DRS Your GME

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ΔΡΣ Central

Community to discuss the DRSGME.org project and resources, and how to spread DRS advocacy and information to GameStop investors around the world.

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https://www.drsgme.org/free-resources

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Help me understand (lemmy.dbzer0.com)

submitted 5 months ago by [email protected] to c/[email protected]

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Not a shill, I'm a Jan 21 ape that is mostly DRS'd and still holding.

When AA and AMC were selling shares we were vilifying them.

How is another 75 mil share offering by GME any better? I feel like they're giving the shorts a chance to unwind.

Help me understand, I'm smooth af.

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[–] [email protected] 6 points 5 months ago (1 children)

Adam Aaron keeps diluting, because AMC needs money to pay off debt. Ryan Cohen doesn't need to dilute, since GameStop has no real debt. But he still does it because he's planning on doing something with the money. And considering the amount of it, it is something very big.

People don't seem to understand that "dilution" is a negative term, designed for you to immediately disapprove of it. They aren't just diluting though, they are actually "raising capital". The truth is, that the value of your shares may decrease, but the "lost value" isn't lost. It transforms into a different value, on the portfolio of GME. RC has proven, that he is interested in generating value for shareholders. He also firmly believes in delayed gratification. While the capital he raises goes into building a strong company, the capital that Adam raises goes straight to the banks, paying interest for AMC's debt.

[–] [email protected] 1 points 3 months ago

dilution is a negative term because it means everyone holding that stock watches as their stock becomes less valuable. It's also completely accurate to describe the share offering as dilution because that's exactly what it did. Trying to present the dilution as a positive thing is desperate hopium by followers of the ryan cohen personality cult.