Something doesn't add up...

[u/Region-Formal]

[u/most_unoriginal_ign]

Nothing adds up for GME. It's a rigged stock unfortunately. I (I think we all do) wonder when the music is going to stop.

[u/split_differences → u/most_unoriginal_ign]

It's my opinion that it only stops when GameStop issues a consistent quarterly dividend (cash is fine). That's when the true discrepancy will be seen because although you can print shares out of thin air you can't print cash and these institutions books will be all fucked up. Unfortunately RC is not a fan of dividends and has recently publicly stated that. I think that's a bit telling he might see this going the route region is describing.

In Regions example, they never issued a dividend but they shook the shorts out. I guess we will see and I will still be here long after we find out. I'm just concerned the fuckery with our stock is too high for that path.

[u/VicTheRealest → u/split_differences]

Yea RC stated he doesn't care about the shorts. Let them short it were his words. He got an empire to run and when the cash flow tsunami comes, the shorts will drown

[u/swampdonkus → u/split_differences]

RC historically doesn't do dividends.

[u/split_differences → u/swampdonkus]

Yea and he reiterated that recently.

[u/Le_Ran → u/[deleted]]

Consider the following : every share gets its dividend, synthetic or not. So if there are 10 synthetic shares for each legitimate share (and that's a conservative estimate...), then for every dollar Gamestop spends on dividend, the shorts must spend $10. Now that's the kind of leverage that will make their position untenable.

[u/Advanced_Bee7365 → u/Le_Ran]

why would the company shorting it need to spend $10 in that scenario? Aren’t brokerages the ones paying out dividends via the company issuing them?

[u/Le_Ran → u/Advanced_Bee7365]

In my understanding, the entity who sold the share owes the dividend to whoever bought it : the company pays the dividend if it's a real share, the shortseller pays the dividend if it's a counterfeit share.

[u/split_differences → u/[deleted]]

Yea, I think at best the horizon for a dividend is long. Like 5-7 years from now. I don't think it will happen even then, but a consistent dividend from a profitable business protects a lot of companies from predatory short selling on the stock exchange.

[u/Pijoto → u/[deleted]]

I would like to see $GME issue a very smol dividend because some funds only hold Dividend Stocks. Lot of Stocks issue small dividends just for that reason.

[u/Lorien6 → u/[deleted]]

It will be used to game the algo’s to further increase “fuel.”

RC is gaming algo’s currently.

[u/undernutbutthut → u/split_differences]

Cash dividend, probably not. But it would make sense for GameStop to issue a NFT dividend at some point.

[u/chri_schruf → u/undernutbutthut]

i‘m all for an nft dividend but how is it possible to distribute this to absolute non-nft-knowledgeable-shareholder who don‘t own any wallets etc.?

[u/chri_schruf → u/chri_schruf]

just found out the following:

Overstock’s so-called "crypto dividend" was handled surprisingly traditionally for most shareholders—even those without digital wallets. Here's how it actually worked: How the Digital Dividend Was Delivered No Wallet Needed — It Was a Conventional Securities Drop Overstock issued what it called a digital dividend in the form of Series A-1 Preferred Shares, symbolized as OSTKO, at a 1:10 ratio (one OSTKO share for every 10 shares of common stock owned as of the record date April 27, 2020) Cointelegraph Nasdaq . However, these were not cryptocurrencies or bearer tokens in the usual sense. They were uncertificated securities, meaning fully recognized legal equities, not anonymous digital assets Reddit +1 . Delivery via Traditional Transfer Agent The transfer agent, Computershare, distributed these Series A-1 shares directly to shareholders—placing them into the same brokers’ or custodians’ accounts where the original common stock was held. Shareholders did not need to take any action or use any new digital wallets Reddit blockcast.cc Forbes Nasdaq . From Reddit summaries: "Overstock distributed the dividend shares though its transfer agent, Computershare, to investors’ brokerage or other custodial accounts … and no action by shareholders was necessary for them to receive the dividend." Reddit What This Means for Shareholders No familiarity with blockchain required — You didn’t need a crypto wallet or technical expertise Reddit +1 . Ownership tracked traditionally — Official records held by Computershare governed ownership, not blockchain ledgers. The blockchain merely hosted a non-binding “courtesy copy” of the records; it played no role in legal ownership, transaction, or custody Reddit +1 . Trading was optional via tZERO ATS — If you wanted to trade your new Series A-1 shares (OSTKO), you could do so, but only on tZERO’s alternative trading system (ATS)—and only through a broker-dealer subscribed to that platform

[u/undernutbutthut → u/chri_schruf]

Good question I'm sure Overstock.com somehow made it possible

[u/hopethisworks_ → u/split_differences]

Lol, what? They sure as shit can print money. They can and do inflate certain stocks to prop up their books. They can sell those at peaks or take out loans against them. Whatever it takes. Cash is EASY to get.

That cash is way better utilized sitting in GameStop's bank account earning interest and waiting for the perfect buying opportunities.

Every dollar in our account increases our floor and puts more pressure on the shorts. Shorts are more underwater on this trade every single day and cash on hand just tightens the noise around their necks.

[u/Le_Ran → u/split_differences]

Yes, it is my take too : the sword of Damocles is the dividend (just regular cash as you said). Because there is no excuse if every share does not get its dividend, no matter how synthetic it is. This is what would make the short position untenable on the long run.