But this is way too exaggerated though. Stocks rarely move by 1 std deviation and even according to an index.
They have no reason to. If they are in the interest of raising capital, the high price that they are fetching per share is more than enough.
Don't want to search hard...Did two Googles, couldn't find it. How many new shares has GameStop been authorized to sell on the open market. Could that save the company??
https://www.fool.com/investing/2021/01/29/should-gamestop-help-the-shorts-and-issue-more-sto/ The high share price won't last. Eventually the bubble will collapse. It's possible if not likely that those who were short have already covered and moved on. Gamestop should simply lock in the gains that they already have. I don't know the mechanics of how capital raise would work, but apparently Tesla did something similar during one of its short squeezes a couple years ago. If GME had more cash on hand, that would improve their odds of survival for long(er) term.
If you think this is a bubble then issuing more shares would not make a difference and would make the "bubble" even worse. Why bother? I agree that Gamestop should use this opportunity to lock in the gains and raise some capital right now to revamp their business to adapt to the current trends and survive or even prosper.
Yeah, but I am wondering how many new shares are ALREADY authorized to be issued?? And how many of these new shares are in the market right now?? With all the noise over the past few days, I heard something about authorized new issues from months ago. Those are the ones I am wondering about... PS When are stock grants made to management?? Usually with grants, they can only sell a limited amount at a time...
So you think a company that is continuing with archaic model of brick and mortar seller of cassettes and diskettes can revamp it's business model to do what? Sony/MS/Nintendo don't need Gamestop at all. It is 2021. Digital distribution is 80% of the market. Gamestop has the following: Leases (Costs) No real estate (No assets) Old consoles to resell at 30% mark up (Depreciating assets) Fixtures (Depreciating assets, already at 0) Console Games on <COUGH>DISKETTE</COUGH> (Someday worth a couple of bucks) Stream of clients (Not going to store, COVID19, Digital Downloads, Declining YOY) Customer List (Asset, but Sony/MS/Nintendo have the same and better courtesy of Gamestop) They do have cash, all hopes are real that it is actually there after cancelling leases, etc. All they were is a middleman between two willing parties, the margins have dropped, the utility of a store has dropped by more. Both willing parties can deal directly now and have an immediate feedback between each other, without visiting a 1500 Sq Ft store manned by two they/them telling you about the awesomeness of anime. This is alas Blockbuster, Hollywood Video (Sorry from Seattle), etc.... They are all dead. This is a Cash value as a company with no future I.e. $4 a share. MS/Sony don't even want to buy them as they are not a utility in any distribution channel in the next 36 months. You think GME can do cloud game delivery? It's already there direct from manufacturers. When HL2 came out on steam first it was obvious GME is done. You think they can make a diskette more valuable to a generation of instant download folks that have killed VHS,DVD,Blue Ray?