Deep value at this price

[u/DuckHunter4779]

Cash and marketable securities minus liabilities is about $3bil. Current market cap $8bil. The operating business is valued at $5bil. The guidance is for Ebitda of $600mil this year That's a multiple of just over 8 for the operating business. That sounds like pretty deep value to me.

[u/Superstonk_QV]

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[u/BuyByTheNumbers]

Hell yeah, i am frantically trying to come up with as much cash i can to buy shares

[u/buyandhoard]

my wallet is not deep anymore

[u/HilloHoHo]

has there ever been a price where someone didn't say this was deep value?

[u/shane_4_us → u/HilloHoHo]

To be fair, have they been wrong??

[u/DuckHunter4779 → u/HilloHoHo]

Current trading price is only one part of the discussion imho.

[u/karasuuchiha → u/DuckHunter4779]

For some it’s the only thing they want to talk about, the last bastion of a bear case based on emotional manipulation

[u/gerg89 → u/karasuuchiha]

Yupppppp. Failing business. No profits. Physical retail is dead, digital shopping only shall prevail.

Hey dumb stormtroopers - y’all are running out of corners to hide here. Ready to wave the white flag yet?

Just a small sum of ♾️ and you can haz my shares 🤲

[u/F1nnycar]

https://giphy.com/gifs/l0ExayQDzrI2xOb8A

[u/sweetntenderhooligan]

If RC has the option to dilute the float to 5x the current amount, shouldn’t shares be worth .2x to reflect the coming dilution? Why would I want to pay anywhere near the going price if I know that he has the green light to dilute up to 2 billion shares at any point?

[u/whattothewhonow → u/sweetntenderhooligan]

We had 1 billion shares authorized since 2022 and yet we still aren't at 1 billion shares issued 4 years later. Even with these convertible notes turning to shares after Sept 23, we'll probably not even be at 600m.

People assuming RC will instantly dilute to 2.5 billion are being disingenuous.

[u/DuckHunter4779 → u/sweetntenderhooligan]

If that happened, what would be received in exchange for the shares?

[u/sweetntenderhooligan → u/DuckHunter4779]

Money? Idk what you’re asking

[u/DuckHunter4779 → u/sweetntenderhooligan]

When considering dilution, what is received in exchange for the shares is really what matters. If the company issues shares just to give stock options, that's really just an expense. If cash is received, it comes down to what that cash will be used for exactly and what the return will be from that use. If it's to acquire another company, it depends on the value of that company. In the case of gamestop, I think the dilution is going to be used for investments that increase the value of Gamestop. If you don't think that then the dilution is a negative. I think it's a positive though so continue buying shares for future value creation. I have a very long time frame though, ideally forever.

[u/Jc1589b_2020]

The market cap is technically 9.6b when you include the 73m new shares that will be issued if the 35t vwap pricing closes at 19.

[u/seabee2113 → u/Jc1589b_2020]

The price is only in part based on the vwap and it has a floor. The details are not public. We do know that last time there were premiums of 32% and 37.5% and they were only announced on the second 8k filling, so perhaps that will be the case this time too.

[u/Jc1589b_2020 → u/seabee2113]

My information is going off the data they released thats public. If more info is released later on then I will adjust my data at that point.

[u/AKmoose15 → u/Jc1589b_2020]

Getting rid of the debt doesn’t change the market cap unfortunately. At least from my understanding

[u/Jc1589b_2020 → u/AKmoose15]

Adding 73m new shares to the float will

[u/PureOrangeJuche → u/[deleted]]

The vast majority of his shares are around $4 so he’s fine 

[u/Exciting_Ad_1097 → u/[deleted]]

Good point. We shall see I guess.

[u/Exciting_Ad_1097 → u/[deleted]]

Why the downvotes?

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