Feb 1 2021, 11:01 AM
QUOTE(empyreal @ Feb 1 2021, 10:01 AM)
If they want to save their business, thats exactly what they would do. Issuing new shares means free money into the company. No matter how high the stock prices go it doesnt mean anything for gamestop itself.
At the core of it, gamestop is a loss-making business. If they want to keep it, theyll issue new shares to inject new capital at elevated values. If they dont want to keep it, they'll reduce their own positions. Either way, it doesnt make sense for the owners to do nothing.
Like what burry said to Elon /Tesla, as such high priced he should do new issuance. It would cement permanence for the price and not worry about dilution.At the core of it, gamestop is a loss-making business. If they want to keep it, theyll issue new shares to inject new capital at elevated values. If they dont want to keep it, they'll reduce their own positions. Either way, it doesnt make sense for the owners to do nothing.
But i think gamestop before doing this, need to seriously check with SEC. Else later they get slap in the wrist like what hertz did.
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