Still think TITNC3: Return of the Iceberg was peak

They don't have any debt.

 

I dont see how that matters. If MM can invent shares out of thin air in the name of liquidity before why cant they just do it now, share dividend or not?

 

Because these are GME issued shares. Special ones. They're a dividend, a reward like cash or a coin or anything else. GME issues exactly the amount of current legal shares x 3. Everybody who's an insider or directly registered gets theirs first. Then the rest go to the DTCC, who gives them to the brokers.

Now lets say you're Fidelity and you have 60 million shares amongst your customers. When it's time to pay out the dividend, you hold out your hand and the DTCC only gives you 35 million shares. Uh oh. You can't just magically print more shares, because they're not the special GME issued ones.

So now you gotta go clean up your house, recall your real shares (this should actually be happening now, because these brokers all know they're fucked), and the hedge funds and MMs SHOULD start the process of closing out their short positions.

 

DTCC gonna allow them to fuck around, the divvy won't ignite MOASS -- I guarantee it.

 

Agreed, but the price action leading up to the dividend might tip the scales into margin territory. At some point something has to give. This is as good a shot as any

 

And isn't it possible for GME to do another one of these dividend splits afterward? something about the board approving up to a certain point and 4:1 is not the limit?

 

Correct. They could do 4:1 even before we all voted on the share issuance. With the 1b extra shares they could have gone as high as 13:1

 

What do you make of this

 

Not too much, I don't think. Just another cellar-boxed stock like Blockbuster and Sears. What were you thinking?

 

It's weird that they were once owned by gme. My tinfoil hat might be too tight though.

 

Synthetic positions don't create shares.

 

Synthetic shares do create positions though.

-Socrates

 

I assume this is good-natured ribbing?

 

Yeah, that is true. It is a "position" I guess. But the float's the same. Or it should be.

 

But in theory those synthetic shares could be bought up to cover the 3 additional shares that people are supposed to be receiving since their brokerage tells them they own GME which means they should be receiving more shares?

I'm just thinking aloud basically. In theory the forced buyup of these synthetic shares drives up price? Price goes up enough and you don't stop the rocket?

 

Now that's Socrates.

 

Ahhhhh...... not really. The synthetic positions exist in the options. The market makers stay neutral for the most part. When the stock goes 4:1, so do the options.
There's a myriad of ways they keep their book balanced.
For example, all they have to do is sell the puts at a way higher strike and then sell calls a week out at a strike about 60% of the way between the current price and the strike they sold the puts at. In general. The strike (and even the date) chosen for the calls depends on a bunch of things to minimize risk, but If the stock goes up, they still get assigned the shares at expiration, at a profit. If the stock goes down, they get the shares, and but by then they would have already sold calls to minimize their loss. It gets complicated, but the math works out in the end.

 

If this market stays up though, I don't think it will, I think it'll drop tomorrow, but if it DOES stay up, Kairo will be making money because assuming the insiders are locked up, which I read here and don't know for fact, but assuming they are, I think GME is gonna keep climbing. There was some news tonight that the CFO or someone left, no big deal. Could be a well timed bear trap.
Me personally, I would not short this stock right now.

 

Another thing, even if the market does tank near term, stocks like these at a time like this, ie the split bringing it back into the spotlight and bears screaming whatever, they have a real strong tendency to go against the overall selloff.
Anyone who's ever been short TSLA and woke up to major declines on all three indexes only to see TSLA up 5% knows this well.
-fwiw