Re:GameStop missed out on capitalizing on the Reddit rally
by chii on Thursday February 11, 2021 @08:24AM
(#26101193)
Exactly the reason why Hertz did not proceed to do the same when their price irrationally rose during the pandemic. They wanted to do it, but the SEC sent them a letter asking for clarification, and that was enough for Hertz to get the message.
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Re:GameStop missed out on capitalizing on the Reddit rally
by CPLX on Thursday February 11, 2021 @08:35AM
(#26101304)
It's not exactly the same. Hertz was actually in bankruptcy, making all equity shares essentially worthless by definition. That's much more problematic than the scenario described here.
Re:GameStop missed out on capitalizing on the Reddit rally
by o-__-o on Thursday February 11, 2021 @08:43AM
(#26101399)
AMC is a better example, they offered new shares while the price was 3 or 4x of their lows
Re:GameStop missed out on capitalizing on the Reddit rally
by kgermino on Thursday February 11, 2021 @09:03AM
(#26101588)
Not exactly, it's way more interesting than that (to me anyway)...
Hertz actually did sell new shares into the price spike. They went to the bankruptcy judge and got permission to sell new shares to help pay off the creditors. Shortly after they started selling the SEC essentially said "lol no" and told them to stop.