Author Topic: GME - Game Stop Corp  (Read 65126 times)

TwoCitiesCapital

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Re: GME - Game Stop Corp
« Reply #210 on: January 14, 2021, 08:34:43 AM »
Is anyone playing this game? Looking into WSB, and it seems like people are getting ready to pile into GME again. Clearly, this has nothing to do with fundamentals, but it's a very really real phenomenon - which probably lasts until it doesn't. Anyone along for the ride?

I like to buy good businesses on the cheap, but it's also pretty clear that there's a ton of money being made in these situations.

If you can time it right, there's probably more money to be made on the downside as opposed to trying to ride the wave higher. I've begun watching this myself.


BG2008

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Re: GME - Game Stop Corp
« Reply #211 on: January 14, 2021, 08:59:29 AM »
Is anyone playing this game? Looking into WSB, and it seems like people are getting ready to pile into GME again. Clearly, this has nothing to do with fundamentals, but it's a very really real phenomenon - which probably lasts until it doesn't. Anyone along for the ride?

I like to buy good businesses on the cheap, but it's also pretty clear that there's a ton of money being made in these situations.

Can someone here pony up $299 and ask Carole Baskins to make a cameo appearance for INDT (formerly GRIF)?  I'll chip in $1

lnofeisone

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Re: GME - Game Stop Corp
« Reply #212 on: January 14, 2021, 11:06:38 AM »
Is anyone playing this game? Looking into WSB, and it seems like people are getting ready to pile into GME again. Clearly, this has nothing to do with fundamentals, but it's a very really real phenomenon - which probably lasts until it doesn't. Anyone along for the ride?

I like to buy good businesses on the cheap, but it's also pretty clear that there's a ton of money being made in these situations.

If you can time it right, there's probably more money to be made on the downside as opposed to trying to ride the wave higher. I've begun watching this myself.

Puts here have such insane IV. I'm figuring out how to short vol without getting crushed. Weekly 40 strangles are trading at $14...

Patmo

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Re: GME - Game Stop Corp
« Reply #213 on: January 14, 2021, 01:04:49 PM »
Very cool dynamic but hard to play for a guy like me. I mean, we all know where this is going long term but in the near term nothing in this "special situation" screams easy money. Seems like whoever ends up winner is the guy who rolled the better dice.

Didn't Michael Burry's fund have a long position in this a year or 2 back? Wonder if they held on.

kab60

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Re: GME - Game Stop Corp
« Reply #214 on: January 14, 2021, 01:23:23 PM »
Still had a large stake per his last 13-F.

Patmo

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Re: GME - Game Stop Corp
« Reply #215 on: January 14, 2021, 03:01:43 PM »
I've been following this on WSB and it's as entertaining as anything else out there. But for a company that is trying to shift itself toward online sales and become less dependent on its retail stores, its website looks like the web equivalent of a Gamestop from the '00s. It's like they took the small retail footprint and said we want this, but online.

As a lifelong gamer I think I've been into a Gamestop store twice and really see no reason to go to one or buy a physical game copy in the near future. Sure it's possible GME might have the best price on an accessory I want to buy and I wouldn't hesitate to buy from them online if that were the case but it seems like a tough way to make money given the competition. 

Honestly I'm surprised Gamestop hasn't capitalized on eSports more. Online gaming is broadly speaking local due to matchmaking processes factoring in ping to host servers. Gamestop has hundreds of locations scattered around the country, it seems like a low hanging fruit for them to organize local tournaments through their physical locations. Entry fees, sponsorships, additional foot traffic to the store, wins all around. Could easily see them developing quality local amateur tournaments that have the potential for progression.

Local tournies are tough. You're competing with online matchmaking/tournies/leagues which are more prestigious and much higher competing population, never mind that they're usually free, occasionally low cost like ESEA. It doesn't help that NA is relatively spread out AND while gaming is super popular, esports generally lags behind especially compared to Asia or Europe.

Tournies are hard to execute from a technical standpoint, local turnout is very low and spectatorship nonexistant. These tournies are usually labors of love. It's not too dissimilar to LAN centers which didn't work out as a business in NA. And to make things worse, there are already established TO's that would likely throw their hat in the ring if local level events were meaningfully profitable.

Gamestop is not really the guy I see entering the esports space successfully. They don't even have real gaming industry experience like actual gaming companies would, in my opinion it's really a run of the mill retail/used sales business, there was already a used car lot down the street so they chose to trade games. I've competed/practiced/played games for maybe 100k hours of my life (not even kidding but that's another issue lol...) and I never walked into a gamestop once, not ever. That gives you an idea of their footprint in gaming, never mind esports.

Foreign Tuffett

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Re: GME - Game Stop Corp
« Reply #216 on: January 20, 2021, 06:37:18 AM »
Citron going public with a short case today.

https://twitter.com/CitronResearch/status/1351544479547760642
Former Teldar Paper Vice President

Pelagic

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Re: GME - Game Stop Corp
« Reply #217 on: January 20, 2021, 08:03:26 AM »
I've been following this on WSB and it's as entertaining as anything else out there. But for a company that is trying to shift itself toward online sales and become less dependent on its retail stores, its website looks like the web equivalent of a Gamestop from the '00s. It's like they took the small retail footprint and said we want this, but online.

As a lifelong gamer I think I've been into a Gamestop store twice and really see no reason to go to one or buy a physical game copy in the near future. Sure it's possible GME might have the best price on an accessory I want to buy and I wouldn't hesitate to buy from them online if that were the case but it seems like a tough way to make money given the competition. 

Honestly I'm surprised Gamestop hasn't capitalized on eSports more. Online gaming is broadly speaking local due to matchmaking processes factoring in ping to host servers. Gamestop has hundreds of locations scattered around the country, it seems like a low hanging fruit for them to organize local tournaments through their physical locations. Entry fees, sponsorships, additional foot traffic to the store, wins all around. Could easily see them developing quality local amateur tournaments that have the potential for progression.

Local tournies are tough. You're competing with online matchmaking/tournies/leagues which are more prestigious and much higher competing population, never mind that they're usually free, occasionally low cost like ESEA. It doesn't help that NA is relatively spread out AND while gaming is super popular, esports generally lags behind especially compared to Asia or Europe.

Tournies are hard to execute from a technical standpoint, local turnout is very low and spectatorship nonexistant. These tournies are usually labors of love. It's not too dissimilar to LAN centers which didn't work out as a business in NA. And to make things worse, there are already established TO's that would likely throw their hat in the ring if local level events were meaningfully profitable.

Gamestop is not really the guy I see entering the esports space successfully. They don't even have real gaming industry experience like actual gaming companies would, in my opinion it's really a run of the mill retail/used sales business, there was already a used car lot down the street so they chose to trade games. I've competed/practiced/played games for maybe 100k hours of my life (not even kidding but that's another issue lol...) and I never walked into a gamestop once, not ever. That gives you an idea of their footprint in gaming, never mind esports.

All valid points. I still think there's a place for tournaments that answer who's the best Fortnite/CoD player in the neighborhood/highschool etc. And GME has the physical footprint to make it happen or just license the rights to it to someone else. Golfers like watching the PGA tour, they also like playing in tournaments at their local club. Gamers are a huge subset of the population and there has to be a higher margin business that can capitalize on GME's existing real estate than just selling used games and accessories.

I see they're rolling out a build your own PC kiosk, maybe that will get me into a store if one near me has it.