GameStop Isn't Dying
Vince Martin • 39 Comments
Vince Martin • 39 Comments
The Market Got It Right On GameStop (Eventually)
Vince Martin • 21 Comments
Vince Martin • 21 Comments
Fri, Sep. 9, 9:35 AM
- A resounding bull call on GameStop (NYSE:GME) arrived this morning from Hilliard Lyons. Snippets from the analyst note are posted below.
- "We feel recent substantial declines in the stock price reflect an overly pessimistic view of the company’s near-term outlook. Management has navigated a challenging industry environment in a smart, pro-active manner, in our opinion."
- "Generation and allocation of cash flow are key positive factors, in our view, and could play a positive role in the year ahead."
- "We view the current 7.0x multiple on our estimate of expected forward earnings to be quite attractive."
- Shares are rated at Buy and assigned a price target of $33.
- GME is up 0.32% to $27.86 vs. a 52-week trading range of $24.33 to $47.62.
Fri, Aug. 26, 12:45 PM
Fri, Aug. 26, 9:59 AM
Fri, Aug. 26, 9:13 AM
Thu, Aug. 25, 5:33 PM
Thu, Aug. 25, 5:00 PM
- GameStop (NYSE:GME) reports same-store sales plunged 11% in Q2. Sales of new video game hardware fell to 33% Y/Y during the quarter.
- Revenue mix: New video game hardware $216.4M (13.3% of total), New video game software $382M (23.4%), Pre-owned and value video game products $543M (33.3%), Video game accessories $120M (7.3%), Digital $36M (2.2%), Mobile and consumer electronics $203M (13%), Collectibles $90M (5.5%).
- The company's gross profit rate rose 500 bps to 37.9% off the shift in mix.
- GameStop expects FQ3 comparable-store sales to fall in a range of -2% to +1%. Q3 EPS of $0.53-$0.58 is expected.
- Previously: GameStop EPS in-line, misses on revenue (Aug. 25)
- GME -6.44% AH to $30.09.
Thu, Aug. 25, 4:02 PM
Wed, Aug. 24, 5:35 PM
Tue, Aug. 23, 10:32 AM
- Select retail chains are higher after Best Buy sailed past profit estimates with its Q2 report.
- Best Buy said sales rose for home theater systems, major appliances, and some computing products.
- Conn's (CONN +1.5%), hhgregg (HGG +4.9%), Sears Hometown and Outlet Stores (SHOS +2.2%), and GameStop (GME +3%) are all higher.
- Previously: Best Buy beats by $0.14, beats on revenue (Aug. 23)
- Previously: Best Buy soars after profit impresses (Aug. 23)
Thu, Aug. 18, 3:48 PM
- Piper Jaffray backs an Overweight rating on GameStop (GME +1.1%) in front of the retailer's earnings report due out next week.
- The investment firm expects full-year guidance to be held steady by Gamestop with the software cycle setting up favorably.
- PJ keeps a $41 price target on GME, a level the stock hasn't traded at since last November.
Thu, Aug. 11, 7:13 AM
- Baird expects GameStop (NYSE:GME) to trade off after reporting weak numbers with its Q2 report due to be released on August 25 (consensus $1.73B revenue, $0.28 EPS).
- "We would be buyers on GME on any weakness ahead of the seasonal ramp, while longer-term diversification initiatives provide option value," advises analyst Colin Sebastian.
- Sebastian and team have GameStop rated at Outperform with a price target of $42 (40% upside).
Tue, Aug. 2, 7:35 PM
- GameStop's (GME -3.7%) purchase of three national cellular retailers has made it the biggest authorized retailer of AT&T (NYSE:T) mobility offerings.
- The game retailer bought Cellular World, Midwest Cellular and Red Skye Wireless, adding 507 stores. GameStop entered the mobile space just three years ago with a purchase of Spring Mobile.
- Now GameStop has 1,421 AT&T Mobility stores, and is also the biggest retail distributor of AT&T's prepaid brand Cricket Wireless, selling hardware and service through 70 Cricket brand stores and 3,400 GameStop locations.
- Mobile is "a key part of GameStop's diversification strategy," says Baird's Colin Sebastian, who reiterated an Outperform rating. "The announced store acquisitions are another step toward management's goal of generating 50% of operating earnings from nonphysical game sales by 2019, up from 25% in 2015."
- Baird's price target of $42 on GameStop implies nearly 44% upside from today's price.
Fri, Jul. 22, 5:52 AM
- Nintendo has “plenty of doubters”; short interest levels have almost tripled to a new yearly high, Markit says in a note.
- Short interest as percentage of free float is now at 2.57%. ADR short sellers are at 3.5x levels seen a week ago.
- Firm notes that GameStop shares, up 22% in the last month on the coattails of the Nintendo rally, haven't seen a similar rise in short demand.
- Still, GameStop short interest as percentage of free float is 19%, down from 50.8% in December.
Tue, Jul. 19, 7:37 AM
Mon, Jul. 18, 12:41 PM
- Like it or not the huge success of Pokémon Go is likely to unleash a huge pop in mobile games designed around augmented reality.
- There is already an online petition asking for a similar Harry Potter Go game to be designed and many more mainstream characters are sure to start showing up in games linked to the cameras on smartphones and tablets.
- Companies stocked with an arsenal of appealing characters that could be brought into augmented reality games include Disney (NYSE:DIS), Time Warner (NYSE:TWX), Mattel (NASDAQ:MAT), and Hasbro (NASDAQ:HAS). Movie studios (LGF, SNE, VIA, VIAB) could also benefit as AR games tied around plot lines from old movies are developed (The Godfather, Star Wars, Blade Runner, Hunger Games, etc.) and used to promote new features.
- Many retailers and restaurant chains have already been active in trying to latch on to the Pokémon Go buzz (see What's McDonald's doing inside the Pokémon code?), while GameStop (NYSE:GME) thinks it has an angle on the collectibles and accessories side. As the retail sector works out the science of in-game marketing opportunities, even more opportunities could arise.
- Technology firms with a stake in augmented reality include Google (GOOGL, GOOG) , Himax (NASDAQ:HIMX), Nvidia (NASDAQ:NVDA), and Intel (NASDAQ:INTC).
- Nintendo ADRs (OTCPK:NTDOY) are up 8.6% today and have doubled in value during the week following Pokémon Go's introduction.
Mon, Jul. 18, 10:50 AM| Mon, Jul. 18, 10:50 AM | 2 Comments