This is an automated archive made by the Lemmit Bot.

The original was posted on /r/Superstonk by /u/WhatCanIMakeToday on 2024-04-08 17:00:59.

Gary Gensler may have given us a roadmap for how to get more accurate share counts a year ago!

Check out this post1 which has the following transcript from WeTheInvestors 2nd Q&A With SEC Chair Gary Gensler (YouTube):

[Gary Gensler] "From an issuer point of view, I think an issuer is makes disclosure that their investors find material...

And engaging with issuers as you have, may change what they think that investors find material. I would say frankly to date, most issuers have not found it material that investors would want that information about how many shares are in street name versus direct registered.

[Dave Lauer] "Do you think the SEC rule as it is crafted prohibits issuers from even you know educating their investors about it?"

[Gary Gensler] "Uh Dave I think you're raising a good point but I don't you know in this format you said why I might not speak to specific companies. I mean issuers, there are two issuers are disclosing this already so I think that probably self-answers your question. Uhh..."

[Dave Lauer] "Ok that's a fair point yep."

Let Me Highlight That For You

1. An issuer makes disclosure that their investors find material.
2. Most issuers don't think "information about how many shares are in street name versus direct registered" is relevant to their investors.
3. There are two issuers are disclosing this information already!

THOSE ARE HUGE!

If investors think information is material, then an issuer (e.g., company like GameStop) would make disclosure. (Number 1 above.) Including information about how many shares are in street name vs direct registered. (Number 2 above.) And, there are currently TWO ISSUERS (i.e., TWO COMPANIES) disclosing this already so there's no SEC rules preventing such information disclosure.

Side Quest: WHO IS THE SECOND ISSUER reporting share counts? (GameStop obviously being the first.)

Apes, Ask & Ye Shall Receive (A Proposal To Disclose Material Information)

I propose that interested investors let GameStop know what information investors may consider material for disclosure, including:

• Approximately how many GameStop shares are held in street name?
• Approximately how many GameStop shares are directly registered?
• Approximately how many GameStop shares are held by registered holders?
• Approximately how many GameStop shares are held by registered holders with their transfer agent?
• Approximately how many GameStop shares are held by registered holders with an entity other than their transfer agent?
• Approximately how many GameStop shares are reportedly held by Cede & Co.'s FAST Account?2
• The number of registered shareholders and/or record holders?
• Approximately how many GameStop shares are held in "pure" DRS form (per ComputerShare's usage of this term on their site entitled "Becoming a registered shareholder in US-listed companies through Computershare" at https://www.computershare.com/us/becoming-a-registered-shareholder-in-us-listed-companies)?
• Approximately how many GameStop shares are held in DSPP?

TODO

1. In about 1 week from when this post goes live, I'll archive a copy of this post to capture the upvote count.
2. If this post gets reasonable traction (e.g., >5k upvotes), I'll send an email to GameStop Investor Relations letting them know that GameStop investors have expressed interest in information that may be material to our investment along with a link to this post and archive copy so that the upvotes demonstrate an anonymous indicator of interest by GameStop investors. (I'll copy/paste the email I send to this sub as another post.)
3. Over the course of the upcoming week, apes can discuss any other information to request as material. (Note: I reserve all rights to include/exclude any requests as it is my email to GameStop. Apes are free, of course, to send their own request(s) to GameStop.)

From Gary Gensler's interview, it sounds like GameStop just needs to know that investors think some information is material so an email to investor relations should suffice. In the event external pressure arises against revealing the requested information, apes could also consider whether a shareholder proposal may be reasonable. Of course, we wouldn't want to bombard our beloved company with too many duplicative requests so I think a shareholder proposal should only be considered depending on the response, if any.

Caveat

Even if we get these numbers, be aware that they would not reveal the amount of rehypothecation in the system (e.g., churn factor) as each share may legally be borrowed and lent repeatedly. I suspect that if these numbers will be published, there will be a huge push to hide any naked shorts that would appear during the share count [DD] with borrows. (Not a bad thing, but it does mean chasing down and blocking the next can kick, again.)

[1] Credit to rightup for the heads up and transcript. Legen-wait-for-it-dary.

[2] As shown in End Game Part Deux: Problems at the DTCC plus The Bigger Picture, the 🛏️🛁 bankruptcy filings show a "Cede & Co (Fast Account)" held more 🛏️🛁 shares than 🛏️🛁 has outstanding [DD]. An assumed impossibility proven true by bankruptcy filings that would otherwise never have seen the light of day. As the Transfer Agent for 🛏️🛁 had access to the count for "Cede & Co (Fast Account)" [DD], it stands to reason that the transfer agent for GameStop also has access to this or similar information.