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Here we go again apes! My last post didn't gain much traction, so I'm going to try this shit for the second time. I need you all to set aside the live analysis (Love you though Warden), speculation, and our theories on what's going on behind the scenes for a minute. The option chain IS relevant though. On this, Pixel and others got it right. The options chain is like a bottle of lighter fluid, but lighter fluid is useless without fire. So where do we get our fire? Catalysts.
Let me give you a Gamestop history lesson from way far back, January 11th, 2021 to be exact. This was our first major catalyst for Gamestop. What happened you ask? It was announced that Gamestop had struck a deal with Papa Cohen to add him and two other former Chewy.com executives to the board. Gamestop then shot from $19.95 to $35.50, trading as high as $40 that week. A 100% increase that set off the options chain in conjunction with WSB doing what it does best. YOLOing on OTM options. Gamma squeeze time!
Once this ship came crashing down due to the trading restrictions, it needed another catalyst in the worst kind of way. Once we hit bottom, we had two small catalysts that triggered another gamma chain. Catalysts? DFV's testimony pushed the momentum, followed by the resignation of Jim Bell, their CFO. The next day we are back in triple digits. Our next POTENTIAL catalyst will be the quarter 4 earnings report. Lot's of us are very bullish on this and are very eager to see what Gamestop has to say.
Why is this important? Several reasons:
- They need cash to continue to transform their business.
- They have about 250~mil in debt that needs to be paid this year.
- Positive EPS might allow them to issue a small dividend, fucking the shorts.
Important things to look for in the ER:
- Were leases sold or transferred on unprofitable stores?
- Has debt been refinanced and pushed out?
- What is the roadmap for the future?
- Will they do another share buy back? (Great question u/zipitrealgood)
- What is the impact of the cost of goods sold (COGS) and how has it affected revenue? (Thank you u/oaf_king)
- What other major announcements might be made? (CFO, Partnerships, Etc.)
As squeezehodlers, we should be paying very close attention to this. Many big players will be, I can guarantee you that! If you think of something you would like included on the list, please let me know.
Can this cause the squeeze?
Your guess is as good as mine, but I've personally been looking forward to this report since November when I STILL HAVENT BEEN ABLE TO BUY A PS5 FROM GAMESTOP! (/rant off) So far each catalyst has added fuel to the rocket propelling is closer to our goal. IF this earnings report goes as well as many of us think it will, then there's potential for fire to light that fluid.
Register Here:
https://investor.gamestop.com/home
Edit1: Fat fingered CEO instead of CFO.
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