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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 situa
by 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...