All of GameStop’s nearly $1 billion in cash is now at Ryan Cohen’s unilateral discretion.
RC can now use GameStop’s money to buy stocks of other companies, which may or may not involve any mergers or acquisitions.
What is really interesting and exciting about this, to me, is that it puts “our” money into his hands. It’s our money because we are GME investors, and shareholders are the owners of companies, and GameStop’s money is part of the shareholder equity that belongs to shareholders.
Ryan Cohen has a vision and a strategy, and access to valuable information, and he does not telegraph his strategy to the competition. We don’t know specifically what his intentions are, we don’t know specifically what his strategies are.
What we do know is that our interests are in alignment.
We shareholders are in alignment with the RCEO because he is also a (major) shareholder. If RC makes a move that benefits GameStop, it benefits all GME shareholders including himself and us.
If RC takes a strategic investment opportunity, we are all going along for the ride.
This is pretty great, in my opinion, because assuming that you trust RC, it means all a person needs to do is hold GME, and they will get exposure to whatever strategic investments that RC might make. As for me, I trust that RC has a better capability than myself to wisely invest in any non-GME assets.
Also, it’s pretty funny to me how some financial incumbents find this news to be “alarming”. It’s alarming to them, it scares them. It scares them because they already decided that GameStop is bad and Ryan Cohen is bad, but now Ryan Cohen has even more concentrated control to support his ability to execute his strategy.
I’ve now seen on multiple occasions, the sort of FUDdy counter narrative: now Ryan Cohen has the ability to buy assets that aren’t GME. If he had any faith in his company, he would simply use that money to do a GME share buyback.
What a giveaway.
These opponents want RC to do a GME share buy back. Almost as if, this would be a strategically poor move for GameStop at this time but a good move for GameStop’s opponents. Discussed here is why, as of this time, it would not be a good decision to do a share buyback. The only scenario in which that would actually be a good idea would be if the price of GME tanked very low. Better to hold on to that buyback money as an insurance policy, just in case the share price ever does get tanked. In that case, the waiting cash for the buyback covers the problem.
In the mean time, at current GME prices, there are probably other undervalued opportunities that RC has his sights on, and this is scary to anyone that opposes GameStop’s success.
Nice. Let’s see what he does, if anything. Watching the board and chair work when unencumbered, and then evaluating the results helps investors to gauge trust and allocate their capital accordingly.
Show us the plan Mr. Cohen. Enough moving in silence and the dark. I’m ready for bigger plans and bigger moves toward increasingly positive profitability and returns for shareholders here.
I wouldn’t expect him to start telegraphing his moves now. It’s a big part of his ethos.
His actions speak quite plainly though. Looks like we’re on track for a profitable year.
That’s fair. It does seem to be part of his ethos and I shouldn’t expect a leopard to change its spots. Guess I’m just interested to see more progress.
If it’s profitable this quarter, then I’m in favor of the “moving in silence” bit. If it’s not profitable I’d prefer more clarity, at least on the plans. If not from him, then from the company or another representative. The crypto/web3 stuff seems to have stalled a bit waiting for more regulatory clarity. But if it’s just the calm before the storm of positive moves, then so be it.
Considering q4 is always their best I’m pretty confident on profitability. Christmas, plus January they get Christmas and kids spending Christmas money all in 1 quarter.
It’s a shame about the regulatory delays for the web 3 stuff. But it looks like IMX is on a roll and will finally start having more games next year. I’ve been waiting on Guild of Guardians myself. Should have been out by end of this year, but I’m ok taking delays instead of a buggy release. Games take so long to develop!!
I can’t wait until MOASS in 2133, it’s going to be so lit. I just have to hold these nearly worthless tickets until then. I’m so glad I invested a bunch of money into this and don’t feel conned at all!
I can relate to your resentment. The stock market feels like a con, and that’s because it is. I ask people, unrelated to this community, “Do you think it’s rigged?” Invariably the answer is yes. What do you think can be done? Do you really think selling will help?
I haven’t sold, I didn’t even use the word or suggest it in any way, but it’s been YEARS now with zero signs of anything we uncovered over that time resulting in anything, I’ve just watched my money disappear slowly but surely.
How quickly did you expect Ryan Cohen to turn GameStop around? The conflict against short sellers of Herbalife took five years (“Bill Ackman Surrenders in His Five-Year War Against Herbalife”).
