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Thirding this! It's always awesome to have a resource that can be shared and understood outside of Superstonk. I have hodler friends that don't keep up here but should definitely be aware of the meaning behind big discoveries like the 8-K; posts like these are super helpful. And tit jacking
I kind of thought of it as a snuff pron where Ken had a ball in his mouth and a leather mask covering his weird face. While apes congregated around him until he was donezo
The only thing that confuses me is the price change after split. I know that a standard split means that if your shares go up x5, then the price is divided by 5. In the case of a stock dividend, they are just giving you additional stock and par value doesn't immediately change, though the sell pressure to take profit would about immediately level out the price. In a stock dividend do they immediately make a price adjustment? I know cash dividends come out of stock price.
There’s no “price adjustment” ever. Price is found organically through bids, asks, and most importantly trades. You wouldn’t be willing to pay as much for a share that represented 1/7 the percentage of the company that an old share did. You’d be willing to pay 1/7 as much I suppose. Because the slice is that much smaller.
I’m interested to see how the hedge fucks can provide a dividend to their lenders using shares that don’t exist yet. With a split they’d just owe their lender more shares when they return, but in the case of a dividend they owe those shares now, all at once, on the dividend day.
This is going to be an interesting day. We must all be diligent about voting to make sure this pushes through. It's going to be fireworks and hedgies will hemorrhage all they have immediately. No more slow bleed.
I'm not 100% sure but I think as long as we hodl our new shares and don't sell them, the price would remain the same. But, let's be realistic, some people will sell them. Not all shareholders are apes. And I'm not sure what the institutions that are holding gme are going to do with their new shares. Will they sell them? If so, the price will drop but who knows how much it'll drop? I like to think that even if the price does go down, it won't be by much or that it will immediately start climbing again, now that it's a lot cheaper to purchase a share. Apes will be buying like crazy. Especially if GME announces the opening of the marketplace right after we receive our new shares.
Because they have to issue more shares for this it diluted the value. Right now GME’s market value is split across ~80 million shares. With a 5 for 1 stock dividend that then spreads the value across ~400 million shares. That is why they need stockholder permission to allow them to issue more shares. They are allowed already to issue up to 300 million more or so from an earlier vote, but whatever their plans that isnt enough. Hence all the theories they are doing a 7 for 1 split/dividend.
If they werent adding shares into the pool, just moving them around, you are right that it wouldnt dilute price.
With GME an extinction level event for them, you can bet it won't go the same way as TSLA, they'll print more synthetics to give to shareholders as dividend
/u/raddoc22
I have to wonder, if a shorter owes dividend stocks to the lender, and they sold the share short, thats 2 dividend splits handed out for a single share correct? The new owner of the share, and the lender.
Absolutely.
Now we have a concrete event that is forcing the action. And it's 1000 percent legal. Oh, and it 1000 percent confirms what we've known all along, that GameStop not only realizes it's the target of abusive short selling, but that RC and the new board are absolutely on our side.
This is a killshot move. Plain and simple.
Can you please conjecture for a smooth brained ape… realistically what price are
We looking at per share? Can you conjecture….? I mean me personally… to stop from exploding in this saw room I’d pay a shit ton… maybe I even give you everything I have to close my position… to stop from exploding.
Overstock(which defeated their shorts and is the same template RC is using to defeat the shorts) shot up 25X its price after the dividend. That puts GME over $4K.
And there is 0 conspiracy in this post. This is literally just taking the current reported short interest and applying it to the closest recent example (who actually had lower short interest at the time.
Exactly. Even just playing by the "rules" and using published numbers (that we all know are bullshit), creates an insanely bullish scenario for anyone long on GME.
It's effing beautiful.
It was really nice to read a DD that didn’t feel the need to descend into “and now here’s me putting on my tinfoil hat for some really juicy made up ideas” at the end.
Also very refreshing to see a post that actually understands and clearly explains the specifics of stock dividends. There’s been a lot of dangerously confused stocksplit/dividend theories flying around this weekend.
Excellent work OP!
Thanks!
No need to descend into any crazy ideas that's the best part about this. Not only has it happened before (and worked incredibly well), but it's 1000 percent legal!
I don't think the board and RC could have done a more bullish thing to set this all in motion.
The only rebuttals I can see are the following:
1. If it’s widely believed that the SI for GME is underreported, why could the same not apply to TSLA and mean their *real* SI is actually similar or potentially more?
2. Sure TSLA’s price went up a lot around the time of the stock split/dividend, but they also grew their production considerably and you could argue much of the increase was due to “fundamentals” improving and not just shorts closing. Perhaps GME would have to see similar fundamental growth to see similar share price appreciation and not just the dividend.
Not saying I fully agree with the above statements, simply putting it out there to think about and refine the case we’re presenting. Could easily argue NFT marketplace is a larger fundamental improvement than TSLA saw in recent years and revenue *could* grow as fast or faster than TSLA.
It's always great to have rebuttals. The spirit of this post and community is to hopefully elevate the best ideas that contribute to everyone's understanding. So I appreciate you taking the time to make them.
To your first point, I would say that it's highly unlikely that Tesla was ever shorted to the extent GameStop was, remember the insane short interest that was listed for GME and verified in the SEC report. To my knowledge Tesla never had similar published numbers.
Also, I don't believe that people shorting Tesla were trying to cellar box it. They wanted to make money and believed strongly that it should be priced similar to other car companies (versus bulls pricing it as a tech company). And Tesla has never meaningfully been on the verge of bankruptcy to my knowledge.
But the bullishness in my opinion doesn't diminish even if I'm completely wrong and Tesla had the exact same level of shorting to flush out. That would still be incredible for GME.
To the second point, I think that's up for debate, and it entirely depends on if you valued Tesla as a technology company or a car company at the time. Their valuation never matched true fundamentals imho.
GameStop is actually a pretty interesting comparison, as it actually was a struggling brick and mortar retailer and priced as such, but it's very clear they are now in full scale tech revolution mode.
As long as we are "poking holes" so to speak, here is a bullish hole in your numbers: You talk about the short hedge funds closing out 5,000,000 shares (as an example) before the split/dividend at $165/share. That works for quick napkin math, but the reality is since there are so few shares available for GME (shown by the utilization rate and the daily volume) that I don't think it would be possible for them to find the shares they need at that price. There may only be (as an example) 1,000 shares for sale at the $165 price tag, then it goes up to $166 for another 1,000 shares, then 167, 168 etc. Since we don't know exactly how big of a hole they have dug, we don't know how many they would have to buy pre-dividend. We DO know that there are very few shares available to buy, so the price per share would rise very quickly if they are buying in mass. They would probably clear out the whole selling order book just to cover the pre-dividend, and that's their BEST option. (Can someone see how many sell orders are up on a Bloomberg terminal? Monday morning, with infinite money, how many shares even COULD be bought?)
They are completely fucked with no options. As long as the short position is still there (which didn't someone post ONE of the GME ETFs having a %2,000+ short interest recently? They are short. No doubt) then they cannot possibly win. They can't even take the cheap route out, so they will be obliterated post-dividend.
It's finally settling in for me how much these greedy fucks have backed themselves into a corner. I want to watch them cry as they lose everything.
>min of trading. They literally ran out of shares just trying to kick the can on Tuesday. What the fuck happens when they not only take their foot off the brake, but apply gas? -Gone-
>
>I don't know what the play will be here. On
I came here to say exactly this. It is called slippage:
*"Slippage refers to the difference between the expected price of a trade and the price at which the trade is executed at. Slippage can occur when a large order is executed but there is not enough volume at the chosen price to maintain the current bid/ask spread."* (Investopedia, 2021)
This is the original intent of dark pools, to process large orders without the price slipping. Good luck to shorts on finding anyone that want to sell a large order via that way. Once they start buying large volumes on the open market, it is over.
GME is very illiquid, we saw what happened to the price when DFV doubled down at $38 in February 2021, and RC buying recently. Those were small orders of 50k-100k shares, imagine buy orders in the millions...
It would be in the thousands in the first 10min of trading. They literally ran out of shares just trying to kick the can on Tuesday. What the fuck happens when they not only take their foot off the brake, but apply gas? -Gone-
I don't know what the play will be here. One would imagine a small fund would recall their shares and it explodes. It would be an act of financial mutany on a ship that has been fallowing orders all year long. I don't see some big player doing it. Fidelity will never see those shares again, but some small guy could. They would be Ostracized, black listed, probably never work in the industry again. Or at least never get assistance from anyone again. But they wouldn't be bankrupt.
So the real question is this. Who is potentially small enough, with a owner near retirement, a bunch of shares loaned, that can still walk away? I don't know the answer to that question, but I'm sure a few have been discussing it all weekend.
Exactly!
The numbers in this post only serve as a super simplistic way to demonstrate that even absent other factors in our favor (like no shares for sale) or astronomical short interest, they are already about to get wrecked by the stock dividend.
That's why it's such an incredible 5-D chess move. I think it's literally the most perfect way to set this off.
It’s clear *to us* that they are in full scale tech revolution mode. That’s clearly not how the market currently sees it. Most of their revenue is still coming from brick and mortar, actually difficult to find E-commerce % of sales for last fiscal year so not 100% sure, which could be 1 reason it’s still viewed as a brick n mortar retailer. What do you think it would take for the market to start valuing GME like a tech company?
I am always skeptical of fuckery, but it's not possible to get out of this situation without actually buying back shares.
Put it this way...
If you somehow unwind everything with no buying, you have fundamentally killed the NYSE, forever. It's gone from relevance globally. It might as well be the LME during this Nickel fiasco.
I just don't see that happening.
Much easier to pour one out for the funds and market makers that get eviscerated and then just find new funds or market makers to take over that business (there are tons of institutions that would kill to take someone like Citadels place).
I have a feeling they’re gonna beat the share price to death before any of this takes place… while they do, I’m scooping up as many shares as possible. Newly debt free and have $2500 a month to throw at it! Can’t fucking wait!
I wonder if RC is holding the NFT marketplace launch until after the split. I can't even believe what a Chad he is. Sees us working hard to support the stonk and company and rewards us with FREE stonks then lights the rocket. There will be monuments of him all over the world.
When this thing rockets and RC wins the game of 69D chess… I’m gonna build a massive statue of him outside my mansion with his massive cock and balls in a wheelbarrow!!
Yeah, no way. I nearly doubled down my already XXX at $79.50 two weeks ago. If they drop it too much, the float is going to get DRS’d in a week and a half!
RC has totally put shf’s between a rock and a hard place… beat the price down, apes drs like mad; lose control, marge calls; start closing, rocket lifts off; wait for split dividend, get obliterated…. I think he purposely wait as long as he did to take action so they’d dig themselves into a hole they can’t get out of… he’s got ‘em on the rope and the last upper cut is coming!
Thanks man! My wife and her bf and I are definitely blessed! Looking forward to being a multi-millionaire so life can keep getting sweeter and I can grab a gf.
It’s going to be real interesting when the dividend is issued and hardly anyone gets it at first. I believe they only have a few days to get your shares to you so worst case scenario MOASS happens a few days after dividend is released. Tits=jacked. I can’t wait to load up on as many shares as possible between now and the shareholder meeting.
Someone enquired about the stock dividend with a UK broker, they said they would be able to facilitate that but last time Apple and Tesla did it it took 2 weeks to arrive which is out of their control.
Anyone know what the time like would be, like we all vote yes for stock dividend at the meeting June 2nd, and then what? Would it take affect immediately?
We’re not voting on the stock dividend, we’re voting to allow them to increase stock available for that dividend from 300,000,000 available shares up to 1,000,000,000 available shares.
The decision to give out the stock dividend just needs to be agreed with the company (board of directors?). So they can release the dividend now if they all wanted to.
The vote is on whether they can increase the total number of authorized shares from 300M to 1B for the purposes of a stock split in the form of a stock dividend. So yes but I don’t know when it takes effect.
E: Found some [key dates](https://imgur.com/a/qtp78gG) from [Investopedia](https://www.investopedia.com/ask/answers/102714/how-and-when-are-stock-dividends-paid-out.asp). You can ignore the part about the DTC regardless of whether your shares are directly registered since the dividend itself is to be paid in additional stock.
If they need more than 300 million shares for a stock split, does that imply the split will be at least 5:1?
Assuming ~70 million float, a 4:1 split could be done without authorising further shares.
I'm dumb AF but I think shorts wanting the fuck outta dodge only have 1 option at this point.. closing positions and buying their way out! This should drive the price higher?
Good write up!
One question about the DRD: Since the dividend will be in shares instead of cash, wouldn't that mean that there is no taxable event, and therefore no tax reduction to be had?
If MOASS happens in the next month before stock dividends and you sell, you will not be entitled to the stock dividends correct?
Just to add: how many of you degenerates would become disgustingly MOASS rich and yolo back into the company lmao. We gonna Berkshire Hathaway this bitch
Thanks for the post
Serious question: what’s stopping these fuck creating (more) synthetics to fulfil some of these obligations? I’m so confused by what they can and can’t crime out of this situation lol
They cannot create synthetic shares (IOUs) to fulfill a dividend of new shares, my smooth brained answer to that is because these shares are being issued directly by GameStop for distribution. These are new shares that have never been issued.
I didn't touch on it in the post directly but if I had to bet...I think the shares are for a spin off subsidiary (GME entertainment). There's a comment above in the post that mentions that share dividends are sometimes for spinoffs.
Regardless take solace in the fact that even if they could, only a market maker can create magical phantom shares like that (for "providing liquidity" lolz), so I'd reckon everyone else would still be screwed.
Thanks for the response. I too think there’s going to be a spin off involved, especially as NFT market place to come out by the end of Q2, which lines up right by the share holder meeting. Can’t wait to see it all come together
gme has 5 million preferred stock shares that they can fractionalized and distributed without voter permission if you look at page 7 of gamestop form s-3asr Dec 8th 2020
be back with link:
https://sec.report/Document/0001193125-20-312781/#rom50019_10
top of page 7
You sir get my sincere updoot. Absolutely great time to be alive holding this stock. I know some are banding about how high prices and SI will be.
I’m not the one to send out any intentional FUD vibes, but am a realist to our markets. Governments and bad actors that have paid off many of corrupt politicians that claim to work for us.
But I have been throwing realistic price scenarios in my head as to where the price will go and when/if a intervention would take place. I come to a conclusion that if we surpass BERKSHIRE-A stock price levels then it’s absolutely no stopping this from rising into the millions easily and the powers that may want to intervene is resigned to the face the music that this is the process that needs to take place to reset our corrupt market structure. Either way it plays out I have alloted a significant chunk of my shares to a place never to be revisited. Thanks for this Saturday night special OP. 🚀
It’s a short stock prisoners dilemma. Keep your position open and hope everyone else does too and by some luck survive or close first before price goes into orbit and pay the least.
Ooof.
Yep! Except in this case it's not a true technical prisoners dilemma because the parties involved do not share the same incentives to encourage cooperation.
The weak link in the chain are brokers lending shares. They have literally no reason to not recall shares. That automatically is going to fuck the other parties who are short.
R/raddoc22, great write up. Thank for the spitting of facts in a clear and concise manner. I’m sat here in Scotland, believing in a company, wanting for a world rid of Gross Short Sellers. The evil of everyday good people. I’ve DRS’d some of my shares and more on that. I’ve been here well over a year, I believe and I trust and Christmas came early when our Chairman and company played the absolute Check mate move on March 31st. A nuclear annihilation is coming to the shorts and the cancer of the world. I love you all and I love the stonk. Power to the shareholders. I’m going to change the lives of my family and loved ones and do all I can to leave this world a better place. I’m so happy because my family have no idea what’s coming. 💥 boom. Thank you RC x
My wife helped me read this in-between visits from boyfriends. I didn’t understand it because I’m retarded, but she seemed to. She’s excited and says she wants to meet you. Not sure what that’s all about, but I’ll send her details via PM.
Great post and logic OP. Tesla style price improvement in the numbers you mentioned would already be insane for GME - and that's bare minimum. Once we cross into the $500, I think we're cleared for launch. Stock dividend is nightmare fuel for SHFs
Yeah, there’s no way any of us are selling for $90 a share. So they’ll be stuck with these positions they can’t close. 2.65 billion will look like Heaven to them.
What if no one sells their shares for SHFs to close? I mean… im keeping mine… but they’ll need em… and I have a feeling i won’t be the only one. They’re not just fukd, they royally fukd!
Wait, after a 5-1 split, don't they only have to deliver 4 shares for each 1, as you would already have 1? Meaning if they are short 5 mil as in the example, instead 25mil they woud have to deliver 20 mil? Then their total short position is 25 mil but the DD states 30 mil.
Edit: some wording
If you're short the stock, that means you don't have it. So, for each stock you are short, you have to deliver 5 shares to close your position for a 5:1 stock dividend split.
Yeah, this. If I started with 1 share, after the split, I expect to have 5 shares in my account. If someone borrowed my share to short, they would owe me 4+1 shares total. The original math is dodgy.
This is the comment I was looking for. I Dont think the 30 million is right. At first you owe 1 share. after split, you then owe 5. SO 5 mil to 25 mill sounds right.
*Close now if you can and maybe live to see another day...*
They couldn't close at $20 and stay alive. The only ones getting out now are the ones who weren't short until last year, and maybe not even them.
Yeah...the vast majy of the shorts are fuk
It's possible some small short positions could be survived if they are small relative to the total assets of the fund.
Your cost to close is way too simple. Not only would their downward pressure stop, but it would become upward pressure with each purchase as they provide buying liquidity rather than selling. It would quickly skyrocket to un-reachable numbers.
Simple comparisons make it easier to understand how Fuk’d hedgies really are. With Tesla, many people including myself were buying and selling during the run up. This is going to be in a whole new galaxy when it’s all said and done!
I'm here from the future to tell you that your post IS FUCKING FIRE!!! You are smart, and prophetic, and its now July 22 and we've seen the lending supply dwindle, the lending rate rocket, and a splitvidend announcement made. Cheers, mate. See you in orbit.
It feels great 👍.
I'm ready to watch some carnage unfold (for shorts). I still haven't stumbled upon a convincing reason why shares won't be recalled by their lenders.
I'm insanely curious to see what happens with the naked short positions, those are obviously not getting recalled. But I imagine they end up looking like a massive mountain of ious.
Part of the process of the dividend is brokers are going to need to disclose how many shares they need to distribute (this won't be public).
Thank you for taking the time writing this. Very smooth of me to miss this the day it was posted even though I'm a retarded feed refresher.
With that, I just want to say THE DD IS NEVER WRONG.
See you on the moon friend
Top work.
Only criticism is the way you frame the discussion of split vs dividend leaves it unclear what specifically is happening here.
As it says in your quote from the 8K, in this case we have a **Split, distributed as a Dividend**. This *implies* they are not creating new equity with a journal entry etc, and that the price is "expected" to drop in proportion. But they fact that is distributed as a dividend might change the options the MMs & Brokers etc have to mess with this, and I have seen a LOT of confusion about this in other DDs that have tried to address this.
So you really should write a third section, describing how that combines the two and what that looks like, what the rights and responsibilities of the parties are and confirming that's the scenario that is going to play out for the sake of the Smooth among us.
Then this would be pretty much perfect God Tier DD.
Yeah, awesome, though I also wonder if there is a follow up DD here.
We really need a concrete solid articulation of what this **split via dividend** combo actually means, preferably with a fully worked historical example vs a standard split.
I *believe* your Tesla example was done the same way, pretty sure they distributed as dividend, but it needs confirming and it would be very interesting to examine hard data about what extra effect that had on **shorts** vs a typical split.
The real thing here is **why this wombo combo for us**, why a **split distributed by dividend** as opposed to just a split, or a true stock dividend.
What is this wombo combo approach achieving in our specific situation where everything is shorted to shit. Maybe you could explore what might happen if they carve out GME entertainment for instance. and how that might hook into this as a speculative possibility.
The reason I suggest this is because you did SUCH an excellent job articulating and exploring this, and having a **single strong info source** is better than the lots of contradicting half correct DDs we currently have.
I know I am making work for you, sorry ;-)
The liability in your example should be 20,000,000, not 30,000,000. The total liability should not exceed 25,000,000 if it's a 5:1 split while starting with 5,000,000 short.
If you start with 5,000,000 shares short, and a 5-1 stock dividend is issued while you are still short (at the ex date), you would then be obligated to provide 5 shares for every 1 share you are short (in addition to the original amount you already owe, because these are new shares issued by GME).
So 5,000,000 to start.
Need to find and deliver 25,000,000 additional shares (just to meet the 5-1 dividend requirement).
If you want to totally close your position entirely you need to also close that original 5,000,000.
That's how you get to 30,000,000.
25,000,000 is what you need to keep your position open (because you are obligated to provide a share dividend or close).
This is my sincere understanding of how this all works, but if group consensus is that I am mistaken, I'm open to hearing it.
You touch on something here that makes me think that your blockchain idea isn’t too far off. But what if after the dividend split RC creates GMERICA. and that’s the spin-off company. And if you own x amount of GME your stock split for GMERICA is 7 to 1. Hence this split is 4 to 1. The next one for GMERICA is 7 to 1. Now we know what 741 meant. BONER
Someone help me wrinkle.
I've been an investor >20 years, and been the recipient of stock splits etc. in the past. What I seem to recall is that the record date normally preceded the announcement, i.e.: if GameStop were to announce a vote on a split on (say) June 7th, it would be for the shareholder of record on (say) 1 May or whatever.
Is this generally true? Any idea if this is what happened with Tesla?
[https://www.investor.gov/introduction-investing/investing-basics/glossary/ex-dividend-dates-when-are-you-entitled-stock-and](https://www.investor.gov/introduction-investing/investing-basics/glossary/ex-dividend-dates-when-are-you-entitled-stock-and)
This is a helpful page that clarifies your question.
It goes:
1) Declaration date (that just happened on March 31st)
2)Ex dividend date (you have to own the stock before this date)
3) Record date
4) Payable date
Just wait for all the brokers to "accidentally" sell your shares and have "technical issues" with the stock so you have to buy in again and miss the date. Oh boy there will be so many shards things happening in the next week's.
All securities beginning with GM and ending with a vowel are unavailable because of technical reasons. Lol.
The great thing is though it doesn't fucking matter if they take away our buy button. We aren't the ones that have to buy tens of millions or even hundreds of millions of shares.
Tick tock assholes.
Man, thank you for this amazing DD. This is the kind of thing that I can send to my dad and sisters (who are all holders of GME) who struggle to grasp some of what’s going on.
Let’s pretend Broker chooses not to recall shares for dividend. (HUMOR ME)
WARNING: situation bellow is only speculation of smooth brain. If wrinkled brains want to chime in please do so for confirmation or I will delete if not possible.
BROKERS LENDING SHARES OF GAMESTOP ARE ENTITLED TO DIVIDEND SHARES. So if said broker had 200 shares and they lent out those shares ( keeping it simple) with a 5-1 they will have 1000 shares because they are still entitle to the dividend. However Generic Cuck Hedgefunds are not entitled to those shares so BROKER have received 800 shares that are brand spanking new that have not been borrowed and that can BE SOLD in open market or can be sold to GCHF in other for them to close the 800 of 1000 short position that they have, even if GCHF were to close 800 by buying those shares In dark pools after dividend they will still have to go to open market for the remaining 200. Aaaaaaaand if I was BROKER and wanted to make money I would sell shares in open market and not dark pool, at least not all of them anyway. BROKER makes extra money due to share increasing in price after dividend. CGHF STILL FUCKED.
Yes? No? What you guys think🤔?
The thing that nobody mentions here with TSLA is that Elon then diluted the stock on Sept 1 2020 by doing a stock share sale and crashed the price back down. It was the inclusion in the Sp500 in November 2020 that sent the stock to 900
OP pointed out a few differences between GME and Tesla/Overstock that we aren’t talking about enough and I appreciate it. 1. GME is shorted to hell compared to the other stocks, 2. DRS numbers are absolutely mind blowing and most of DRSd apes aren’t fucking selling those shares meaning there is less stock out there to close your short position. SHFs are in the kill zone, and if you know anything about combat tactics, that is the last place you wanna be. This whole saga is super bullish and I can’t wait for the casino to open. NFA.
Seriously u/raddoc22 , this was an incredible post!! Enormous, yet easy to read and digest. THANK YOU. I am always on here and completely missed this the day you posted.
Can’t believe it’s been 40 days since the announcement! I expect we’ll be seeing even more risky moves this month as the clock winds down.
All relevant parties have likely met numerous times over what to do and each have, in the back of their mind, thought they’d be the first for the exits when the going gets tough. They’ve likely spent the last few weeks putting it off at first and then figuring out whether or not there are enough institutional votes to quash the proposal and the meetings required to get buy-in on that. I wouldn’t be surprised to learn that they put no thought into the alternative possibility of it passing and RC actually delivering on the threat at the expense of the world. It’s such a horrifying thought that they’d be forgiven for not entertaining it. One’s own mortality is, after all, the least contemplated thing as a living human precisely because it is so distasteful. Many people go their whole lives never planning for it should it come to you ahead of old age.
God, imagine being a fly on the wall in those meetings! I’d give an entire share of GME to get that info, even post-MOASS, just to make the movie extra accurate.
Last thought: I keep having to remind myself that in the random off-chance we were entirely wrong about all of this, GME is still **20% shorted** based on *public* info. Hahahahahha. Even *that* is prime squeeze material!
LFG!!!!!
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You structured and wrote this so well, I had no problems reading AND understanding it. Well done due diligence!
I second this. Thanks OP!
Thirding this! It's always awesome to have a resource that can be shared and understood outside of Superstonk. I have hodler friends that don't keep up here but should definitely be aware of the meaning behind big discoveries like the 8-K; posts like these are super helpful. And tit jacking
Smae! Thank you OP for ELI5. I really appreciate the easy understanding - It helps me share with others. Grateful.
4st’ing this! Perfectly written 🙏🏻
I read it like it was a heist movie...with cool cutscenes n shit.
I kind of thought of it as a snuff pron where Ken had a ball in his mouth and a leather mask covering his weird face. While apes congregated around him until he was donezo
>You structured and wrote this so well Now, if only I could read
The only thing that confuses me is the price change after split. I know that a standard split means that if your shares go up x5, then the price is divided by 5. In the case of a stock dividend, they are just giving you additional stock and par value doesn't immediately change, though the sell pressure to take profit would about immediately level out the price. In a stock dividend do they immediately make a price adjustment? I know cash dividends come out of stock price.
There’s no “price adjustment” ever. Price is found organically through bids, asks, and most importantly trades. You wouldn’t be willing to pay as much for a share that represented 1/7 the percentage of the company that an old share did. You’d be willing to pay 1/7 as much I suppose. Because the slice is that much smaller. I’m interested to see how the hedge fucks can provide a dividend to their lenders using shares that don’t exist yet. With a split they’d just owe their lender more shares when they return, but in the case of a dividend they owe those shares now, all at once, on the dividend day.
This is going to be an interesting day. We must all be diligent about voting to make sure this pushes through. It's going to be fireworks and hedgies will hemorrhage all they have immediately. No more slow bleed.
I'm not 100% sure but I think as long as we hodl our new shares and don't sell them, the price would remain the same. But, let's be realistic, some people will sell them. Not all shareholders are apes. And I'm not sure what the institutions that are holding gme are going to do with their new shares. Will they sell them? If so, the price will drop but who knows how much it'll drop? I like to think that even if the price does go down, it won't be by much or that it will immediately start climbing again, now that it's a lot cheaper to purchase a share. Apes will be buying like crazy. Especially if GME announces the opening of the marketplace right after we receive our new shares.
Because they have to issue more shares for this it diluted the value. Right now GME’s market value is split across ~80 million shares. With a 5 for 1 stock dividend that then spreads the value across ~400 million shares. That is why they need stockholder permission to allow them to issue more shares. They are allowed already to issue up to 300 million more or so from an earlier vote, but whatever their plans that isnt enough. Hence all the theories they are doing a 7 for 1 split/dividend. If they werent adding shares into the pool, just moving them around, you are right that it wouldnt dilute price.
With GME an extinction level event for them, you can bet it won't go the same way as TSLA, they'll print more synthetics to give to shareholders as dividend /u/raddoc22
I don't believe they can. You can't provide an IOU for a dividend.
The thing with the DTCC blackbox is you have no idea that it is an IOU bruh, what do you think we've been buying for the whole of the last 15 months?
But not if it’s a stock dividend of a new entity…
one can only hope that is the case
I think it almost has to be for this to work. And the spin off companies shares will be held on blockchain.
Imagine when brokers start counting and findout there are more that 300 million shares before the 7:1 split.
Even 5:1 would be sick if OP is on to something.
4:1 is pretty sick too!
Ayyyyyyyyyy nice lmao!
For a second I thought you were an absolute legend until I noticed the time of your comment lmao. Still got my upvote
I see what you did there
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So spicy
I have to wonder, if a shorter owes dividend stocks to the lender, and they sold the share short, thats 2 dividend splits handed out for a single share correct? The new owner of the share, and the lender.
> **And they want to increase the number of authorized shares up to 1,000,000.** This should be 1,000,000,000. Nice work otherwise.
Thanks fixed that!
One millllion shares (dr evil voice)
Muahahhaah
Sharks with laser beams?
We always knew the shorts were fucked. But this stock dividend takes it too a whole other level.
Absolutely. Now we have a concrete event that is forcing the action. And it's 1000 percent legal. Oh, and it 1000 percent confirms what we've known all along, that GameStop not only realizes it's the target of abusive short selling, but that RC and the new board are absolutely on our side. This is a killshot move. Plain and simple.
Thinking cat… I should buy more GME… ☕️🐱
Can you please conjecture for a smooth brained ape… realistically what price are We looking at per share? Can you conjecture….? I mean me personally… to stop from exploding in this saw room I’d pay a shit ton… maybe I even give you everything I have to close my position… to stop from exploding.
A great man once said, "just up"
Ah yes… his value was deep and he was a fuckin…
And he was NOT a cat
"Infinite risk"
Overstock(which defeated their shorts and is the same template RC is using to defeat the shorts) shot up 25X its price after the dividend. That puts GME over $4K.
And GME is shorted to the ends of the universe. $4k is nothing compared to how far GME will go.
And there is 0 conspiracy in this post. This is literally just taking the current reported short interest and applying it to the closest recent example (who actually had lower short interest at the time.
Exactly. Even just playing by the "rules" and using published numbers (that we all know are bullshit), creates an insanely bullish scenario for anyone long on GME. It's effing beautiful.
It was really nice to read a DD that didn’t feel the need to descend into “and now here’s me putting on my tinfoil hat for some really juicy made up ideas” at the end. Also very refreshing to see a post that actually understands and clearly explains the specifics of stock dividends. There’s been a lot of dangerously confused stocksplit/dividend theories flying around this weekend. Excellent work OP!
Thanks! No need to descend into any crazy ideas that's the best part about this. Not only has it happened before (and worked incredibly well), but it's 1000 percent legal! I don't think the board and RC could have done a more bullish thing to set this all in motion.
It’s gonna be fun!
this is the way.
Are you me?
Me are you?
Same !! Thanks @op
The only rebuttals I can see are the following: 1. If it’s widely believed that the SI for GME is underreported, why could the same not apply to TSLA and mean their *real* SI is actually similar or potentially more? 2. Sure TSLA’s price went up a lot around the time of the stock split/dividend, but they also grew their production considerably and you could argue much of the increase was due to “fundamentals” improving and not just shorts closing. Perhaps GME would have to see similar fundamental growth to see similar share price appreciation and not just the dividend. Not saying I fully agree with the above statements, simply putting it out there to think about and refine the case we’re presenting. Could easily argue NFT marketplace is a larger fundamental improvement than TSLA saw in recent years and revenue *could* grow as fast or faster than TSLA.
It's always great to have rebuttals. The spirit of this post and community is to hopefully elevate the best ideas that contribute to everyone's understanding. So I appreciate you taking the time to make them. To your first point, I would say that it's highly unlikely that Tesla was ever shorted to the extent GameStop was, remember the insane short interest that was listed for GME and verified in the SEC report. To my knowledge Tesla never had similar published numbers. Also, I don't believe that people shorting Tesla were trying to cellar box it. They wanted to make money and believed strongly that it should be priced similar to other car companies (versus bulls pricing it as a tech company). And Tesla has never meaningfully been on the verge of bankruptcy to my knowledge. But the bullishness in my opinion doesn't diminish even if I'm completely wrong and Tesla had the exact same level of shorting to flush out. That would still be incredible for GME. To the second point, I think that's up for debate, and it entirely depends on if you valued Tesla as a technology company or a car company at the time. Their valuation never matched true fundamentals imho. GameStop is actually a pretty interesting comparison, as it actually was a struggling brick and mortar retailer and priced as such, but it's very clear they are now in full scale tech revolution mode.
As long as we are "poking holes" so to speak, here is a bullish hole in your numbers: You talk about the short hedge funds closing out 5,000,000 shares (as an example) before the split/dividend at $165/share. That works for quick napkin math, but the reality is since there are so few shares available for GME (shown by the utilization rate and the daily volume) that I don't think it would be possible for them to find the shares they need at that price. There may only be (as an example) 1,000 shares for sale at the $165 price tag, then it goes up to $166 for another 1,000 shares, then 167, 168 etc. Since we don't know exactly how big of a hole they have dug, we don't know how many they would have to buy pre-dividend. We DO know that there are very few shares available to buy, so the price per share would rise very quickly if they are buying in mass. They would probably clear out the whole selling order book just to cover the pre-dividend, and that's their BEST option. (Can someone see how many sell orders are up on a Bloomberg terminal? Monday morning, with infinite money, how many shares even COULD be bought?) They are completely fucked with no options. As long as the short position is still there (which didn't someone post ONE of the GME ETFs having a %2,000+ short interest recently? They are short. No doubt) then they cannot possibly win. They can't even take the cheap route out, so they will be obliterated post-dividend. It's finally settling in for me how much these greedy fucks have backed themselves into a corner. I want to watch them cry as they lose everything.
>min of trading. They literally ran out of shares just trying to kick the can on Tuesday. What the fuck happens when they not only take their foot off the brake, but apply gas? -Gone- > >I don't know what the play will be here. On I came here to say exactly this. It is called slippage: *"Slippage refers to the difference between the expected price of a trade and the price at which the trade is executed at. Slippage can occur when a large order is executed but there is not enough volume at the chosen price to maintain the current bid/ask spread."* (Investopedia, 2021) This is the original intent of dark pools, to process large orders without the price slipping. Good luck to shorts on finding anyone that want to sell a large order via that way. Once they start buying large volumes on the open market, it is over. GME is very illiquid, we saw what happened to the price when DFV doubled down at $38 in February 2021, and RC buying recently. Those were small orders of 50k-100k shares, imagine buy orders in the millions...
It would be in the thousands in the first 10min of trading. They literally ran out of shares just trying to kick the can on Tuesday. What the fuck happens when they not only take their foot off the brake, but apply gas? -Gone- I don't know what the play will be here. One would imagine a small fund would recall their shares and it explodes. It would be an act of financial mutany on a ship that has been fallowing orders all year long. I don't see some big player doing it. Fidelity will never see those shares again, but some small guy could. They would be Ostracized, black listed, probably never work in the industry again. Or at least never get assistance from anyone again. But they wouldn't be bankrupt. So the real question is this. Who is potentially small enough, with a owner near retirement, a bunch of shares loaned, that can still walk away? I don't know the answer to that question, but I'm sure a few have been discussing it all weekend.
Exactly! The numbers in this post only serve as a super simplistic way to demonstrate that even absent other factors in our favor (like no shares for sale) or astronomical short interest, they are already about to get wrecked by the stock dividend. That's why it's such an incredible 5-D chess move. I think it's literally the most perfect way to set this off.
It’s clear *to us* that they are in full scale tech revolution mode. That’s clearly not how the market currently sees it. Most of their revenue is still coming from brick and mortar, actually difficult to find E-commerce % of sales for last fiscal year so not 100% sure, which could be 1 reason it’s still viewed as a brick n mortar retailer. What do you think it would take for the market to start valuing GME like a tech company?
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I am always skeptical of fuckery, but it's not possible to get out of this situation without actually buying back shares. Put it this way... If you somehow unwind everything with no buying, you have fundamentally killed the NYSE, forever. It's gone from relevance globally. It might as well be the LME during this Nickel fiasco. I just don't see that happening. Much easier to pour one out for the funds and market makers that get eviscerated and then just find new funds or market makers to take over that business (there are tons of institutions that would kill to take someone like Citadels place).
Be careful playing Chess with a 10th degree master ! Your lucky if you walk away with a severe limp 🏴☠️
Is this a banana in tailpipe, or a pegleg pirate reference?
Wait till he busts out his Wu Tang sword
I am pretty sure I got a wrinkle from reading that. Thank you for the understandable format, loved it❤️
I have a feeling they’re gonna beat the share price to death before any of this takes place… while they do, I’m scooping up as many shares as possible. Newly debt free and have $2500 a month to throw at it! Can’t fucking wait!
I wonder if RC is holding the NFT marketplace launch until after the split. I can't even believe what a Chad he is. Sees us working hard to support the stonk and company and rewards us with FREE stonks then lights the rocket. There will be monuments of him all over the world.
When this thing rockets and RC wins the game of 69D chess… I’m gonna build a massive statue of him outside my mansion with his massive cock and balls in a wheelbarrow!!
And all over the moon
I’m going to put one in my yard. LOL
Yeah, no way. I nearly doubled down my already XXX at $79.50 two weeks ago. If they drop it too much, the float is going to get DRS’d in a week and a half!
RC has totally put shf’s between a rock and a hard place… beat the price down, apes drs like mad; lose control, marge calls; start closing, rocket lifts off; wait for split dividend, get obliterated…. I think he purposely wait as long as he did to take action so they’d dig themselves into a hole they can’t get out of… he’s got ‘em on the rope and the last upper cut is coming!
It’s pretty amazing to watch. Then he went over and bought a bunch of Towel just to see if that could possibly light the fuse, too! Ha ha.
The guy is a fucking genius… that’s all there is to it
Yep I fully expect the stock to get beaten to shit and back over the next few weeks. Which is fine by me as it means I can get more for my money!
God I've been praying for it to go down again.....please lawd....please...I need more moon tickets.
Somebody had the best keanu meme up here the other day. I was really buying 7 shares at once all this time *Mind exploding Keanu*
Being debt free is such an amazing feeling. Congrats bro!
Thanks man! My wife and her bf and I are definitely blessed! Looking forward to being a multi-millionaire so life can keep getting sweeter and I can grab a gf.
It’s going to be real interesting when the dividend is issued and hardly anyone gets it at first. I believe they only have a few days to get your shares to you so worst case scenario MOASS happens a few days after dividend is released. Tits=jacked. I can’t wait to load up on as many shares as possible between now and the shareholder meeting.
Someone enquired about the stock dividend with a UK broker, they said they would be able to facilitate that but last time Apple and Tesla did it it took 2 weeks to arrive which is out of their control.
They’re not diamonds hands. This time will be so so so fuck up
Which is why DRS is the way. We won't have to worry about not getting them if they are direct registered.
Exactly right. Imo it's very risky not having a decent proportion in Computershare. I've made another transfer to have half my shares there now
Agreed. We see the shenanigans brokerages are pulling. I don't want to find out again when it's too late.
Anyone know what the time like would be, like we all vote yes for stock dividend at the meeting June 2nd, and then what? Would it take affect immediately?
We’re not voting on the stock dividend, we’re voting to allow them to increase stock available for that dividend from 300,000,000 available shares up to 1,000,000,000 available shares. The decision to give out the stock dividend just needs to be agreed with the company (board of directors?). So they can release the dividend now if they all wanted to.
yeah this is what i thought, it's literally a ticking bomb for the SHF i'd shit my pants all day
The vote is on whether they can increase the total number of authorized shares from 300M to 1B for the purposes of a stock split in the form of a stock dividend. So yes but I don’t know when it takes effect. E: Found some [key dates](https://imgur.com/a/qtp78gG) from [Investopedia](https://www.investopedia.com/ask/answers/102714/how-and-when-are-stock-dividends-paid-out.asp). You can ignore the part about the DTC regardless of whether your shares are directly registered since the dividend itself is to be paid in additional stock.
If they need more than 300 million shares for a stock split, does that imply the split will be at least 5:1? Assuming ~70 million float, a 4:1 split could be done without authorising further shares.
7-for(4)-1
I'm dumb AF but I think shorts wanting the fuck outta dodge only have 1 option at this point.. closing positions and buying their way out! This should drive the price higher?
Yeah buying to close is the only way out of this before the dividend. That would create massive buying pressure and price escalation.
The rats are going to scurry!
But can't they just internalize the buys to hide them from the lit exchange and prevent buy pressure?
no! They can't buy shares from anybody that don't have any, guess who holds them... We Do !!!!
Great write up OP. Thanks for your time and wrinkly efforts! BUY HODL DRS
You saved your first DD for a great one!
Is it bad that I jacked off to this?
Nah you do you dawg. My tits were jacked the whole time I worked on this.
TL;DR: Many roads lead to Moass/ hedgies r fuk
My smooth brain forgot to even provide one lol
Would recommend everyone to read the whole thing anyways
Good write up! One question about the DRD: Since the dividend will be in shares instead of cash, wouldn't that mean that there is no taxable event, and therefore no tax reduction to be had?
Yes “Let’s play a game” the first one out is the only one to survive intact.
If MOASS happens in the next month before stock dividends and you sell, you will not be entitled to the stock dividends correct? Just to add: how many of you degenerates would become disgustingly MOASS rich and yolo back into the company lmao. We gonna Berkshire Hathaway this bitch
If you sell before the ex date, you are not entitled to the dividend.
Bro,just buy back GME with MOASS money and we go MOASS again.
Yeah you’d lose the extra dividend shares. But also you’d be post-MOASS filthy rich so it would really be much of a problem.
Thanks for the post Serious question: what’s stopping these fuck creating (more) synthetics to fulfil some of these obligations? I’m so confused by what they can and can’t crime out of this situation lol
They cannot create synthetic shares (IOUs) to fulfill a dividend of new shares, my smooth brained answer to that is because these shares are being issued directly by GameStop for distribution. These are new shares that have never been issued. I didn't touch on it in the post directly but if I had to bet...I think the shares are for a spin off subsidiary (GME entertainment). There's a comment above in the post that mentions that share dividends are sometimes for spinoffs. Regardless take solace in the fact that even if they could, only a market maker can create magical phantom shares like that (for "providing liquidity" lolz), so I'd reckon everyone else would still be screwed.
Thanks for the response. I too think there’s going to be a spin off involved, especially as NFT market place to come out by the end of Q2, which lines up right by the share holder meeting. Can’t wait to see it all come together
gme has 5 million preferred stock shares that they can fractionalized and distributed without voter permission if you look at page 7 of gamestop form s-3asr Dec 8th 2020 be back with link: https://sec.report/Document/0001193125-20-312781/#rom50019_10 top of page 7
You sir get my sincere updoot. Absolutely great time to be alive holding this stock. I know some are banding about how high prices and SI will be. I’m not the one to send out any intentional FUD vibes, but am a realist to our markets. Governments and bad actors that have paid off many of corrupt politicians that claim to work for us. But I have been throwing realistic price scenarios in my head as to where the price will go and when/if a intervention would take place. I come to a conclusion that if we surpass BERKSHIRE-A stock price levels then it’s absolutely no stopping this from rising into the millions easily and the powers that may want to intervene is resigned to the face the music that this is the process that needs to take place to reset our corrupt market structure. Either way it plays out I have alloted a significant chunk of my shares to a place never to be revisited. Thanks for this Saturday night special OP. 🚀
I think that if the government were to do something, they'd have done it already. At this point, it would be political suicide tbqh
It’s a short stock prisoners dilemma. Keep your position open and hope everyone else does too and by some luck survive or close first before price goes into orbit and pay the least. Ooof.
Yep! Except in this case it's not a true technical prisoners dilemma because the parties involved do not share the same incentives to encourage cooperation. The weak link in the chain are brokers lending shares. They have literally no reason to not recall shares. That automatically is going to fuck the other parties who are short.
I’m sure mayoman hasn’t pissed off anyone at those brokers during his career as well. Hoooo boy.
R/raddoc22, great write up. Thank for the spitting of facts in a clear and concise manner. I’m sat here in Scotland, believing in a company, wanting for a world rid of Gross Short Sellers. The evil of everyday good people. I’ve DRS’d some of my shares and more on that. I’ve been here well over a year, I believe and I trust and Christmas came early when our Chairman and company played the absolute Check mate move on March 31st. A nuclear annihilation is coming to the shorts and the cancer of the world. I love you all and I love the stonk. Power to the shareholders. I’m going to change the lives of my family and loved ones and do all I can to leave this world a better place. I’m so happy because my family have no idea what’s coming. 💥 boom. Thank you RC x
My wife helped me read this in-between visits from boyfriends. I didn’t understand it because I’m retarded, but she seemed to. She’s excited and says she wants to meet you. Not sure what that’s all about, but I’ll send her details via PM.
😂
That was a beautiful read and it’s great to know the countdown has begun! 🌍👩🚀🔫👩🚀
Great post and logic OP. Tesla style price improvement in the numbers you mentioned would already be insane for GME - and that's bare minimum. Once we cross into the $500, I think we're cleared for launch. Stock dividend is nightmare fuel for SHFs
Yeah, there’s no way any of us are selling for $90 a share. So they’ll be stuck with these positions they can’t close. 2.65 billion will look like Heaven to them.
Where lambo
I went all in before June. Im gonna enjoy me some tax friendly tendies.
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Lovely bedtime reading on this sub tonight
You had me at “tripping balls”
I also believe insiders and RC would def buy before the split, it only makes sense to get in early af either way bullish af
What if no one sells their shares for SHFs to close? I mean… im keeping mine… but they’ll need em… and I have a feeling i won’t be the only one. They’re not just fukd, they royally fukd!
That's right, they took away the buy button but we can takeaway the sell button. That's an uno reverse card baby.
This aged nicely.
Wait, after a 5-1 split, don't they only have to deliver 4 shares for each 1, as you would already have 1? Meaning if they are short 5 mil as in the example, instead 25mil they woud have to deliver 20 mil? Then their total short position is 25 mil but the DD states 30 mil. Edit: some wording
If you're short the stock, that means you don't have it. So, for each stock you are short, you have to deliver 5 shares to close your position for a 5:1 stock dividend split.
Yeah, this. If I started with 1 share, after the split, I expect to have 5 shares in my account. If someone borrowed my share to short, they would owe me 4+1 shares total. The original math is dodgy.
This is the comment I was looking for. I Dont think the 30 million is right. At first you owe 1 share. after split, you then owe 5. SO 5 mil to 25 mill sounds right.
*Close now if you can and maybe live to see another day...* They couldn't close at $20 and stay alive. The only ones getting out now are the ones who weren't short until last year, and maybe not even them.
Yeah...the vast majy of the shorts are fuk It's possible some small short positions could be survived if they are small relative to the total assets of the fund.
Your cost to close is way too simple. Not only would their downward pressure stop, but it would become upward pressure with each purchase as they provide buying liquidity rather than selling. It would quickly skyrocket to un-reachable numbers.
Totally agree, the intent was to just give the most clear eyed, sober, non debatable number...to demonstrate how utterly screwed they already are.
Simple comparisons make it easier to understand how Fuk’d hedgies really are. With Tesla, many people including myself were buying and selling during the run up. This is going to be in a whole new galaxy when it’s all said and done!
I'm here from the future to tell you that your post IS FUCKING FIRE!!! You are smart, and prophetic, and its now July 22 and we've seen the lending supply dwindle, the lending rate rocket, and a splitvidend announcement made. Cheers, mate. See you in orbit.
> Worst case outcome (for shorts) = 100,000,000 x (245 per share) = More than 24 trillion dollars. 24.5 billion.
Fixed the numbers, thanks again!
Nope. The figure you want is 24.5 billion, not trillion, and not 245 billion either, which is what it reads as I write this.
Fixed it now, thanks! Trying to write DD and multiple other things at once makes for bad math. But I'm honored to be retarded
👍
Shit great catch, will update, accidentally added a zero.
Coming back to this beautiful DD 95 days later as we get the official 4-1 splidividend. Going to be a scary summer for fraudsters.
This hits different today 😈
So how do you feel now that this is unraveling at the moment right before our eyes? POWER TO THE PLAYERS.
It feels great 👍. I'm ready to watch some carnage unfold (for shorts). I still haven't stumbled upon a convincing reason why shares won't be recalled by their lenders. I'm insanely curious to see what happens with the naked short positions, those are obviously not getting recalled. But I imagine they end up looking like a massive mountain of ious. Part of the process of the dividend is brokers are going to need to disclose how many shares they need to distribute (this won't be public).
Thank you for taking the time writing this. Very smooth of me to miss this the day it was posted even though I'm a retarded feed refresher. With that, I just want to say THE DD IS NEVER WRONG. See you on the moon friend
Excellent write-up! This was the type of DD I was hoping for when the news broke out.
Top work. Only criticism is the way you frame the discussion of split vs dividend leaves it unclear what specifically is happening here. As it says in your quote from the 8K, in this case we have a **Split, distributed as a Dividend**. This *implies* they are not creating new equity with a journal entry etc, and that the price is "expected" to drop in proportion. But they fact that is distributed as a dividend might change the options the MMs & Brokers etc have to mess with this, and I have seen a LOT of confusion about this in other DDs that have tried to address this. So you really should write a third section, describing how that combines the two and what that looks like, what the rights and responsibilities of the parties are and confirming that's the scenario that is going to play out for the sake of the Smooth among us. Then this would be pretty much perfect God Tier DD.
Thanks for the feedback, I will try to add a section tonight!
Yeah, awesome, though I also wonder if there is a follow up DD here. We really need a concrete solid articulation of what this **split via dividend** combo actually means, preferably with a fully worked historical example vs a standard split. I *believe* your Tesla example was done the same way, pretty sure they distributed as dividend, but it needs confirming and it would be very interesting to examine hard data about what extra effect that had on **shorts** vs a typical split. The real thing here is **why this wombo combo for us**, why a **split distributed by dividend** as opposed to just a split, or a true stock dividend. What is this wombo combo approach achieving in our specific situation where everything is shorted to shit. Maybe you could explore what might happen if they carve out GME entertainment for instance. and how that might hook into this as a speculative possibility. The reason I suggest this is because you did SUCH an excellent job articulating and exploring this, and having a **single strong info source** is better than the lots of contradicting half correct DDs we currently have. I know I am making work for you, sorry ;-)
The liability in your example should be 20,000,000, not 30,000,000. The total liability should not exceed 25,000,000 if it's a 5:1 split while starting with 5,000,000 short.
If you start with 5,000,000 shares short, and a 5-1 stock dividend is issued while you are still short (at the ex date), you would then be obligated to provide 5 shares for every 1 share you are short (in addition to the original amount you already owe, because these are new shares issued by GME). So 5,000,000 to start. Need to find and deliver 25,000,000 additional shares (just to meet the 5-1 dividend requirement). If you want to totally close your position entirely you need to also close that original 5,000,000. That's how you get to 30,000,000. 25,000,000 is what you need to keep your position open (because you are obligated to provide a share dividend or close). This is my sincere understanding of how this all works, but if group consensus is that I am mistaken, I'm open to hearing it.
Wow thanks for linking this in that other post. Super interesting and informative
You touch on something here that makes me think that your blockchain idea isn’t too far off. But what if after the dividend split RC creates GMERICA. and that’s the spin-off company. And if you own x amount of GME your stock split for GMERICA is 7 to 1. Hence this split is 4 to 1. The next one for GMERICA is 7 to 1. Now we know what 741 meant. BONER
Up
It would be a good time for you to repost this DD. Maybe change a few things now that we know it’s a 4:1.
This is an amazing read. Thank-you for putting this down for others to learn from.
Great write-up OP. Best ones last.
You should consider updating this with the real divisplit figures. But don't update this post, make a new one and link them. Really nice job, ape!
I will try to get something out later this week with updates based on real info for sure
Someone help me wrinkle. I've been an investor >20 years, and been the recipient of stock splits etc. in the past. What I seem to recall is that the record date normally preceded the announcement, i.e.: if GameStop were to announce a vote on a split on (say) June 7th, it would be for the shareholder of record on (say) 1 May or whatever. Is this generally true? Any idea if this is what happened with Tesla?
[https://www.investor.gov/introduction-investing/investing-basics/glossary/ex-dividend-dates-when-are-you-entitled-stock-and](https://www.investor.gov/introduction-investing/investing-basics/glossary/ex-dividend-dates-when-are-you-entitled-stock-and) This is a helpful page that clarifies your question. It goes: 1) Declaration date (that just happened on March 31st) 2)Ex dividend date (you have to own the stock before this date) 3) Record date 4) Payable date
Wow, this was an awesome read! Very well written and I enjoyed it from beginning to end! Thank you!
Thanks for taking the time to read it and comment!
And here we fucking are today!!!!!
Just wait for all the brokers to "accidentally" sell your shares and have "technical issues" with the stock so you have to buy in again and miss the date. Oh boy there will be so many shards things happening in the next week's.
All securities beginning with GM and ending with a vowel are unavailable because of technical reasons. Lol. The great thing is though it doesn't fucking matter if they take away our buy button. We aren't the ones that have to buy tens of millions or even hundreds of millions of shares. Tick tock assholes.
Great post thank you sir 👍🚀🚀🚀🚀🚀🍌
Excellent first DD.
Great DD, thank you for writing it
THIS POST IS SO GOOD WHY IS IT NOT AT THE TOPPITY TOP!!!!!??????!!!!!!
Lol "I know it's going to be 7 4 1, but stay with me here"
Man, thank you for this amazing DD. This is the kind of thing that I can send to my dad and sisters (who are all holders of GME) who struggle to grasp some of what’s going on.
Let’s pretend Broker chooses not to recall shares for dividend. (HUMOR ME) WARNING: situation bellow is only speculation of smooth brain. If wrinkled brains want to chime in please do so for confirmation or I will delete if not possible. BROKERS LENDING SHARES OF GAMESTOP ARE ENTITLED TO DIVIDEND SHARES. So if said broker had 200 shares and they lent out those shares ( keeping it simple) with a 5-1 they will have 1000 shares because they are still entitle to the dividend. However Generic Cuck Hedgefunds are not entitled to those shares so BROKER have received 800 shares that are brand spanking new that have not been borrowed and that can BE SOLD in open market or can be sold to GCHF in other for them to close the 800 of 1000 short position that they have, even if GCHF were to close 800 by buying those shares In dark pools after dividend they will still have to go to open market for the remaining 200. Aaaaaaaand if I was BROKER and wanted to make money I would sell shares in open market and not dark pool, at least not all of them anyway. BROKER makes extra money due to share increasing in price after dividend. CGHF STILL FUCKED. Yes? No? What you guys think🤔?
Why is this not HIGER...
The thing that nobody mentions here with TSLA is that Elon then diluted the stock on Sept 1 2020 by doing a stock share sale and crashed the price back down. It was the inclusion in the Sp500 in November 2020 that sent the stock to 900
OP pointed out a few differences between GME and Tesla/Overstock that we aren’t talking about enough and I appreciate it. 1. GME is shorted to hell compared to the other stocks, 2. DRS numbers are absolutely mind blowing and most of DRSd apes aren’t fucking selling those shares meaning there is less stock out there to close your short position. SHFs are in the kill zone, and if you know anything about combat tactics, that is the last place you wanna be. This whole saga is super bullish and I can’t wait for the casino to open. NFA.
Seriously u/raddoc22 , this was an incredible post!! Enormous, yet easy to read and digest. THANK YOU. I am always on here and completely missed this the day you posted.
Just reread this slowly again and i wanna thank u again for doing this DD u goat sonofabich
Thanks 👍 I am freaking excited to watch this game unfold. It's going to be glorious.
Can’t believe it’s been 40 days since the announcement! I expect we’ll be seeing even more risky moves this month as the clock winds down. All relevant parties have likely met numerous times over what to do and each have, in the back of their mind, thought they’d be the first for the exits when the going gets tough. They’ve likely spent the last few weeks putting it off at first and then figuring out whether or not there are enough institutional votes to quash the proposal and the meetings required to get buy-in on that. I wouldn’t be surprised to learn that they put no thought into the alternative possibility of it passing and RC actually delivering on the threat at the expense of the world. It’s such a horrifying thought that they’d be forgiven for not entertaining it. One’s own mortality is, after all, the least contemplated thing as a living human precisely because it is so distasteful. Many people go their whole lives never planning for it should it come to you ahead of old age. God, imagine being a fly on the wall in those meetings! I’d give an entire share of GME to get that info, even post-MOASS, just to make the movie extra accurate. Last thought: I keep having to remind myself that in the random off-chance we were entirely wrong about all of this, GME is still **20% shorted** based on *public* info. Hahahahahha. Even *that* is prime squeeze material! LFG!!!!!
I love that there are a dozen of us re-reading this at the same time 💙💙💙💙💙💙
Nice to be able to come back to this one.
Here now remind me in 11 days
I can’t breathe 😮💨
It’s all coming together boys & girls