The Investment Thread (8 Viewers)

[El Caliente]

Can you share me your data that says they are hemorrhaging money? From what I read their debt is lower than their earnings. I am curious as to your data source and what else is listed in that report.

Aside from that, this is not completely about GME being a great growth company, but about The Street being over-leveraged, and the dirty tricks they play to hurt the little man. There are some who will say they think GME has a bright future but again, this is about finding a 'glitch in the matrix' and trying to exploit it.

I truly hope that the autists and diamond hands win. Lol. The technicals aren’t exactly on their side,

Newb question: what happens to a stock if the company goes bankrupt?

it’s a long process. Bond holders get paid first, stock holders after that.

For example, if a company goes bankrupt and after liquidation there is anything left (say $100), and the bond holders bonds total $100, then they would get that full amount, while stock holders get $0.

Similar situation, If the company goes bankrupt and after liquidation there is say $101 left, the bond holder get the $100, and that final $1 gets divided up by the stock holders.

 

[efil4stnias]

Newb question: what happens to a stock if the company goes bankrupt?

and you still hold said stock?

several things happen in bankruptcy ( not the reorganization kind - the out of biz kind ) and depending on the "class shares" you hold, you MAY be in line for SOMETHING.

but that is as rare as an albino alien.

So the short answer is its just gone.

 

[itztime]

but that is as rare as an albino alien.

We might find out that those aren't so rare after all, since disclosure is 5 months away .

 

[Turfie]

GME down 30% today.

 

[superchuck500]

The AMC action has been interesting. It has been trading now on massive volume since the spike between Tuesday and Wednesday last week. But after that spike (from $4 to $20), it has been trading fairly steady, but with mostly downward bias. Pre-market rallies are met by selling during market hours and between $11 an $14 seems to be where it shakes out each day.

There's still a tremendous amount of chatter about it, retail traders wanting to bid it up - bit it continues to fizzle out. And with huge volume, this means that there are plenty of sellers to keep the price from running.

Among the sellers included Silver Lake, an investment/capital firm that had infused AMC with $600M in 2018 on convertible bonds that appeared that they would likely take a loss on . . . until last week.

Buyout firm Silver Lake disclosed on Friday that it sold its stake in AMC Entertainment Holdings for $713 million this week, capitalizing on a 10-fold rise in the price of the shares as traders organizing on social media platforms such as Reddit snapped them up.

The trade puts Silver Lake and its co-investors in the black following a $600 million convertible bond investment that the private equity firm made in AMC in 2018. Such an outcome looked unlikely when AMC, the world’s largest movie theater chain, was battling to stave off bankruptcy last summer, a move it avoided thanks to a debt restructuring deal with Silver Lake and its creditors.

Silver Lake cashes out on AMC for $713 million after Reddit-fueled rally

Buyout firm Silver Lake disclosed on Friday that it sold its stake in AMC Entertainment Holdings for $713 million this week, capitalizing on a 10-fold rise in the price of the shares as traders organizing on social media platforms such as Reddit snapped them up.

www.reuters.com

 

[Beast]

The PS5 I bought in November is the digital only version because I only ever buy from the Playstation store. It's nice being able to download a highly anticipated game at midnight and not have to worry about walking into a store to make a purchase with the hope that the game is still in stock.

Yep, my son got the Xbox Series S, which is streaming/downloading games only.

 

[El Caliente]

Of the stock holders, aren't there different classifications of stock that get paid out before common stock? I seem to recall this from my finance classes a billion years ago.

Yes, that is correct, and that is one of the many things that I am referring to when I say that it’s a long process. We had a customer go bankrupt and the stock holder was able to convert their stocks to bonds, and still get paid. It’s a really depressing process.

 

[Terrence]

The PS5 I bought in November is the digital only version because I only ever buy from the Playstation store. It's nice being able to download a highly anticipated game at midnight and not have to worry about walking into a store to make a purchase with the hope that the game is still in stock.

I considered this but since it is digital, there are still concerns if you really own it. Like Amazon had said with some books, do you really own it? This might require complete clear cut legal language but there is a gray area.

How GameStop gets revenue from Microsoft downloads.

 

[Chris]

GME down 30% today.

Ignore the stock price. Look at the trade volume. Hedge Funds are manipulating the stock price by trading back and forth with each other and artificially driving the price lower. They can't keep this up, however. Everyone appears to be in a holding pattern. The next couple of days will be interesting.

 

[superchuck500]

Ignore the stock price. Look at the trade volume. Hedge Funds are manipulating the stock price by trading back and forth with each other and artificially driving the price lower. They can't keep this up, however. Everyone appears to be in a holding pattern. The next couple of days will be interesting.

I'll ignore the stock price but I'm not going to ignore the typos in that tweet.

 

[Chris]

I considered this but since it is digital, there are still concerns if you really own it. Like Amazon had said with some books, do you really own it? This might require complete clear cut legal language but there is a gray area.

How GameStop gets revenue from Microsoft downloads.

I thought about this, but I'm not too worried about it.

 

[superchuck500]

GME down to $175 in extended.

 

[mc4saints]

GME down to $175 in extended.

Is it coming to an end?

 

[superchuck500]

Is it coming to an end?

Hard to say, it's such an unusual bid support. Maybe there's still a will to bid it back up. Also when stocks yo-yo in a big range (like $175 to $250), there's a lot of money to be made in the day trading (risky of course). That trading also supports the low bound of the range.

 

[Terrence]

Is it coming to an end?

I think this is still more hedge funds trying to drop price. Tomorrow, the ITM options from Friday, that have to be filled will be. This should increase pressure on price. Thus they need it low on the open.

Now everything I say can be wrong but that is the take I am reading. I would rather a Xbox Series X instead of a Bloomberg Terminal.