In Staying Mum, Cramer Says GameStop Is Losing The Opportunity To Issue Shares

Jim Cramer shared his thoughts on the fall in GameStop Corp GME share price on Tuesday.

Cramer on GameStop: Cramer questions if GameStop has missed out on opportunities while its share price was so high.

“The company has been mum,” Cramer said.

He has reached out to the company and not heard anything back.

Missed opportunities could include not issuing new shares to raise money and improve the balance sheet or acquiring a gaming company. GameStop’s business model is very hard to fix.

Related Link: Cramer On GameStop: The Old Narrative No Longer Applies

Suggestions from Cramer on ways to improve GameStop are opening live gaming centers or acquiring a gaming company like Zynga Inc ZNGA.

Cramer doesn’t rule out GameStop could still offer a share offering. He calls out a large buyback that was done when the business model was changing that hurt the balance sheet.

When asked if the share price would go up or down if new shares are offered, Cramer added, “Some of these younger people like it when they raise money.”

AMC Entertainment Holdings AMC, another retail trader favorite, has sold shares to help its long term financial outlook and is considering offering more. Cramer said AMC has been very proactive in taking advantage of the high share price.

GME Price Action: Shares of GameStop are down 58% to $93.29. Shares of GameStop fell 31% Monday to close at $225.