1. More debt than equity
2. No dividends to pay as a short
3. Cuban push shares higher on small purchase, turns around and shorts heavily
4. 5 years till this stock has a chance for value
I do not understand why 46m shares of GME are shorted when 3.7% dividend is being paid. Positive cash flow is seen for the next several years. Near 1 billion disposable cash. Reducing shares well over 10% outstanding. Sometimes one has to admit that the plan may be right but the timing is very wrong. SHORTS, THE TIMING AND RISK ARE WRONG AT THIS TIME REGARDING GME.
GOOD LUCK TO ALL EITHER SHORT OR LONG
In 4 weeks, GME's 2015 low-ball estimates will look quite good compared to most everyone else. SNDK revenues are falling -20% in 2015, Intel -5%, MCD and KO flat to lower, etc.
Fair enough. Please consider GME's 2%-3% revenue growth and 10%-12% revenue growth per share in 2015 will BEAT about 80% of S&P 500 companies. Their "sales" comps will be comparable to most large retailers in a macro sense. I am assuming you don't own many U.S. stocks using the same argument?
I was long GME, but got out before earnings announcement. You can talk about debit and profit margins all you want, what GME has to show is revenue growth, and to do that in my opinion they need to transform into new revenue streams and move to digital faster than they are. I hope they can do it, but at this time the general market is skeptical of them being able to do this. Until they prove otherwise, being long on GME will be a difficult ride imo. Good Luck.
I thought for the first time you were going to continue your post with SUBSTANCE OF SOME TYPE. Then you use seekingalpha article rather than take the high points of the article and post what your thoughts are: Did not happen. If you would do so I might be able to understand your thoughts but no one can read your mind. POST WHAT YOU ARE THINKING IS GOING ON OR " DOES NOT ADD UP ".
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...
I sure hope they are loading up on their own stock this week as it gets hammered. Us longs will be rewarded.
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.