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.co...
Resources mentioned in the video:
Furey, Edward "Present Value of Cash Flows Calculator"; CalculatorSoup, www.calculator... - Online Calculators
Hestia/Permit Restore GameStop presentation May 2020: www.sec.gov/Ar...
Scion 13D April 2020: www.sec.gov/Ar...
Scion June 2020: www.businesswi...
SeekingAlpha GME Articles: seekingalpha.c...
Statista: www.statista.c...
The Verge - Xbox Series X optical drive: www.theverge.c...
Xbox 2013 blog update: news.xbox.com/...
Variety - Death of Physical Video Games Exaggerated: variety.com/20...
GamesIndustry.biz - AAA game downloads: www.gamesindus...
GamesIndustry.biz - GameStop's concept stores: www.gamesindus...
The Roaring Kitty channel revolves around educational live streams where I share my daily routine of tracking stocks and performing investment research.
My investment style involves continually tracking thousands of stocks using a variety of widely available tools. When opportunity strikes - as it occasionally does in markets comprised of biased humans - I’m prepared to pounce and capitalize on the situation. I'm probably best classified as a fundamentals-focused deep value investor, though I find I'm increasingly leaning on technical analysis for screening, timing, and tracking stocks. In the years ahead I look forward to honing my portfolio management approach by acquiring bolt-on skillsets and further developing my approach to risk management.
Some of the tools I use: Google Chrome, Chrome extensions & search engines, Google Sheets / Google Apps Script / StackOverflow, StockCharts, insider buying via OpenInsider, stock ownership via WhaleWisdom, SEC filings via sec.gov, SeekingAlpha, Twitter, Quandl / Sharadar, and bond prices via FINRA.
The Roaring Kitty channel and live streams are for educational purposes only. I share my approach to investing in an effort to set you on the right path to building out your own investment process. I don't provide personal investment advice or stock recommendations during the stream. Please understand that my style of investing is extremely aggressive and I take on a substantial amount of risk. It's likely my approach would not be suitable for you. If you're seeking personalized advice, I encourage you to sit down with a financial professional who can review your personal situation, financial background, risk tolerance, etc. Check out the Roaring Kitty disclaimer video for more information: • Roaring Kitty - Discla...
22 авг 2024
