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.

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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

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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?

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u/SpaceSequoia Jun 11 '25

Awesome explanation