# GAMESTOP 3.5M Share Offering Tells Me Squeeze Is Coming -- here is why

| Author       | Source       | 
| :-------------: |:-------------:|
| [u/JuxtaposeLife](https://www.reddit.com/user/JuxtaposeLife/) | [Reddit](https://www.reddit.com/r/GME/comments/mklf8o/gamestop_35m_share_offering_tells_me_squeeze_is/) | 

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Happy Monday you beautiful Apes.

TLDR; Gamestop is positioning to kick HFs in the teeth, as they climb on board the rocket too. They don't plan to sell the new shares for less than $285, in fact, potentially they will sell them for way more ($10M each even); Shills and Media will attempt to spin this into a negative (dilution is laughable with how concentrated we are from the synthetic shorts). I'm convinced the GME board is mocking the HFs at this point. It's beautiful.

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Ok, I'll keep this brief, but I wanted to share what I see in this Gamestop announcement.

![image](https://user-images.githubusercontent.com/82035192/114192940-0a8bcc00-991c-11eb-9876-7fc5918a62ee.png)

Words are important. Also, timing. They tell a story. Put yourself in the mind of Gamestop's new CFO and board. You see an imminent squeeze coming, you've already projected it in your SEC filings, and you most likely (disclaimer, theorizing here) are about to set in motion the event that will lead to the world seeing this for what it is (share recall, voter count) within the next few days.

Could this motivate you to announce that you are allowing Jefferies to raise $1,000,000,000 dollars on up to 3.5 million shares. **They are not saying they are going to sell 3.5M shares, they are saying in "no event" will the company "sell more than" 3.5 million.**

Gamestop doesn't need cash quickly, but they could certainly use it in the long run to roll out their plan to dominate the Electronics ecommerce business. They aren't in a rush to get more cash, because as we saw in their Q4 Earnings Report two weeks ago, they have over $600M in cash on hand already.

So why now? Why raise $1B when you have $500M on hand. Why pre-market on a Monday prior to the new 005 rulings? Timing is everything...

My take on this, is that Gamestop knows it's about to launch, and they want to be on the rocket. Having (up to) 3.5M shares ready to sell for HFs that may be after 20M, 100M, 500M shares shorted is a way to raise $1B for the business easily and launch Gamestop on it's path to ecommerce nirvana. This will do next to nothing to slow the launch (feel free to dispute this in the comments, I'm happy to debate :) ).

A word about dilution, because you'll read it all over the news. It's the word used to put fear in investors. This is different. GME is so concentrated, from the SI (all those fake shares floating around) that calling 3.5M new shares a dilution is laughable in comparison to how many shares need to be bought back that are fake.

## Ape Analogy Time: Bananas On Sale

Imagine... owning 100 banana's... you're the guy in town people turn to for banana's when they need them. Now a snake (Kenny G) crawls into town proclaiming to have 900 banana's and offering IOUs to everyone in town, selling for cheap, then trying to sneak away with the cash (but you've got him by the tail). When you come across 3 new banana's this snake screams to everyone! "Hey, now that guy has 103 bananas, not 100, he's charging you guys too much, lower the price!" Snake is trying to deflect from his situation... owing 900 banana's he doesn't have, so he's telling everyone to focus on your 3% increase in banana's instead. In this situation, you wouldn't sell your 103 banana's... you'd wait for snake to make due on his 900 banana debt. You also wouldn't worry about the 3 new banana's until he did.

## Important To Note

Not putting a price on anything... not putting a date on anything... but how many shares would it take to raise $1,000,000,000 if GME were $10M a share? Just a simple question :)

Stay safe out there Apes. Much love to you all.

*** Edit 1 *** Uncle Bruce brought up a good point this morning. This $1B offering has no time limit, and might become a bidding war from the shorted HFs, all of them trying to get a ticket out of their horribly position. Problem is, there aren't enough shares for them all. It could be that this offering, that Jefferies has been given the rights to sell, will go up for bid and may price way way higher than $300, simply because many HFs would love to get their hands on a large position of shares without having to go on the market to cover their shorts (think of it as say buying your way out of a 1M short mistake for $1B)... again, they can't all do this, at the shorted ratios we're potentially seeing. The bidding war could actually drive price of GME higher than it would have otherwise been without this offering. I'm convinced they are likely to raise $1B for less than 3.5M shares when this is all said and done.

*** Edit 2 *** typos; formatting

*** Edit 3 *** I'm convinced the GME board is literally mocking the HFs -- it's quite hilarious to watch this play out in real time. Why do you think we're back up at last weeks levels so quickly after the media negative reporting of this wore off? It's people opening their eyes to see how positive this is for Gamestop.

*** Edit 4 ***

## The fight over these shares might go something like this:

Hedge Fund 1 - "ok, I'll take your 3.5M shares for $575,000M seems fair, that's kind of like current price ($165ish a share)"

Hedge Fund 2 notices GME is up from open (eek, those apes are buying more despite the media reporting!) "Wait a minute... I'll buy them for $650,000 ($185 a share)

Hedge Fund 3 notices other two HFs are bidding and sees opportunity to unload it's 2M fake shorts without spooking the market... "Hey! I'll give you $1B for 2M shares!" ($500 a share)

Hedge Fund 1 realizes this is getting ugly and doesn't want his HF competitor to get these shares: "Wait, wait... I'll revise my offer to $1B for 1.5M shares"

Hedge Fund 2 noticed launch engines igniting, Gamestop just recalled shares for voting: "Ok, ok... I'll give you $1B for 1M shares! but only if you take my offer right now!"

...this continues... Gamestop sits back and laughs:

"You guys do realize I don't have to sell any of these shares, yet... 🚀🌗 "
