GME management has the intention to sell some shares, with the goal of getting $1 billion out of the sale, they registered 3.5 million new shares.
To get $1 billion at a $150 price they would have to sell 6.66 million shares. The ADV dropped to 20 million and I think is likely to stay above the period where the company was undervalued lost and forgotten with 3 million ADV. That sale is not that big it can be absorbed by the volume.
The share price gapped down by 10% in the pre-market yesterday (nothing out of the ordinary) then I assume as the market opened "diamond hands" (retail investors participating in online forums) bought up the company.
The noise around the company probably helped them as their sales grew by 11% in the last 2-3 months, and their March sales were up by 18% compared to last year (US lockdowns started mid-late march and European ones too).
As far as I know they are not officially telling wallstreetbet many (new) users to support them, but they are taking advantage of the hype and bagholding mentality.
In their filing I think they say something along the lines of "We issue new shares. Maybe price go down. Remember risks", the typical useless and mandatory warning to protect investors from themselves "warning drinking bleach might harm you", "cigarettes are bad for health", "do not eat this tube of glue" and so on.
I never heard of Gamestop before this, or perhaps I did if they made game reviews I'm not sure but I'm sure I don't remember for sure (you still here?). What I can recognize for sure is Micromania.
Last time Gamestop had a billion in cash they used it to purchase french retailer Micromania which everyone in that country surely has walked by before, and they later merged it with another company to sell mangas and movies too to address the decline in gaming sales.
Their brand surely is recognizable. So after only 10 years they finally decide to go online, now that their public price is 10 times their actual valuation.
Since their name is so mainstream and much of their "investors" are random unsophisticated people as they say, maybe they should focus more on their public image sort of like Elon Musk does, maybe they do not want to become complete master manipulators like this freak but they could play with what they have while they are rebuilding (or trying to) their dead company.
If I was advising the GME management I'd say to make sure the price stays in a range: bagholders breakeven if it goes up, and panic sell if the price goes down enough.
Literally announcing you're going to sell 3.5 million, 10 million, even 5000 million shares won't get them to sell don't worry, it's "just fud", I bet to half these people it's just a ticker with an indicator and the elusive sky people known as "the big guys" are trying to get them to sell, after all thinking logically is for trolls that "just don't get it", but the price going down too much will trigger their deep fear emotions and get them all selling at the same time. This is not crypto you can't manipulate the price, it would be very efficient here, a shame.
Elon Musk is playing with "simple people" emotions, and the SEC don't seem to mind, the "common folk" even sees him as a hero so why not spread a tiny bit of fomo? Within legal borders.
"GameStop Announces At-The-Market Equity Offering Program"
"Company Can Sell Up to 3.5 Million Shares and Intends to Use Any Proceeds to Further Accelerate Transformation and Strengthen Balance Sheet"
news.gamestop.com/fi...ormation/sec-filings
I am curious, who are the people buying actually? Bagholders averaging down? Or just random people that "buy when there is blood in the street"?
My own actions: Not buying, not selling.
To get $1 billion at a $150 price they would have to sell 6.66 million shares. The ADV dropped to 20 million and I think is likely to stay above the period where the company was undervalued lost and forgotten with 3 million ADV. That sale is not that big it can be absorbed by the volume.
The share price gapped down by 10% in the pre-market yesterday (nothing out of the ordinary) then I assume as the market opened "diamond hands" (retail investors participating in online forums) bought up the company.
The noise around the company probably helped them as their sales grew by 11% in the last 2-3 months, and their March sales were up by 18% compared to last year (US lockdowns started mid-late march and European ones too).
As far as I know they are not officially telling wallstreetbet many (new) users to support them, but they are taking advantage of the hype and bagholding mentality.
In their filing I think they say something along the lines of "We issue new shares. Maybe price go down. Remember risks", the typical useless and mandatory warning to protect investors from themselves "warning drinking bleach might harm you", "cigarettes are bad for health", "do not eat this tube of glue" and so on.
I never heard of Gamestop before this, or perhaps I did if they made game reviews I'm not sure but I'm sure I don't remember for sure (you still here?). What I can recognize for sure is Micromania.
Last time Gamestop had a billion in cash they used it to purchase french retailer Micromania which everyone in that country surely has walked by before, and they later merged it with another company to sell mangas and movies too to address the decline in gaming sales.
Their brand surely is recognizable. So after only 10 years they finally decide to go online, now that their public price is 10 times their actual valuation.
Since their name is so mainstream and much of their "investors" are random unsophisticated people as they say, maybe they should focus more on their public image sort of like Elon Musk does, maybe they do not want to become complete master manipulators like this freak but they could play with what they have while they are rebuilding (or trying to) their dead company.
If I was advising the GME management I'd say to make sure the price stays in a range: bagholders breakeven if it goes up, and panic sell if the price goes down enough.
Literally announcing you're going to sell 3.5 million, 10 million, even 5000 million shares won't get them to sell don't worry, it's "just fud", I bet to half these people it's just a ticker with an indicator and the elusive sky people known as "the big guys" are trying to get them to sell, after all thinking logically is for trolls that "just don't get it", but the price going down too much will trigger their deep fear emotions and get them all selling at the same time. This is not crypto you can't manipulate the price, it would be very efficient here, a shame.
Elon Musk is playing with "simple people" emotions, and the SEC don't seem to mind, the "common folk" even sees him as a hero so why not spread a tiny bit of fomo? Within legal borders.
"GameStop Announces At-The-Market Equity Offering Program"
"Company Can Sell Up to 3.5 Million Shares and Intends to Use Any Proceeds to Further Accelerate Transformation and Strengthen Balance Sheet"
news.gamestop.com/fi...ormation/sec-filings
I am curious, who are the people buying actually? Bagholders averaging down? Or just random people that "buy when there is blood in the street"?
My own actions: Not buying, not selling.
Obviously they don't bother reading 8-K. Or my post just chart & title.
Someone explain to them 3.5 million shares is really not much when ADV is 20 million, even at the bottom when no one was trading GME volume was above 3 million.
Clearly emotional fearful market, would not take much to make it snowball down... It would be a real shame if someone hit the price down and caused panic selling .... :)
I wrote "intentions are to sell 1 billion" rather than "intentions are to sell up to 1 billion" and I assumed their intentions of going online but all I do is relay the media.
When I think critically and correct the media "the common folk" gets mad and calls me a conspiracy theorist, so isn't that what "the average joe" wants? Me to relay the media, huh when it affects them in particular they don't like it.
I wouldn't want to be one of these conspiracy theory nuts so I'll make sure to repeat what the media says about GME :)
Either way I consider this to be both a bad buy and bad sell.
Roulette wheel, not for serious traders.