Redditors gave Wall Street traders an absolute pasting

[PTR]

Is this where their massive cash pile came from, share issuance and such?

Don't blame them mind for taking advantage and building a fat balance sheet.

No.
It was a split*. Not dilution**.
They did sell some extra stock when the price was veryhigh. But then bought back essentially the same amount when the price fell back. They have been intermittently doing stock buy backs too including holding a pot of money for future buybacks at their will.
And the entire board have been buying a lot of stock too.

*It was actually supposed to be a dividend in the form of additional stock. i.e. to flush out the "fake" shares that we all know exist. But the CFO fucked up the forms and it all went to shit. He was fired the next day. So essentially it became a 4:1 split.

** AMC stock was often mentioned in the same breath as GME. But AMC diluted the ever loving fuck out of their shares to raise funds. They are an entirely different beast.

 

[Longcount]

No.
It was a split*. Not dilution**.
They did sell some extra stock when the price was veryhigh. But then bought back essentially the same amount when the price fell back. They have been intermittently doing stock buy backs too including holding a pot of money for future buybacks at their will.
And the entire board have been buying a lot of stock too.

*It was actually supposed to be a dividend in the form of additional stock. i.e. to flush out the "fake" shares that we all know exist. But the CFO fucked up the forms and it all went to shit. He was fired the next day. So essentially it became a 4:1 split.

** AMC stock was often mentioned in the same breath as GME. But AMC diluted the ever loving fuck out of their shares to raise funds. They are an entirely different beast.

No.
It was a split*. Not dilution**.
They did sell some extra stock when the price was veryhigh. But then bought back essentially the same amount when the price fell back. They have been intermittently doing stock buy backs too including holding a pot of money for future buybacks at their will.
And the entire board have been buying a lot of stock too.

*It was actually supposed to be a dividend in the form of additional stock. i.e. to flush out the "fake" shares that we all know exist. But the CFO fucked up the forms and it all went to shit. He was fired the next day. So essentially it became a 4:1 split.

** AMC stock was often mentioned in the same breath as GME. But AMC diluted the ever loving fuck out of their shares to raise funds. They are an entirely different beast.

Just had a quick Google and it suggests they sold 5m of stock in 2021 for over 1B, but can't find anything of them buying back that amount of shares. It's smart mind, to have such a huge cash reserve with minimal debt while interest rates are where they are.

I'm just not sure how they're going to really progress actual sales long term - has their entire model changed?

 

[PTR]

Just had a quick Google and it suggests they sold 5m of stock in 2021 for over 1B, but can't find anything of them buying back that amount of shares. It's smart mind, to have such a huge cash reserve with minimal debt while interest rates are where they are.

I'm just not sure how they're going to really progress actual sales long term - has their entire model changed?

Something like 300m shares outstanding iirc. So 5m isn't significant dilution really.
They have been doing buy backs though. They had to put the request out to the shareholders to vote on at least twice. There's a pot outstanding today they can pull the trigger on whenever they want to. I think its about $100m worth.

$1.13b from 5m shares - price was $226 each. That's pre split - so at today's prices that's $57 each.
Now trading at around $20 and I see GME have bought back 8.5m shares since they originally sold the 5m. But remember, that's a 4:1 ratio, so you can say its 8.5m out of 20m.

 

[Longcount]

Something like 300m shares outstanding iirc. So 5m isn't significant dilution really.
They have been doing buy backs though. They had to put the request out to the shareholders to vote on at least twice. There's a pot outstanding today they can pull the trigger on whenever they want to. I think its about $100m worth.

$1.13b from 5m shares - price was $226 each. That's pre split - so at today's prices that's $57 each.
Now trading at around $20 and I see GME have bought back 8.5m shares since they originally sold the 5m. But remember, that's a 4:1 ratio, so you can say its 8.5m out of 20m.

No, not suggesting the 5m shares they sold is big dilution, but a big factor in their huge cash reserves. They'll still have to work very hard to actually continue to improve operating profitability, but no debt in a high interest environment will at least give them the best environment to try and achieve that. Can't find anything on them buying back 8.5m shares after the 5m they sold mind?

 

[PTR]

No, not suggesting the 5m shares they sold is big dilution, but a big factor in their huge cash reserves. They'll still have to work very hard to actually continue to improve operating profitability, but no debt in a high interest environment will at least give them the best environment to try and achieve that. Can't find anything on them buying back 8.5m shares after the 5m they sold mind?

They announced the completion of a share buy back about 3-6 months ago. The timelines are fuzzy, somehow this whole thing is about 3 years old!

Looks like they'll break about even for FY2023 overall, which is amazing really given the costs they've faced in the restructure. Seems like its coming to an end now, and running the business as-is is pretty much now.

I suspect they'll buy another company soon with that cash pile. There's all sorts of rumours flying around.

Oh, and in 2019 they bought back about 25% of the outstanding shares for about $100m. So selling a measly 5m shares and making a billion is pretty good work

 

[Longcount]

They announced the completion of a share buy back about 3-6 months ago. The timelines are fuzzy, somehow this whole thing is about 3 years old!

Looks like they'll break about even for FY2023 overall, which is amazing really given the costs they've faced in the restructure. Seems like its coming to an end now, and running the business as-is is pretty much now.

I suspect they'll buy another company soon with that cash pile. There's all sorts of rumours flying around.

Oh, and in 2019 they bought back about 25% of the outstanding shares for about $100m. So selling a measly 5m shares and making a billion is pretty good work

Oh indeed, as I've said several times mind. Just can't see any evidence online that they have repurchased shares since selling the 5m. Not saying it's not buried away in some SEC filings, but you'd imagine it to be easy to find on Google given the entire saga.

Ironically, they could probably buy a majority stake in credit Suisse in cash with that pile they've got

 

[PTR]

Oh indeed, as I've said several times mind. Just can't see any evidence online that they have repurchased shares since selling the 5m. Not saying it's not buried away in some SEC filings, but you'd imagine it to be easy to find on Google given the entire saga.

Ironically, they could probably buy a majority stake in credit Suisse in cash with that pile they've got

There was an announcement, I just can't remember when it was or am I able to find it on google. Mind, any good news about GME tends to not make MSM for *some* reason....

 

[Longcount]

There was an announcement, I just can't remember when it was or am I able to find it on google. Mind, any good news about GME tends to not make MSM for *some* reason....

Where did they announce it, if it's invisible to the internet? Not trying to be a dick, I just genuinely can't see any evidence that they did as you asserted earlier. Still improved the health of the company massively on the back of the whole saga.

Regarding the 'MSM' stuff, Googling the name of the company alone brings up articles about their positive earnings from Bloomberg, CNBC, Forbes and Wall Street Journal.

 

[PTR]

Where did they announce it, if it's invisible to the internet? Not trying to be a dick, I just genuinely can't see any evidence that they did as you asserted earlier. Still improved the health of the company massively on the back of the whole saga.

Regarding the 'MSM' stuff, Googling the name of the company alone brings up articles about their positive earnings from Bloomberg, CNBC, Forbes and Wall Street Journal.

IIRC it was in one of their quartley SEC filings.

IIRC it was in one of their quartley SEC filings.

I'm still trying to find the detail. Could be that I'm confused of course.

I'm reading
2019 34.6mil bought for $179m, then 2 years later they sold 8.5mil for $1.68bn - so that's where all the debt got paid off and where the bil cash on hand comes from. (NB, those are pre-split volumes)

I think I've mixed up the voting requests to have a pot of cash available ($100m ~5mil shares) to repurchase shares with it actually being executed, possibly at the time time Ryan Cohen buying up 37million of the shares himself (post split volumes). Sounds like that's where my mistake it.

But I suppose the major shareholder buying vs the company itself buying is fairly similar in terms of outcomes. They have the same goal and the outstanding shares are affected in the same way.
.
Good questioning, mind. Always best to get facts rather than half-remembered half-truths
.
Lo and behold, financial results absolutely crush the forecasts, yet at market open the shareprice tanks. Always the same.
Bad news - price drops
Good news - price drops

Obviously short selling, which will be born out in the data in the next few days of course.

 

[Geppetto]

Looks like it's happening again based on yesterday's change, although I doubt anyone's shorting GS anymore.

 

[legend7]

Looks like it's happening again based on yesterday's change, although I doubt anyone's shorting GS anymore.

I've held on to some regardless, more for interest than anything else.
Still mad how decent gains aren't reported and mainly only negative stuff.
The film about it was quite good actually and this doc although I wish they had included the gorilla charity stuff

You must be logged on to see media items

You must be logged on to see media items

 

[Longcount]

Still mad how decent gains aren't reported and mainly only negative stuff.

Loads only got involved due to how it was reported all over the place.

Be a bit pointless reporting every small share rally on what has been a several year downward trend now, surely?

 

[legend7]

Loads only got involved due to how it was reported all over the place.

Be a bit pointless reporting every small share rally on what has been a several year downward trend now, surely?

Ah I'm not saying all over the news but there seems to be a lot more articles posted showing a negative than when something goes well
As I say I only have a passing interest really, was a fun story and a good few days gains

 

[PTR]

In truth there's not much point in claiming gme is flying when it has crashed in recent months

It's down by half in the last year, even accounting for the 50% rise this week.

Somehow becoming profitable led to the share price going down! Some serious manipulation is going on for sure.

 

[Geppetto]

Loads only got involved due to how it was reported all over the place.

Be a bit pointless reporting every small share rally on what has been a several year downward trend now, surely?

I noticed it bottomed out last week, so I took a punt, it's gone up by circa 50%.

The question is, will it continue.

 

[Longcount]

Somehow becoming profitable led to the share price going down! Some serious manipulation is going on for sure.

That can happen when a share price is too high, regardless of performance. There have been plenty examples of shares trending downwards despite great performance and fundamentals, until they eventually reached what was deemed a fair valuation.

I think even WSB mock people who are still believing some grand conspiracy is at play against GME.

 

[Wild Card]

In truth there's not much point in claiming gme is flying when it has crashed in recent months

It's down by half in the last year, even accounting for the 50% rise this week.

Somehow becoming profitable led to the share price going down! Some serious manipulation is going on for sure.

Tell me about it. Bought into a company at $6 it has been shorted to 0.60. that is despite 8 straight earnings beats in a row. Has more cash in the bank than market value. Boils my piss. I think half the problem is it started as a spac and retail of about 55 to 60%.

When I first bought in the amount of shorted shares were about 5 million which was a small amount of the float, not it's around 50 million and it's about 14% of the float. I could understand if the company was missing earnings left right and centre. The last earning beat followed by a 30% drop in share price, it's mental.

It got to the point wall street decided who is going to win or lose regardless of the company, until the company reaches a point where they have to let it go.

 

[Geppetto]

Tell me about it. Bought into a company at $6 it has been shorted to 0.60. that is despite 8 straight earnings beats in a row. Has more cash in the bank than market value. Boils my piss. I think half the problem is it started as a spac and retail of about 55 to 60%.

When I first bought in the amount of shorted shares were about 5 million which was a small amount of the float, not it's around 50 million and it's about 14% of the float. I could understand if the company was missing earnings left right and centre. The last earning beat followed by a 30% drop in share price, it's mental.

It got to the point wall street decided who is going to win or lose regardless of the company, until the company reaches a point where they have to let it go.

Has the Motley Fool or anyone else commented on it?

 

[Wild Card]

Has the Motley Fool or anyone else commented on it?

No, I knew it was high risk when I got in. The potential is there.

Andrew toy, googles chief technology office left Google to come and develop code for a virtual real time GPsericve with access to full medical history.. It's starting to work, has one of the best medical costs ratios around and is hiring people for a saas service. Will probs show profitability this qrt.

 

[Geppetto]

No, I knew it was high risk when I got in. The potential is there.

Andrew toy, googles chief technology office left Google to come and develop code for a virtual real time GPsericve with access to full medical history.. It's starting to work, has one of the best medical costs ratios around and is hiring people for a saas service. Will probs show profitability this qrt.

I'll look out for it, looks like it could be turning around based on the change this week, hopefully doesn't further slump.