The ASX Degenerate

@ShaunFitzzzy @diamondape69 @starberryxmoon @TimHaldorsson we all know loans are possible fitzy, it’s the repayments that are the problem.

@diamondape69 @starberryxmoon @TimHaldorsson I saw a dude buy a car with no money before

how can GameStop with a $11.9 billion market cap buy eBay that has $46.2 billion market cap? what am I missing here in this situation?

@ShaunFitzzzy Aaaaaand I was right, Burrys Substack - “Assuming a 20-30% premium to Friday’s eBay closing price, the likely cost to buy eBay could be closer to $60 billion, excluding eBay’s $7 billion of debt. This would be 37-45 times my estimate of eBay’s owners’ earnings. Not a bargain”

Two things 1 I don’t see Burry choosing sarcasm in a Twitter post to fud his #1 position, seems illogical as hell 2. You are wrong, there is a path to ownership for GameStop. I believe RC when he said…… “It’s transformational. Not just for GameStop, but ultimately, within the capital markets … this is something that really has never been done before within the history of the capital markets.” You think he’s full of shit?

Burry likes it

@eyedomomusic @TheBronxViking The valuations of the combined entity collapses if all cash flow is used to service $40-$50billion of debt. This transaction isn’t logical.

@TheBronxViking Or use eBay's own assets and future cash flows as collateral to borrow heavily. GameStop puts up some of its $9B cash as equity/down payment, then layers on debt. eBay generates solid operating cash flow, so in theory, the combined company could service the debt while cuttingcost

When you realize that the only real way $GME can mathematically afford to buy $EBAY runs through shareholders once again catching the big D

@ShaunFitzzzy Maybe cohen is doing this knowing it’s impossible. Pumps the share price of eBay - sells the eBay shares and options. Also hopes for the GME warrant and debt cash unlock. Locks in a decent profit on the eBay shares - then looks towards more realistic acquisitions.

@TheASXDegen You really believe that?

@i_em_apex @michaeljburry Yes they do. The buyout doesn’t come out of thin air, they need at least $40-50billion in debt

@TheASXDegen @michaeljburry They don't need $50b for a LBO

$GME and $EBAY. Makes perfect sense.

@i_em_apex @michaeljburry They issued a dilution package, it only unlocks at a higher share price. That won’t work on a scale of $40billion-$50billion

@TheASXDegen @michaeljburry They literally issued debt @ 0% last year.

@JimmyWinrar @michaeljburry GME is free cash flow negative once you strip out the interest they are earning on cash balance, so that’s gone. EBay cash flow between $2-3billion vs $3.5b annualised interest payment. But the kicker is, the valuation of the company collapses if interest eats the cash flow

@TheASXDegen @michaeljburry When Ebay is added into cash flow, run rate for the whole year would be something like 4.1B in cash flow. I suppose they would also synergize the business, and may have other stratetic capital at hand.

@The_Lacey_Belle @JonahLupton Okay genius, an LBO would still require at least $40 billion in debt (and that’s wishful thinking best case scenario). EBay+GME free cash flows can’t even service half the interest payments on that. It’s not going to happen. This deal is mathematically impossible.

@JonahLupton Man has no idea how LBO's work lmao

@SwamiKnows_ He has also just sabotaged his options package, who’s gonna wanna vote to give him performance shares if a lot of EBITDA and market cap hurdles will be hit just In one acquisition. Shareholders might not even end up making much money with all that debt and dilution.

I wonder how GameStop will attempt to finance the acquisition of eBay ? Market cap is $51B and rising on news of the offer. GameStop has ~$9B in cash. It's either dilution or taking on debt to fund the purchase. Glad to see price moving up, but be careful.

@TRAVmoneyofmine @cowboybeeshop Imagine the confusion when trying to negotiate for USA gov funding, they will just presume it’s a hustle when they find out it’s a foreign company

@cowboybeeshop American flag logo for an australian company lmao

How can you not be bullish these guys @TRAVmoneyofmine? Look at this site! I don't even know if looking at a mining company or an advert for Battlefield 6 Season 3. $AT4.ax #fingshitupcausewegottungstenmfers

@SwamiKnows_ The dude blatantly gave 3 fake dates and anyone that bought call options on that bs would have got burnt. Hard to have empathy. Id say its 99% probability he is a massive annoyance to his brother, youre looking too deep into it. Its fine to admit when you get something wrong.

@auntyneville665 @nikiscevak @tezzig1961 yup, i worked with loads of gov "contractors", paid a top2% salary but give a bottom 2% output. the full time governemnt workers were even lazier. There was actually a work culture where you would be shamed if you didnt take a 2hr coffee break every morning

Having worked with numerous state and federal government departments, I can assure you that in most cases, their version of being busy doesn’t resemble anything like it. In comparison to the private sector, their work output is ludicrously low, and the equivalent of a high achiever in government would be actively managed out under a performance improvement plan in the private sector. I got in strife on a government contract for a brief discussion I had with a government employee who told me how busy they were. I explained that the real world expects 20 times the productivity of what they’re currently putting out. Unsurprisingly, they used my comment as justification for going on stress leave and making a workers' compensation claim for psychological injury, effectively proving my point! 😂

Australia has 5x the number of public servants per capita than China 🙈

@Ruycorto $CRS - 500Koz likely at 5g/t on a pending MRE. cheap at $70m. RMS/WGX logical acquirers.

Wishing everyone a great weekend ASX Chart request open Give me your best Ticker My pick for this weekend: $PDN Uranium sector has been heating Charts looking interesting with potential breakout levels to watch. What's yours? Drop your top ASX ticker below and let's discuss the charts! 🙏

@ShaunFitzzzy @BarkingPuppy8 wasnt unhinged or autistic enough imo

In hindsight, Pete Davidson probably should have won an Oscar for his role as @BarkingPuppy8

@TwinTurboCe1ica do we know what geography the CR's come from? are they all south korean, or aussie? apparantly different ethnicities respond to some treatments in a unique way. Hopefully CRs are across both aus and korean patients

Disappointing to see $ATX study based on the US Chemo drug stopped. The US Chemo drug is a lot more toxic than the Aus based chemo drugs. Puts a dent in the ATX plans, but doesn’t change the effectiveness of the ATX drug and still well tolerated Detailed Accent data b4 19th Apr

@bowtiedstocks Make sure you pay extra and secure the one with the mountain view if you stay there. Worth it!

@bowtiedstocks Had to delete my last post. Mixed up the names. It’s actually called La Quinta, or LQ hotel. Near quest but not the same. Enjoy your stay! Will be a beautiful time of the year

BowTiedStocks will be heading to Queenstown in a couple of months (jet fuel issues notwithstanding) The Euro Summer has been deferred until further notice Any hotel / accom recommendations for Queenstown would be very welcome 🙏 First time visiting