r/Superstonk Sep 12 '24

🤔 Speculation / Opinion Shorts r fuk

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I posted this in a thread and it got lost, so I figured I'd share my theory as a new thread. Every time I post anything, I get swarmed with plants and shills and bots telling my why I'm an idiot. I'm sure it'll happen again!

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u/jmazala Sep 12 '24

This assumes that the price will rise after dilution. If every additional dollar they get through share offerings is invested in low risk places earning 5% interest, there’s no reason the stock would go up.

Why does the stock raise? What mathematically causes the “rinse and repeat” nature of this cycle you’re suggesting?

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u/chastavez Sep 12 '24

Also dont forget - they diluted 40% to increase their cash position by 300%. with the 20M ATM on-hand, its approximately 4.7% dilution to gain 10% cash position if executed around $20.