Amazing DD. Now, what would be truly amazing as it relates specifically to GME is one of two things: (1) GME issues an NFT dividend, payable in say 90 days, in such a way that it forces a share recall so that only legitimate purchased shares are eligible to receive said dividend, thereby (in theory) forcing the naked shorts, synthetic shares, re-hypothecated shares to cover their positions or (2) [and yes I realize this is an unpopular opinion] Ryan Cohen grows a set of real balls and takes direct action to combat the fuckery that he and the board know is taking place and surpressing the price of the stock. He is personally worth a few billion. His company has zero debt, 3 billion in the bank, and are likely to beat earnings. It is past time to get aggressive and take the fight to the enemy, instead of allowing the enemy to kick you in the ass 9 days out of 10.
Direct action could include, but not be limited to (1) a reverse stock split of a number that forces those holding shorted, naked shorted, synthetic, rehypothecated, or shares hiding in dark pools or collard shares to cover and close out their positions or (2) provide information to SH that is meaningful regarding their investment and the general financial health and direction of the firm, beyond what is required by law.
Wes Bricker of SunTrust puts it best in my opinion.
“What’s important for CFOs to realize is that retail investors are a powerful force, and they must have access to good information about a company. It’s unlikely that every millennial retail investor chatting up a meme stock like GameStop with other “degenerates” has any idea about its executive compensation methods, debt levels, or shrinking margins. Given this possibility, meme stock CFOs must ensure that information outside of mandated regulatory disclosures that are disseminated to ordinary investors is “complete, accurate, and reliable,” says PwC’s Bricker. “Often, the 140-character posts on social media lack enough context about the risks and prospects of a meme stock.”
US Banks Friedman echoes this position.
“If the CFO can validate the retail investors’ enthusiasm through improved operations, increasing sales and cost efficiencies, what started as a cultish response to a flagging brand can result in favorable outcomes,” he says. “That’s a pretty powerful narrative for a CFO to bring to the Board [but the Board must act appropriately to take this information to SH and potential investors who see value in being long on the stock].
So let’s go back to “complete, accurate, reliable information”. Where is it? Certainly not in Twitter posts with chopsticks up the nose.
Do I believe in RC. Probably. Do I believe in GME long term. Absolutely. Did i yolo everything I could afford into my initial purchase in January. Yes. Have I continued to buy more. Yes. Have I grown increasingly frustrated with Cohen and the Board for their abject failure to communicate with the retail SH that saved the firm from BR. Absolutely. Do I believe that their actions, or in most cases, lack of action has delayed MOASS. Maybe. Do I believe their actions, or lack of actions, has prevented the stock from reaching what I would consider to be a fair market price, from which MOASS could then start at any time. Absolutely.
I won’t return to their ongoing breach of fiduciary duty to protect SH value. Other than to say this. That is your fucking value, you can’t look at it in the abstract. Whether you own x or xxxxxxx, you need to understand that GME’s lack of communication with SH (see Bricker above) and their (so far) clear refusal to fight back against the evil doers, much less even acknowledge what is taking place (and no, a nebulous statement in the annual report does not count) is hurting the value of your shares. If you are a SH since January the value of your shares has been manipulated in full few of the GME Board. They have a fiduciary duty to address that. Name one thing they have done.
If you are a long time GME SH than you likely are aware now, if you were not before, that SHF began their incursions into trying to out GME in the ZToys R Us graveyard beginning in 2015-2016. Name one thing the prior Boatd or Mgt did to address the issue.
I will try to refrain from posting about this again. At least in such length. But after 25 years as a lawyer, with much of it in regulatory and corporate governance, I see more I believe than most people see. And a lot of what I see I don’t like, because I know from experience and intimate knowledge of law, that GME can solve this issue. If they desire to do so. So far, despite my yolo, belief in the firm, and my commitment to hold forever, that does not mean I see any desire based on their actions to fix it. I find thst troubling.
Eng
中文