In this video I review GameStop (GME, $4.03, $260M market cap). As of July 2020 I'm bullish on the stock - perhaps foolishly so. What are your thoughts on GME? Do you agree or disagree with my take? What did I overlook in my analysis? Which of my assumptions were off?
There's a lot to cover in a GME thesis. I did my best to review what I consider most of the important items. As time passes I'm sure I'll realize I forgot to discuss something important. I'll update this description with such updates.
One item I failed to mention is how management could use GME's rising cash balance to repurchase the remaining 2021 bonds on the open market at a discount; the bonds currently trade at ~87 as of July 2020. It's possible the discount would vanish if they attempted to buy back the bonds in size, but it's still a scenario worth mentioning because such a move would marginally increase its value per share.
Another glaring omission is Scott Preston's GME piece in Barron's from February 2020 - I can't believe I forgot to mention it. It's one of the best articles written on the company and a must-read for anyone following the story. In particular Scott does a terrific job walking through the different ways GME can reinvent itself. The article is here: www.barrons.com/articles/game...
Resources mentioned in the video:
Furey, Edward "Present Value of Cash Flows Calculator"; CalculatorSoup, www.calculatorsoup.com - Online Calculators
Hestia/Permit Restore GameStop presentation May 2020: www.sec.gov/Archives/edgar/da...
Scion 13D April 2020: www.sec.gov/Archives/edgar/da...
Scion June 2020: www.businesswire.com/news/hom...
SeekingAlpha GME Articles: seekingalpha.com/symbol/GME/a...
Statista: www.statista.com/statistics/1...
The Verge - Xbox Series X optical drive: www.theverge.com/2019/6/10/18...
Xbox 2013 blog update: news.xbox.com/en-us/2013/06/1...
Variety - Death of Physical Video Games Exaggerated: variety.com/2019/gaming/featu...
GamesIndustry.biz - AAA game downloads: www.gamesindustry.biz/article...
GamesIndustry.biz - GameStop's concept stores: www.gamesindustry.biz/article...
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Негізгі бет 100%+ short interest in GameStop stock (GME) - fundamental & technical deep value analysis
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