without coal, how would the good people of west Virginia heat their homes?
This stock is so beaten down that if they get an incremental $200 million per year (on a combined basis from Huawei, NOK, whomever doesn't pay them now) for the next 3 years, the stock will double. It only has a $550 million enterprise value for crying out loud!
a statistical argument? with what stats? The question is: why would those passed over be more inclined to leave if it's an internal person versus external?
I'm not sure why internal candidates who wanted the CEO spot but didn't get it would be any more inclined to leave if the job went to an internal versus external candidate. In fact, I could see why choosing an external candidate for CEO might be more discouraging for the internal folks who got passed over, since the new CEO might seek to bring in his/her own lieutenants from the outside as well.
First of all, I doubt anything posted on this board drives the price of the stock one way or the other. Serious people post their opinions here and on other boards in order to debate/start a dialogue and, hopefully, refine their views on the relevant company.
The most bullish thing about Citi is that it trades at a big discount to the rest of the money center banks. Yeah, they screwed up in the past but you have a whole new management team now. It's still a big and clumsy institution still, but there aren't any big land mines laying around like you had in 2008. It trades at 0.7x book versus 1.6x for Wells Fargo. Wells is the better run company but is that kind of discount appropriate? No.
still waiting on an analysis that demonstrates how digital is cheaper for the consumer end-to-end (with or without trade-in). Bears say this about digital like its gospel, so it's incumbent upon them to prove it. Got any numbers?
so millions of people went out and bought new generation consoles in the last few months in order NOT to buy games for them? That's an interesting position. And if what you say is true (that gamers are spending more of their time and money elsewhere) how do you explain that new software sales rose 43% at GME in Q3? Was it because people weren't buying GTA V? Perhaps software sales sales are just noisy from quarter to quarter, especially when there was so much going on (two big console launches and the introduction a blockbuster game in GTA V). This is not to say that GME's Q4 numbers weren't disappointing; my point is that it's hard to draw definitive long term conclusions from one quarter's numbers.
As for the step up in game pricing from $50 to $60, I simply don't know. What's your source?
Also, the period that I refer to in the is 06/07 (the only time the stock has traded at those valuations) and in the upswing of the 05/06 console launches. During that time the fleet of stores went from 4,490 in Jan 06 to 5,264 in late 07. That's only about a 15% increase over two years. The big driver of performance in 06/07 was more likely organic (same store sales) of 11.9% and 24.7% in 06 and 07, respectively.
Jester- you think I don't know what I'm talking about because you don't read my posts carefully. For example, I made a point about how the company's stock performed in the years following the last console launches based on the company's SAME STORE SALE not number of stores. And if in the future you think someone is wrong, just critique his/her analysis with facts/logic rather than just dismissing them as "not knowing anything".
think about the size of opportunity with GME stock right now. It's basically in the same business as Netflix (content distribution) to a very similar number of subscribers (roughly 30 million in the US). But GME delivers twice the revenue per sub as NFLX and far more profitably. NFLX trades at 95x EBITDA; GME trades at about 4x!
took a hit on GME and feel like a dope, but it's a big opportunity now.
It's a perfect LBO candidate in terms of size, business stability, valuation, and balance sheet.
At this price, the market is telling you this company is gone in 7 years. If that's just a little wrong there is a lot of upside in this stock.
For years, we've been hearing about how streaming/digital downloads will turn GME into the next Blockbuster. But guess what's happened over the last three years? The company has consistently generated $9 billion of revenue and roughly half a billion dollars of free cash flow. The big threat to GME is always just over the horizon and its huge/disruptive/cataclysmic. Really? This is like Waiting for Godot.
At these prices, shorts/naysayers need to be 100% right on their thesis; so far, the body of evidence (the company's results, not ostensibly scary announcements and speculation) isn't in their favor.
* I don't know about the price of games five years ago going up 20%. Source?
* Re-Read what I said: "same store sales". For the record the fleet of stores only went up modestly after the last console launches...
* Yes, there is android, impact, etc. but we're talking about consoles. And guess what we know about consoles? GME has an 80% greater share of the console market in the current launch than they did in the last and with record high attach rates. Source: q3 call and today's announcement.