So GME (GameStop) has a lot of hub-bub on this stock split thing,
And GME has a way higher short interest historically than Tesla,
Tesla did their stock dividend for a 5-for-1 and that shot Tesla valuation up to the moon.
GME is possibly doing something similar for an even greater split and that will shoot it’s valuation, theoretically, to andromeda. It may do a 7-for-1 split, or some number between 1 and 14.
Here is a post on How Tesla made do with Short Sellers and the Rise of it’s valuation. This post will help you understand how Tesla got to it’s current value, and why Lord Elon is Rich as Fuck.
And here is a side-by-side comparison of the 8K announcements,
GameStop 8K [Stock Split Announcement]:
“On March 31, 2022, GameStop Corp. (the “Company” or “GameStop”) announced its plan to request stockholder approval at the upcoming 2022 Annual Meeting of Stockholders (the “Annual Meeting”) for an increase in the number of authorized shares of Class A common stock from 300,000,000 to 1,000,000,000 through an amendment to the Company’s Third Amended and Restated Certificate of Incorporation (the “Charter Amendment”) in order to implement a stock split of the Company’s Class A common stock in the form of a stock dividend and provide flexibility for future corporate needs. GameStop also intends to request stockholder approval at the Annual Meeting for a new incentive plan (the “2022 Equity Plan”) to support future compensatory equity issuances. If the 2022 Equity Plan is approved by stockholders, it will replace the current GameStop Corp. 2019 Incentive Plan (the “2019 Plan”), and 8,000,000 shares of the Company’s Class A common stock, plus any shares subject to the 2019 Plan that expire, are forfeited, cancelled, terminated or settled in cash after the 2022 Plan is effective, will be available for issuance under the 2022 Plan. GameStop’s Board of Directors has approved both stockholder proposals, but the stock dividend will be contingent on final Board approval.”
Tesla 8k [Stock Split Announcement]:
“PALO ALTO, Calif., August 11, 2020 – Tesla, Inc. (“Tesla”) announced today that the Board of Directors has approved and declared a five-for-one split of Tesla’s common stock in the form of a stock dividend to make stock ownership more accessible to employees and investors. Each stockholder of record on August 21, 2020 will receive a dividend of four additional shares of common stock for each then-held share, to be distributed after close of trading on August 28, 2020. Trading will begin on a stock split-adjusted basis on August 31, 2020.”
Here is an infographic;
to help comprehend how much of a clusterfuck in valuation there is going to be;
Here’s a supplementary post to connect the dots, with a lot of metaphors relating to physics and talk about the other side of the mechanisms at play fighting in this capital-market-war-fare.
Here is another post online by someone else, who also is connecting the dots. Which draws comparisons, and is a good supplemental read to help realize this potential play as well.
As you can see, If GameStop is following similar path of Tesla, then this price and valuation is going to get so good, that Congressional members will inside trade GameStop like they do Tesla. That’s probably what’s going to happen if this thing pops off.
But we won’t know until a little later this year, if at all.
I highly recommend reading my Tesla Post, and how it risen in valuation. If not, then I guess I’ll go fuck myself. Sorry for trying to paint a picture for you.
The TLDR of it all is, Hedgies are Fucked and I wouldn’t want to be short on this train.
Because it looks Long as Fuck.
Price target, somewhere higher than where it is now, probably.
There’s No Safe Bets after all.
Shouldn’t count your chickens till they hatch, but you might as well buy a golden egg.
*Not Valid Financial, Legal, Life, or Any Advice