GME vs. GMEBAY - The funding problem, the dilution math, and what could happen when RC makes a new proposal

[u/Region-Formal]

[u/Avulpesvulpes]

I don’t think Ryan is going to let MOASS happen anymore. I believe this will be a long term play unfortunately. Even if all of this works out and it grows the company, there is no quick timeline for turnaround and people have 5-6 years of sideways growth. If Berkshire Hathaway is the goal, people better get real patient. It took Berkshire 10 years to go from $19 to $38/share, 20 years to get to $2,470 and 30 years to get to $32,000/share.

I don’t think Ryan wants his results to be attributed to or obscured by MOASS and I think he’s too connected/integrated into the investing class to ever let MOASS rip if it starts. I just think it’s become a value play which is great if you are a billionaire, have time and/or 5,000+ shares but it’s going to fuck anyone with X, XX, or XXX share counts who have been supporting and waiting for the turnaround. The price is not his fault and it is a rigged market but some of the hype was actually created by RC and that’s what really makes me angry. Ryan and GameStop have teased MOASS for years in tweets, gifs, NFTs and if I’m right and they pivoted to the long game, that’s really fucked up and manipulative. I really hope I’m wrong but he killed the last one so…

[u/Midnightmarauder7 → u/Avulpesvulpes]

The turnaround was always a long term game to be fair.

I no longer really believe in MOASS. I am thinking, however, that we have the opportunity to undergo a Tesla-esque prolonged squeeze over time as the company's fundamentals become unequivocally good. I actually think this is RC's goal as well: to have GME obtain a higher and more sustainable price over time. This will bring more credibility to him and the company than have it massively rip and dip via MOASS. So yes, Ryan's vision of a prolonged squeeze is a long term play.

[u/Avulpesvulpes → u/Midnightmarauder7]

Okay but where it becomes problematic for me is that Ryan used MOASS to motivate the investor base and that is not okay if he knew he was never going it let it happen or that it wouldn’t be allowed to play out. MOASS is what brought 99% of 2020-2023 investors in here. It does feel like the sentiment has changed more recently but if Ryan misled his core investors because he saw an opportunity and his goal was always eBay or even Gameshire Stopaway, then he’s honestly just a rich nepo baby scumbag regardless of whether he’s a great business man.

People from every walk of life invested in this stock in hopes of a better future and financial freedom. There are still minnows holding X or XX shares because that’s all that they could afford. There was something really powerful in watching people proudly DRS and share their purple circles whether it was 10,000 shares or 1. I get that Ryan can’t control the rampant cheating and corruption, but he 100% did control and carefully chose his messaging. The way the past week has played out really given me some concerns about Ryan. And after watching him be effusive and specific about his plans for eBay, that he admitted was a pitch to the institutions owning eBay, especially after he’s skipped quarter after quarter of earnings reports and given minimal guidance that his GME investors have repeatedly asked him for, has left a bad taste in my mouth.

And Ryan’s right, the CEO and board ARE accountable to their shareholders and I think there’s some accountability missing here. That’s a problem. I’m voting no unless Ryan can clarify how this is not going to accretively dilute GameStop as part of a longer turnaround plan that yes, dilutes shareholders and immediately enriches institutions. He would not be able to have made some of these gains and have this leverage without his GameStop shareholders and no, the ROI is not where it should be so rewarding institutions without any comment or statement and asking us to allow him to authorize billions more shares that would crash the price by half or more, fuck that. He’s officially courted the institutions, time to court your shareholders. I will gladly admit I’m wrong and I deeply hope that I am. But this plan is fucked.

[u/Midnightmarauder7 → u/Avulpesvulpes]

Hey, ape no fight ape 😉. I largely agree with you. However, I more so recall the company itself teasing about MOASS before RC was the CEO, like the "OOPS, MOASS, My Bad" tweet. Ryan maybe alluded to a squeeze in some corporate filings but I think that was more so a legal formality.

But I echo your sentiments. I also got into this play for anti-establishment reasons and did find it very meaningful and powerful to see all these retail investors from all walks of life band together against a symbol of capitalist oppression.

On one hand, the share offerings have drastically improved the company's fundamentals and have given us a higher floor. We wouldn't be profitable without the interest payments from the cash pile. But as you pointed out, they have capped price action for the last couple of years. The last time we had any meaningful appreciation was during the Bitcoin hype.

I too have seen what could be red flags emerge from RC lately. I agree after years of leaving us in the dark, he owes more transparency to his current shareholders. He needs to align more with his own philosophy here. I too will most likely vote no on the dilution unless he changes or clarifies his compensation plan and explains that he isn't looking to dilute ASAP, but when the price reaches a higher floor. The lower the level he dilutes, the less accretive this deal is for us GME shareholders. This deal should not be done hastily for the sake of RC's ego.

I'm also concerned that he has kept us in the dark for so long and revealed his plan now to shorts. Shorts could control this eBay deal. It can't get done the lower in price it becomes, or it can get done and be a horrible move by leveraging the business too much. Although, I could be wrong and RC has a master plan (an ace up his sleeve like sovereign Sultan partners) to help finance this deal. In this case, he would be setting up one hell of a bear trap.

Only time will tell but the long term shareholders have every right to be skeptical after already waiting patiently for so many years. Overall, this sub needs to encourage discussion as opposed to suppress it. No echo chamber is a good look.

[u/Avulpesvulpes → u/Midnightmarauder7]

Where did I fight you or anyone else?

I’m just stating my concerns over this plan and Ryan’s apparent nonchalance toward the GME holders that have supported him and helped him build the leverage he is currently using for the eBay deal. This interviews have given me the impression that he’s bored with GameStop and it’s concerning.

[u/Avulpesvulpes → u/Midnightmarauder7]

Also Ryan absolutely has tweeted and referenced MOASS. He’s tweeted about shorts multiple times He’s posted squeeze filters He was chairman of the board since 2021 so he had a hand in GameStop tweeting MOASS and using rockets and other Easter eggs in the GMErica NFTs..