Over a year and a half now gamestop owners have been screaming to what feels feels like a synthetic god saying. Listen we know that there are shares out. There should not exist. Please hear our cry make something freaking.

Happen well uh as of late. There has been what some have called i quote. Unquote taking place with game stock shares gamestop stock shares after they're splivened. I'd like to take the time today to discuss this uh and give you sort of some thoughts on it because there is some cause for concern uh and i'd like to uh sort of dig into that here today now to preface.

I spoke with dave lauer on the phone uh about sort of the situation. Because i think that he's probably the most intelligent guy that i can think of who has the most experience in these sort of situations. And he sort of gave me some some focal points right. But here's the gist of it sounds like the game.

Stop stock split slash dividend. As you know also called the splendid has completely destroyed some brokers back office systems. I keep hearing about the nightmare of dealing with dd ameritrade also sounds like overseas brokers are having serious problems and german brokers are struggling getting shares to people there's another segment in here. I think generally with gamestop.

We've seen a lot of back office problems and in this instance. He's speaking about brokers. Such as spikes and failure to delivers which we're going to talk about here as well. It's possible that distributing the stock uh.

The split as a dividend has exposed a lot more problems in how brokers are booking and holding shares for their customers. Finra should investigate now. This is the most important thing to discuss all right obviously you guys know dave lauer uh has lots of experience within the market he's he worked for citadel for a long time. You've seen sort of the back end of things with market makers.

And he knows how market mechanics are supposed to operate and while there are not a lot of examples of split dividends taking place. There are a few and both of these examples. You do not have the sort of issues that are taking place now in case. You didn't know.

Nvidia and tesla are two other companies that have done a split dividend. But they are not sharing the same problems as this here is one example uh this individual uh had a very poor time with his gamestop splitting and sort of the biggest brokers that have been talked about are td ameritrade and overseas brokers. But uh here's something that's taking place hello guys. I think there was a reason.

Why we shouldn't post that real position so i will use false ones. But in a way that still makes sense and he talks about how he had 20 game stop shares before the split end he got shares after the splevident uh. And there's been some messy stuff. That's taken place in terms of dollar cost average and actually getting hands on shares right.

This has been sort of uh not an isolated event. This has taken place within. Many many other individuals as you can see by going through reddit and going through twitter. But what's strange and what's really the weirdest is that nvidia and tesla did not really experience these problems you see if you look at a video.

They did a four for one stock split and this was back in may 24. 2021 uh in which you saw the share price increase. You saw people got their shares in the form of a dividend instead of cash uh. It all was well that ended well.

I didn't really see sort of any problems. In that category. Same. Thing.

With tesla tesla did a split in they climbed uh seven percent back in march 2022 tesla climbed seven percent plan to seek shareholder approval to split its stock uh tesla shares on monday jumped to their highest price and monday finally with the securities exchange commission. Tesla said. It's planning to ask shareholders for approval to increase the number of its authorized shares uh via a stock dividend right and while you know tesla is trying to do this again. The the big thing that i sort of thought about is what are the commonalities between nvidia tesla and gamestop.

I can't speak about nvidia as much but i can speak for tesla. And knowing that elon musk has sort of a vendetta and an anger and a rage towards short sellers who very obviously targeted his company and he's under the belief. And i think many are that at one point in time tesla was one of the most sorted stocks. One of the most manipulated stocks and had tons and tons of shares circulating around the market like they shouldn't exist synthetic shares naked shorts whatever you like to call it right so why then is that the case.

Why does it seem that ryan cohen. Who also very publicly does not like shorts elon musk. Who very publicly does not like shorts would target a stock split dividend. All right and then furthermore.

Why is it that gamestop when they do it has had less overall success. And what brought me back to you know sort of some thought is what dave lauer. Had said about failure to delivers and backdoor problems. So if you're thinking about back office problems.

What does this actually mean uh. This is referencing. This pia tweet right here. He's speaking about how there's been tons of favorite to delivers that have sort of circulated around with the stock there's been a short exempt volume that seems to be prevalent for some reason or another.

And there's a sort of a divergence in what makes sense with price versus buying pressure and fundamentals of the company right makes you ask some questions make it raise some eyebrows as an example here you can see gamestop very large amounts of failure to delivers that have taken place you can see historically speaking. This orange bar. Recommend sort of represents failure to deliver. So there's been huge huge huge spikes of these this is an example of what dave is talking about back office problems.

Why is there a failed deliver in the first place you are given an iou. Which is what a failure to deliver is this is the technical definition. If you'd like to pause. It and read it you surely can but if it's over is an iou it means we don't presently have the share.

We are expecting and anticipating that we will get the shares that you need eventually in the meantime. Here's an iou in and of itself. Maybe this makes sense you don't really see this take place in uh. The broad actual market the actual economy.

They don't they don't give me like uh an iou car when i'm trying to buy one if they say hey we don't have this car right now. But in the meantime. Here you can drive around this uh uh this freaking cardboard box right they don't do that. But it does take place in the market.

And this is an example of back office problems. So why is it then that you have these very prevalent failure to delivers. Which means hey you're not having a really good time. Locating shares.

And then also you're having issues uh. Specifically with drs direct registering shares and computer share now right well. I think. It's for one very simple reason.

I think it's because gamestop uh. Very obviously has a up sort of twisted supply. I think that there are likely synthetic shares and that these brokers. Some of them perhaps have been handing out or are having difficulty finding these said shares and furthermore.

This brings you into a question. Okay so dave said. That finra should investigate this and why i think that these brokers aren't really that sweaty right now is because even if they are investigated and even if they're found guilty and even if they're fined. They're willing to take that slap on the hand because history has proven that sec charges iras plus broker dealer firms for failure to file plus delivered form crs and what this is talking about this article.

This is back in august 6. Of 2021 is the sec announcing that 21 different investment advisors ras uh broker dealer firms blah blah blah uh were sort of having to settle charges for not filing uh or failed to file a timely file and deliver customer relationships. Summaries known as form crs to the retail investors. This is an example of being untimely.

Now while this is not a sort of referencing failure to their livers. What it does tell you is that brokers if they're not on time. If they don't do things right the first time they don't care because they view this as a paid to play. Why do they view it that way well because the fines are typically ten thousand and ninety seven thousand five hundred twenty three dollars.

This is not that bad this is pennies on the dollar for these guys especially considering that they make a lot of money because if you look at this picture. Right now you can see this is back in 2020. Just q1 and q2 uh how much money some of these brokers will make from payment for order flow. See q2 robin hood's clearing millions 69 million 111.

Million uh. Which totals 280 you got schwab at 66 million you got e traded 110. Million. You got td ameritrade at 324 million i mean some of these guys make a good decent chunk of money so if you're getting charged 10 000.

But you're clearing in a single quarter 300 million 110 million 66 million 180 million dollars you don't necessarily care right and this is very important to know these brokers likely don't give that big of a uh and that's the importance of this video. So if you are a gamestop holder. And you're having issues with the split end and the stock dividend and all this sort of stuff. You don't have your your hands on the shares yet are trying to direct register shares and uh.

There's some weird stuff going on it is good to be pressing press press press press press. Don't let that be a problem that you would just hope for a solution on because you may not get it unless you go directly to the source directly to the broker and tell them this is messed up. I know it's messed up. I need you to fix this because if you don't right what's their punishment for essentially failing.

You and robbing you of money and shares well maybe a little slap on the wrist. Ten thousand dollars or ninety seven thousand. I don't know how much it would be for something of this magnitude. But uh certainly wouldn't be as bad as whatever amount of money they're making right.

It's gonna be every single time ten times out of ten. They're gonna pay that pay to play and just keep playing the game. So don't let that be you if you're having issues be vocal get it tweet it out do whatever you gotta do uh keep yourself private. Obviously whatever you got to do only share.

What you're comfortable with sharing. But you won't get a solution handed to you not from these guys all right these guys are crooked. And there's a very very very likely chance that there are shares circulating around that should not be there uh so in the same way that failure delivers are very prevalent and i don't think they're really going anywhere. Because of sort of the state of gamestop uh.

This might not go anywhere either. So be very active push forward push for your shares. They're yours you should have them right. And that's what i've got for this video.

So i figured i'd take the time to highlight. It dave lauer did a phenomenal job with the situation a great job tweeting this out uh. Very well organized very well articulated. I figured that out just highlight sort of uh.

Some of the message that he that he pitched today so that's what i've got for you guys i appreciate you tuning in until the next one much lovely taps and peace.