drop...

CyanLite2 6y ago
They can do an 'at-the-market' offering. Which allows them to sell XX number of shares at whatever price and whenever they choose to. This is the approach that Tesla took. Also, execs can start cashing in themselves.

vasco 6y ago

Read up: https://www.fool.com/investing/2021/02/05/why-gamestop-couldnt-take-this-golden-opportunity/ https://www.fool.com/investing/2021/02/05/why-gamestop-could... If they have anything to be ashamed of is not repurchasing more shares when Burry told them to. Good riddance to the outgoing CFO.