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GameStop Corp. Message Board

  • EquityRich EquityRich May 7, 2012 4:21 PM Flag

    GME cheaper then ever. 2x EBITDA ex-cash!

    amazing...this could be a PE buyout. they usually look for 5 to 10 times EBITDA in a Private equity buyout. Ex-cash GME now trades for just 2 times EBITDA!

    A PE firm could come in and take the company private and as long as they can keep the company alive for 2 years they get all their money back. Not much risk here.

    I heard over 50% of the stock is now shorted. It will be one short squeeze if GME see's a bid to take them private at 26 to 32/share. Squeeze could take the stock over 50 as half the float runs for the door.

    Would make for one interesting day. I've never seen a company with this much cash and such low EBITDA. Heck a PE firm could run it for 5 years and run it into the ground and still make a fortune.

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    • haha, I agree with what you say even though you're flaming on here. The long term for GME looks good, even if worst-case scenarios come true and the company has a lifespan of 2-3 years. GME will generate enough cash to take itself private. Best case scenario... it survives and all those brave shorts are forced to cover. Though the personality of a short tends to be arrogant. They won't cover until they absolutely must and that time could be far off yet. The short term for GME could get ugly if GME management doesn't kick in some of that $500 million they plan to use for repurchases--definite a safety net for longs!!! GME cash flow per share is also at an all time high.

      • 1 Reply to badericclay
      • I'm certain they're buying shares today. If trends remain consistant, the stock will have a small run up to earnings release. Then, everyone will end up finding 862 faults in their earning statement. Then the stock will come back down again. Wash, rinse, repeat....

        Plus, I'm sure that the next NPD numbers will drive the stock down as well. I dream of a day that there will be a buyout of some sort.

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