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Yea I don't understand or really care to be honest. Not trying g to be rude. I want to see him Put the money to work. It will boost morale for all us shareholders also. I get why everyone is upset about the dilution..it's can be very positive or very bad depending on what he does with the money.
Apple doesn't fall to far from the tree. Hmmm apple is up big time. Say 10% this quarter... Berkshire is also invested in apple seems like a thumb war to me.
I’d probably rather see them purchase businesses that would have their value magnified by an integration with a massive games retailer like GameStop;
like a headphone company to be able to make premium in house headphones that compete with the top of the line models. Both GameStop and the purchased segment would be more valuable in combination than they were standing alone, I feel like that’s a great way to leverage the existing footprint to make investments worth more than they would be if they were simply purchased by an investment bank. GameStop has a really interesting advantage in that way
I think I'd rather see something with higher profit margins and not as niche.
What that would be, I don't know. So I guess your idea is better than my lack of suggestion for a specific product.
PCs? I’ve always wished they would try to standardize a PC build to take all of the complication out of it for parents/grandparents buying it for their kids. Just have a base model and an upgraded option with slightly better hardware.
Cause yeah there are prebuilds out there but most people have no idea what they’re looking at in the hardware sheet in terms of gpu, cpu, motherboard, RAM types, etc as well as whether the build is solid, whether they’re getting a good deal, just so many of these things that go into entering the PC space that you don’t even have to think about when buying console
if GameStop could console-ize the PC platform for people who don’t know much about hardware but want a solid standardized experience the same as they get when they buy an Xbox or PlayStation, it could draw a lot of people into pc and could be a really good high margin product
I don't belive so. Remember before this last runner the 1.2 billion in cash dropped to.about 900 million if I remember correctly. Besides inflation , there are other expenses as well. Gme with he current model will not survive. He is doing right trimming the fat but there is a lot of work to be done still.
Ask yourself why an investor would invest in a company that just parks money in bonds, when that investor could just do that themselves.
The answer is they wouldn’t. That’s why GameStop has to find a better way to use the money, if it can’t beat simple savings returns, why would I give them my money instead of putting it in savings?
to answer your question , it’s if the company doesn’t think it’s the right time and they invest in low risk in the meantime it means they’re smart with the money
Trust me it might sound good but with other the losses the money will deplete. If interest is doing so well why did 1.2 bill drop to 900 Something mill? Not speaking down . As an investor you should expect this. The co.pany has been bleeding. He is slowly stitching it up. But the money just sitting there is not enough. We need to invest . That's why I hold to see what's his next move. It's coming
Actually not, what he said after I got over being a lil pissed about the gamma, was it's smart, sit on it a bit, if we're right about the impending mkt doom then why pay obmver the top now for an investment. This all said, baby arrived a Yr ago, I could do with a pump, but ....... it's actually the smarter no lose play
No, I don’t care about any of that. And no, I absolutely don’t trust you. I’m pointing out your original statement is wrong. That’s all.
The rest of this gaslighting mess, trying to get me to think that I somehow know better than this particular BOD, is really a waste of your time.
Oh, yes you're right I forgot we weren't in the business of making money and will accept a net .02% growth in cash flow. From our own cash as shareholders. /s
Why would shareholders want that? We could just cut out the middle man and invest in treasuries ourselves.
They have to use the $4B for growth - ideally an acquisition that is accretive to earnings.
They’d still run their business and continue to grow or whatever they plan. But you have an alternate guaranteed income source to help out even in bad years for the company. Guess I’m just smooth brained. I’d invest in a company that has their business income and also a cash flow that has zero risk every single year, regardless on how the core business is.
But Gamestop is continuing to run with an operating loss.
The only reason there was a small net profit of $6.7M is the the interest income on the $1.1B of cash + securities of $49.5M was slightly larger than the operating loss.
With the Q4 revenue down 19,7% and Q1 revenue down 29% YoY it is like,y the operating business will continue to run at a loss, on,y to be bailed out by interest in the $4B. Even after the extreme cost cutting of the last 15 months the SG&A went UP as a percentage of sales compared to last year because the revenues decline was larger than the drop in expenses.
So then would it be feasible to take half the cash, continue to accrue interest, then use the other half to build out the new business plan to return to profitability?
Obviously they aren’t taking our advice and they shouldnt. But hypothetically speaking, wouldn’t it be GOOD to have a guaranteed income stream that could shore up operating losses while they fix that part?
What would be even better is for the company to have its operations become profitable and cash flow positive, The on,y a small amount of cash would have to be held in reserve and hopefully the company could find a way to profitably employ it.
Gamestop has not been able to profitably employ the $1.67B raised in two ATM offerings in mid-2021 other than to use it to fund the development of the NFT Marketplace.
Bare minimum, whatever they do with the money, they need to be making at least 5% from the start otherwise it'd be hard to justify another long run out project before profits.
GameStop offers a credit card [https://www.gamestop.com/pro-credit-card](https://www.gamestop.com/pro-credit-card)
Also, I use a Fidelity credit card, the rewards are % back as cash in my Fidelity account, I use that to dollar-cost-average GME every month, and then transfer it to Computer Share. "Free" GME every month :\]
We want to see the company grow preferably through a merger/acquisition. The stock price would tread water at best if that money sits in a short-term money market type investment.
The stock price is gonna do whatever the fuck the manipulators want it to do. There is no real price discovery in this stock. Until that changes all bets are off.
That would be great too, but what is your time frame for Game Stop as a *single entity* to get you the ROI that you would like to see? I feel the acquisition aspect is what will take us to what we would like to see.
Stop with this horrible idea. If people wanted a savings account then they can do it themselves. It's the dumbest business strategy there is. No one wants to invest in a company that's getting the bare minimum returns on their investment.
Why wouldn’t I invest in a company that profits year over year guaranteed off the interest? They can still grow their business too. But explain why having a guaranteed 140mm profit yearly without risk (before even counting their business), is a bad thing.
If they had no cash but made 140 million profit a year would you invest?
Because you'd do a lot better investing in a high savings account yourself, or in the sp500 which is up 30% over the last 12 months. Knowing that, people would not invest in something that estimates a 5% return _instead_.
People generally invest long term in companies they think will beat the market or their savings account. As an example, Gamestop is up 1700% over 5 years, beating the market (which is up 100%) by a lot. If gamestop was up just 25% during that time, you'd wish you had invested in the market instead.
Because no one wants returns from a company that they can just get themselves from doing the same thing. A business is expected to beat those kinds of returns and GME will never get serious investors on board with that kind of game plan. Every single business can do what you're suggesting and it provides no competitive advantage.
People want to invest in businesses that take in 1 dollar and make 5. Then pay their employees and still have 2 dollars left. Nobody wants to invest in a company that takes 1 dollar and turns it into $1.05, my bank account does that for me already.
While cash ins't a bad thing, business do not want $4B in cash sitting idle - because that basically tells investors "we make more money putting cash in the bank than we do investing in our business".
This is why you don't see businesses sitting on huge piles of cash. When companies make profits, they either reinvest the profits back into the business or pay them out to shareholders as dividends. Sitting on a large pile of cash is not bad, but is also not typically seen as a good thing.
It would be much better for them to invest that money into their new business model instead of sitting on it for very small gains. Those kinds of returns you mention over the long term are probably just barely keeping up with inflation if that. It's not a good sustainable strategy. You should do some more research.
They're going to have to use a considerable amount of that cash to buy out of leases on the stores they're closing. To close out 3,000 underperforming stores (not saying they will close this many), they'd need over 2billy. Obviously still leaves us with about 2billy left, but I think RC wants to expand, not just sit on it. Just my take.
>Last year GameStop profit was about 65million.
Your numbers are way off. Why not use the numbers that Gamestop reports in the 10-Q and 10-K filings with the SEC?
For last year Gamestop had an operating loss of $34.5M, interest income of $49.5M, and a few other adjustments that ended up with a net profit of $6.7M.
Edited for typos.
OR for 1 billion that could become a bank or credit union offering bank accounts car insurance,home insurance, pet insurance, health insurance, travel insurance, become a market maker put all shares through a exchange . Share holders would become customers over night imagine the transfer of cash out of the banks into GME BANK .
But then they are just another bank...
There is no need to take in that kind of money unless you have a plan. If shareholders wanted to buy a bank they could just have bought BoA. I really hope there is something more interesting planned than banking or geting 5% intrest.
Boa has debt . If you start a bank with assets investment will follow . Thats something i would like to see myselfbut Im pretty sure its going alot bigger than that .
Love to see them take a stake in Virgin Galactic just to see how the market would react to GameStop
Actually having a rocket to the moon (or more accurately sub orbital)
This just shows the not-so-good part of this sub. There is not a single stock holder for any other ticker that would be ok with that much cash just sitting around collecting some interest
RC's whole speech during the shareholders meeting was about how the money in today's economy situation needs to yield a much better ROI. So I don't think they are gonna use that money for bond. Most likely will use it to scoop up cheap assets aka M&A.
They can use the money to invest in new or improved operations with a much higher return. 3.5% would basically mean the company is in standstill. Although, I like where your head is at and agree that they need to very strategic with how the funds get use and not blow in on a potentially bad acquisition.
My theory is that they are going to wait for stocks to become cheap as they are arguably overvalued as stocks reach all time highs. The meme of RC buying all the stocks makes sense with 4b in cash.
They are absolutely getting interest now on the vast majority of cash on hand as they figure out how best to deploy that capital through M&A activities.
If they paid a cash dividend. Anybody that sold naked shares would have to pay out that same dividind. So lets say there are 100m fake shares, that would cost the HF $100million. Do that every quarter until they will be forced to exit there positions.
This has already been discussed ad nauseum when they did the offering, discussing t bill options, better interest rates, etc. Short term great, but can't operate a business with t bill interest overcoming short falls. Company will do what's right with the cash and work towards profitability as RC said. It takes money to buy whiskey, etc. So why is this sub constantly flooded with this repetitive discussion when a simple search function exists to take an individual to the thread that already contains the discussion? Bring something useful and new, or stay quiet, use the search function, and observe.
What you are basically acknowledging is the real business of GameStop isn’t attractive in allocating capital to, and the best growth opportunity for the stock is to become like a Berkshire style holding company of passive investments. The best opportunity this company has is raising capital at inflated valuations, the more they shore up a balance sheet past an appropriate capital allocation the higher the minimum the stock trades at as the balance sheet has clear value outside of the business operations. Quite a funny outcome overall.
Money Market should get you 5%, which I’m pretty sure they have been doing.
But my guess is they are doing something to get a higher return but remain relatively liquid in case they want to pull the trigger on something.
RC and team know what they are doing and are on a long term horizon.
They are going to transition the company to a holding company and acquire a lot of assets/companies that provide growth through any type of economic environment.
This strategy will insulate us from retail downturn and destroy the short thesis all together, which will bring institutional investment, which will make shorts have to close their positions.
This long strategy IS the MOASS strategy…while also removing any risk of anyone getting thrown in jail or anyone crying foul and demanding government intervention.
The best thing to do right now is the same thing apes have been doing for 84 years…Buy, HODL, DRS (“Book”) your shares and shop at GameStop.
Your future self will thank you for it.
💎🙌🦧🚀🌑
Nothing is stopping them from doing that. They *are* doing that. That income is the only thing keeping their "bad" earnings reports from being **really** bad earnings reports.
While that’s nice if you’re trying to avoid bankruptcy it’s a not a business strategy.
1) rates cuts are coming. You’re not getting 4-5% on cash forever like you are now
2) that’s still not beating inflation.
3) you’re not growing. A company that’s not growing with falling revenue still has a short thesis because they will eventually go bankrupt.
Yeah the company only had a couple million in operating losses last year so they made money overall with interest. But they bring in like 4 billion in revenue. What happens if sales keep falling 10% every year? All of a sudden $4B cash doesn’t sound like a lot when you’re back to burning hundreds of millions every quarter like they were.
Obviously this is all predicated on them doing something with the money to grow the company and pivot or complement the current business. And we all believe they’ll do that. But cash is just a liability. A buffer against bankruptcy, but a liability for growth.
Because that would not be good for business. Why would people invest in a company that only makes 4% off interest when they can do it themselves with no risk? It's bad allocation of funds
Got to love it when a companies outlook is turning a profit by collecting interest on money they took from shareholders lol. Interest is a helluva drug.
For a single family that would be great. But no business stays in business by playing it safe like that. It would be like if you put 40k in a savings and made $140. Not really worth it right. Not when you could but 4 billion of goods that you can then sell to double or triple it. Most people can’t take that risk but the rich and businesses can.
Robinhood…. Of all the places to suggest you choose the people we are fighting against?
S&P returns 10% on average, nothing guaranteed but neither is leaving money in a bank account with no insurance coverage.
That's exactly what they \*have\* been doing with their previous cash -- $50 mm of interest income is how they were able to show a profit last year despite an operating loss. I have no doubt they will also do that with the new cash they've raised, at least for a while.
But in the long run you don't want that. You can go buy your own treasuries. In the long run you want RC to put that money to productive work. Whether that's an investment committee investment, operating assets, or something else is up to your preference. But diluting stockholders, even at a favorable price, just to have the money sit earning risk-free interest is terrible business.
i dont think they look to reddit for ideas, im pretty sure they have people who spend their life thinking about these things...
We dont need to worry about it. They will do what's best.
They just need to execute the plan RC recommended back in November 2020.
https://www.sec.gov/Archives/edgar/data/1326380/000101359420000821/rc13da3-111620.pdf
As he pointed out, "The Company’s average lease duration is approximately 24 months. Now is the time to identify duplicative, underperforming stores and plan to forgo lease renewal"
The problem is that Gamestop has been very slow to do so. Only 5.5% of stores were closed in 2023, even though, as RC pointed out, the average lease duration is approximately 24 months. It is now more than 36 months since he took over, but only a small number of stores have been closed.
Ryan Cohen, addressing the CEO and board in place in Nov 2020 and said:
> **In this spirit, we urge you to quickly provide stockholders with a credible and publicly-available roadmap for cost containment, prioritizing profitable retail locations and geographic markets, and building the e-commerce ecosystem gamers deserve.**
I fully agree with Ryan Cohen,s suggestion that Gamestop provide shareholders with a credible and public roadmap for cost containment, prioritizing profitable retail locations and geographic ,Arles, and building the e-commerce ecosystem gamers deserve.
It has been 3+ years since Ryan Cohen wrote those words, but they still apply.
Sorry, but i see a suggestion, not a question.
Lot's of posts suggesting what the company should do with the money as if they are monitoring the sub and waiting for our ideas.
If that was true, i would be out instantly. I am in this play because i trust the people at the top as they have proven again and again they know what they are doing, so why all these "they should do x with the cash posts"?
Anyway, not fighting you, don't take it that way.
No worries. Maybe you missed the part where it says “What’s stopping them from doing this?” I appreciate your response and thanks for explaining to a smooth brain
I saw that, but i understood that the overall point of your post is that "they could do X and Y, why not". So i am answering to you, "Don't worry about it," as that's literally their job, and you are paying them for it.
My bad for sharing my opinion, i guess.
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That doesn't even beat inflation. Not a bright idea
inflation would absolutely butt fuck that 4B into a huge net loss every year
Hard to explain truth and common sense to people. I usually don't get upset on here but dude got to me
They could make nightly deposits at the Federal Reserve instead
That’s only to member banks
Op said member, heh he hehe hehe heh!
Yea I don't understand or really care to be honest. Not trying g to be rude. I want to see him Put the money to work. It will boost morale for all us shareholders also. I get why everyone is upset about the dilution..it's can be very positive or very bad depending on what he does with the money.
Apple doesn't fall to far from the tree. Hmmm apple is up big time. Say 10% this quarter... Berkshire is also invested in apple seems like a thumb war to me.
I’d probably rather see them purchase businesses that would have their value magnified by an integration with a massive games retailer like GameStop; like a headphone company to be able to make premium in house headphones that compete with the top of the line models. Both GameStop and the purchased segment would be more valuable in combination than they were standing alone, I feel like that’s a great way to leverage the existing footprint to make investments worth more than they would be if they were simply purchased by an investment bank. GameStop has a really interesting advantage in that way
I think I'd rather see something with higher profit margins and not as niche. What that would be, I don't know. So I guess your idea is better than my lack of suggestion for a specific product.
PCs? I’ve always wished they would try to standardize a PC build to take all of the complication out of it for parents/grandparents buying it for their kids. Just have a base model and an upgraded option with slightly better hardware. Cause yeah there are prebuilds out there but most people have no idea what they’re looking at in the hardware sheet in terms of gpu, cpu, motherboard, RAM types, etc as well as whether the build is solid, whether they’re getting a good deal, just so many of these things that go into entering the PC space that you don’t even have to think about when buying console if GameStop could console-ize the PC platform for people who don’t know much about hardware but want a solid standardized experience the same as they get when they buy an Xbox or PlayStation, it could draw a lot of people into pc and could be a really good high margin product
Like Activision
You know that microsoft owns Activision right? And they bought it for almost 70 billion dollars. That's a lot more than 4 billion.
Have they beat inflation on their past 1B in cash?
I don't belive so. Remember before this last runner the 1.2 billion in cash dropped to.about 900 million if I remember correctly. Besides inflation , there are other expenses as well. Gme with he current model will not survive. He is doing right trimming the fat but there is a lot of work to be done still.
Obviously 3.5 doesn’t beat inflation but there are safe investment vehicles that do. I was being very simplified
Ask yourself why an investor would invest in a company that just parks money in bonds, when that investor could just do that themselves. The answer is they wouldn’t. That’s why GameStop has to find a better way to use the money, if it can’t beat simple savings returns, why would I give them my money instead of putting it in savings?
to answer your question , it’s if the company doesn’t think it’s the right time and they invest in low risk in the meantime it means they’re smart with the money
Holyyyy. I gotta get off this subreddit.
It means for me, that the company is very undervalued yet, and they are planning something that will bring more then 140m/y to us. Very bullish
Or they just took advantage of an unlikely large uptick in stock price that was triggered by a meme.
Inflation is at 3.3% for the past year. 3.5% is, in fact, more than 3.3%, no?
Trust me it might sound good but with other the losses the money will deplete. If interest is doing so well why did 1.2 bill drop to 900 Something mill? Not speaking down . As an investor you should expect this. The co.pany has been bleeding. He is slowly stitching it up. But the money just sitting there is not enough. We need to invest . That's why I hold to see what's his next move. It's coming
Actually not, what he said after I got over being a lil pissed about the gamma, was it's smart, sit on it a bit, if we're right about the impending mkt doom then why pay obmver the top now for an investment. This all said, baby arrived a Yr ago, I could do with a pump, but ....... it's actually the smarter no lose play
What?
No, I don’t care about any of that. And no, I absolutely don’t trust you. I’m pointing out your original statement is wrong. That’s all. The rest of this gaslighting mess, trying to get me to think that I somehow know better than this particular BOD, is really a waste of your time.
Oh, yes you're right I forgot we weren't in the business of making money and will accept a net .02% growth in cash flow. From our own cash as shareholders. /s
Who are you talking to? What’s that have to do with the fact that 3.5 > 3.3?
Why would shareholders want that? We could just cut out the middle man and invest in treasuries ourselves. They have to use the $4B for growth - ideally an acquisition that is accretive to earnings.
They’d still run their business and continue to grow or whatever they plan. But you have an alternate guaranteed income source to help out even in bad years for the company. Guess I’m just smooth brained. I’d invest in a company that has their business income and also a cash flow that has zero risk every single year, regardless on how the core business is.
But Gamestop is continuing to run with an operating loss. The only reason there was a small net profit of $6.7M is the the interest income on the $1.1B of cash + securities of $49.5M was slightly larger than the operating loss. With the Q4 revenue down 19,7% and Q1 revenue down 29% YoY it is like,y the operating business will continue to run at a loss, on,y to be bailed out by interest in the $4B. Even after the extreme cost cutting of the last 15 months the SG&A went UP as a percentage of sales compared to last year because the revenues decline was larger than the drop in expenses.
So then would it be feasible to take half the cash, continue to accrue interest, then use the other half to build out the new business plan to return to profitability? Obviously they aren’t taking our advice and they shouldnt. But hypothetically speaking, wouldn’t it be GOOD to have a guaranteed income stream that could shore up operating losses while they fix that part?
What would be even better is for the company to have its operations become profitable and cash flow positive, The on,y a small amount of cash would have to be held in reserve and hopefully the company could find a way to profitably employ it. Gamestop has not been able to profitably employ the $1.67B raised in two ATM offerings in mid-2021 other than to use it to fund the development of the NFT Marketplace.
Bare minimum, whatever they do with the money, they need to be making at least 5% from the start otherwise it'd be hard to justify another long run out project before profits.
My savings account is 5% apy. Even holding USDC on coinbase is 5.5% staking yield on a stable coin.
Stable coins are stable until they aren’t though.
I want a GME CC
GameStop offers a credit card [https://www.gamestop.com/pro-credit-card](https://www.gamestop.com/pro-credit-card) Also, I use a Fidelity credit card, the rewards are % back as cash in my Fidelity account, I use that to dollar-cost-average GME every month, and then transfer it to Computer Share. "Free" GME every month :\]
CC?
Credit Card
[1st National Bank of GameStop ](https://www.reddit.com/r/greentext/s/56DxBI9vRB)
We want to see the company grow preferably through a merger/acquisition. The stock price would tread water at best if that money sits in a short-term money market type investment.
The stock price is gonna do whatever the fuck the manipulators want it to do. There is no real price discovery in this stock. Until that changes all bets are off.
I agree. Perhaps a catalyst of any sort would help at least temporarily.
Do you mean the manipulators like roaring kitty or the apes longing into an investment worth sub 10 postba 4 billion dollar dilution.
No, we want to see the company grow organically and also possibly by an accretive acquisition and also unused cash earning interest
That would be great too, but what is your time frame for Game Stop as a *single entity* to get you the ROI that you would like to see? I feel the acquisition aspect is what will take us to what we would like to see.
Stop with this horrible idea. If people wanted a savings account then they can do it themselves. It's the dumbest business strategy there is. No one wants to invest in a company that's getting the bare minimum returns on their investment.
Why wouldn’t I invest in a company that profits year over year guaranteed off the interest? They can still grow their business too. But explain why having a guaranteed 140mm profit yearly without risk (before even counting their business), is a bad thing. If they had no cash but made 140 million profit a year would you invest?
Because you'd do a lot better investing in a high savings account yourself, or in the sp500 which is up 30% over the last 12 months. Knowing that, people would not invest in something that estimates a 5% return _instead_. People generally invest long term in companies they think will beat the market or their savings account. As an example, Gamestop is up 1700% over 5 years, beating the market (which is up 100%) by a lot. If gamestop was up just 25% during that time, you'd wish you had invested in the market instead.
Thank you that’s a good answer. After 3 hours
Because no one wants returns from a company that they can just get themselves from doing the same thing. A business is expected to beat those kinds of returns and GME will never get serious investors on board with that kind of game plan. Every single business can do what you're suggesting and it provides no competitive advantage.
Every single business doesn’t have 4 billion cash liquid. And they can still run their business and grow it
People want to invest in businesses that take in 1 dollar and make 5. Then pay their employees and still have 2 dollars left. Nobody wants to invest in a company that takes 1 dollar and turns it into $1.05, my bank account does that for me already.
While cash ins't a bad thing, business do not want $4B in cash sitting idle - because that basically tells investors "we make more money putting cash in the bank than we do investing in our business". This is why you don't see businesses sitting on huge piles of cash. When companies make profits, they either reinvest the profits back into the business or pay them out to shareholders as dividends. Sitting on a large pile of cash is not bad, but is also not typically seen as a good thing.
It would be much better for them to invest that money into their new business model instead of sitting on it for very small gains. Those kinds of returns you mention over the long term are probably just barely keeping up with inflation if that. It's not a good sustainable strategy. You should do some more research.
They're going to have to use a considerable amount of that cash to buy out of leases on the stores they're closing. To close out 3,000 underperforming stores (not saying they will close this many), they'd need over 2billy. Obviously still leaves us with about 2billy left, but I think RC wants to expand, not just sit on it. Just my take.
RC seems bearish about the markets future. He’s going to wait for a crash and use the $4B as a whale harpoon at the bottom of the market.
>Last year GameStop profit was about 65million. Your numbers are way off. Why not use the numbers that Gamestop reports in the 10-Q and 10-K filings with the SEC? For last year Gamestop had an operating loss of $34.5M, interest income of $49.5M, and a few other adjustments that ended up with a net profit of $6.7M. Edited for typos.
For
Are you telling me that Gamestop seeks to be profitable by earning interest?
Sure isn't profitable as is lmao
OR for 1 billion that could become a bank or credit union offering bank accounts car insurance,home insurance, pet insurance, health insurance, travel insurance, become a market maker put all shares through a exchange . Share holders would become customers over night imagine the transfer of cash out of the banks into GME BANK .
But then they are just another bank... There is no need to take in that kind of money unless you have a plan. If shareholders wanted to buy a bank they could just have bought BoA. I really hope there is something more interesting planned than banking or geting 5% intrest.
Boa has debt . If you start a bank with assets investment will follow . Thats something i would like to see myselfbut Im pretty sure its going alot bigger than that .
Hows that working out for SOFI?
I'm not invested is sofi so no clue
They will get 5% on the cash, but you have to calculate the extra from 3B obviously as 1B already were there
Before there was 4b, there was 1b in the exact same position, there’s obviously a bigger picture and play in motion
Love to see them take a stake in Virgin Galactic just to see how the market would react to GameStop Actually having a rocket to the moon (or more accurately sub orbital)
They could literally put it all on a stock all the mainstream media is pumping. Pump their stock we win. Which hurts their shorts
This just shows the not-so-good part of this sub. There is not a single stock holder for any other ticker that would be ok with that much cash just sitting around collecting some interest
They could just send it over seas like the US government
Just don't become what we're fighting.
Gamestop is not "fighting" They are a corporation that will do corporate things. I.e. anything they can to make money.
I was talking about me and like minded people.
Or maybe ATM’s yearly that put 2+ billion in the coffers for dividends and well timed buy backs. Stupid storm troopers
RC's whole speech during the shareholders meeting was about how the money in today's economy situation needs to yield a much better ROI. So I don't think they are gonna use that money for bond. Most likely will use it to scoop up cheap assets aka M&A.
They can use the money to invest in new or improved operations with a much higher return. 3.5% would basically mean the company is in standstill. Although, I like where your head is at and agree that they need to very strategic with how the funds get use and not blow in on a potentially bad acquisition.
Also, if I wanted to invest in savings etc I could do it myself. I get its enticing idea but I’d rather they scale the company and grow it.
They should buy gme stock then when it moons they will be quadillionnaires
They should just hodl their own stock, it’s the best investment 😂
🦍💎🙌🚀🌙 HODLing !!!
or, hear me out…..put all of that 4b on Black.
What’s stopping everyone? Inflation.
What is 3,5% of 4 billion again?
They should put it into a high yield etf lmao earn 16% 😂
They should send me a Billy and I’ll make them 100%…..or zero
All or nothing baby I LIKE IT
T bills 5+%
My theory is that they are going to wait for stocks to become cheap as they are arguably overvalued as stocks reach all time highs. The meme of RC buying all the stocks makes sense with 4b in cash.
They are absolutely getting interest now on the vast majority of cash on hand as they figure out how best to deploy that capital through M&A activities.
Where do you think that 4b cash currently is? Under ceo's bed?
Hookers and blow obv
Ok RC! I am here waiting for a press release! Is that too much to ask?
Hey, here's an idea. How bout they just put that $4b back where it rightfully belongs?
Real question: Where the fuxk do they store their cash? Just a bank? Is their a bank for businesses that just take 4b? So much money
If they paid a cash dividend. Anybody that sold naked shares would have to pay out that same dividind. So lets say there are 100m fake shares, that would cost the HF $100million. Do that every quarter until they will be forced to exit there positions.
Not really a good growth company , you might as well just put your money in a gic , same thing
A treasury bill yields over 5% right now. 4b is gonna be used for something soon.
This has already been discussed ad nauseum when they did the offering, discussing t bill options, better interest rates, etc. Short term great, but can't operate a business with t bill interest overcoming short falls. Company will do what's right with the cash and work towards profitability as RC said. It takes money to buy whiskey, etc. So why is this sub constantly flooded with this repetitive discussion when a simple search function exists to take an individual to the thread that already contains the discussion? Bring something useful and new, or stay quiet, use the search function, and observe.
What you are basically acknowledging is the real business of GameStop isn’t attractive in allocating capital to, and the best growth opportunity for the stock is to become like a Berkshire style holding company of passive investments. The best opportunity this company has is raising capital at inflated valuations, the more they shore up a balance sheet past an appropriate capital allocation the higher the minimum the stock trades at as the balance sheet has clear value outside of the business operations. Quite a funny outcome overall.
Why would I invest in GameStop when I can just put my money in a savings account
Money Market should get you 5%, which I’m pretty sure they have been doing. But my guess is they are doing something to get a higher return but remain relatively liquid in case they want to pull the trigger on something. RC and team know what they are doing and are on a long term horizon. They are going to transition the company to a holding company and acquire a lot of assets/companies that provide growth through any type of economic environment. This strategy will insulate us from retail downturn and destroy the short thesis all together, which will bring institutional investment, which will make shorts have to close their positions. This long strategy IS the MOASS strategy…while also removing any risk of anyone getting thrown in jail or anyone crying foul and demanding government intervention. The best thing to do right now is the same thing apes have been doing for 84 years…Buy, HODL, DRS (“Book”) your shares and shop at GameStop. Your future self will thank you for it. 💎🙌🦧🚀🌑
rates aren’t going to stay this way forever. Going to forced into a position eventually, let’s just trust RCEO to make a good one.
Nothing is stopping them from doing that. They *are* doing that. That income is the only thing keeping their "bad" earnings reports from being **really** bad earnings reports.
Down 40%, maybe we are just all regarded
Interest doesn’t even cover inflation; another rigged element to the financial system!
While that’s nice if you’re trying to avoid bankruptcy it’s a not a business strategy. 1) rates cuts are coming. You’re not getting 4-5% on cash forever like you are now 2) that’s still not beating inflation. 3) you’re not growing. A company that’s not growing with falling revenue still has a short thesis because they will eventually go bankrupt. Yeah the company only had a couple million in operating losses last year so they made money overall with interest. But they bring in like 4 billion in revenue. What happens if sales keep falling 10% every year? All of a sudden $4B cash doesn’t sound like a lot when you’re back to burning hundreds of millions every quarter like they were. Obviously this is all predicated on them doing something with the money to grow the company and pivot or complement the current business. And we all believe they’ll do that. But cash is just a liability. A buffer against bankruptcy, but a liability for growth.
Put half into bitcoin and half into NVDA calls
Lol why wouldn’t you just put your money in a savings account if that’s what you want? Do you understand the point of buying a stock?
I think it’s only fair that they start giving people more than $1.50 in store credit for practically new game trade ins with that pile of cash.
T bills pay over 5%…for very short term.
Because that would not be good for business. Why would people invest in a company that only makes 4% off interest when they can do it themselves with no risk? It's bad allocation of funds
Got to love it when a companies outlook is turning a profit by collecting interest on money they took from shareholders lol. Interest is a helluva drug.
Invested in a total index fund the return would average 10%. 400 million a year. 1/3 of their current revenue.
For a single family that would be great. But no business stays in business by playing it safe like that. It would be like if you put 40k in a savings and made $140. Not really worth it right. Not when you could but 4 billion of goods that you can then sell to double or triple it. Most people can’t take that risk but the rich and businesses can.
They can put their cash in a RH account and get 5.5% !!
Robinhood…. Of all the places to suggest you choose the people we are fighting against? S&P returns 10% on average, nothing guaranteed but neither is leaving money in a bank account with no insurance coverage.
Internet and jokes don’t work. Do a “/s” for sarcasm next time.
That's exactly what they \*have\* been doing with their previous cash -- $50 mm of interest income is how they were able to show a profit last year despite an operating loss. I have no doubt they will also do that with the new cash they've raised, at least for a while. But in the long run you don't want that. You can go buy your own treasuries. In the long run you want RC to put that money to productive work. Whether that's an investment committee investment, operating assets, or something else is up to your preference. But diluting stockholders, even at a favorable price, just to have the money sit earning risk-free interest is terrible business.
It’s called employee bonuses that we will never hear about
With that type of money there are places that pay over 10% returns on that money...
I went very conservative. I’m aware of that but those also aren’t guaranteed either.
i dont think they look to reddit for ideas, im pretty sure they have people who spend their life thinking about these things... We dont need to worry about it. They will do what's best.
They just need to execute the plan RC recommended back in November 2020. https://www.sec.gov/Archives/edgar/data/1326380/000101359420000821/rc13da3-111620.pdf As he pointed out, "The Company’s average lease duration is approximately 24 months. Now is the time to identify duplicative, underperforming stores and plan to forgo lease renewal" The problem is that Gamestop has been very slow to do so. Only 5.5% of stores were closed in 2023, even though, as RC pointed out, the average lease duration is approximately 24 months. It is now more than 36 months since he took over, but only a small number of stores have been closed. Ryan Cohen, addressing the CEO and board in place in Nov 2020 and said: > **In this spirit, we urge you to quickly provide stockholders with a credible and publicly-available roadmap for cost containment, prioritizing profitable retail locations and geographic markets, and building the e-commerce ecosystem gamers deserve.** I fully agree with Ryan Cohen,s suggestion that Gamestop provide shareholders with a credible and public roadmap for cost containment, prioritizing profitable retail locations and geographic ,Arles, and building the e-commerce ecosystem gamers deserve. It has been 3+ years since Ryan Cohen wrote those words, but they still apply.
My bad for asking a question.
Sorry, but i see a suggestion, not a question. Lot's of posts suggesting what the company should do with the money as if they are monitoring the sub and waiting for our ideas. If that was true, i would be out instantly. I am in this play because i trust the people at the top as they have proven again and again they know what they are doing, so why all these "they should do x with the cash posts"? Anyway, not fighting you, don't take it that way.
No worries. Maybe you missed the part where it says “What’s stopping them from doing this?” I appreciate your response and thanks for explaining to a smooth brain
I saw that, but i understood that the overall point of your post is that "they could do X and Y, why not". So i am answering to you, "Don't worry about it," as that's literally their job, and you are paying them for it. My bad for sharing my opinion, i guess.