Remember how they turned the split as a dividend into a normal split? They can’t F around with a cash dividend like that. Sure they can substitute fake shares in place of real shares, but they can’t do that with cold hard cash.
It doesn’t make sense right now because Gamestop is focused on becoming profitable and generating a more sustainable business. However once they become profitable, the situation changes. They would have the freedom to reward and delight thier investors with a dividend and know that they aren’t squandering the last of their wealth doing so. They will know they will have more cash coming in because they are now profitable.
Once Gamestop is profitable a cash dividend does make sense! They have over 1.3 billion dollars on hand, and could reward their investors with a substantial dividend. If they issues a dividend of 50 cents per share that means anyone holding 100 shares gets 50 dollars - that’s enough to buy two more shares at the current price! What’s more that dividend would cost about 130 million dollars to issue for the entire float, which is about 10% of the cash they have available.
That’s a terrific reward for holding through 2, soon to be 3 years of net losses each quarter during the company’s hard times. We put our money where our mouth is. Will Gamestop corporate recognize that and reward their die-hard investors once they become profitable again?
I already had a thread about this removed from r/GME once already. It doesn’t make sense to me because an investor campaigning for a dividend (which is just ROI) isn’t something that should be derided or villified. It’s a healthy thing to do, and anyone who expects ROI should also campaign for this.
Besides just being a healthy thing for an investor to want, it could also be a trigger for the MOASS. Stop and consider how shorted GME is today. Only the DTCC knows exactly how bad it is. It could be 2x, 3x, 10x, 50x the float! Is it worse than we could possible imagine? Look at the shenanigans they are doing with swaps and the puts in Brazil. They’re trying to hide their short positions anywhere they possibly can.
If Gamestop issues a cash dividend they pay the DTCC exactly the amount for the shares they have issued to the public. That’s 265 million shares. Now if more shares than that are being held due to short selling, the short sellers have to pay the difference. In the event that the float has been short sold more than 2x over, the short sellers end up paying more money than Gamestop does to the DTCC! - and they can’t weasel out of it using fakes like they did with the splividend. Each GME holder would be due cash.
However we shouldn’t request a cash dividend for that alone. We should be requesting a cash dividend because we carried this company through its hard times and kept investing in it because we knew it would be profitable again in the future. We simply want return on our investment. That is all.
When we see net profit on Gamestop’s earning reports, please contact Investor Relations and let them know you are a stockholder who has been investing in the company for years and would like a cash dividend now that the company is profitable again.
(817) 424-2001
investorrelations@gamestop.com
As a shareholder you deserve to have your voice heard!