Management did a great job AGAIN of keeping expectations LOW for rest of 2015. New stores focusing on Apple products, and latest GeekNet purchase will both GOOSE sales and income in coming quarters. Share buybacks will add yet more UMPH per share basis.
GME is set to be one of the top U.S. retailers into 2016 for growth rates on both top and bottom lines. SHORTS ARE IN TROUBLE holding one of the lowest valuation retailers as growth rates bump higher. EPS in 2016 should be in the $4.50 - $5.00 range depending on health of U.S. economy. GME is worth $60-$70 TODAY!
You don't need Cramer to tell you what to do. Smart people can figure out for themselves.
If GME keeps growing, a takeover/LBO in the $55 to $60 a share range make sense in June. Just 14-15x forward earnings, plus new owner gets another $1-$2 per share in yearly amortization of intangible buyout price.
EASY 9% in your pocket annually on "all cash" upfront deal, considerably better with low interest debt purchase. Who doesn't want 9% annually and growing from today, generated by leading third-party retailer in quickly growing industry?
Earning nothing, but collecting dust. Why not leverage my Florida real estate holdings per share with the $700 million in cash, without taking on any debt? $1.45 billion stock market cap at $16 a share vs. nearly $700 million in cash and few liabilities. Buying at $16 could theoretically nearly DOUBLE my real estate exposure per share, with little or no EPS and tax consequences. Nearly free and clear real estate valued at less than $800 million right now by Wall Street.
$50 is a JOKE people. $3.50 in free cash flow per share and growing each year again. AOL is worth $55 or $60 in a takeover, MINIMUM. Other characters may show up to bid now that Verizon is trying. REJECT $50 people. Market price is already well over $50 per share this AM