I believed this was an option at the beginning of the year. I gave up on this theory about the warrants 2 months ago.
I’m telling you this because this is coming from someone who was bullish on them and their potential.
It’s easy to fall into “what if” scenarios, but it is important to not treat them as definite outcomes. You should separate emotions and adjust your thesis as information changes.
GameStop is in very good fundamental health and improving, and the future does not depend on the warrants whatsoever.
$GME
Michael, I’m really interested to hear your thought of how arbitrage traders holding convertible notes in $GME react if there was a surge of buying volume that increased price rapidly, and how the behavior of those arb traders would react with the $32 warrants? I totally understand that a short squeeze is not the play here, but IF there was a CATalyst that caused a surge in buying, do you think there would be an interesting result from the layering of these notes and warrants? Especially since any conversion of notes can only happen if GME trades over $38 (130% of conversion price) for 20 days out of 30 consecutive days.
I know $GME is in a pretty big pullback, but anyone who has followed the short shares available to borrow could attest that things have changed since the early conversion of note holders. The shares have not been updated since 10/13. Prior to the early conversion, these shares would be updated every single day, multiple times a day.
Could it be the increased share count from the early conversion causing it? Maybe, but something is definitely different.
$GME broke free of resistance and gained momentum out of a rounded bottom on 9/9, caused by the VWAP trading period to price the early conversion of note holders. It began to fill the gap left on August 3rd at the beginning of the VWAP period.
$CHWY gapped down on the same day 9/9. As $GME rose, $CHWY was forced to retest 52 week low area, thus causing a double bottom. It then also created its own similar rounded bottom.
Green is the gap
Purple is 9/9
Now, $CHWY is in a similar position of being just below the gap created. They were both also beneath their 50D, 100D, and 200D SMAs during this rounded bottom.
Will $CHWY be able to take the 200D like $GME did when it filled the gap?
$CHWY had 7.5m more shorted shares jump on during this push down. Only 1.4m of those shorts have left the trade as of 10/15(FINRA update today), when $CHWY was at $21.35 at closing.
Wall Street analysts price targets still have no sell ratings and an average rating of $28-$30. Forward p/e is still low for such a sturdy autoship membership base of revenue.
It certainly has quite the resistance to break through above $25-$30 due to the long term down trend, but this double bottom is interesting.
Stay Predictable retweeted
A lot of pressure on a lot of $GME influencer accounts next week 😂
Get all that hate and discontent out of your system this week.
We will resume your regularly scheduled tin foil and $GME positivity next week.
K, luv u, bye
This is absolutely mental 😂😂😂😂
I could have told you the warrants would inverse the week of expiration if the price was below $32 by the way. I could have predicted that a year ago 😂
What is this guy even talking about
$GME
This guy has been preaching at the top of his lungs with confidence that the $GME warrants would be going over $7-10+.
Confidently.
Ryan has purchased about $118m-119m this year on buying $GME shares total.
He has 3,734,784 warrants. If he exercised all of them and bought shares at $32, he would be spending $119.5m.
What are the chances those 2 amounts would be that close?
Maybe that was his hint of warrants not being extended.
This guy has been preaching at the top of his lungs with confidence that the $GME warrants would be going over $7-10+.
Confidently.