GameSTONKS Thread - Power to the meme's

**Ksandra** · 2021-01-30 00:44

Maybe I don't understand the stocks correctly, but wouldn't Gamestop be able to use this money to try and save their company?

I always thought you put in in companies you thought could grow. So more power fucking to them if they could figure it out.

At least, in AMC's case, that is a legit company that is hurting due to the pandemic, but this is saving them so they don't go bankrupt and might actually get a burst in business for a bit after since everyone is sick of being at home so much.

**Andalusian girls** · 2021-01-30 00:55

in the case of long-term investment, sure. operational revenue is raised by doling out parcels of ownership and all prosper. this, however, is a bubble. what money has flooded in will flood out just as quickly.

and it ought be noted it is not as though Gamestop is issuing these stocks and thereby receiving a massive capital infusion; public buyers are buying from other public sellers. a company receives capital only from the initial sale of a stock to the public, they do not receive additional funds from any further transactions between third parties. shareholder wealth has appreciated, drastically, but will just as quickly evaporate when the stock price collapses back to something supported by Gamestop's (very bad) fundamentals.

now a member of Gamestop's ownership group could sell their stake during this inflationary period for massive profit and reinvest in the company, but that would be, frankly, idiotic, as they are unlikely to ever see a greater return on investment.

**Xno Kappa** · 2021-01-30 01:08

Originally Posted by Day

https://twitter.com/SenWarren/status...514250754?s=19

Oh shit. BG’s Queen about to do some serious frowny faces and finger waggling!

**Cyn** · 2021-01-30 01:46

We're not allowed to crash the stock market until we get Glass-Steagall put back into place.

**Zealot** · 2021-01-30 01:56

How are GameStop's fundamentals bad though? Their 2019 cash on hand was more than enough to cover their total debt. The pandemic fucked them over but 2020 cash showed more than enough to continue managing it. They have a sharp new CEO and seemingly a plan to make transitions to digital offerings with games and are still profiting from merchandise sales. The whole reason DeepFuckingValue made his bet on them in the first place is because he was the first person to realize the only reason their stock was so low was because it was being so aggressively shorted.

Is it worth $300+ a share? I don't know man, Chipotle is trading at over $1400 so who knows anything.

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**Tyrath** · 2021-01-30 01:56

Originally Posted by Cyn

We're not allowed to crash the stock market until we get Glass-Steagall put back into place.

I mean that would be fucking wooooorth it

**Ksandra** · 2021-01-30 02:11

Originally Posted by Andalusian girls

in the case of long-term investment, sure. operational revenue is raised by doling out parcels of ownership and all prosper. this, however, is a bubble. what money has flooded in will flood out just as quickly.

and it ought be noted it is not as though Gamestop is issuing these stocks and thereby receiving a massive capital infusion; public buyers are buying from other public sellers. a company receives capital only from the initial sale of a stock to the public, they do not receive additional funds from any further transactions between third parties. shareholder wealth has appreciated, drastically, but will just as quickly evaporate when the stock price collapses back to something supported by Gamestop's (very bad) fundamentals.

now a member of Gamestop's ownership group could sell their stake during this inflationary period for massive profit and reinvest in the company, but that would be, frankly, idiotic, as they are unlikely to ever see a greater return on investment.

I guess even in this case I don't see the big deal in retail investors getting bank out of it. Warren's letter sounded like we were playing with the employee's livelihood. But this wouldn't affect hiring/firing at all by the way you describe it.

**Andalusian girls** · 2021-01-30 02:30

Originally Posted by Ksandra

I guess even in this case I don't see the big deal in retail investors getting bank out of it. Warren's letter sounded like we were playing with the employee's livelihood. But this wouldn't affect hiring/firing at all by the way you describe it.

i will say it introduces a lot of uncertainty, and uncertainty can break bad. but aye what is happening does not really directly impact revenue, expenditure, profit, etc. stock price, in the short term, is often not an accurate indicator of a company's health, and a high stock price has many times failed to save a dying company.

there is a famous saying in investment stating 'in the short run the market is a voting machine, in the long run it is a weighing machine'. right now we are seeing many people vote for Gamestop. but all the votes in the world cannot change an object's weight.

**Andalusian girls** · 2021-01-30 02:37

Originally Posted by Zealot

How are GameStop's fundamentals bad though?

well the main problem is they aren't very good at making money

**Andalusian girls** · 2021-01-30 02:40

but less fatuously, revenue is down 30% year over year. they're shifting towards digital distribution but that is an extremely crowded market with far more established figures than Gamestop. does anyone really want to put their eggs in the basket of a brick and mortar thriving in the age of Amazon? George Sherman is a bright forward-thinking CEO but Gamestop is facing the same structural pressures that annihilated Blockbuster and Borders. they may survive in some emaciated role but a $23 billion market cap for a company that is hemorrhaging employees, properties, and sales? come now.

**Andalusian girls** · 2021-01-30 02:55

and for what it's worth Gamestop has seen negative growth for 9 of its last 10 quarters. Chipotle has seen positive growth for 9 of its last 10 quarters. ergo while their revenue is similar one body is rather healthy, one rather unhealthy.

**Andalusian girls** · 2021-01-30 03:00

Chipotle should split that shit tho

**Boyiee** · 2021-01-30 06:01

Originally Posted by Zealot

How are GameStop's fundamentals bad though? Their 2019 cash on hand was more than enough to cover their total debt. The pandemic fucked them over but 2020 cash showed more than enough to continue managing it. They have a sharp new CEO and seemingly a plan to make transitions to digital offerings with games and are still profiting from merchandise sales. The whole reason DeepFuckingValue made his bet on them in the first place is because he was the first person to realize the only reason their stock was so low was because it was being so aggressively shorted.

Is it worth $300+ a share? I don't know man, Chipotle is trading at over $1400 so who knows anything.

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He wasn't the first and only, there were several articles and analysts saying this early last year and into summer as well. His bet was the stock being worth $20-40 but they were shorting it down to $4 and it didn't make sense. He even cited board changes and a business model adjustment would easily put it at 40. Then Cohen came in and it was set. When it hit $65 he was drinking champagne on his stream he couldn't believe it.

95% of his reasons for being in gamestop WEREN'T about the short squeeze. He didn't talk about it, he didn't expect it, he would only mention it a little in passing for a couple minutes towards the end of his streams cause it had a possibility.

**Boyiee** · 2021-01-30 06:02

Also I might remodel my kitchen now. Thanks gamestop.

Edit: Nevermind that shits expensive could get a fucking car for that.

**Tomiko** · 2021-01-30 07:09

Originally Posted by Boyiee

Also I might remodel my kitchen now. Thanks gamestop.

Edit: Nevermind that shits expensive could get a fucking car for that.

Buy more GME on Monday and do both. Or don't, I'm not a financial advisor.

Interesting thread by Mark Cuban:

https://twitter.com/mcuban/status/1355170844830560257
https://twitter.com/mcuban/status/1355170846931886080
https://twitter.com/mcuban/status/1355170848718655489
https://twitter.com/mcuban/status/1355170850392199168

**Boyiee** · 2021-01-30 07:23

Originally Posted by Tomiko

Buy more GME on Monday and do both. Or don't, I'm not a financial advisor.

Interesting thread by Mark Cuban:

https://twitter.com/mcuban/status/1355170844830560257
https://twitter.com/mcuban/status/1355170846931886080
https://twitter.com/mcuban/status/1355170848718655489
https://twitter.com/mcuban/status/1355170850392199168

Oh I have plenty of GME. I just can't justify the price of doing new cabinets. Think I'll just "resurface" I think it's called. New doors and paint.

**Jaybar** · 2021-01-30 09:08

Originally Posted by Boyiee

Oh I have plenty of GME. I just can't justify the price of doing new cabinets. Think I'll just "resurface" I think it's called. New doors and paint.

If anything in that kitchen is laminate then Tear. It. Out.

**Tomiko** · 2021-01-30 09:19

Originally Posted by Jaybar

If anything in that kitchen is laminate then Tear. It. Out.

Don't listen to him, just use your GME to buy a new house.

**Odesseiron** · 2021-01-30 09:28

Better yet, build the house of your dreams.

**Salodin** · 2021-01-30 11:57

So boyiee, was gme enough to stay unemployed when you go back to school? 2021 seemed like it was gonna be a weird shit show, but you're about to come out ahead of everyone cept tyche lol

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Thread: GameSTONKS Thread - Power to the meme's

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