R wsb gme12/13/2023 Keith "TheRoaringKitty" Gill, also known as u/DeepFuckingValue (DFV) on Reddit, broke his silence today with yet another cat video. We saw an influx of character parody accounts since the figurehead of the short squeeze went dark on social media. He shares his stock picks so readers get original insight that helps improve investment returns.As the GameStop saga continues on Wall Street, many r/wallstreetbets users have taken to Twitter. Chris has over 20 years of investing experience in the stock market and runs the Do-It-Yourself Value Investing Marketplace on Seeking Alpha. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.Ĭhris Lau is a contributing author for and numerous other financial sites. On the date of publication, Chris Lau did not have (either directly or indirectly) any positions in the securities mentioned in this article. GameStop now has the chance to bask in that market. This will give management the time it needs to restructure the business. Most importantly, it has no risk of bankruptcy any time soon. GameStop has millions of options on hand to recreate its business. Skillz (NYSE: SKLZ) is pivoting into that space as it expands beyond the online mobile multiplayer video competition platform. It could enter the esports betting market. Roblox (NYSE: RBLX) is an example of a hot game platform. It could turn the company into a gaming platform. Ryan Cohen, a cofounder of food-to-treats portal Chewy (NYSE: CHWY) has the expertise to turn GameStop into something bigger. The media discussed this approach in 2019 and again in April. Pivoting its business model is nothing new. GameStop may easily differentiate itself from big-box retailers like Walmart. Then it needs to identify its areas of strength in the online space and carve a niche. It needs to par its store count to cut rental and real estate costs. But the company cannot rely on hardware sales alone. GameStop may capitalize on the renewed brand awareness to sell products to them. Thanks to continued coverage of the stock in 2021, the brand is a household name. GameStop has the leadership and management team ready to pivot away from just selling games online. MetricsĪssuming a modest 15% annual increase in revenue annually starting in the fiscal year 2023, GME shares are worth around $270. In a five-year discounted cash flow model: EBITDA (earnings before interest, taxes, depreciation and amortization) Exit, the model below uses an EBITDA Exit multiple to calculate Terminal Value after five years. For example, the company has a low bar to overcome. GME stock offers tremendous value if management ends the revenue decline. It now has a massive cash balance on hand to fund an aggressive push to this online marketplace. Still, GameStop’s e-commerce initiative will compete with big retailers like Walmart (NYSE: WMT) and Microsoft (NASDAQ: MSFT). Customers no longer need to buy used games at the locations when they can conveniently buy digitally downloaded games instead. GameStop’s physical store space is at the core of the business problem. In addition to the $551 million raised, the company may rely on its top shareholder, Ryan Cohen, for direction. GameStop may put the $21.6 million in interest costs saved back into the business. Additionally, it improves cash flow because the company does not have to pay 10% interest rates on them. The early redemption lowers GameStop’s debt levels. It previously redeemed around $216.4 million in Senior Notes due in 2023 on April 30. Instead, the company sold a modest 3.5 million shares on April 26. GameStop is not diluting its loyal shareholder base. Unlike GameStop, AMC is selling as many shares as it can to capitalize on AMC prices rising. As speculative buyers unwind their long position in those shares, they will hold on to only one company: GameStop. Reddit users spread their buying beyond GME shares to those names. Last week, AMC Entertainment (NYSE: AMC) rose by 81%, BlackBerry (NYSE: BB) jumped by 39% and Koss (NASDAQ: KOSS) rose by 18%.
0 Comments
Leave a Reply.AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |