Currently avg size for a game is 30-50g. Sony and philip are developing 300 g bluray disc for 4k tv. Game will catch on to 4k resolution and will have 100-300 g size. Download is a painful thing to do now and even more in the next 3+ years.....
Well Mr. or Ms. Valuebuy2005!
Greedy Shorts? Greedy Shorts? Greedy Shorts!
Sheesh. And I thought the whole purpose of playing the market was to make money. I guess the longs are in it for altruistic reasons?
Greed and Fear, are those not the two emotions of the market?
p.s. If you really want to see greed, try looking at management. They are using your money to pump up the price of the stock while they are selling their personal shares. Really. Its all right here on this Yahoo page.
Buy back's can have a reverse effect as well as it can potentially amplify the losses. Fewer shares on the float can results and a larger eps loss as well.
tytus, I watched the video presentations on the Gamestop investor page that razor mentioned. I am even more excited for this investment than before. I especially was impressed how Gamestop has benchmarked/modeled other retailers who have expanded their business models. I am floored by the insight of this management team. Great stuff and worth the time to watch for others new to Gamestop.
When did the buyback start and when will it end? It seems to me that this lower price is good for the buyback since the company can get more shares off the market. What are your thoughts?
Tytus you keep preaching 50+ but the stock is closing in yet on new 52 week lows. If sales were good the stock would not keep drifting lower. My 40+ target may be out the window as well now.
This week will be the telling story. If sales and profits come in weak then this could drop as low as mid 20's. I still believe there is no way they earn $4+ next year. The market price right now says
maybe $2.75- 3.25 a share...
My thoughts as well. GME is loaded with money to buy back shares at any price they wish, as much as 25% of the total float shares available. Short squeeze is a very real possibility this week, could actually turn bloody for many shorts.
I agree that the Walmart experience is depressing...lol. As far as keeping gamers from going in, there was one article that suggested in would benifet them espeically when trading in older games as they would be credited with a gift card that they could use for anything, pop chips, deodorant ... you know, whatever. Also, I don't think the typical young aimless gamer, (biggest client for gamestop according to ceo) is going to care less about stepping foot in walmart. The youtube video, although just one aimless man, seemed to highlight that he didin't really care, if it was a better deal.
Re WMT you are absolutely right. Its business model is mass merchandizing and NOT personal service. I really do not think WMT is going to succeed at this used game business. For one thing, I think that the industry is moving away from disks. In fact, I'm surprised that WMT wanted in to this at all. I'm guessing some young executive working at WMT is a secret gamer.
Black Friday is a big retail day for all entertainment venues including books, movies, CDs and games. Evidence that it is for GME is the advertising flyers that they sent out at great expense the week before with weekend long sales. Further evidence that Black Friday is important is the sudden and unexpected extension of Black Friday sales prices at the end of the weekend. I took that as evidence that sales did not meet expectations.
Plus there was that interview with the Finance Officer. When asked about Black Friday sales he said something like: holiday sales used to be U shaped but now I think the sales are more level across the shopping season... That is not a quote but it gets the gist. That is clearly corporate double speak for "Black Friday sales sucked".
Tytus reports that there are big discounts for online games from XB-gold only on older games.
Sort of sounds like a GME store. Buyers at the store can buy newer games at full price or older games (used games) at a discount. No?
It would help us if we could get more detail. How old? How much discount? Whatever anyone can tell us.
the reason why WMT is going to have a tough time getting into the used business is because going to WMT is a lousy experience - dare I say depressing?. Plus, how is WMT going to train their employees to engage the customer like GME does? it's not in their DNA. WMT's business model is built on crushing suppliers and offering product on the cheap. It's not a specialty retailer built on customer engagement.
I don't think the demographic at GME is really that into Black Friday. Isn't that more geared toward middle-aged parents looking to get a deal on TVs and ski jackets?
I did and the two I asked said it is only on older version of games. This is where financial operations are the backbone to the success of any company today in a very competitive market. This is why management has done many of the things over the past 12 months. Strength will always be seen as CASH FLOW, every single direction that GME has taken is to increase CASH FLOW, MARGINS, BROADER APPEAL TO CONSUMERS WHILE TYING INTO THE TOP BRAND COMPANIES AND BRAND NAMES IN TODAYS MARKET.
Hello Tytus and Others,
I am not a game player either. So I rely on others to tell me what is going on in the gaming world. For instance, in this article from GamaSutra (a magazine for game developers) we learn what were the major game related trends of 2014.
Paraphrasing from that article we learn that GME is expecting the price of AAA rated online games to crash:
Paraphrase Quote "... according to GME's own research, AAA rated games sold online should go for $35 but they are actually going for $22" (read the link above).
And also from that article:
Paraphrase: "PlayStation Plus, a $50 per year subscription ... Xbox's Games with Gold, Steam Games... players holding out for extreme sales... plus free to pay business model"
This is not 00 saying these things. This is GamaSutra and GME saying these things.
Can someone on this message board who does know a gamer please check to see if it is true that AAA top notch games are really 50% - 75% off with subscription to Xbox Gold?
Hey Tytus - you know keep trying to reply to you but Yahoo keeps deleting my reply. I just went to read the terms of service and I think that I know why, it is because I extensively quoted from a gamer magazine. Probably got flagged as copyrighted material. Let me try to get you the info another way...
I am not a gamer at all, the facts though in my family members: 28 year old buys new xbox 1, games, accessories - spends over 500. 25 year old gifted xbox1 from another retailer - takes trip to gamestop
afterwards and spends 100.00. In Alabama with nephews, 11 year old spends 90.00 on something I forget what, 15 year old talks with gamestop about hard copy vs digital, said he was going back to hard copy after he has already spent more than a 100.00 on machine to add more than 2 downloads digitally, xbox1 very limited. Digital will not make much difference any time soon. Gamestop will play big part to gamers at how digital is delivered.
Black Friday is not a date for sales of games or individuals, most black friday sales the public looks for are household improvement, ie: TV or improving overall "quality of life" for the family. Most consumers today research items prior to leaving home to shop.
Stop with the marketing BS, verizon has been giving away free phones, ipads, verizon pads and other items the whole holiday season and after. GME attracted more consumers to the stores than in the past with this marketing plan, with more products offered and not losing on the promotions, win win. This is financial operation management at its best of which so many people struggle.
Buy back of shares, I still laugh because you have yet to figure out that GME after 5 years comes out with millions more is cash and assets even after interest and full payment of loan. You should learn how they do this before posting any more of your thoughts. Management is doing a very good job and as stores start changing over to the two new entities where needed, the brands of GME will expand. Powerful brand name is how to make money and management is on the right path.
Good Morning Longs, Shorts and Straddles,
None of us mere mortals can reliably see the future. But we can read the signs. So, if your boss at work suddenly starts acting like you have leprosy, there very likely is something bad on the horizon there. Its not 100% accurate, but it is a sign. Let's look for signs here.
Since the week before Black Friday I see four press releases or articles featuring management interviews where we have been assured that GME has a "secret weapon" and assurances that GME is a scrappy retailer and that a GME store is really a social club and so forth. Why? I can assure you that those statements and press releases were carefully considered and purposefully done. So again I ask why?
There can be only one answer. It is to reassure longs (another way to say "reassure investors" is to say "pump the stock").
But wait, that's not all, if you buy now we will give you two signs for the price of one. Here is another sign, what does it mean when management borrows money against you (you own the company guys) and uses that money to further pump up the price of the stock by buying millions of shares at inflated prices? More stock pumping maybe?
Look now into the crystal ball and read the signs. Management is pumping the stock and using your money to buy up treasury shares at inflated prices but at the same time management is selling the stock by the hundreds of thousands of shares in the last six months alone.
Hmmm... what can those signs mean?