$GameStop (GME.US)$ Diluting with additional 45 mil shares l...
$GameStop(GME.US$ Diluting with additional 45 mil shares last week was extremely fk’ed up. That’s how you kill the momentum of a meme rally. Gme did NOT do that in 2021 rally. That, right there, is a major difference. Facts are facts at the end of the day.
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Iakul : Except that GameStop did not dilute. Read the statement they released again
SupaNoobOP Iakul: For the “sale of up to 45 million shares”…from time to time. That literally means they’re absolutely going to take advantage of this rally to try to sell at a great premium compared to $10-12 per share.
Iakul SupaNoobOP: The flaw in your logic is that they are swimming in cash now. It totally doesn’t make sense for them to sell shares during this rally.
SupaNoobOP Iakul: So it’d make much more sense for them to start selling as the price is going down towards the $10-12 per share range? Ryan Cohen isn’t an idiot, lol. Always know when to capitalize or who knows how long it’ll be before another rally starts, and the price action tells it all about how most people feel at this point about buying in. The level of uncertainty and fear is quite palpable now.
SupaNoobOP : From this point on, it’s merely a good day-trading stock, quick in and quick out with fast potential profits, that’s all.
VibraniumHands Iakul: Are you saying a business can have too much money??? No business is going to ignore a money making opportunity whether they’re cash rich or not. Additionally, if they’re planning something along the works of an acquisition or merger then having more cash to combat against a negative earnings report is important to shareholders
Iakul : Nah, what I’m saying is that I don’t buy the argument that dilution will happen because Ryan Cohen, who from what we can tell, is extremely bullish about GME, will dilute at the current price, without any pressing need to do so. If the rally actually takes off and reaches something close to last week then maybe. And at this point we can pretty much expect another rally within the next 3 years, so no, I think the cons of diluting now far outweigh the pros.