The Investment Thread (6 Viewers)

[Turfie]

The big question I have is how he went from 800,000 shares to 5 million shares while being silent for 3 years.

He went silent June 21 2021 until this past May. At the time he had 200K shares. Then with the stock split that would turn into 800K shares.

We can’t find where any whale went that big during his his meme tweets in those two weeks in May.

One idea is he sold his 800K shares when it was around $50 a share in late June 2021. Then if he just played the market safely for a couple of years and went back all in when GameStop hit $10 a share shortly after Q1 earnings. But that’s just an idea. Who knows what he did.

Interestingly, had GameStop not diluted 45 million shares recently, then if DFV found a way to exercise his call options then he would be at exactly 5% ownership of a multibillion dollar company and would have had to file a 13D.

I get all the takes on this situation and I’m sure I’m biased. But this is just incredible how one dude in his basement turned a 50K yolo into more than a 200 million dollars in net worth.

So, Citron just went loud and proud themselves (but on the short side), now believes there is no way DFV was able to build this capital himself, and suggests there is a 2nd shooter from the grassy knoll.

 

[Turfie]

Someone placed a million dollar bet on a GME $43 call for June 7th. I wonder if it would be ManIpuLaTiOn if they went public with it.

 

[Turfie]

DFV going live tomorrow at 12pm eastern. During market hours.

 

[Turfie]

DFV hasn’t sold yet. His portfolio value is now at $586 million. I wonder if he will exercise his calls on the live stream. E*Trade might be up the creek if they failed to hedge.

 

[NewOrleansFan]

DFV hasn’t sold yet. His portfolio value is now at $586 million. I wonder if he will exercise his calls on the live stream. E*Trade might be up the creek if they failed to hedge.

That portfolio will worth over a billion if the price holds.

 

[Turfie]

That portfolio will worth over a billion if the price holds.

The entire thing is insane. He sat quiet for 3 years. All while big production movies/documentaries were made. Not one interview. Just quiet.

He’s been sending hidden messages in his tweets too. Check this tweet out:

On the surface it looks just like a hype tweet. But about 2/3rds through the video there is a weird audio sound.

Some diehards on superstonk ran it through an audio signal program and it produced this:



The level of detail in everything he has done is remarkable.

 

[NewOrleansFan]

The entire thing is insane. He sat quiet for 3 years. All while big production movies/documentaries were made. Not one interview. Just quiet.

He’s been sending hidden messages in his tweets too. Check this tweet out:

On the surface it looks just like a hype tweet. But about 2/3rds through the video there is a weird audio sound.

Some diehards on superstonk ran it through an audio signal program and it produced this:



The level of detail in everything he has done is remarkable.

Seems like it’s on its way to beat the mid 60 intraday high a couple weeks ago. If he exercises his calls at that price, that’s 12 million shares someone has to find to cover. Could push the price even higher.

 

[Turfie]

There are a number of brokerages that let every day people short stocks. Some of them don’t/didn’t understand that there is an infinite risk to it.

There are a lot of phones ringing right now.

 

[Turfie]

They are halting GME during the livestream I think. I don’t see where the 10% bounds were hit high or low.

 

[SaintInBucLand]

That was an absolute debacle today and embarrassing to watch.

 

[Turfie]

That’s the same DFV that would dip chicken tenders in beer on the livestream.

 

[Turfie]

GameStop finished their latest share offering. They now have 4+ billion in the bank with no debt.

The headline was this.


Because they diluted shares, Cohen’s ownership stake dropped. Same with me.

 

[SaintInBucLand]

GameStop finished their latest share offering. They now have 4+ billion in the bank with no debt.

If you don't think they have debt you are drinking the Kool-Aid.

Also if the only way you can earn money is to continually dilute your shares you do not have a successful business model.

 

[Turfie]

If you don't think they have debt you are drinking the Kool-Aid.

Also if the only way you can earn money is to continually dilute your shares you do not have a successful business model.

I’m definitely drinking the Kool-Aid. Their marketcap right now is definitely not based on fundamentals. It has much more to do with years of accumulated shorting and cellar boxing. Plus the gamma pressure that DFV is doing. I suspect he sold his $20 calls and bought $25 or $30 calls. He is building a gamma ramp on his own.

But really their “debt” on their balance sheet is $14.9 million. Which is from a low interest French loan relating to the Covid pandemic.

They obviously have other liabilities, but in terms of debt it’s $14.9 million.



This was published today in the 10Q, it does not include the 3 billion they just raised in the past few weeks.

The company continues to face extreme challenges in terms of finding new revenue sources. I was reading the annual reports of Electronic Arts and Activision last weekend. I went on quite the deep dive.

Fiscal year 2012 for Activision: sec.gov link

Fiscal year 2012 for Electronic Arts:cloudfront link

In the PDFs, you can use Ctrl+F and type "GameStop" to find relevant information.

From 2007 to 2015, GameStop accounted for 13% of all net revenue for Electronic Arts, averaging $511 million per year. Similar trends were observed for Activision, with GameStop accounting for 12% of their revenue in 2012, which represented $362 million. Combined, the sales of Electronic Arts and Activision games contributed $870 million in revenue for GameStop annually.

In 2012:

• EA had a total net revenue of $4.1 billion, with $2.7 billion from packaged goods sold at retailers and $1.4 billion from digital/online sales.
• Activision had a net revenue of $4.5 billion, with $3.0 billion from packaged goods and $1.5 billion from digital/online sales.

For both companies, digital/online sales surpassed packaged goods sales in terms of net revenue by 2014.

Latest annual report filings reveal the following revenue breakdown:

• In 2022, Activision reported $7.5 billion in net revenue, with only $230 million from packaged goods (3% of total sales).
• In 2023, Electronic Arts reported $7.56 billion in net revenue, with $672 million from packaged goods (8.8% of total sales).

Assuming GameStop still receives 12% of the packaged goods revenue from both companies, this equates to $108 million in annual revenue for GameStop. If we assume a 20% margin on new game sales, GameStop would net $21.6 million in profit per year from selling new video games from these two major publishers.

Currently, GameStop does not disclose the distribution of its sales between packaged goods and digital sales.

I fully understand the bear thesis.

 

[superchuck500]

The entire thing is insane. He sat quiet for 3 years. All while big production movies/documentaries were made. Not one interview. Just quiet.

He’s been sending hidden messages in his tweets too. Check this tweet out:

On the surface it looks just like a hype tweet. But about 2/3rds through the video there is a weird audio sound.

Some diehards on superstonk ran it through an audio signal program and it produced this:


The level of detail in everything he has done is remarkable.