PaulMardling
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- $GameStop(GME)$
It was likely hedge fund/institutions buying back shorts as AMC also went up on no news GameStop Stock Soars 10% on Thursday: What's Going On?GameStop Stock Soars 10% on Thursday: What's Going On?
$GameStop Corp(GME)$shares surged 10% to $30.86 on Friday, despite a lack of company-specific news for the session. The rally is potentially being driven by renewed retail enthusiasm and rising crypto - Hmmm, I wonder if Wedbush is short on GME.... 🤡GameStop's Convertible Notes Offering Likely to 'Fall Flat,' Wedbush Says
GameStop's Convertible Notes Offering Likely to 'Fall Flat,' Wedbush Says
GameStop's proposed private offering of convertible notes will likely "fall flat," given that an investor would receive a zero coupon, Wedbush said in a Thursday note.The company on Wednesday announced a private offering of $1.3 billion in 0.00% convertible senior notes due 2030 to qualified institutional buyers, with net proceeds to be used for general corporate purposes, including the acquisition of bitcoins.Investors buying the bonds will be paying a "large" premium to the company's assets, Wedbush analysts said. With GameStop trading at over two times its cash holdings, it is unlikely that its conversion of cash into Bitcoin will drive an even greater premium, they said.The analysts said they were uncertain whether there will be much offtake on the offering, as a large portion of the company's investor base would likely be unable to qualify under the "qualified" investor requirement.Yet despite "a complete lack of articulated strategy," GameStop has consistently found new investor - ~$11 per share in cash. Likely $20,000,000/year in accrued interest if that cash sits. The legacy business is shrinking to make certain the balance sheet stays green and then there's $4 billion in cash to find a way to make profits, and likely more pumps by the hedge funds who are under water on their 2016-2021 shorted stocks that have yet to close. A GME board member has been tweeting about companies that have made big transitions, ie. Berkshire Hathaway started as a textile company. Cohen actually made a profit on his BBBY investment. BBBY leadership ignored his suggestions to shore up their business, so he exited his position. Short and distort is what this and every other negative article written about GME, like this are all about.Sorry, this post has been deleted
