General Gaming GameStop's newest, most brilliant idea to save itself: turn the company into a mutual fund!

[Commissar SFLUFAN]

No, I'm not kidding.  At all.

 

GameStop's potential new strategy: Let Ryan Cohen buy other stocks with company cash

WWW.CNBC.COM

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The Chewy co-founder and investor is gaining even more power at GameStop, which was at the center of the meme stock craze of 2021.

 

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Struggling retailer GameStop is giving its CEO and chairman Ryan Cohen even more control, including the ability to use company cash to buy other stocks.

 

In its quarterly report released Wednesday night, GameStop announced two changes to its corporate investment plan: company cash can now be used to buy equities instead of just short-term debt, and that Cohen is in charge of the investments.

 

“Mr. Cohen directs the investment activity of the Company in public and private markets pursuant to authority granted by the Board of Directors.

 

Depending on certain market conditions and various risk factors, Mr. Cohen, in his personal capacity or through affiliated investment vehicles, may at times invest in the same companies in which the Company invests,” the filing said.

 

“Such investments align the interests of the Company with the interests of related parties because it places the personal resources of Mr. Cohen at risk in substantially the same manner as the Company in connection with investment decisions made on behalf of the Company,” the filing continued.

 

 

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The company did not hold a quarterly conference call with Wall Street analysts, but Wedbush’s Michael Pachter called the decision “inane” and “alarming.”

 

“Investors have a myriad of investment vehicles available to them and therefore do not need GameStop to act as a mutual fund. If GameStop truly believes in the value of its shares, it should use its excess cash to buy back stock,” Pachter said in a note to clients.

 

The change comes as Cohen’s attempted turnaround at GameStop is floundering.

 

 

[Mr.Vic20]

[DarkStar189]

We were walking around the mall a few weeks ago and I went into GameStop with my son. I’m looking around realizing there is nothing in this store that I want or need. My son is picking up games and he’s like “we should get this one when we get home”. His entire collection is all digital so to him this trip into the store is a flashy place with cool box art. I really wondered how many others are in a similar situation. Physical games can be absolutely pointless because you might have to download 30GB+ of data just to play.  I wonder how many years GameStop has left before they start dropping physical locations all together.

[TwinIon]

I suppose it makes a certain amount of sense. They have an inflated stock price and a failing business. May as well count on other business to actually make money with your money.

[Spawn_of_Apathy]

How much longer until the CEO is approved to buy scratch offs and powerball tickets with company assets in order to save the company?

[nublood]

I walked into one a couple weeks ago and it felt like going back in time. I did buy a physical Switch game though, which also felt kinda nostalgic. Seems like just yesterday people were lined up outside my local GS to get the latest game release. But I think those days are over. Kinda sad actually.

[best3444]

37 minutes ago, nublood said:

I walked into one a couple weeks ago and it felt like going back in time. I did buy a physical Switch game though, which also felt kinda nostalgic. Seems like just yesterday people were lined up outside my local GS to get the latest game release. But I think those days are over. Kinda sad actually.

 

I love the convenience of digital but I do miss the days of getting hyped for a game and then going into the store to buy it. I think TLOU2 was my final game I bought at gamestop.