$GME This is what happens when management focuses on the stock price. This is from a research report on GME from a few years back “Despite that, their capital allocation has been a bit all over the place. They probably tried to do everything they could to stop the stock price from falling despite decent business results. Remember that about 40% of the shares are sold short. So the management would try whatever they could to stop the stock from plummeting. First, they buy back stock – at levels much higher than they are today – that doesn’t stop it. Then, they say they are diversifying. That doesn’t stop it. Then they initiate a dividend and now they are left with a stock with a 12% dividend yield. They probably expected this dividend to put more of a floor on the stock than what we’ve seen. Right now, they are using about half of their free cash flow on dividends, then another 7% on share buybacks and 7% on paying down debt. “
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