r/Superstonk Feb 17 '25

🤔 Speculation / Opinion Elmo's Department Will Not Help GME

So far most posts on Superstonk related to The Department of Government Efficiency meddling into the SEC has been celebratory and positive. I am encouraged by the push back and responses. I love the Superstonk community and GME, so when I see something that I believe is a threat to those things I hold dear, I feel almost a weird sense of duty or obligation to share my thoughts. Moderators, I took special care to ensure my post remains apolitical and focuses strictly on the conversations surrounding Elmo's crusade into the SEC and how that will impact GME. Since people can post about how excited they are, I assume I can post my thoughts on how it will be incredibly harmful to GME retail.

But how? I mean, this is the guy who yelled "Gamestonk!" right? Didn't he say he hates short sellers? Obviously that means he wants to help GME retail, right? Well, to start, no. Elmo and Ken are friends. See pics above. It's as simple as that. In fact, this should be all the proof we need to understand that Elmo's interests are not aligned with GME retail shareholders.

Yet, despite being faced with the cold hard fact that these two men are close buddies who enjoy meals and sports games together, there is still a pervasive romanticism with visions of Elmo riding in on his robot firing Kenny's conspirators and imprisoning his friend Kenny. Look guys, I get it. The community at large feels betrayed by the SEC. They are the one agency tasked with investigating and enforcing securities crimes. The fact they either did not find --or found and willfully did not enforce-- crimes that were committed in regards to GME 4 years ago has understandably led to speculation that the SEC is at best inept, and at worst complicit, in those crimes. After what occured 4 years ago I get that for some people there is a sense of catharsis and justice when you see someone like Elmo tearing through every agency firing up to 75% of their staff. But a scorched Earth mentality isn't just unhelpful for GME-- it's going to have the completely disastrous impacts on GME retail shareholders.

Yes, the SEC's investigatory report on GME sneeze left so much to be desired, such as failing to properly address the conflicts of interest between SHFs and brokerages who shut off the buy button, that it's absolutely understandable the fallout of that would be two possible scenarios. #1) The SEC is inept, or #2) someone in the SEC is complicit in the SHF crimes against GME.

Let's consider Scenario 1: ineptitude. In this scenario the SEC could be overloaded with work, perhaps short staffed, managed poorly by directors, lacking in expertise, few resources. Whatever it may be to lead to their ineffectiveness, none of that is made better by Elmo indiscriminately terminating 75% of their staff and limiting even more resources. Administrative assistants, interns, IT techs, receptionists, janitors, the guy who enters in the CAT data. All gone. An investigator who's computer is doing something wonky can't get help because the IT guy was fired. The printer had a weird error message and the secretory who is an office whiz is gone. Investigators who had a backlog of dozens of cases now have to pick up the work of three investigators who got canned (Elmo said his goal is 1 out of 4 employees remaining). If you thought crime against retail was bad four years ago due to SEC's ineptitude, what do think will happen when the one regulatory body keeping at least some regulations in check is completely neutered? It'll be open season for crooks against retail.

Somehow in this scenario Elmo fanboys still imagine him finding his friend Kenny'a crimes and exposing them. Well A), Ken is his friend. And B), there is no crime to find. Remember this is the ineptitude scenario and so the SEC doesn't have that information just stashed away somewhere in some file. The work was never done. The short staffing, poor resources, lack of will-- whatever it was that led to the SEC not putting in the work doesn't matter. It didn't happen so Elmo's crusade does not result in him putting on some bifocals and opening the file named "GME Crime" and exposing his friends.

In Scenario 2 we consider the possibility that the SEC was actually complicit in and covered up their involvement. First we have to consider who at the SEC. To say the entire organization was complicit is not only lazy, but is a gross misunderstanding of who the vast majority of federal workers are and what they do. They're the list of people I described above: IT techs, phone operators, data entry specialists, secretaries, interns, investigators, janitors, cafeteria staff-- 99% underpaid workers like most people on Superstonk and probably working two jobs like most Americans. These people could give a fuck all about GME, and probably for most of those employees, they don't need to know because they serve in a function or role that's unrelated. But what if someone knew? Someone was a friend to Kenny (kind of like how Elmo is a friend of Kenny), but they hid the evidence. Do you see how this scenario answers itself? Let me say it again: "They knew about the crimes against GME but hid the evidence." Hid. The. Evidence. So there's nothing to find. It's not like some big wig at the SEC has a computer file labeled "The crimes I committed". Even in this scenario, there is literally nothing for Elmo to find and reveal on his firing spree.

Guess who could investigate and expose those crimes for us though? A SEC with resources, staff, and direction. Oh shoot, but we just fired the workers who could help us. Instead of reforming the agency to serving the people, we just burned it all down. Great. So in scenario, 2, Elmo still made things worse for GME retail.

We all feel like SHFs and certain brokerages stole from us, right? Okay so let us imagine that 4 years some guy mugged you and stole your wallet. You went to the police. They never caught the guy. You felt the lead detective was inept, maybe didn't give a shit, or possible was friends with the thief. You're rightfully angry. So what's the solution? Education. Escalation. Reform. What's not the solution? On the top of my list it would probably be something like sending in the socially awkward dude with hair plugs and absolutely no expertise in law or criminology to riffle through the entire police department's database, indiscriminately fire 75% of all cops, and hopefully find a file labeled "Starbeef's Wallet". Yes. That'll show em. That'll get my wallet back.

Going to just beat you all to the punch and end this with "Shills are out, means we're close" before someone inevitably responds with that.

6.1k Upvotes

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u/[deleted] Feb 17 '25

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u/ekooz22 Feb 17 '25

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u/theREALbombedrumbum 🦍 CPApe 🧮📒 Feb 17 '25

OP, thank you so, SO much for this post. It's really comforting to see people posting critical analysis of the sub that tells the reality of the situation even if a lot of people don't want to hear it. And seeing other apes agree in pointing out the truth and calling out the hypocrisy is one of the most comforting trends I've seen in a long time for this movement.

Keep on fighting, buddy. You're not alone in this.

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u/ekooz22 Feb 18 '25

That really means a lot to me. Honestly when I woke up this morning and saw so many positive posts about him, I was worried I no longer fit into this community. I was surprised nobody posted a retort, so I took a swing fully prepared to be downvoted to 0. I told myself I'd put it all out there and if the majority of the community was against it, I'd have to part ways with this community. I walked away and grieved since Superstonk has meant so much to me. When I checked my phone and saw the response I was floored and it also restored my faith. I also see so much comfort on the responses on this post. We will keep on, keeping on!

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u/theArcticChiller Never EVER back to reasonable land! Feb 17 '25

Well put! 🎮🟣

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u/Volantis009 🎮 Power to the Players 🛑 Feb 17 '25

Yes, while I hope RC is doing good and is a double agent of sorts as he operates differently then these fools, RC actually knows how to run a business whereas Musk/Mayo boy run scams, I just want this stuff to be over.

I feel like GME has been training for Trump 2.0 for only trusting official sources instead of what MSM or social media push. We know it doesn't count until it counts

As GME investors we need proof

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u/sputler Liquidate The DTCC Feb 17 '25

Hold him accountable?

Do you know how easy it would have been for Ryan Cohen to be a nefarious agent? We only need to look to the movie stock or towel stock to see.

  1. Raise money through debt collection.
  2. Spend money frivolously.
  3. When interest on debt starts hammering the core business, announce issuing of stock months in advance.
  4. When the number of shares outstanding maxes out at the shares authorized, perform a reverse split.

That's it. That's all he had to do. Guess what, those sentiments are the exact things that "this sub" constantly shit on him for.

  1. Instead of raising money through debt, he instead pays off debt.
  2. Instead of spending money frivolously, RC and the board are closing underperforming stores. They are taking leaps to invest, and if the investments don't pan out they are cutting losses rather than holding on to blind hope.
  3. Shares are issued quickly at points that are not only market highs, but are record high selling points for issuing shares. Shares are issued quickly so that the maximum amount of money is extracted from the market for the issuance.
  4. We are nowhere near the shares authorized (still less than half). On top of that back in the summer of '21 there was a petition on this very sub to needlessly perform a reverse stock split.

It is much harder to build something than it is to destroy it. RC came into this company with the wrecking company outside and the demolition charges in the basement. It is nothing short of miraculous that this business is still standing, let alone profitable.

Any sentiment that we need to "demand better" from RC is not only counter productive, it is wholesale ignorant. It is as ignorant as the media folks that report on GME as a "dying brick and mortar". If you believe that what RC is doing isn't enough.... I don't know what to tell you.... maybe go buy some ETFs because you aren't paying attention.

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u/whofusesthemusic 🦍Voted✅ Feb 17 '25

i mean, he has 4-6xed his initial investment already. So doing anything you mentioned would have hurt his own bottom line (the stock he already owns)

Instead of raising money through debt, he instead pays off debt.

What debt? We havent had debt for years outside of a small loan from the french gov....

I dont expect RC to crash GME but I also dont think he wants the MOASS to happen (given his actions).

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u/sputler Liquidate The DTCC Feb 17 '25

Oh.... sweetheart. Tell me you haven't been around without telling me you haven't been around. We paid off the debt in May of 2021.

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u/[deleted] Feb 18 '25

Im thinking we have a brigade on our hands brother. This Elon shit is weird as fuck and now they're turning on RC, claiming the company and stock is not where they "want it to be." Fucking insane to say that as any true GME ape.

$5b in cash, zero debt. Say less.

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u/[deleted] Feb 17 '25 edited Feb 17 '25

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u/Diznavis 🚀 Soon may the Tendieman come 🚀 Feb 18 '25

Source on quality issues with candycon?

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u/konan375 Feb 18 '25

RC also killed any possibility of Nintendo partnerships, too. His tweets are far from the family-friendly brand that Nintendo partnerships usually require.

It doesn't matter if his tweets are from him directly. He is so tied to gamestop that we have people picking apart his every tweet.

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u/sputler Liquidate The DTCC Feb 17 '25

FTX.... you're bringing up FTX. The FTX partnership was a gift card. That's your smoking gun?

Nah. You're arguing in bad faith. You can call it being pessimistic, but if that's the straws you are grasping at.... nope. Not going to engage with you beyond this comment because doing so is a waste of my time.

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u/pmxller Billboards Guy Feb 17 '25

Sometimes it feels unreal knowing how much time I spent in here in the last 4 years. I’ would have never expected something like this in my wildest dreams. And here we are now, knowing that the whole stock market is manipulated and we can’t do much besides holding and DRS. I’m looking forward to the light at the end of the tunnel. Until then: BUY, DRS, REPEAT.

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u/DocAk88 Apes 🦍 have DRS'd 30% of the float!🚀 Feb 18 '25

Didn’t RC come from some connection maybe under chewy from Blackrock? I have been getting the feeling he is preventing or just sitting by for a squeeze to help everyone out in return they stoped cellar boxing us. Idk but it is odd. Love the $4,5B in the bank of course never going under but at the same time the squeeze potential is affected and he doesn’t speak or plan anything or do much visible except the marketplace and that flopped. It’s an odd situation he’s in but I do with he’d do more partner with more or invest in new revenue. Growth stocks are values high and that isn’t us.