Sun, Nov 23, 2014, 7:10 PM EST - U.S. Markets closed

Recent

% | $
Quotes you view appear here for quick access.

GameStop Corp. Message Board

verafirm 4 posts  |  Last Activity: Sep 23, 2014 2:47 AM Member since: Jan 7, 2004
SortNewest  |  Oldest  |  Highest Rated Expand all messages
  • Reply to

    Why the bonds offering?

    by somehomelessidiot Sep 20, 2014 12:54 PM
    verafirm verafirm Sep 23, 2014 2:47 AM Flag

    To add to this...in 2014 annual report the average interest rate they paid on their $400 million facility was about 2.8% so although they are going to pay more short-term the bet is that long-term the rates will be higher or harder to raise money in the future (think 2008 credit crisis). Short-term there is a hit but long-term it could be the right move.

  • Reply to

    Why the bonds offering?

    by somehomelessidiot Sep 20, 2014 12:54 PM
    verafirm verafirm Sep 23, 2014 1:57 AM Flag

    Simple...the fed is most likely going to raise interest rates next year and the company wanted to raise debt (easy given today's markets) because the facility may end up costing more than the 5.5% if the fed raises rates...if anything it protects them from having to pay more if the rate of the asset based facility is more than 5.5%....impact on EPS will be negative 20 cents but cash on balance sheet temporarily will be $350mm until the company decides what it will use the money for....buying back stock wouldn't be a good idea given the return at current share prices but the company could use that to expand the tech brands business which is going to be a more than $1 billion business by 2016 maybe earlier given the new agreement. The company initially wanted $250mm but the demand was so strong they got $350mm, that is why they are making this move now. Short-term they may get hit by impact on EPS but if the fed does raise rates over a 2 to 5 year period to more than 6 to 7% they will look like geniuses.

  • Reply to

    More Apple stores than Apple

    by ogilvydog Sep 7, 2014 9:47 PM
    verafirm verafirm Sep 8, 2014 10:41 AM Flag

    Yea not sure it will happen in 2016 but for sure in 2017 (calendar year) it is very easy to see 500 stores nationwide and we haven't even considered international....nevertheless, I predict the stock to go to like $70 to $100...then trade back down to the $40 and then some hedge fund to force it spin of techbrands to "create value"....this management team is by far one of the best in the street and would suck if some hedge fund were to do this...you can just smell it...here is a perfect example...Wendy's owned tim hortons...it got broken up...both wenday's and tim horton's did great by themselves (in fairness old wendy's management was horrible)...then...burger king buys tim hortons...so from one burger chain to another...is that really any different? nope...but who do you think wins every time? GOLDMAN and LAWERS! ;)

  • Reply to

    More Apple stores than Apple

    by ogilvydog Sep 7, 2014 9:47 PM
    verafirm verafirm Sep 8, 2014 7:09 AM Flag

    I am a GameStop bull but your numbers are incorrect, next year they will have 75 simply mac stores and by 2017 may have more stores than apple. Tech brands store count includes, cricket, spring and airo wireless which is much smaller and less costly to build than simply mac stores. Simply mac stores are larger than game stop sores and the sales per square foot is more so all in all a good trade and the margins will be about the same given the trade in and servicing of phones and laptops culture.

GME
37.86-5.68(-13.05%)Nov 21 4:04 PMEST

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.
Aviva plc
NYSEFri, Nov 21, 2014 4:00 PM EST
NCR Corp.
NYSEFri, Nov 21, 2014 4:05 PM EST