DDoS

joined 1 year ago
[–] DDoS@lemmy.whynotdrs.org 6 points 5 months ago (1 children)

Adam Aaron keeps diluting, because AMC needs money to pay off debt. Ryan Cohen doesn't need to dilute, since GameStop has no real debt. But he still does it because he's planning on doing something with the money. And considering the amount of it, it is something very big.

People don't seem to understand that "dilution" is a negative term, designed for you to immediately disapprove of it. They aren't just diluting though, they are actually "raising capital". The truth is, that the value of your shares may decrease, but the "lost value" isn't lost. It transforms into a different value, on the portfolio of GME. RC has proven, that he is interested in generating value for shareholders. He also firmly believes in delayed gratification. While the capital he raises goes into building a strong company, the capital that Adam raises goes straight to the banks, paying interest for AMC's debt.