GME reported $356 million in total debt on January 31, 2015. I don't see any SEC filings of new debt issues since then? I wish they would issue debt at 5% cost and buy back shares?
If they borrow at 5% (pre-tax) to buy something earning 10%-11% after-taxes (per share earnings), they can pump EPS to $4.20ish with a few stock repurchases on $500 million. I would recommend they borrow another $1 or $2 billion to pump EPS on my GME investment to $5 or $6 per share.
uaaa, didn't they just issue $500 million in Senior Notes a few months ago that pay like 5%? If they really thought the future was so bright, why are they taking loans...
Use the $700 million in cash to buy back 18% of float in private transactions over the weekend. Then raise guidance on Monday from $3.80 to $4.50 EPS for 2015. SWEET! Stock price would be above $50 next Friday. Simple financial engineering, trading an asset earning zero for one earning 10%-11% yearly.
be patient?? Weekly put waits for nobody. I got screwed on this one….37 April WEEKLY put….didn't go down enough got cut in half.
Anyone that bought puts last night got ____ insert expletive here.
leveraged buyout??who would be willing to take a chance when there is is 45% short in gme not to mention the premium they would pay..hey if that's what your hoping for a buyout,you better rethink..like I said,i believe in this company but timing is going to be the key.i think you can get in this stock for a lot lower and in the very very near future
tytus - thank you for taking the time to respond to my post with a rationale and insightful analysis. You saved me a LOT of money.
Don't listen to the a - holes who call you names and try to disparage you. I know that you do not really let them get to you. As you note - they put forth NO analysis to refute your very well thought out points.
You are kind to take the time to post here with very objective and meaningful info about GME. The shorts are ridiculous - not serious investors at all and put no time or work into doing any analysis. They just have a theory that GME's time has come and gone - that about sums up their position.
Good luck to you - although I don't think you need it as you clearly know what you are doing. best - investr.
Maybe there is "justice" in this world after all? Definitely shorts about to get their just desserts.
Using yesterday's low ball estimates to scare everyone into selling at a low price, a 10% buyback (about 1 year's worth of earnings) in coming weeks = $4.20+ in EPS power by summer. The company is PLAYING to the shorts perfectly to get buyback price as LOW as possible.
For crying out loud people, the company is increasing it's profit margin to record levels in 2014-15! Any type of significant share buyback in coming days = $4.00+ in EPS and even better free cash flow per share for 2015.
Do the math people. Any price under $45 is a giveaway for a smart millionaire and a banker friend. You can easily pocket $100-$150 million annually with somebody else's money, and grow that sum each year with $50 buyout price and ultra-low borrowing costs.
Leveraged Buyout is coming. Probably for $50+ a share. Few other companies have a decent balance sheet, growth profile, and 10%-11% free cash flow yield in today's market. Company is smallish for $5 billion takeover vs. $400 million in annual free cash flow. Any knucklehead with a banker friend, can buy GME taking it priivate and pocket $100 to $150 million annually for themselves. Plus, see earnings rise each year!