GameStop: Extremely Dangerous Short Before The New Console Cycle

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About: GameStop Corp. (GME)
by: Value Adventurer
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Value Adventurer
Deep Value, growth at reasonable price, contrarian, dividend investing
Summary

GameStop has drawn a flood of misleading doomsday headlines after the last earnings report.

GameStop is still a far cry from bankruptcy and has a healthy cash balance in relation to debt.

The company has been putting their money where their mouth is and has bought back over 1/3 of outstanding shares in 2019.

The cost savings that GameStop has been implementing, combined with the buybacks, will allow shareholders to reap compounded profits once the new console cycle begins in late 2020.

Shorting GameStop is purely speculative at this time; the short float is dangerously high and the chance for additional negative catalysts after the holiday report is slim to none.

To say that 2019 was a rough ride for GameStop shareholders would be an understatement. The company called off its search for a buyer, posted a 673 million dollar loss for FY2018, and drastically