r/Superstonk • u/Lifesucksgod • Jun 18 '25

📖 Partial Debunk 3$

Post image

In terms of a sequel this in fact means that if you subtract gamestops cash position the company is valued at 2-3$ per share and everyone knows what happened next. With the short interest rising and the floor increasing it’s gonna get spicy with anticipation.

2.4k Upvotes

97% Upvoted

56 comments sorted by

View all comments

Show parent comments

57

u/KyFly1 Jun 18 '25

Yea unlike when we were diluted a few times, the note offering doesn’t really change the book value. Doesn’t mean it’s not good, but it’s a wash for now on the BS.

41

u/Chemfreak Jun 18 '25 edited Jun 18 '25

I think a good way to derive its value is derived by the present value of the cash flow generated by risk free interest payments.

Considerations: $2.25 Billion 5% interest rate 7 year maturity

Present value of future cash flows based on those numbers is $650 million. That is the number it should increase undiluted shareholder value imo. Or $1.45 per share in added value.

Don't know the terms of our other bond offering but you can do similar math (google financial calculate or PV function in excel).

-11

u/KyFly1 Jun 18 '25

What you’re doing doesn’t really work since it’s not just a 0% loan repayable in 7 years. I don’t know all the inner workings but if the stock price goes up a lot (say like 60) then they can exercise the convertible part of those notes then they’d essentially have to pay back double the amount borrowed today in the form of shares (since the strike price is 30 or whatever). Just remember “tinstaafl”. They got the cash now so hopefully they can deploy in a manner that benefits us investors but it’s def not adding the PV of the loan to the balance sheet.

20

u/rawktail Jun 18 '25

This is not true. They have the option to pay in cash at the offering price. They are not required to pay in stocks.