GME Surges After Stock Sale

[] the meme stock just diluted shares… and went up！ [View in browser]( [View in browser]( [] MAY 28, 2024 [] [] PROSPERITY PUB MARKET TALK GME Surges After Stock Sale Let’s talk about meme stock, GameStop (GME) and its recent big move. The company managed to raise nearly $933.4 million by selling 45 million shares. The news sent its shares up over 12% after the bell on Friday. But before we get too excited, let’s dive into what’s really going on here. First off, to get that $933 million, GameStop had to dilute its shares. What does that mean? Well, dilution happens when a company issues more shares, which can reduce the value of the shares that are already out in the market. Usually, this isn’t great news for shareholders because it means their slice of the pie gets smaller. Yet, GameStop’s stock price still went up. GameStop, which mainly relies on its physical stores, has been struggling as more customers turn to e-commerce for buying video games and collectibles. Earlier this month, the company announced its share sale plan amidst a buying frenzy spurred by Keith Gill, also known as "Roaring Kitty" on social media. If you remember, Gill’s bullish calls on GameStop played a huge role in the 2021 meme stock rally. His recent activity on social media has re-awakened interest in the stock. The shares were sold through an "at-the-market" offering, meaning they were sold into the market at the current market price, rather than a set price as you might see during an IPO. Based on calculations, these shares were sold at an average price of $20.74 each, while the stock was trading at $21.93 at the time of the announcement. Despite this dilution, the stock price jumped, which doesn’t really add up given GameStop’s ongoing struggles, plus the effects of dilution. Our own Jeffry Turnmire explains that the company’s board had a fiduciary duty to raise money while the stock price was higher than what its fundamentals would justify. Essentially, they had to take advantage of the high stock price to secure much-needed funds for general corporate purposes. But let’s not forget that GameStop recently said it expects its first-quarter net sales to drop to between $872 million and $892 million, compared with $1.24 billion a year earlier. That’s a significant drop in revenue, highlighting the challenges the company still faces. Interestingly, this isn’t just a GameStop thing. Theater chain AMC, another favorite among retail investors, also completed a $250 million "at-the-market" share sale program last week. Both companies are leveraging the retail investor interest to bolster their financial positions despite their struggles. In a nutshell, while the initial market reaction to GameStop’s stock sale was positive, the company’s fundamental issues and the dilution of shares suggest that investors should be cautious. The board’s decision to raise funds while the stock price is high is smart, but whether this strategy is sustainable in the long run remains to be seen. Meanwhile, Jeffry Turmire tells us that GME entered a “rocketship setup” pattern. It’s a combination of his proprietary Market Roadmap setup, plus a measured bounce. Right now, everything hinges on GME holding above the Roadmap LIne, which is currently around the 15 to 16 range. A breakdown below that invalidates the pattern, but if it holds and goes above resistance at about 25, the pattern supports a move to as high as 80 or even an astronomical 300. Jeffry himself only has 12 shares, so he’s not playing big. Trading a meme stock like GME might be fun, but it could easily end in disaster. So be very careful if you decide to trade this. And be sure to set your sell orders in advance — take a look at a chart of GME and notice how the spikes it has experienced in the past happened lightning fast. But keep an eye on those key levels — until one of those levels gets breached there is no high-probability play. — The Prosperity Pub Team [] [] These 3 Rules Could Make or Break A Retirement There’s a lot of noise out there… Invest in this… trade that… But at the end of the day, Jack Carter firmly believes it all comes down to 3 key rules… And he wants to share them with you — completely FREE! Along with 3 key stocks he thinks you should consider adding to your portfolio right away! [Click here to get all the details now!]( [] [] SCOTT WELSH’S TICKER TALES OWL Ready To Fly? Big breakout stocks are usually at the other end of the spectrum from high-yield dividend stocks. But not always. Sometimes high-yield dividend stocks can move. Maybe dividends are suddenly back in favor. Maybe the business itself catches a good quarter or two. Whatever the reason, dividend payers sometimes surge nicely. And Blue Owl Capital (OWL) is an example of this. Here’s the chart: [] This stock has doubled since 2023 and could be poised for another run if it breaks above $19.87. Plus it has a yield of 3.7%. We’ll keep an eye on it. Happy trading, — Scott Welsh P.S. As a reminder, these plays are based on my longer-term Weinstein Stage Analysis method. The charts above use weekly candles and a 30 week simple moving average. For details on this method, see my explanation on [this Ask The Pros episode]( starting at timestamp 20:45. [] [] [] [] MAY 28, 2024 [] [] PROSPERITY PUB MARKET TALK GME Surges After Stock Sale Let’s talk about meme stock, GameStop (GME) and its recent big move. The company managed to raise nearly $933.4 million by selling 45 million shares. The news sent its shares up over 12% after the bell on Friday. But before we get too excited, let’s dive into what’s really going on here. First off, to get that $933 million, GameStop had to dilute its shares. What does that mean? Well, dilution happens when a company issues more shares, which can reduce the value of the shares that are already out in the market. Usually, this isn’t great news for shareholders because it means their slice of the pie gets smaller. Yet, GameStop’s stock price still went up. GameStop, which mainly relies on its physical stores, has been struggling as more customers turn to e-commerce for buying video games and collectibles. Earlier this month, the company announced its share sale plan amidst a buying frenzy spurred by Keith Gill, also known as "Roaring Kitty" on social media. If you remember, Gill’s bullish calls on GameStop played a huge role in the 2021 meme stock rally. His recent activity on social media has re-awakened interest in the stock. The shares were sold through an "at-the-market" offering, meaning they were sold into the market at the current market price, rather than a set price as you might see during an IPO. Based on calculations, these shares were sold at an average price of $20.74 each, while the stock was trading at $21.93 at the time of the announcement. Despite this dilution, the stock price jumped, which doesn’t really add up given GameStop’s ongoing struggles, plus the effects of dilution. Our own Jeffry Turnmire explains that the company’s board had a fiduciary duty to raise money while the stock price was higher than what its fundamentals would justify. Essentially, they had to take advantage of the high stock price to secure much-needed funds for general corporate purposes. But let’s not forget that GameStop recently said it expects its first-quarter net sales to drop to between $872 million and $892 million, compared with $1.24 billion a year earlier. That’s a significant drop in revenue, highlighting the challenges the company still faces. Interestingly, this isn’t just a GameStop thing. Theater chain AMC, another favorite among retail investors, also completed a $250 million "at-the-market" share sale program last week. Both companies are leveraging the retail investor interest to bolster their financial positions despite their struggles. In a nutshell, while the initial market reaction to GameStop’s stock sale was positive, the company’s fundamental issues and the dilution of shares suggest that investors should be cautious. The board’s decision to raise funds while the stock price is high is smart, but whether this strategy is sustainable in the long run remains to be seen. Meanwhile, Jeffry Turmire tells us that GME entered a “rocketship setup” pattern. It’s a combination of his proprietary Market Roadmap setup, plus a measured bounce. Right now, everything hinges on GME holding above the Roadmap LIne, which is currently around the 15 to 16 range. A breakdown below that invalidates the pattern, but if it holds and goes above resistance at about 25, the pattern supports a move to as high as 80 or even an astronomical 300. Jeffry himself only has 12 shares, so he’s not playing big. Trading a meme stock like GME might be fun, but it could easily end in disaster. So be very careful if you decide to trade this. And be sure to set your sell orders in advance — take a look at a chart of GME and notice how the spikes it has experienced in the past happened lightning fast. But keep an eye on those key levels — until one of those levels gets breached there is no high-probability play. — The Prosperity Pub Team [] [] These 3 Rules Could Make or Break A Retirement There’s a lot of noise out there… Invest in this… trade that… But at the end of the day, Jack Carter firmly believes it all comes down to 3 key rules… And he wants to share them with you — completely FREE! Along with 3 key stocks he thinks you should consider adding to your portfolio right away! [Click here to get all the details now!]( [] [] SCOTT WELSH’S TICKER TALES OWL Ready To Fly? Big breakout stocks are usually at the other end of the spectrum from high-yield dividend stocks. But not always. Sometimes high-yield dividend stocks can move. Maybe dividends are suddenly back in favor. Maybe the business itself catches a good quarter or two. Whatever the reason, dividend payers sometimes surge nicely. And Blue Owl Capital (OWL) is an example of this. Here’s the chart: [] This stock has doubled since 2023 and could be poised for another run if it breaks above $19.87. Plus it has a yield of 3.7%. We’ll keep an eye on it. Happy trading, — Scott Welsh P.S. As a reminder, these plays are based on my longer-term Weinstein Stage Analysis method. The charts above use weekly candles and a 30 week simple moving average. For details on this method, see my explanation on [this Ask The Pros episode]( starting at timestamp 20:45. [] [] [] [] ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit [( for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States [Prosperity Pub]( [] ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit [( for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States [Prosperity Pub](