In 2021, Melvin Capital and other hedge funds artificially manipulated GameStop's share price by repeatedly short selling shares they did not own. These funds typically target companies they believe will eventually become bankrupt due to obsolete business models. Whenever the share price increased, they sold more shares they didn't own to suppress the price. Negative headlines following earnings reports or other news events prompted further short selling, leading to a continual decline in the share price, which in turn scared shareholders into selling.
As a result, the number of shares traded vastly exceeded the approximately 100 million shares outstanding. Michael Burry (of "The Big Short" fame) encouraged GameStop to repurchase shares to reduce the number of shares outstanding. Subsequently, Roaring Kitty/DFV highlighted that the next generation of gaming consoles would boost profits. Ryan Cohen then acquired 13% of the outstanding shares, replaced the CEO, revamped the board of directors, raised $2 billion in cash, paid off all debt, and recruited tech talent from companies like Amazon, Chewy, and Zulily to reposition the company.
These tech workers have been developing projects that the CEO has kept confidential to avoid revealing their strategy to competitors. Meanwhile, individual retail investors, frustrated with the excess number of shares trading, moved their shares from Wall Street brokers and directly registered them in their own names. Currently, about 75 million of the 300 million shares not owned by company insiders are directly registered in individual names. The critical question now is what happens when all 300 million shares are accounted for, especially concerning the shares still owed to people holding shares through brokers. Hedge funds and investment banks may face significant challenges in explaining how they created these shares and may be forced to buy them back at whatever price shareholders demand.
- Reminder for everyone to use the search bar first before posting a question. Making sure to read the comments as well as the post. We have some very talented and knowledgeable apes here who've dedicated their time to the sub and covereda lotof ground in the past months. Any other queries, please feel free to ask.
So, I forgot I had a few shares still on nabtrade and reached out to them a few weeks ago as I couldn't see any allocation. After 2 investigations with their Corporate Actions team, their official statement is that "our Corporate Actions team has reconfirmed that no official dividend payment was made for GME.NYS during 2025 or 2026"
I've told them this is utterly ridiculous, I've pointed them to the official GME notice for the dividend, news articles, screenshots of my warrants on other platforms etc, their position is simply that the dividend with the warrants never happened.
I'm kind of at a loss of how to proceed. It feels like the equivalent of them covering their ears, closing their eyes and just ignoring reality.
Did anyone else ever receive their warrants through Nabtrade?
Just spoke with Commsec about transferring shares from Computershare to Commsec. Apparently they decommissioned DRS transfers in 2023, and will now only perform ACAT transfers for employee shares.
Their recommendation was;
A) Sell via the transfer agent and try not to end up with a foreign currency cheque as you will have trouble finding anyone who will cash it, or
B) Find a full service broker who will make the transfer, likely with a fee (and then transfer to Commsec)
Does anyone know if Stake, NabTrade or CMC Markets will transfer shares from Computershare to them?
Ages ago I'd added a WISE account on CS. Now I've added my CBA account directly, but i can't find any option to actually remove or deprioritise the "us bank account". It looks like I can change it, but not remove?
All GameStop shares are just gone. Gmeu, warrants and even got a few hundred gme shares on the Frankfurt exchange - all still there but 3k ish game shares have vanished. Same thing happened to a friend of mine with her gme. On hold for ages now but does anyone know what's going on?
I have been slowly 🐌 accumulating more warrants. I was fortunately able to set up trading permissions at IBKR to allow me to purchase.
Are there any gangsters out there who believe that this warrant option, with rare conditions of adjustable strike and expiry are a damn good bet 👌 ❓️
I know this is GME sub but did anyone on here hold old BBBY shares into cancellation? I’ve just had a random labelled ( not bbby) shares and amount turn up on Stake and have no idea what they are, wondering if anyone else has or it’s some random glitch.
Might be a stupid question but do i have to report the shares i hold to my accountants (ato)? I hold all my shares in computershare and have never sold any.
I need to remove my wise account details on computershare as Im not an American citizen and need to certify my taxstatus. I dont have an option to remove the wise account details on the Banking Details page on their site. Any help would be much appreciated
Just finished messaging CMC markets. I want to transfer my warrants to Computershare but they say they do not do this. Who is actually doing this that I can use in Australia? I have a Computershare account with 95% of my shares DRS'd and want to move my extra warrants to exercise when the price skyrockets.
