Despite a 45% dilution this year with the increased number of shares, GME's share price has increased by more than 100% from this year's Yearly Low which occurred before the first dilution.

https://preview.redd.it/52kmtoel6rqd1.png?width=966&format=png&auto=webp&s=322b7d588dc547c49be99ebddf6b87afff31c707

GameStop is disobeying how dilution is suppose to work.

https://preview.redd.it/svd8yb2i7rqd1.jpg?width=1290&format=pjpg&auto=webp&s=3fd4d7f95f4a58c081e34e9ebd888e28ccb68d63

Gamestop's cash on hand has increased from a billion to well over four and a half billion. This has raised the book value, the floor price, the cash per share from just over $3 to over $10. (Hey welp007 🙏)

https://preview.redd.it/uulhx6ws6rqd1.png?width=1374&format=png&auto=webp&s=73cc684612a63b3214ddeaff28c52eb445c69a8c

Of 1,093 mid-cap companies trading on the US stock market, GameStop is currently ranked #4 with the most cash listing $4.204B, soon to update to $4.604B. (Hola ROBERTPEPERZ 👋)

https://preview.redd.it/cvhnf0d39rqd1.png?width=1144&format=png&auto=webp&s=31d5046ba65aa9db29a2990b3f12accb69436c9a

GameStop can issue a total of 1 billion shares.

With 446M shares currently outstanding, GameStop can sell another 554M shares. If the share price continues to hold strong or increase as it has done during and following previous dilutions, GameStop can sell the remaining 554M shares at a minimum of $20 per share. Doing so would raise GameStop's cash to a stuttering 15.68 Billion Dollars. It would also raise the cash per share and floor price to $15.68.

https://preview.redd.it/bzzzi14p9rqd1.png?width=863&format=png&auto=webp&s=80a5ce9907664d6e769ab4f2820254a3d14741de

I anticipate an investment or acquisition, eventually.

But if they were to continue selling shares until they've exhausted all 1 billion:

At a minimum $15.68B total cash, on treasuries alone, they would bring in huge compounding interest every year.

Regardless of dilution, the floor would continue to rise on cash per share.

Year 1: $784M Interest | $16.46B Cash | $16.46 Floor
Year 2: $823M Interest | $17.28B Cash | $17.28 Floor
Year 3: $864M Interest | $18.15B Cash | $18.15 Floor
Year 4: $907M Interest | $19.06B Cash | $19.06 Floor
Year 5: $952M Interest | $20.01B Cash | $20.01 Floor

https://preview.redd.it/xk9btiolerqd1.png?width=1330&format=png&auto=webp&s=0a5f33fc3ab707a4237073e9bb4c5f519fe9e249

And that's not accounting for the turnaround of the business itself. GameStop broke even last year posting their first yearly profit since 2018.

While that very modest profit was essentially break even and interest on their billion cash helped earn that year of profitability: Q1 and Q2 of this year beat Q1 and Q2 of last year. So GameStop is on track to post a higher profit for 2024 as fundamentals continue to improve (even ignoring the significantly increasing interest on their rapidly increasing stack of cash) .

The closing of unprofitable stores will continue. Introducing and experimenting with new products and avenues of revenue will continue. Profit from the actual business will continue gradually improving while collecting millions of profit from interest on their cash.

And that's just if they continue on the current path. If there's an acquisition or investment, that's when serious fireworks could happen. 💥