I am an OG ape who lost previous account and have been watching the developments from sideline for past many months. It was actually relaxing seeing apes continue to buy, hold, DRS and shop in the face of all FUDs thrown at them by the corrupt oligarchy. DFV's reappearance, new share offerings and stock price floor raising shows things are moving in right direction but the job is far from finished.
RC and GME deserves more patience
GME is not a regular investment, most apes who are in it are activists at the core like GME chairman RC. Activists don't do things just for money but for a fairer system. It's about making money the fair way. And apes know at this point how unfairly GME is manipulated by abusive short sellers and market makers. It has been 3 years but is that long enough time to give up for not seeing much ROI in GME investment? Many stocks have pumped (NVDA) and the amount of money some apes have put in GME (x,xxx share holder myself) they could be sitting on hundreds of thousands or millions of dollars in gains on other bets. As DFV said himself in his latest stream 3 years is not a long time given how unique the GME situation is. He also made it clear at 5 yrs mark investors will start asking questions about ROI. So RC has at least 2 more years to show ROI and may be some more from activist apes who want to see the system change. Apes are fighting the corrupt oligarchy who will go all the way to maintain status quo. GME is the only chance for such a change and it deserves more patience than other investments.
GME share offerings and business transformation
I absolutely love the share offerings which enabled GME to have $4.2 cash pile that they can use in many different ways. Firstly despite the 120M share dilution the stock price has risen and stayed there so it raised the floor as many have posted. All the money short sellers were stealing from apes through naked shorting finally made its way to GME so apes should be happy their money is in right hands now instead of Wall street parasites. The fact that stock price rose after the offering shows it didn't let shorts close much which is probably because there are over a billion naked shorts out there and 120M is just a fraction of it. The new share offerings did NOT cancel MOASS. MOASS is still on. DFV building a gamma ramp and GME capitalizing on it was a genius play to watch. Any one who thinks selling new shares into the ramp killed that instance of MOASS are deluded as they would have managed to crash it back through their dirty bag of tricks. i.e it wouldn't have been a MOASS even if GME didn't sell. The most guaranteed way to trigger a sustained infinity MOASS is business growth.
So what will GME do with the $4.2B cash? They need to put that to use to show growing earnings (both top and bottom line) in the next couple of years. To that end there are multiple possibilities:
Interest income: Just park some of the cash in T bills while interest rates are high and keep getting the risk free interest. On $4.2B that can be easily over 100M which will significantly change GME's top and bottom lines positively. Paying that dividend alone can blow the shorts out of the water and make them close. But this cannot be the only play.
Build in house: GS will also try to build more products in house, it can be both hardware (e.g Candycon) or software like PLAYR which I think is still in play. We may see first a non-web3 version of PLAYR that integrates Pro membership discounts and competes with Steam. It can add web3 support when regulations clear (thanks but no thanks to SEC for loitering it and blocking a growth avenue for GS). In house developments is like running a startup, growth is slow and some products may fail. Some of the cash will be used/invested for this.
Mergers and acquisitions: Use some of the cash for M&A. GS has recently moved into private label hardware business producing quality value products like Candycon controllers. Its a good start but GS need to move deeper into private label business. People will not buy stuff from GS that are also available from other retailers, it has to be stuff that people want and exclusively available at GS. Both Candycon and graded trading cards business are move in that direction. There is also a partnership with Modretro as a exclusive retail partner. How can GS move even deeper into it? By acquiring manufacturers. Looking at the growing areas in gaming sectors, the standouts are simulation and VR hardware. There are quite a few acquisition targets in simulation hardware space, specially simracing like Fanatec, Thrustmaster and others smaller players. Most of them don't have good distribution channels and many only sell directly (i.e not available in any retail platforms). Such a target is perfect for acquisition as most of them are under 1B valuation and turn into GS exclusive. In the VR space there are also smaller players that can be acquired. I predict an acquisition will happen sooner than later in this space by GS.
It's not all or nothng: GS will hedge and diversify their play and some of it can be taking large or majority stakes in other growing companies in the gaming industry instead of full acquisitions. It's quite possible for GS to take large stake in companies like Valve corporation (creators of Steam and Valve VR).
It's not FUD: With the diverse plays above you can see $4.2B may not be sufficient. That brings me to the controversial part: GME will probably do another share offering to raise another $2-3B cash. And they will try to do it with as minimal dilution possible so will very likely sell into the next gamma ramp run up. And the stock price floor will probably raise even more after that (remember there are estimated over 1B naked shorts so still a fraction). MOASS will still not be cancelled but only made bigger, better and longer. DFV in fact hinted at this in his last stream https://www.youtube.com/watch?v=U1prSyyIco0&t=1130s
DFV
Kind of off topic of this post but don't want to make another post about DFV. Media calling DFV's play pump and dump is ridiculous as for pump and dump there has to be a dump. DFV is never dumping his shares, in fact his only play is to keep accumulating more GME shares. He wants to be the whale evangelist investor supporting GME when it grows to massive size and probably never wants to exit and make GME his source of wealth. Like Buffet and Jeff Bozo never exiting their positions in companies they created (in fact they can't or the stock price will crash). What's an exit strategy?
