u/DuckHunter4779

Cash and marketable securities minus liabilities is about $3bil. Current market cap $8bil. The operating business is valued at $5bil. The guidance is for Ebitda of $600mil this year That's a multiple of just over 8 for the operating business. That sounds like pretty deep value to me.

What will happen once the market realizes that BRK is a growth company?

Dicks Sporting Goods is really leaning into the collector items sector with their Collectors Clubhouse. They have a great level of inventory, graded cards, Pokémon, and signed sports memorabilia... all in a sleek new setting inside select stores. At what point will the competition be so severe the Gamestop sales peak in this category?

Gamestop and the bondholders thought the conversion would be after a major change. They all thought the market value of the company per share would be notably higher in April 2028 and beyond, the earliest initial dates when they could be converted. They thought it would be over $29.85 by then (the equivalent conversion price). This is for the March 2025 notes. They were then converted early for what appears to be $19 when the stock was trading at about $22. So, they're getting about a 15% discount.

Then, the warrants were issued in October 2025. They are pegged at $32 and expire in October 2026. This moved up the timeline on the anticipated increase in the market value of the company per share.

If all along, the bondholders were going to get a 15% discount on their share price and the imputed share price at issuance was $29.85, the share price after April 2028 maybe was expected to be $35 ($29.85/0.85). They could be redeemed for cash or stock, though. That's a key point and what caused them to be converted early because it caps their gains.

Looking at Larry's recent tweet, he is saying the bondholders decided to convert early so they could capture more upside. The bonds gave them exposure to Gamestop stock for what they thought would be a discount on the shares or enough cash return to make the return they wanted. Now, they're looking up and realizing the per share value is going to be way over what they thought so now they want the shares vs gamestop later deciding to pay them in cash. If the discount was assumed to be 15% then the stock price must now be expected to be over $35 by then. The bondholders think that and are worried they're going to be paid in cash and they obviously don't want the cash, they want stock.

I would assume since the warrants were issued as a standalone security, the bondholders will still keep those. I'm guessing that's just gravy at this point. I think they'll get extended or their exercise price moved down. Gamestop just showed they're willing to adjust things for investors so I think they'll adjust the warrants. I think they were pegged to the eBay offer being accepted to be risk averse because if it did get accepted then they'd be exercised quickly but gamestop wanted to be conservative in case that happened. Since the initial bid didn't work they'll adjust accordingly by either setting a new timeline, likely next year, or moving the price so they get exercised now for gamestop to get the cash to use for the eBay acquisition. They may even issue way more warrants to get a lot of cash now.

Ryan Cohen has been very clear he will do what it takes to get ebay. In a few years, this current situation will be looked back on as peanuts and very worth it given the company value per share then. It feels like a discount now isn't for us but if it gets us ebay it'll be worth it. Ryan Cohen isn't going to play conservative just to avoid extra share issuance because he knows this is all worth doing if he wants the big prize (ebay). It's certainly not for the faint of heart though to be along for the ride but things worth doing are rarely easy. Can't stop, won't stop.

Ryan Cohen keeps saying that the eBay shareholders will ultimately decide what happens with our takeover bid. When is that most likely to happen? I know that eBay shareholders recently rejected the change in what it takes to call a vote. Our ownership is seemingly plateued. What is the timeline for the next decision point?

MSTR could be selling to open covered calls and also cash covered puts to raise cash. Why doesn't Michael Saylor use this strategy? It would mean not directly selling the stack and being open to buying at certain prices while collecting premiums along the way.

With the new guidance release of $600 million, doesn't that make our P/E ratio insanely low right now? Market cap is 9.76 billion dollars. Cash minus debt is about 4 billion dollars. So the business itself is valued at just under 6 billion. That's about a 10 P/E. The s&p is sitting on a P/E of 25 looking at forward earnings. GME really is a value stock.

Seeing interesting movement in some names that are commonly linked to GME. This might be the fallout of the XRT ftds finally. The premarket on headphones, for example. What other signs usually point to the effects of xrt fallout, and is it still on regsho... finally requiring some price action, perhaps?