Hacker News new | ask | show | jobs
by 3001 1971 days ago
Then they bail out the shorts who have been driving done the price for ages. GameStop also file some form for a shelf offering for 100M with the SEC recently. Note the 100M is dollar amount, so you want to sell when you know the stock is at peak, you will get the 100M but less stock unit.
2 comments

Everybody hates shorts, but if you can sell for $40ish today vs $5 6 months ago and $20 last week, and you need/would like some cash, and you have a shelf offering ready to go, why not sell today?

If the price goes up to $80ish next week, then maybe issue some more shares to sell at that price too.

Continuously issuing shares leads to dilution(https://en.wikipedia.org/wiki/Stock_dilution). This has a ramifications for board members like Ryan Cohen who wants to change the company trajectory and also tend to have a downward effect on the share price.
RC also bought his 13% stake on his own. Why would he agree to dilute his own shares when GME has cash in the bank and doesn't need to raise?
> Then they bail out the shorts who have been driving done the price for ages. GameStop also file some form for a shelf offering for 100M with the SEC recently. Note the 100M is dollar amount, so you want to sell when you know the stock is at peak, you will get the 100M but less stock unit.

Can I be honest: its exactly this kind of BS that puts me off so much about the legacy Market systems; these systems create fake paper wealth that is intertwined with so many convoluted jargon, and twists and turns to give things the veneer of it being a Capitalist undertaking but all it really is central bank enabled gambling frenzy that requires bail outs when it all blows up.

How is this desirable, let alone sustainable, to those of you that I sincerely believe can see the obvious grift unfolding before your eyes for what it is?