Author Topic: GME - Game Stop Corp  (Read 45444 times)

Foreign Tuffett

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Re: GME - Game Stop Corp
« Reply #70 on: July 18, 2019, 09:20:52 AM »
Because ATVI / EA make more money from digital downloads and have zero incentive to boost sales to GameStop where they make lower margin on products and are already unhappy with their arrangement.

While I agree with what you're saying, I think you are missing part of my point: It's about advertising, increased product awareness, and boosting sales in every channel. Product awareness and sales conversion are weaknesses of consumer-facing, fully digital business models. Having a meaningful physical presence can help.

Also, GaaS business models mean that publishers want to sell (or, in the case of F2P business models, have gamers download for free) an increasingly strong incentive to move as many copies of their games as possible. Why? Because, all else equal, more unit sales = more overall spending on DLC packs, loot boxes, and other digital horses***.

Would what I'm suggesting actually work? Probably not, but it's likely still a better plan than betting on e-sports.
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5xEBITDA

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Re: GME - Game Stop Corp
« Reply #71 on: July 18, 2019, 09:54:47 AM »
Because ATVI / EA make more money from digital downloads and have zero incentive to boost sales to GameStop where they make lower margin on products and are already unhappy with their arrangement.

While I agree with what you're saying, I think you are missing part of my point: It's about advertising, increased product awareness, and boosting sales in every channel. Product awareness and sales conversion are weaknesses of consumer-facing, fully digital business models. Having a meaningful physical presence can help.

Also, GaaS business models mean that publishers want to sell (or, in the case of F2P business models, have gamers download for free) an increasingly strong incentive to move as many copies of their games as possible. Why? Because, all else equal, more unit sales = more overall spending on DLC packs, loot boxes, and other digital horses***.

Would what I'm suggesting actually work? Probably not, but it's likely still a better plan than betting on e-sports.

I agree that F2P = more volume needed, but I also don't think that the ATVIs of the world are going to be very quick to slash pricing on, say, COD to the extent they need more advertising to drive volume. If anything, the publishers have shown themselves to be very slow to adapt to this thing and I don't see them suddenly altering course and ripping off the band-aid on pricing so quickly.

Foreign Tuffett

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Re: GME - Game Stop Corp
« Reply #72 on: August 05, 2019, 01:09:47 PM »
After disparaging this company for years, I finally took a little nibble today @ $3.58. My reasoning is as follows: After adjusting for the recently completed tender offer AND excluding operating lease liabilities, the stock trades very close to NCAV, which is quite rare for a US-based retailer that isn't teetering on the verge of bankruptcy.

Konnichiwa GME, congrats on being one of the select few US companies that the market is valuing like a tiny Japanese dumpster fire.

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mwtorock

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Re: GME - Game Stop Corp
« Reply #73 on: August 06, 2019, 06:38:24 AM »
Do you think the NCAV will shrink or grow? If it shrink, stock price would follow. I mean I like the balance sheet and the cheapness is very tempting, but it is hard for me to see the business turns around this year...

Foreign Tuffett

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Re: GME - Game Stop Corp
« Reply #74 on: August 06, 2019, 06:49:18 AM »
Do you think the NCAV will shrink or grow? If it shrink, stock price would follow. I mean I like the balance sheet and the cheapness is very tempting, but it is hard for me to see the business turns around this year...

It's probably going to shrink faster than....a.....certain part of the male anatomy in an ice bath.

I was able to sell the small position at > $3.70 this morning.

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5xEBITDA

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Re: GME - Game Stop Corp
« Reply #75 on: August 06, 2019, 12:25:56 PM »
Do you think the NCAV will shrink or grow? If it shrink, stock price would follow. I mean I like the balance sheet and the cheapness is very tempting, but it is hard for me to see the business turns around this year...

It's probably going to shrink faster than....a.....certain part of the male anatomy in an ice bath.

I was able to sell the small position at > $3.70 this morning.

Congrats on the 16839200% IRR

Foreign Tuffett

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Re: GME - Game Stop Corp
« Reply #76 on: August 20, 2019, 09:03:23 AM »
Michael Burry (yes, that Michael Burry) has gone activist on GME.

https://www.businesswire.com/news/home/20190819005633/en/
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scorpioncapital

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Re: GME - Game Stop Corp
« Reply #77 on: August 20, 2019, 01:48:58 PM »
The 2nd to last 13-f shows Game stop. The last 13-f august 14 does not. Did he sell, then rebuy in?


stahleyp

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Re: GME - Game Stop Corp
« Reply #78 on: August 20, 2019, 01:58:07 PM »
The 2nd to last 13-f shows Game stop. The last 13-f august 14 does not. Did he sell, then rebuy in?

That's what I'm assuming. Probably taking tax loss harvesting if I had to guess.
Paul

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Re: GME - Game Stop Corp
« Reply #79 on: August 20, 2019, 02:08:30 PM »
Yet the press release says on Aug 16 he sent a letter to Game stop

https://www.businesswire.com/news/home/20190819005633/en/Scion-Asset-Management-Urges-GameStop-Buy-238

It also says

"As of August 19, 2019, Scion Asset Management and its affiliates own 3,000,000 shares, or 3.3%, of GameStop Corp. common stock:"

I guess he holds it, but the pattern in the 13-f looked weird. He must have rebought after the Aug 14 13-f filing?