Dr B

[Dr B @Sac_shep]

@DOMOCAPITAL @ryancohen Burry needs to read the 8K: "Performance Hurdles will be adjusted by the Committee equitably and proportionately..."
If Cohen issues new shares to absorb eBay, the tranche targets increase. He cannot simply absorb his way to $100B

[Dr B @Sac_shep]

@317x741 Or maybe they're just buying a seat at the table to see what deals come through the pipeline. Even if $GME takes the best ones, Kraken gets visibility into private fintech/crypto companies before they go public. But I'm just speculating, sure is interesting though!

[Dr B @Sac_shep]

So basically, Nat Turner sits on $GME board. Yesterday he filed paperwork to start a new company that raises money to buy other companies (a SPAC). This new company wants to buy something in crypto or fintech.

The paperwork says if Nat finds a good deal, he has to show it to GameStop first. GameStop gets first dibs. If GameStop says no thanks, then his new company can buy it instead.

Kraken (a big crypto exchange) is putting money into this too.

Basically: A $GME board member just set up a shopping cart for digital asset companies, and GameStop gets to pick what goes in it first.

[Dr B @Sac_shep]

@317x741 Thats a good question, I'm not really sure but $25M is small for Kraken and I'd say they win either way. if MOZAYYX acquires something, a potential integration partner. If GameStop takes it instead, even better, a $9B cash company entering their ecosystem.

[Dr B @Sac_shep]

The filing contains standard SPAC corporate governance provisions, but two clauses are notable. First, a corporate opportunity waiver: MOZAYYX explicitly renounces any claim to deals that could be corporate opportunities for its directors' other entities. Turner's fiduciary duty to $GME takes precedence.

Second, an affiliate merger clause: The SPAC is not prohibited from merging with companies affiliated with its directors, officers, or their affiliates. If such a merger occurs, it requires a fairness opinion from an independent investment bank to certify the deal price is fair.

The authorized share structure includes 500M Class A ordinary shares, 50M Class B ordinary shares, and 5M preference shares. The preference shares are "blank check" - the board can set voting rights and other terms without shareholder approval.

For context: This is a standard SPAC structure. What makes it notable is the combination of personnel (Turner's dual board role with $GME), the target sectors (digital assets/fintech aligns with GameStop's stated interest in capital allocation), and the institutional backing (Kraken is one of the oldest regulated crypto exchanges with a Wyoming banking charter).

No target has been announced. The SPAC has 24 months from IPO to complete a business combination. Until a target is identified, this remains a capital formation vehicle with interesting personnel overlap

[Dr B @Sac_shep]

New SEC filing worth noting: MOZAYYX Acquisition Corp filed an S-1 on February 2, 2026. It's a $250M blank check company (SPAC) incorporated in the Cayman Islands. The stated target sectors are artificial intelligence, digital assets, fintech, energy, cybersecurity, infrastructure, robotics, and communications.

The management team includes Nat Turner as an Independent Director. Turner currently serves on the $GME Board of Directors (since November 2024) and is CEO of Collectors Holdings (PSA authentication). He previously co-founded Flatiron Health (acquired by Roche) and Invite Media (acquired by Google).

Also on the board: Gurpreet Oberoi, who is the Global Head of Institutional at Kraken (Payward Inc.). Kraken has indicated a non-binding interest in committing up to $25M in a PIPE transaction for the eventual business combination. MOZAYYX Master Fund has indicated another $25M, totaling $50M in potential forward purchase commitments.
https://t.co/tLjHM3w6qP

[Dr B @Sac_shep]

I haven't really used the social side of tradingview yet, but I'll let you know when I share it. The issue is that it really does need a fundamental filter to avoid the $CVNA $100 to $4 situation.

In theory I could add that filter to the indicator as tview has heaps of fundamental data available that can be called by the pine script. However, my current fundamental process involves sifting through 10-Qs and 10-Ks following a ~4000 line analysis framework - takes hours per stock. That's why it's hard to replicate as a simple Tview filter.

[Dr B @Sac_shep]

Of course, technicals are not perfect, here is the crazy $GME action from May 2024. You can see that the green triangles in the bottom pane appeared 6 months before the actual move.
Incidentally, Michael Burry convenient glossed over this part. Short interest was low in 2024, I would have loved to hear his thoughts on how, mechanically, it could hit $80 premarket during that time....

[Dr B @Sac_shep]

This indicator is my own very long pine script I initially developed in python (using optuna for hyperparameter tuning). Its a multi timeframe PMO indicator to catch the full cycle. Instead of one setting, I layer four different timeframes from ultra-fast to macro. The green triangles fire when the timeframes align in specific ways.

It needs to be paired with fundamental analysis though, pure momentum indicators will happily flag garbage. $CVNA in 2022 is a good example that I posted about just recently. Thye were a dumpster fire burning cash, and had ballooning inventory (all those cars sitting on lots). The indicator flagged it in March 2022 around $100, then it crashed to $4. The right entry was mid 2023 when fundamentals confirmed the turnaround (positive operating income, debt restructuring).

[Dr B @Sac_shep]

Its not perfect, here are some other examples. For $PLTR and $MSTR it triggered about 2yrs before the run up. And for $CVNA it triggered a bit before the bottom. Although in that case, a $CVNA fundamental analysis would have ruled out buying until the evidence of positive operating income and transaction support agreement that happened in mid 2023.

[Dr B @Sac_shep]

And finally, here is a zoomed out picture showing $GME from 2018 to now with my PMO indicator. You can see i'm not cherry picking periods, it is quite reliable. But it can take many months until we actually see any movement

[Dr B @Sac_shep]

Another interesting thing about $GME recently is shown below. I’m a fundamental investor first, but I use technicals for entry timing. My PMO based indicators have been very reliable. See below, some green triangles are starting to appear in the bottom pane. I use multiple PMO parameterisations that interact, this is normally a precursor to a stronger signal.

[Dr B @Sac_shep]

Like, I've read hundreds of SEC filings. I have NEVER seen an item 4 like in Ryan's 13D.

He didn’t just disclose a purchase, he effectively declared war on overpaid executives. He effectively locked his shares in a vault, he can’t sell now without being a hypocrite.

"The Reporting Person believes that it is essential for the Chief Executive Officer of any public company to purchase shares of such company in the open market with his or her own personal funds in order to further strengthen alignment with stockholders. The Reporting Person believes that any Chief Executive Officer who fails to do so should be fired."

[Dr B @Sac_shep]

A lot of interesting things happening with $GME lately. Ryan Cohen and Alain Attal buying on two consecutive days. Ryan leaving a moral manifesto in his 13D which I have NEVER seen before. Larry buying more. Michael Burry publishing a positive analysis and position entry (6% of his portfolio). Any many more broader things going on.

[Dr B @Sac_shep]

@Malone_Wealth I'm trying to figure out how many other CEOs file a moral manifesto like that into a 13D. I've not found any, this is nuts.

[Dr B @Sac_shep]

Check out item 4, lol:
"The Reporting Person believes that it is essential for the Chief Executive Officer of any public company to purchase shares of such company in the open market with his or her own personal funds in order to further strengthen alignment with stockholders. The Reporting Person believes that any Chief Executive Officer who fails to do so should be fired."

[Dr B @Sac_shep]

LMAO intensifies when you read item 4:
"The Reporting Person believes that it is essential for the Chief Executive Officer of any public company to purchase shares of such company in the open market with his or her own personal funds in order to further strengthen alignment with stockholders. The Reporting Person believes that any Chief Executive Officer who fails to do so should be fired."

[Dr B @Sac_shep]

$GME – Fortress Special Situation at Maximum Pessimism

The market continues to view GameStop as a declining legacy retailer, applying traditional multiples to a business in structural transition. However, a detailed examination of the capital structure reveals a Fortress Special Situation, where enhanced net cash represents nearly 88% of the market capitalization. This positions the equity as an asymmetric call option on Bitcoin treasury appreciation, and the ongoing pivot to higher margin collectibles.

Net cash floor: Approximately $18.75 per share
Downside protection is substantial.
Upside potential is multi-faceted and uncapped in tail scenarios.

The Valuation Disconnect:
Traditional perspective (gross debt view):
Market Cap: Approximately $9.58B
Gross debt: $4.2B
Enterprise Value: Approximately $5B
EV/Sales: Approximately 1.15x
Appears expensive for a retailer facing headwinds.

Enhanced perspective (proper convertible treatment):
$4.2B in 0% coupon convertible notes (maturing 2030 and 2032) are 35-40% out-of-the-money with 4-7 years remaining.
These are functionally equity-like and I have weighted them at only 10% debt value ($430M effective).
Enhanced Enterprise Value: $1.18B
EV/Sales: 0.27x (below specialty retail peer median of approximately 0.42x)

The company now operates with zero cash interest expense while holding significant liquid assets providing optionality.

The Fortress Balance Sheet:
Cash and equivalents: $7.84B
Marketable securities: $987M (including approximately $519M Bitcoin position)
Total liquid assets: $8.83B
Enhanced net cash: $8.40B (87.7% of market cap)

A 20% change in Bitcoin price should impact per-share value by approximately $0.25.

Operational Progress:
The collectibles segment demonstrates meaningful traction:
Revenue growth: +49.7% year-over-year
Now 31% of product mix with higher gross margins
Partnership with PSA expanding graded offerings

Q3 FY25 results:
Operating income: $41.3M (versus $33.4M loss in prior year)
Sustained profitability emerging for the first time in years
Nine-month free cash flow: $410M (16.2% margin)

Core software and hardware sales remain under pressure (software down 27% year-over-year), but mix shift and cost discipline are offsetting declines and driving margin improvement.

Key Risks:
Structural decline in physical games and hardware sales
Capital allocation execution, including Bitcoin volatility and potential acquisitions
Ryan Cohen's significant holdings pledged in margin accounts
Convertible dilution only relevant above $29-30 (currently far out-of-the-money)

Mitigations include the large cash buffer, zero interest burden, and leading physical market position in collectibles.

Personally, I'd back the truck up near these low $20 levels - NFA

[Dr B @Sac_shep]

Note, Australia operations are still unprofitable ($3.5M loss), but improving a lot.

[Dr B @Sac_shep]

Plenty of summaries of GameStop's latest 10-Q out there, but this is what stood out to me - and puts the 'revenue miss' into perspective:

Core markets have grown double digits in revenue.