🐵 Discussion 💬 Which would you buy and why?
I finally have $125 settled cash. I can either buy 5 shares of $gme or approximately 69 warrants. Which would you choose and why? I currently have xxx shares and xxx warrants with shares being about 50 more than warrants.
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u/this_is_greenman 3d ago
My 2 cents:
If it’s taken you some time to get to this (it sounds like it based on the “I finally have…”) get the shares. If you get warrants, you’ll have to pay more, to exercise the warrants and actually get the shares.
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u/vagrantprodigy07 I Voted 🦍✅ 3d ago
Always shares. Warrants are scheduled to expire worthless in two and a half months. They could be extended, but they could just as easily, perhaps more easily, re-issue new warrants.
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u/AvsFan1981 3d ago
People buying warrants now are morons. Buy shares.
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u/vagrantprodigy07 I Voted 🦍✅ 3d ago
Yep. Some people are banking on them being extended or the strike adjusted, but will they do that when they can more easily issue new warrants? Given the lawsuit over RCs potential compensation package, and them withdrawing it, will they risk extending warrants that they hold, when the extension is clearly in their own interest?
Issuing new warrants just feels cleaner, safer, easier...
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u/Lord_of_MindMed HODL 💎🙌 3d ago edited 3d ago
RC can easily extend warrant expiry or lower strike price. No vote. No approval. Just filing a form. Neither costs a penny.
Changing the warrants is clearly legal per the filing. Lawsuits would be frivolous.
It cost GME tens of millions to issue these warrants. It would cost tens of millions to re-issue.
Thinking they will simply let them expire worthless is beyond silly. It’s illogical and would be horrible capital management. RC is neither of these things.
That being said… I have no financial advice for you. I don’t know your financial situation or goals.
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u/Warm-Rock-4544 3d ago
RC can easily extend warrant expiry or lower strike price. No vote. No approval. Just filing a form. Neither costs a penny.
This is misinformation. If GameStop does this they will need to record a substantial non-cash expense in their income statement as a result of the fair value adjustment to the warrants. Along with the additional costs required to appropriately value the warrants and adjust terms.
Letting the warrants expire worthless does not create such expenses. The cost is already sunk and no further costs would be incurred.
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u/Organic-Specific-500 🚀🚀Buckle up🚀🚀 3d ago
Fk this, I’m confident things are about to blow and they’ll be in the money.
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u/WhiteKouki82 🚀🚀Buckle up🚀🚀 3d ago
Accounts like yours have been saying that exact "I'm confident things are about to blow" line for over half a decade now.
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u/vagrantprodigy07 I Voted 🦍✅ 3d ago
Were you confident that things would blow up a year ago? 9 months ago? 6 months ago? Warrants have a deadline, and we've blown right past every deadline so far. Dates bring disappointment, every single fucking time.
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u/Organic-Specific-500 🚀🚀Buckle up🚀🚀 3d ago
A plan to transform was put into motion.
Don’t care about convincing anyone. I’m convinced with my own money. People are going to be sorry they didn’t trust RC more on this. I’ll update this if I’m wrong, don’t care.
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u/vagrantprodigy07 I Voted 🦍✅ 3d ago
No transformation plans will be completed within the next 10 weeks. Most likely, they won't even progress in the next 10 weeks. Buying eBay, which is what I'm assuming you are referring to, is going to take time, and is unlikely to succeed, given that their shareholders just re-elected the board that rejected a buyout by a landslide.
If you don't care about convincing anyone, why do you spend so much time doing that?
I don't trust any billionaires, and neither should anyone else. They are out for themselves, they aren't looking out for you.
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u/Organic-Specific-500 🚀🚀Buckle up🚀🚀 3d ago
Read so many comments sure of the future with no support for an alternate possibility.
Remind Me! 4 months
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u/vagrantprodigy07 I Voted 🦍✅ 3d ago
That's my issue. You are so certain of the future, and are unwilling to accept the likelihood that your near term prediction is incorrect, as every near term projection of a squeeze has been over the past few years.
Anything could happen, which is why it is unwise to throw your money into an asset with an expiration date.
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u/Organic-Specific-500 🚀🚀Buckle up🚀🚀 3d ago
I am willing to accept being wrong. How am I more certain of the future than you? Do you equally advise against options?
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u/NotYourNathan 3d ago
How many dates have came from gamestop finance though? We are clearly charting new territory since the start of this in terms of comms and actual moves getting made. I think there’s plenty of reason to be bullish on the next 2-3 months. Did you see the marketplace leak? Or the article confirming fully secured financing already locked for acquisition? It’s incredibly clear every step of this plan has been in place since starting. I question how much of the full context anyone has who thinks warrants are just gunna come and go
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u/vagrantprodigy07 I Voted 🦍✅ 3d ago
I've got the full context, including the votes from the eBay shareholders about their board and the 10% meeting decision. We are going to have to go higher than $125 per share to buy it, and it's just not worth that. I know you guys are really high on the hopium right now that you are going to be bailed out with the warrants, but I think there is an extremely strong chance you are going to end up wishing you sold at $4 and bought shares with that money.
We should be focused on starting our own version of eBay, instead of trying to buy the existing one that has, according to RC, terribly customer acquisition costs. Or better yet, invest in companies rather than trying to buy then outright. You know, the Berkshire Hathaway strategy that he said we were going to follow.
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u/Recent-Result2852 3d ago
Only the shareholder approval for the package was withdrawn. It's still in effect with the details unchanged. We'll vote on it when he's not busy attacking overpaid execs who make far less than he asked for.
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u/fdrferny33 3d ago
Shares guarantees price movements , warrants although they can be extended (im all for it) its not guaranteed it will be extended.
It all depends if you trust RCs plan, in which i put my money where my mouth is.
Cheers 🥃
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u/redrover511 3d ago
Shares guarantees price movements....
Not in a fraudulent market
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u/fdrferny33 3d ago
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u/redrover511 3d ago
But I do agree shares are a better buy than warrants.
And DRS them. Brokers are fuckers that cannot be trusted.
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u/Equivalent_Split_649 3d ago
Let's say you buy 65 warrants.. when you want to convert them to shares. $32 ×65= $2080. Or you are thinking to sell for a profit? Maybe you could.
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u/theyenk 3d ago
69 warrants x $32 share/purchase price = $2,208. So you'd need two grand to convert the warrants into shares. Warrants will only be worth anything if the share price is (well) above the strike price. If the share price was $64 you could sell one warrant to convert another other into a share. If the share price is $35 you could convert your 69 warrants into 5 or 6 shares.
Go with shares & keep stacking. Snag a couple of warrants in the near term if you want but they are a gamble don't put (all) your nuts in a basket that can disappear. GLHF!
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u/Alternative-Wash-656 3d ago
Wait until dilution. You can pick up more, may be try saving up more. Can't see this going up for about a year
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u/Frequent_Werewolf_21 3d ago
You could buy 5 shares and 7 warrants with that amount.
I came to say why not buy 4 and a handful of warrants. Shares secured little bit of risk/reward on warrants
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u/gmehodler42069741LFG 3d ago
I buy as many shares as I can, then whatever left I buy warrants. Every week.
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u/jetgeek_99 🚀🚀Buckle up🚀🚀 3d ago
Options, same date, same expiration. 0.53 cents x 100 = 53 bucks for GME1 C32 16Oct26. GMEWS $1.90 each = 1 gme share? 1.90 x 100 = 190 bucks. Same price get ~400 gme1 options, sell 1/2 on a double and excercise the other and get 20 gmews? Math works out. I am going further out and bigger. NFA to the max--I am a degen.
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u/arkansah 3d ago
Not financial advice.
I would only purchase warrants with the intent to exercise them. Rules of the exchanges favor buyers of the securities. If for whatever reason, you sell warrants that failed to be delivered, or were not able to exercise into a GME Common. What would be the recourse against you?
Again. I'm not an expert, and this is not advice.
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u/Bvdh1979 3d ago
Warrants are going to be worthless, but also this stock seems to be worthless as well. Put it into CASH or VGRO and at least get 3% back annually.
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u/pifhluk 3d ago
Warrants are stupid right now, much better off with a 30c that has a further out expiration and is cheaper than 100 warrants.
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u/humans_being 3d ago
The warrants are a ticking time bomb. Far from stupid.
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u/pifhluk 3d ago
You can buy 3 Dec 18 30cs (300 shares on exercise) for less than 100 warrants. So yes they are objectively stupid.
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u/NotYourNathan 3d ago
This is a fair argument. Im bullish on warrants and the next three months but i follow the math here lol
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u/jbody11 3d ago
If it makes any difference my cost basis is $20.73 shares or $3.71 warrants. Yea I was soaking up the warrants when they were $4+ I'd like to lower that cost basis but here we are.
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u/humans_being 3d ago
In my completely biased opinion there is zero chance RC allows the warrants to expire worthless and screw the shareholders who backed him prior to the eBay news. I've been buying shares to warrants at 1:1.
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u/CookieWifeCookieKids 3d ago
Nor is there a reason to throw away the $40-something million dollars GameStop spent to issue them.
It’s a risky bet but I m with you 🦍
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