GameStop Due Diligence
r/GMEDD
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If you haven’t yet DRSed your shares and you still want to make sure your votes count and your voice heard at the next company meeting, GameStop advises in their May 2, 2023 Proxy Statement as follows: Page 9 - Section 3 – How do I Vote: https://gamestop.gcs-web.com/node/20001/html
“Beneficial Owners. If you are a stockholder whose shares are held in “street name” (i.e., in the name of a broker or other custodian) you may vote the shares electronically at the annual meeting only if you obtain a legal proxy from the broker or other custodian giving you the right to vote the shares.”
To obtain a legal proxy from your Broker or Custodian that will give you the right to vote your own shares, Computershare suggests the following in their Computershare Q&A Brochure for Investors - Page 11/12 - Non-Registered Holders: https://www-us.computershare.com/content/download.asp?docid=%7Bf2ea5d8b-8dee-44d3-af60-b633864f03cd%7D
If you’re a Beneficial Owner/Non-Registered holder and wish to vote at the annual meeting, special meetings, etc. follow these steps:
Insert your name in the space provided on the proxy authorization form (you should have received this form with your annual report package) appointing yourself to vote at the meeting. (Shareholders may need to need to demand these proxy materials from the broker, as they don't all send them out unless requested.)
Return the form to your Broker in the return envelope provided in your package.
When your Broker receives the proxy authorization form from you, they can do one of two things:
They can complete and submit a proxy to Computershare. This proxy will appoint you to vote.
In this case, when you arrive at the meeting, give your name to the staff at the registration table telling them that you are a proxy appointee. When you appoint yourself or another person on your behalf, you or your delegate must attend the meeting in order for your vote to count.
2. Your Broker may choose to sign and limit the holdings on the proxy to the number of securities/shares you own and return it directly to you.
Well, the next phase of the borrow cycle as finally started in earnest. Historically, it took approximately 40 days, while this time it took 58 days for the cycle to repeat.
The question becomes, is the cycle no long predictable, or has there been some external factors complicating the availability of borrows like the split. I am inclined to believe the later, due to the nearly year long period where the cycle was very accurate and predictable and the underlying market factors that are immutable are still in operation.
In my previous post, I noticed that some after market behaviors, purchases of tens of thousands of shares were happening just before the borrow cycle, and were having an outsized effect on the availability of borrows. It seemed to me that it was intentional, as a method of increasing demand, while supply of shares to borrow was depleting. Well, it looks like it did happen again, the day after when I thought it was likely to happen (Jan 28th and Feb 1st) for tens of thousands. I thought, and still do, these were intentional for the reasons listed above. However, no spike in borrow rate really showed up in the days following.
Now, in retrospect, it seems possible that it was related to the banking collapse that has been making all the headlines these past two weeks. That entire process became public the week of the 6th, the week that the borrow rates should of been spiking. We'll never know all the back room negotiations and deals that happened and are still happening, but the timing seem too suspect to be ignored.
The week that borrow availability should of declined, it instead had a little mini-spike at the same time that many banks were having margin issues. It very well could be that in response to the problems these banks were facing, they took some efforts to generate capital by selling swaps or contracts or any other holdings they had related to GME that could give anyone needing to satisfy open obligations a path forward. It would all be in the dark, all OTC, and all using byzantine second or third party securities. For that reason, I can't say for a fact that did or didn't happen, but again, that seems like a logical assumption.
So, regardless, the rates didn't climb the week they "should have" and instead started climbing about two weeks later. And just like last time, a large AH buy proceeds it (about 4 buys with tens of thousands in volume each time). So the cycle is repeating itself, but out of sync with timing.
To break this down into the most actionable bits for those of you trying to see how any of this can be profitable, I'll state it as facts and assumptions.
-We factually have a cycle of low and high availability of shares to borrow, and the availability is factually being affected by the removal of shares. It provides concrete proof that direct registration of shares is impacting the efficacy of Market Maker price control.
-The cycle of low and high availability has recently become variable, this is also factual. Why is speculative, and is the topic discussed above.
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I made a post last year about how the Norwegian Oil fund had to sell their GME position after the sneeze because they hate "noisy" stocks, and only kept 1 single share of GME as of Sept. 1st 2022.
https://www.reddit.com/r/Superstonk/comments/x797xt/just_a_little_fun_fact_norwegian_oil_fund/
Just saw a note in our national economics newsletter that the oil fund had bought a ton of new stocks the last months, decided to take a peak and oh boy;
PSA this fund (as with most shit here in Norway) is fully transparent, all their stock positions and real estate investments etc. are completely public. Sauce
https://www.nbim.no/no/oljefondet/investeringene/#/2022/investments/equities/7967/GameStop%20Corp
YOU KNOW YOU MESSED UP WHEN THE NORWEGIAL OIL FUND IS AGAINST YOU KENNY, FUCK YOU AND SUCK MY BALLS 🚀