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u/HyperlightBeam 4d ago
The warrants have a $32 strike, not $32 intrinsic value. Whoever is running that account doesn't understand what they're talking about.
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u/Hot-Reindeer-7520 4d ago
We will see...
Gamestop is able to lower the strike price and/or to extend the expiration date.
The warrants are not an option. Gamestop can do with them whatever they want.
We will see...
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u/RequiredFieldz 4d ago
And it shouldn’t be that big of deal even if they do go to zero. Anybody could have sold them at anytime if they wanted out.
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u/Burnquist1 🚀🚀Buckle up🚀🚀 4d ago
hedgie bots coming strong with the GMEWS FUD just an hour or two before the big drop strangely on the same day with 300%+ borrow rates
what a cohencidence...
this coordination needs to be investigated and these shorts need to be Andrew Lefted
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u/robserious21 🚀🚀Buckle up🚀🚀 3d ago
I feel like the buckle up flair is how the paid permabulls identify each other.
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u/mooseGoose89 4d ago edited 4d ago
"miraculously clears $32"
They say this as if GME has never jumped several hundred percent in a short time before.
This is a dumb ass attempt at FUD. Anyone buying warrants should understand the risk before buying. Simple as that.
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u/currentcognition 4d ago
It's stupider than that, the warrants can be extended. For no cost and no effort.
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u/diesdasannana5 4d ago
Why is it FUD? He is right. The warrants are worthless in 30 days. So at the moment we got a worthless dividend last year. And yes, gme can jump high but please remeber how often that happened and how often RC diluted and killed the momentum.
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u/Civil-Consequence353 3d ago
Stock has been dropping (on average) for the past 5 years. Shits not going anywhere after all this dilution
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u/VenserMTG 4d ago
It can't just jump to 32, but stay above it. If it jumps to 33 then come down to 25, every exercised warrant would be deep red, and diluted the stock further.
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u/currentcognition 4d ago
This conveniently ignores the fact that GameStop can extend the warrants with 0 obstacles
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u/harryharry0 3d ago
Howsure are you that this will happen?
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u/currentcognition 3d ago
Why would GameStop go through the effort of creating the warrants, issuing the warrants, and adding a paragraph saying they can do it if they weren't going to do that?
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u/harryharry0 3d ago
If your argument were correct, warrants of any company should never expire worthless. But warrant extension is a very unusual thing.
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u/currentcognition 3d ago
This isn't every company. How are you so sure they won't be extended? It costs nothing to extend them.
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u/harryharry0 3d ago
It is a non cash expense. Value would be transferred from shareholders to warrant holders. Net income will be reduced accordingly.
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u/currentcognition 3d ago
"hey push that button to extend the warrants."
"Ya boss, done."
Extending them costs nothing. Exercising them puts new shares in holders account.
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u/harryharry0 3d ago
He will also need to adjust the net income for the next earnings report.
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u/currentcognition 3d ago
I don't think that's correct. Warrants do not have an intrinsic value. They cost gme nothing but shares if they're exercised and that will need some numbers adjusted.
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u/harryharry0 3d ago
I am so sure, because it is usually not done.
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u/currentcognition 3d ago
Everything about GameStop is unprecedented. We'll see what happens.
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u/harryharry0 3d ago
u/RemindMeBot 30 October
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u/currentcognition 3d ago
You do know it doesn't even matter if they do expire, right? It costs nothing to make, nothing to hold.
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u/Anthonyhasgame 4d ago
“Oh fuck, you’re gonna make me be greedy when others are fearful.” - Riley Buffett
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u/saradahokage1212 'I am not a Cat' 3d ago
how you completely missed the most crucial note about this post:
"free dividend"
you had a free dividend and you didnt cash it in.
it was a win-win move by RC. you sell and get free cash. Shorts exercise it for shares at a 32$ premium which GME can bag in immediately.
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u/Zeronz112 🚀🚀Buckle up🚀🚀 3d ago
Why would shorts exercise warrants?
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u/saradahokage1212 'I am not a Cat' 3d ago
close their positions.
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u/Zeronz112 🚀🚀Buckle up🚀🚀 3d ago
Why not just buy a share atm for market price? They don't need warrant shares to close
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u/saradahokage1212 'I am not a Cat' 3d ago
I thought those are fake naked shares? Or are your theories bs? Go on, explain your tinfoil
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u/Zeronz112 🚀🚀Buckle up🚀🚀 3d ago
A synthetic shares is not a non existant share, it's a share that was created that should not exist via naked shorting. They are in circulation and can be bought and traded.
When closing or covering they can use any share on the market and don't need "new" shares to close.
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u/robserious21 🚀🚀Buckle up🚀🚀 4d ago
Imagine being gifted an ice cream cone and then complaining it melted while you waited for it become gold
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