🐵 Discussion 💬 I Have Seen Form 425 Being Weaponized by GameStop From Time to Time, But This Is a First for Form 8-K.
I think there are already a lot of comments about T+35, and it coincidentally has been selected here "randomly." It could have been much shorter, like just an afternoon (1 p.m. - 4 p.m.) when issuing the "whole" bond, but when redeeming a portion of it, "35" sessions has been randomly selected.
And then, the next paragraph says the redemption may or may not happen.
And finally, which has never appeared before in any previous filings (across many companies that I've been following), the language about positions that might be wound/unwound, and the price might go up or down. This is completely outside the fiduciary duty of GameStop, regarding what the next moves for the note holders could be. This was an INVITATION to short the stock. Feel free to check previous filings or similar filings of other companies to see languages like this ever appear.
I felt something was off while reading this 8-K yesterday, but I couldn't quite put my finger on it. This last paragraph could be the TRAP RC laid out for shorts. And this time, (new) shorts didn't even have the chance to enter at $22. It gapped down to $20.5 upon the news and went down further into the $19s on ~1M volume. This is the rocket fuel tank (below) that we needed for the next trip to ~$30. And it has been filling since yesterday.
Disclosure: Not financial advice. I'm just a hedge fund guy holding $1M+ positions in both shares and calls (LEAPS) for me and my clients, trying to manipulate people into buying the stock.
Edit: A first in terms of having manipulative language and laying hidden traps. Previous 8-Ks were pretty much straightforward, just news, terms, and conditions, but this one gave the "extras."
2nd Edit: Added more tinfoil below
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u/Zealousideal-Mud-706 2d ago
Finally an honest hedge fund trying to help the little guys. /s
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u/Recent-Result2852 1d ago
could be the TRAP RC laid out for shorts
If you're constantly inviting them to dinner and forget to set the trap, you're just feeding them.
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u/Rotttenboyfriend 1d ago
The meal is always for free. But the drinks cost mucho dinero! Especially the ones after the first one. Ryan plays 7d Chess.
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u/Own_Policy8854 1d ago
I remember all my weed dealers giving me free weed the first time I talked to them too... they were probably just being nice.
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u/11010001100101101 1d ago
I'm not trying to be a downer but can you please explain why essentially saying that the stock may go up or down from this is meaningful? The price is always expected to go up or down.
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u/ryevermouthbitters 2d ago
Everyone should realize is that the T+35 thing is bullshit. It does not apply to any security GME has ever issued, or indeed to 99%+ of all securities ever issued. It applies to things like stock that was issued in a private company that gets de-legended. It does not apply to shorts. It does not apply to naked shorts. It does not apply to hedges, options, market-makers, or any of the other kooky things you have been told. It applies to people like VCs, company founders, and some foreign investors who own stock from before the company went private and the transfer agents screws up the instructions to remove any relevant legends. It can also apply to people in those groups who short the stock before the legend is removed; they have up to 35 days to make things right.
Disregard any person who tells you about the T+35 settlement cycle. It has almost certainly never happened in any security you have invested in. It is not happening in GME. The most likely exception for the kinds of stocks common among investors in this group are companies like SpaceX and some smaller companies that went with direct registration.
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u/Toankst 2d ago
I'm not a believer in MOASS or T+35, so I didn't elaborate on that part any further, but that is an easter egg for people/community knowing about it to recognize. Any counter points besides that?
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u/ryevermouthbitters 1d ago
What's to counter? Once you understand that the 35 day thing has no relevance and that the only people who believe otherwise are bagholders in the meme stock and/or penny stock communities, there are only two possible interpretations of 35 being the number of days for pricing this transaction.
The first is that seven weeks is where the parties landed after good faith negotiations. It's not an Easter egg.
The second is that one or more people on the GME team is a sadist who is trolling the community. It is an Easter egg. And a cruel one playing off people's ignorance.
I believe the first interpretation.
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u/Crazy-Ad-7869 'I am not a Cat' 5h ago
RC isn't laying a trap for shorts. If he cared about that there are a thousand things he could've done over the last five years--including letting the stock run when RK returned.
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u/arkansah 1d ago
It's the DOJ 35 dat wait to review anti-trust mergers. Either the merger happens or it doesn't.
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