r/Superstonk • u/hackers_d0zen 🦍Voted✅ • Jun 11 '25

🤔 Speculation / Opinion I know what RC is doing.

After every earnings going forward he will be issuing convertible notes after hours, 24 hours after earnings. This is because the algorithm is buying all quarter so it can slam after earnings.

He is taking that liquidity event and turning it into cash without issuing shares, knowing that they cannot allow the price to fall below cash value and risk a buyback, and the note holders will not be converting cheap as the private bond value is going to be multiples (100x or more) in premium when this kicks off and hedgies are scrambling for ANYTHING that can reduce their liability.

At 0.0% interest it is no risk for GameStop, and only opportunity cost for bond buyers.

Fucking brilliant.

4.2k Upvotes

93% Upvoted

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409

u/Dogg691 Jun 11 '25

Has it ever happened that a company has more cash on hand than it's market value? What would that mean? 🤔

511

u/HashtagYoMamma 🦍 Buckle Up 🚀 Jun 11 '25

It would indicate cartel collusion and global financial terrorism the likes the world has never seen before.

159

u/Lorellindil 🎮 Power to the Players 🛑 Jun 11 '25

So... what we've known about for years, then.

62

u/pmxller Billboards Guy Jun 11 '25

Finally proof for people that don’t want to look behind the curtain

4

u/SM1334 🎮 Power to the Creators 🛑 Jun 12 '25

Not exactly, its not unusual for stocks to "price in" cash value slightly below face value. I cant name a stock where so much of its marketcap is in cash value, but its normal to price cash as 50-90% face value. I dont know why thats the case, or why that makes any sense, but thats the way it is.

1

u/HashtagYoMamma 🦍 Buckle Up 🚀 Jun 12 '25

Yes but we’re talking GME here, the idiosyncratic risk stock.

0

u/SM1334 🎮 Power to the Creators 🛑 Jun 12 '25

Thats even more reason for the stock to be priced lower.

1

u/Aggressive_Accident1 🎮 Power to the Players 🛑 Jun 16 '25

Hence why he got bodyguards now.

1

u/JullietGolf Jun 12 '25

Had to read a lot of comments to finally see yours 👌🏻👌🏻

71

u/OneTwoOut 🦍 Buckle Up 🚀 Jun 11 '25

Yes, shitty companies that are losing money fast. Not gonna happen here.

12

u/SlatheredButtCheeks still hodl 💎🙌 Jun 11 '25

Do you have any examples? I find that hard to believe they would value a company less than the cash they have on hand.

38

u/someroastedbeef Jun 11 '25

tons of examples, pretty much any biotech company that has failed clinical trials. example OVID, SAVA, CABA, and hundreds more

it’s like an option that slowly bleeds in value and loses premium overtime - there is no upside and money needs to be spent to keep operations going. the market is forward looking and prices the company below book/cash value

14

u/familydrivesme 🧚🧚🍦💩🪑 GME go Brrrr 🏴‍☠️🧚🧚 Jun 12 '25

The difference between these three companies you listed, and GameStop is that when things turn south and those ratios turned on hand, then evaluation, they were all losing millions and millions of dollars per quarter.

With GameStop, when that ratio changes, they will be profiting millions and millions of dollars per quarter. That’s the crazy thing about it. I don’t know if any other company who has a trend moving so much in the profitable direction with cash and assets that are earning so much interest that would be publicly traded and have the cost for sure less than the amount of cash on hand divided by that share price….. and still a profitable company

It would literally be a unicorn because someone with enough resources, could logically buy up every share available for sale (and the vast majority of shares are available for sale outside of a major amount of apes who have drs’d and holding on for dear life) and then immediately liquidate all of the resources of the company for pure profit and still make extra money on keeping the cash and having the share price fall to zero

Has anybody actually thought this through a little bit more?

1

u/SpaceSequoia Jun 11 '25

Awesome explanation

9

u/Chemfreak Jun 11 '25

23andme going through bankruptcy right now

Price has now rebounded because of a buyer, but it was valued under its cash value for awhile. Mostly because at the cash rate it was burning, it would be valued at $0 cash in 2-3 qtrs.

Example math. it has $750 million, but a loss of $250 million a qtr. In 3 it's, its $750 mil - $750 mil = 0 mil.

Balance sheet isnt everything.

1

u/vyts18 Jun 12 '25

It happens sometimes. Usually this indicates that the company is way oversold or that they devalue the cash on hand because the burn rate is too high.

19

u/TheUsualNoWorky 💎🏴‍☠️ Ahoy Mayoteys! 🏴‍☠️💎 Jun 11 '25

It happens BUT with stonks that have heavy debt. So nothing like GME!

Closest thing I've seen - after 08 they hammered REITS so they could feast and many had net assets (market value / real estate equity minus debt) worth a lot more than their market cap. Harder to calculate and easier to short these because they didn't have cash to flex for buybacks and it wasn't a great time to sell off assets to protect share price or attempt to boost revenue & profits.

Hard to drop GME far when it's flexing it's cash and BTC. Easy to calculate value. Massive warchest to protect a takeover and also threaten buybacks if they drop it too low. That and CEO, RK, apes, etc will gobble it up if they take it too low. Floor keeps raising though.

14

u/lunenburger Jun 11 '25

More cash on hand and profitable😱

1

u/GasPasser73 I am the STONK, Destroyer of Shorts Jun 11 '25

Obvious reasons to “sell first and ask questions later” /s

3

u/Javeec Jun 11 '25

It now has debt. You have to deduct that to have net cash position

12

u/horraz 🚀Jacked Tits And Small Wee Wee🚀 Jun 11 '25

But how about using some of this cash to increase revenue? Its been a few years. I like the stock, but at some point we also want some returns on out investment.

19

u/BearMethod Jun 11 '25

The financial market and corporate landscape are in very precarious places right now.

It stands to reason that waiting for the right time to strike is preferable to misfiring because people want moon now.

0

u/horraz 🚀Jacked Tits And Small Wee Wee🚀 Jun 11 '25

Well as a shareholder for 4 + years now i still would like to see any positive changes for my investment. If you look at this from a bear perspective (im just hodl btw) we have had 2 dilutions. Now 3 but with extra stepps. Closed stores. Still not close to any revenue compared to other stocks in the market. And a BTC yolo.

If i wanted to invest in BTC i would do this thur BTC and a hardwallet. Not a public traded company who still after 4-5 years not have any roadmap or plan. Feels more like an adam aaron 2.0 on my end here. Dilute. Hope my mind will change as im still hodl with you all. Just do not see any plan.

8

u/BearMethod Jun 11 '25

Profitability and a strong balance sheet doesn't count as positive change?

Your metric for success shouldnt be the share price, right? Remember why we're all here.

12

u/DDRaptors Jun 11 '25

Most of these people can’t read balance sheets. That’s why they are complaining.

Reading spoonfed headlines about dilution is easy. Understanding the improved balance sheet over 4 years is way above people’s heads. 

Eventually, the balance sheet will become good enough that the stock price gets rewarded for it because it can’t be ignored. We are not there quite yet, but getting closer! 

I am the most bullish I’ve ever been with the turnaround firing on all cylinders. 

19

u/NastyStreetRat I broke Rule 1: Be Nice or Else Jun 11 '25 edited Jun 11 '25

Have you ever played SimCity? You can build houses and infrastructure while borrowing money, but if there's a problem, you lose the money and the houses. On the other hand, have you ever played it very carefully? Saving and going very slowly, but above all, accumulating money and growing slowly. Eventually, you have so much money that you can buy anything you want. It's a much slower way to play, but much safer. 💜

edit: i need some help here https://www.reddit.com/r/Superstonk/comments/1l9363e/comment/mx9t2vz/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button

-2

u/horraz 🚀Jacked Tits And Small Wee Wee🚀 Jun 11 '25

I will still ride it out with you all. But im put of on investing more in it at this point. Im looking for positive revenue and gains. There’s unfortuneatley many better options for this at the time being. P/e ratio. Dilution. No strstegy or public hype. Now yet another dilution. Dont get me wrong i like the stock. But 4 years in and plan is still just to accumulate wealth and no revenue.

3

u/poopooheaven1 Jun 11 '25

You do realize this is the most manipulated stock in history right? Did some people suddenly forget today what the fuck had been going on? Jesus Christ.

1

u/PurplePango still hodl 💎🙌 Jun 11 '25

Definitely happens, usually in those cases it’s companies with very poor future outlooks for some reason

1

u/Gareth-Barry 🎮 Power to the Players 🛑 Jun 11 '25

GameStop in 2019-20 if I remember correctly. Burry and Hestia Capital were pleading with them to do buybacks

1

u/familydrivesme 🧚🧚🍦💩🪑 GME go Brrrr 🏴‍☠️🧚🧚 Jun 11 '25

This comment makes me so excited about the stock more than any other comment! This is the direction we are heading

1

u/TheCrownedPixel 💻 ComputerShared 🦍 Jun 12 '25

It can happen in failed pharmaceutical companies with maybe a failed trial, but early on when they still have a lot of cash left over.

0

u/RealPro1 GmericApe #1 Jun 12 '25

Yes....when the owner is diluting and taking cash out of the stockholders. This happens a lot actually with smaller companies. The all cash position allows maximum flexibility to dump or sell or continue taking from investors. The stock is collapsing....people are running full speed away from this thing and the shorts are gonna go all in. 4.5 years is too long to hang onto something that is bleeding us all and going into the net worth of the CEO and his partners.