Re:High Short Interest Stocks
by IG_Semmelweiss on Thursday January 28, 2021 @10:45PM
(#25953591)
If they wished a quick way to bankruptcy, that would certainly be it.
Make enemies and robbing both your customers and your investors in 1 single move. I don't think there has been anything as foul in history, has there?
Having a high stock price does altogether nothing for the company if they can't sell stock. Similarly, having a low stock price doesn't bankrupt a company.
Re:High Short Interest Stocks
by IG_Semmelweiss on Friday January 29, 2021 @07:51AM
(#25956711)
I think you missed my point.
Low stock price wont make a company bankrupt, agree.
But if in the process of doing so, you stole value from your own 19yr old stockholders.... then its pretty certain you just painted a bulleye on you. And... They are also your targer demographic customer base. Woops! Lets see how quickly your revenues dip to $0 after that.
If you have $0 revenue you dont have a business. Period.
It's GameStop... They already have garbage revenue. They don't have a business. They're failing. Hence the short. Issuing shares while the stock price is high is not only an everyday business move but it's also the correct thing for them to do here. AMC has already done it.
That said GameStop is authorized for 300 million common shares and there are only 70 million outstanding according to this table so if their corporate treasury has been at all competent they might be sitting on a huge pile of cash right now.