GME
GameStop Corp.
Consumer
11/14/2014
Presented
| Date | 11/07/2014 |
| Price | $43.69 |
| Market Cap | $4.92B |
| Ent Value | $4.94B |
| P/E Ratio | 10.85x |
| Book Value | $17.95 |
| Div Yield | 3.8% |
| Shares O/S | 112.67M |
| Ave Daily Vol | 2,370,000 |
| Short Int | 33.55% |
Current
| Price | $21.27 |
| Market Cap | $9.07B |
| GameStop Corp. operates as a multichannel video game, consumer electronics, and wireless services retailer. The company sells new and pre-owned video game hardware; physical and digital video game software; pre-owned and value video game products; personal computer (PC) entertainment software in various genres, including sports, action, strategy, adventure/role playing, and simulation; digital products, including downloadable content, network points cards, prepaid digital and online timecards, and digitally downloadable software; video game accessories, such as controllers, gaming headsets, memory cards, and other add-ons for use with video game hardware and software; strategy guides, magazines, and gaming-related toys; and mobile and consumer electronics, including new smartphones, tablets, headphones, and accessories, as well as pre-owned smartphones, tablets, and MP3 players. It also operates electronic commerce Websites comprising gamestop.com, ebgames.com.au, ebgames.co.nz, gamestop.ca, gamestop.it, gamestop.es, gamestop.ie, gamestop.de, gamestop.co.uk, and micromania.fr. In addition, the company operates kongregate.com, a browser-based game site; Game Informer magazine, a physical and digital video game publication; a digital PC distribution platform available at gamestop.com/pcgames; iOS and Android mobile applications; and an online consumer electronics marketplace available at buymytronics.com. Further, it operates Simply Mac, a certified Apple products reseller; Spring Mobile, an authorized AT&T reseller operating AT&T branded wireless retail stores in the United States; and pre-paid wireless stores under the name Aio Wireless. As of July 30, 2014, the company operated approximately 6,600 stores in 15 countries. It has strategic partnerships with Shelfbucks. The company, formerly known as GSC Holdings Corp., was founded in 1994 and is headquartered in Grapevine, Texas. |
Publicly traded companies mentioned herein: Activision Blizzard Inc (ATVI), Electronic Arts (EA), GameStop Corp (GME), Nintendo Co Ltd (7974 JP), Microsoft Corporation (MSFT), Sony Corporation (SNE)
Highlights
The presenter is short shares of GameStop (GME), and believes the bulls who think the company can survive the emergence of digital gaming are underestimating the potential impact the current trends will have on GME’s business over the next two-to-three years. He sees 50% of gross profits and nearly all of EBITDA at risk if the worst case scenario plays out. The Street is modeling continued EPS growth (mid-teens %) over the next 2-3 years, and in stark contrast the presenter’s model suggests earnings could reach an inflection point soon and head lower (to $2.50 per share).
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.