Key insights
- The author speculates GameStop could become the next Berkshire Hathaway due to its large cash reserves and potential for further capital raises. They suggest Ryan Cohen is planning a major acquisition, possibly in the pet sector (Chewy). However, this analysis is highly speculative and based on the meme stock phenomenon, with limited fundamental basis for a positive US equity market impact.
GameStop has $9 billion in cash sitting on its balance sheet. NINE. BILLION. DOLLARS.
They also have 552 million authorized but unissued shares. At today's price that's another $13 billion they could raise whenever they feel like it. So theoretically this company could have $22 billion in cash.
$22 billion in treasuries at 5% = over $1 billion a year doing absolutely nothing.
Ryan Cohen is clearly just waiting for the perfect acquisition. Could be more Bitcoin or GME could merge with Chewy. People love their pets right? Why aren't more people bullish on this? It's only been 5 years of holding, checking twitter and finding hidden messages.