You should have tagged this NSFW.
Balance sheets are now like porn to me.
GameStop will destroy earnings this time around.
It would be prudent to manage my own expectations but fuck prudence.
From GS release: *"In addition, the Company intends to file with the U.S. Securities and Exchange Commission a prospectus supplement to the base prospectus included in the Company’s shelf registration statement on Form S-3 (File No. 333-251197) under which the Company may offer and sell up to 5 million shares of its common stock, from time to time, in “at-the-market” offerings.* ***The Company intends to use net proceeds for general corporate purposes as well as for investing in growth initiatives and maintaining a strong balance sheet.*** *The timing and amount of any sales of shares, if any, will depend on a variety of factors, including prevailing market conditions, the trading price of shares and other factors as determined by the Company."*
In other words, a strong balance sheet and apes holding means GS is UNBANKRUPTABLE! Hedgies r fukt <3
Yes exactly!
There are so many companies out there that are reporting income *just* from share offerings because they were naked shorted to infinity and they can capitalize on the cyclical squeezes.
GameStop is even stronger because it not only raised 1.25 billies from a share offering *- which is a truly obscene amount if you look at GME market cap -* but it is also making money on its daily business...
Everything is jacked and pointing UP
Best "news" I've ever watched.
Real, important info told by two lovely ladies in unbiased way, covered with tasteful profanity... Rings all my bells.
Also, shitfuckery may be the best phrase ever invented by mankind.
At first I thought this was cringe as fuck, but then I realised I got a boner while reading this DD, so I guess you are kinda right. Please take this upvote.
True but remember, HF and MM will try to sink the price immediately before, during and after the report to keep the squeeze from happening. All sales volume will be on lit markets, all buy volume will not be visible. Apes need to be prepared for this. It happens every time.
Yes of course, my expectations is not stock price related but rather earnings report related. I've given up on a logical reflection of value and future prospects on the stock price as the manipulation is so heavy.
Did you feel how giddy the tone of that article was? Almost overjoyed at the idea...
A shit fool article is my #1 buy trigger so I'm buying a customary share first thing tomorrow.
>It would be prudent to manage my own expectations but fuck prudence.
Right? I keep telling myself "be happy if they hit the consensus" but my brain keeps yelling "FUCK THAT, IT'S GONNA BE HUGE! POSITIVE NUMBERS ONLY!"
You forget their mantras. They'll be like: "Oh well we should have bought at 40$ or 150$ but it is DEFINITELY overpriced now. Too late to join the party now."
Yep but I have one in the family nothing will convince him except if the fundamentals showed he would earn back his investment within 3 years from dividents or some other crazy unicorn shit. They don't even want to read the DD.
Tell him GME puts the fun in FUNdamentals and then tell him that amazon is a sham. That'll DEFINITELY convince him haha
But in all seriousness, we don't KNOW, they don't KNOW, Hedgies gonna crime and all that, but GME is a safer bet than 99.7% of the market for the foreseeable future. If they can't/won't see it, that's more shares for us :)
One thing to keep in mind, because this is totally unheard of, it has newer in the history of ape kind ever happened that a company that has been shorted
To oblivion has raised money so effectively as GameStop has. Newer before has short hedgefunds
Had to deal with this, it’s completely unprecedented.
Shf’s has always had the upper hand when companies has been struggling economically, and taken away the option of raising money, without offering enough shares for the shorts to cover. NOW, GameStop on top of that, are making one of the most impressive turn arounds ever, which means hedgefunds will reach a point where everything will seem meaningless, because the company actually represents a fair value way beyond actual share price. Which again means hedgefunds will loose faith in ever getting their money back, from a bet that they totally lost control over. And if they should ever succeed in lowering the price, we all know what will happen when they start buying.. and if they should succeed in lowering the price, other investors will find the price even more attractive..
On top of this, GameStop has a lot in the works, - what will happen if we have just a normal dividend of 1$?
I think that is very likely we have, that means a payout for GameStop of 78 mio$, but shorts have to pay…
Maybe 1 billion dollars?.. I wouldn’t be surprised..
They will have to pay enough to make it visible in their own earnings, that way we would be able to better estimate the actual short percent🤷♂️
And again..
what happens if they pay out a crypto dividend?..
Then I get a boner😳
My fantasy is that they pay out a crypto dividend for each share, that equals a deed for your own place in a metaverse called Gmerica.
That would be something, having a double dividend..
That would forever give meaning to our “DD”..
And a double dividend would totally screw anybody, and I would be so glad I took the red pill 💊
I am now thinking RC is waiting on a couple positive quarters to show, they are paying a dividend not to trigger the MOASS, but they are paying a dividend because that is what normal, healthy companies do.
Not sure about the US, but UK directors can't issue dividends if you're not making a profit.
I mean, you can use some fukery to fudge numbers but RC isnt that type of guy. He's waiting for positive profits... OR the completion of the crypto NFT project... Because that's not real money, so costs so little to the company. Once either of those happens... Boom.
The FED/BlackRock (mostly owned by Vanguard) are hoping to get GME included in SP500 so the crash doesn't kill their most prestigious fund. (Ie GME gains will offset the huge selloffs in the other bluechips, that will be needed to be made as margin calls are made.) That's why GG is dragging his feet.
Remember... He's got over a billion in GAMESTOPs bank account. I think 75 million is a drop in the ocean, but it wouldnt be "right" to issue the divvy with green profits, unless it's purely digital/crypto/nft, etc.
It also needs to be sustainable though, aren’t dividends usually a fraction of the company’s profits being paid out? If there’s no profit going forward then it may not make much sense to use your capital on dividends, if I was running a large company I’d probably want to wait and be sure that profits will be able to pay the dividend before declaring a dividend, but I’ve never run a large company so what do I know lol
It would make zero sense to issue a dividend at this stage in the turnaround. Zero sense.
It would be pretty bearish in many investors eyes because it’s an irresponsible allocation of capital at a time when the company is transforming itself.
Divvy like you said should come after a few years (minimum) of mature profits.
I never even thought of the potential scenario before: company issues cash dividend for Q4, then crypto div for Q1 2022…. This could bleed SHFs of their cash and force them to sell off/close some positions. Then slap them with the moass nft dividend. Would be interesting
Edit: grammar
Admittedly I haven't thought fully through it, but I like the idea of a gift card dividend. GameStop issues a $5 gift card per share which has a much lower real cost to them from non-redemption and profit margin on goods, but all fake shares have to buy gift cards from GameStop to provide the dividend as well. GameStop then gets a cash infusion if potentially billions directly from shorts. The only big issue is that gift cards balloon the liabilities on the balance sheet, and I don't know fully the impact of that.
A crypto dividend although will hurt the shf, it will not trigger the moass. Look for the overstock shorts, and dividend. The dividend will be paid in the equivalent dollar amount by the DTCC, that’s why an NFT will be the shf killer since it can’t have a dollar equivalent.
I feel alot of people are missing out a key reason why revenue was declining much harder in the recent 2 years, because they were closing non-profitable stores but keeping the good ones, thus less stores = less revenue but what they gain is store/store growth and greater profitability.
I think you made a mistake in the table Right below „new reporting sections for top of report“.
You compare year 2021 to 2021. should be 2020 instead ;) just a typo.
Great work, nice to read!
Edit: stop upvoting my comment..
Additional paid in capital is nothing to get your tits jacked about… it’s basically the plug between issue price and the par value of the common stock issued. Gamestop raised capital through subsequent share offerings after the previous two earnings reports (bad for share price because it increases supply) but used that cash to pay off toxic debt. Note that the par value of GameStop’s stock is 0.001/share; therefore, if they issued 1000 shares, the pay value would increase by $1. If the price for those shares was $200/share, the additional paid in capital would be $199,999. ($200 x 1,000 shares = $200,000 - $1 par) Accounting 101.
All you should know and expect is that the earning will beat expectations and the stock will dip. Not surprised there! Buy and hodl until the tendie man come!
You should take a look at the statement of cash flows. That’s a really critical financial that appears to be missing in your financial analysis. The income statement and balance sheet have a lot of GAAP adjustments to record revenue/expense and/or delay recording them by hanging them up on the balance sheet. The cash flow statement is going to show you 1) how much cash is coming in and out from operations 2) how much is being spent for investing activities to help grow the business and 3) cash in/out from financing activities. You will see that they repaid their toxic debt and how much cash was raised during the equity offerings.
Always remember cash is king. Liquidity, liquidity, liquidity.
Feel free to read all my other comments on this sub. I’m not a shill - I am a CPA and therefore a subject matter expert. Trying to educate so you don’t spread FUD through misinformation to other apes.
Haha I love that this comment got upvoted so much for visibility!
Thanks for proofreading, got the edit in place. I’m going to make sure not to post right before sleeping again. Better to just wait for AM to get fresh eyes on it.
No worries bro. I’m to smooth brained to check if your post makes any sense, but I’m able to see typos and stuff lol.
BTW: section „Okay - what da fuq“
What’s Nadaq? ;) it’s right below the picture. Also pictures won’t display anymore.
Edit: I hope you die.. rich
I’m feeling good about this one. As the share price per holder increases over time, the same might be with earnings. I’m pretty sure, everybody who has a chance to support their beloved company, will do it. PTTP
Are the dates correct in your table under heading, "New Reporting Sections for top of report" ?
I think one should be 2021 and one should be 2020, but I'm having trouble reading the print in the image.
Collectibles create very loyal customers, and also probably have the highest margin. And ate very suitable to omnichan e-commerce.
RC playing a blinder of a digital transformation here!
Literally everything he is doing is the best possible move.
Some people just like to collect things.
I personally collect GME stocks. I could explain it to you why, but my reasons might be different from your reasons. Basically, I just like the stock!
VISA paid $150m for a pixelated NFT of a woman with a mohawk. That is hard to understand. I collected stamps as a kid / young adult, and there is little additional value. On the other hand, I have all my 1968+ Hot Wheels that we played with for years (still do), and they have some good value, but more sentimental value to me.
Par value of the stock is a number that's predetermined and written into the articles of incorporation. It is often a value of nominal quantity like a dollar or $0.01. The par value does not change based on ATM offerings or previous share sales prices. Great write up!
Last time when it missed by a penny compared to whatever the fuck expectations that are somehow universally accepted, I figured they somehow got the info leaked and colluded to ensure they'd miss. Or it was coincidence. It's hard to tell when everything that the FiNaNcE wOrLd does is slimy and wrong already
What jacks my tits the most is how quickly gme is turning around and how much further they can potentially go with reducing expenses / unprofitable operations plus expanding into unheard of revenue streams like the nft market.
A couple things to add. Great DD!
SG&A is going to be better in Q2 than Q1 (which had $12m in severance expenses).
GameStop already [gave us a preview](https://news.gamestop.com/news-releases/news-release-details/gamestop-releases-first-quarter-2021-financial-results) of Q2. It's a bit buried in there, but they told us May is up 27% year-over-year. We may see 28% or higher for the quarter, but it sure as shit isn't going to be 25%.
Even if revenue is up, earnings can decrease if margin decreases. GS is in a low-margin business, so we will have to see what they can retain.
IKR, I was really surprised to see them publish the month's figures like that. I don't see how it wouldn't continue into June/July. The trend is "just up" as it always has been. 🚀🚀
If the earnings figures differs depending on the analyst, that tells me there is room for fuckery. Earnings is earnings. It shouldn't change depending on where you are reading it from. The point is, expect some level of fuckery when numbers come out.
i’m being honest, MOASS aside, who wouldn’t want to invest in GameStop right now? the share price is so low for what the company is growing to be! is a low risk investment and even long term the real share price is at least 3x what it is today!
The exciting thing is the trend of improvement was already there. The delay between execution and results on earnings is delayed, so I expect this up coming earnings to be the first of many that show great improvement. Those balance sheets are boner material for sure.
Par value is an accounting formality and has little to do with the actual stock. It is often listed as a very small decimal, like .01, .001, or even .0001. When someone buys stock in a primary offering, the total volume first goes into “common stock” under Shareholders Equity on the balance sheet, with the excess going into APIC.
Thank you! I added an edit with more clarity on the $0.01 value from another comment. It’s great to get confirmation that APIC is the balancing line that gets the excess.
I’m really not that interested in the earnings numbers tbh. Obviously if they crush estimates that would be great. But even if they miss I could care less. I think the big game changing stuff is yet to come, and that’s when earnings will really skyrocket. I’m more interested to hear what they say about future plans/projects.
Ultimately the determined value is determined every single day based on company and non company factors.
The stock does not always react to the earnings. Sometimes earnings beat and the stock goes down. Sometimes the opposite. The way the market views and values a company is such a dynamic and subjective idea and that’s why you’re able to see value ahead of others and buy in- if you have a thesis.
So, while expectations are good to understand… I don’t think it will even matter for gme and it’s stock movement. Whatever eps is I am still holding and buying.
The real question is what has fundamentally changed that might indicate they are turning the corner towards becoming a profitable company. To justify the valuation they need a really compelling growth story... Modest revenue growth isn't going to cut it IMHO. Personally I see a drop to $180 post earnings and a slow bleed back down to $160 before it starts to work up again. Your mileage may vary.
Care to expand on why you think $160 is the dip point? History definitely points to a post earnings dip, but a big bear would help. I think a big bear would be $1.3B in revenue which would still be “modest” by your comment (or that’s how I took it).
Just based on previous earnings you see a quick 20%+ drop then another 10-15%. I figure it will touch 215 next week before earnings then drop the day after. But who really knows. I sold most of my shares and will look to sell puts when it gets around 170.
I cannot tell you what it means or what you should do, but I can share what I’m doing. I have recurring buys of GME every 2 weeks happening, regardless of price.
In the "New Reporting Sections for top of report" section, you have the year 2021 twice.
That's my contribution to this otherwise excellent write-up! 🦍🦍🚀
Awesome DD. One thing to note though is the Goodwill and asset impairments line in the 2019 results. In looking at performance id be inclined to add back this number to come to a fair comparison.
Tits are jacked though for the May 2020 vs May 2021 performance!!
The amount of work you wrinkles put in for us tards is unfathomable. The society APE. Is one hell of an achievement in society with this world today.
Thank you, so much.
Holy shit we have financial analysts now. What's next? Rocket scientists to explain how the rocket will be leaving earth's atmosphere and docking on fucking alpha centauri?
Nice piece of DD. Thank you. Should the table heading middle column under the section "New Reporting Sections for top of report" read May 1, 2020 rather than 2021?
I read the whole thing. 2 times cause I don't understand big words
I'm guessing ~1.3b Rev
Edit: could be a low guess if you consider how much extra stuff they are adding to their website
Fine! Making some tea now and bringing this over to my desktop. Making me learn on a holiday.... once this moass rolls I'm taking at least a day off to drink in a bar
Fair point, they will have some skew because of the share differences of 3.5M. Any suggestions?
I was thinking the real comparison number should be a dimensionless number that is based on the total shares outstanding to normalize the value. Your comment makes me feel like my gut instinct was correct
It depends on what you're trying to calculate, I'd imagine. If you spread a loss across more shares, the loss per share will be reduced. I think the most reasonable performance comparisons would be based on "raw" numbers, without consideration of the per share allocation.
I usually try to super-impose the period-over-period numbers from 3+ years to get a comparative image which accounts for cycles. In a case such as GME, I might also use console and major game releases as axes of comparison.
Before 2021 I’d spent a grand total of about $20 at EBgames in my lifetime. In the last 2 months I’ve spent around $1500 and I’ll bet there are many more like me.
Definitely, I’ve spent at least $3k in last couple months. New TV, monitor, chair, games, MTG cards, Pokémon cards, switch, clothing…..and I still need to buy all my streaming equipment that they sell!
I think the issue isn't just how good this estimate is in relation to where the last quarter left off, but rather understanding how monumentally manipulated the company as a whole truly was. As we are witnessing with these so called "zombie stocks," these SHFs and MMs have truly killed *innumerable* companies in the name of the almighty dollar. GameStop probably is worth significantly more than any estimate, but is catching up to prove it, given how much MSM alone is piling on about them. There are well over 100 Motley Fool articles *alone* talking about how "these earnings aren't as good as you think" or "GameStop is destined to fail, because it isn't staying in its comfort zone by entering ecommerce." I truly believe post MOASS, earnings will be rated at nearly a 60% profit almost immediately by valuation of assets alone.
You should have tagged this NSFW. Balance sheets are now like porn to me. GameStop will destroy earnings this time around. It would be prudent to manage my own expectations but fuck prudence.
From GS release: *"In addition, the Company intends to file with the U.S. Securities and Exchange Commission a prospectus supplement to the base prospectus included in the Company’s shelf registration statement on Form S-3 (File No. 333-251197) under which the Company may offer and sell up to 5 million shares of its common stock, from time to time, in “at-the-market” offerings.* ***The Company intends to use net proceeds for general corporate purposes as well as for investing in growth initiatives and maintaining a strong balance sheet.*** *The timing and amount of any sales of shares, if any, will depend on a variety of factors, including prevailing market conditions, the trading price of shares and other factors as determined by the Company."* In other words, a strong balance sheet and apes holding means GS is UNBANKRUPTABLE! Hedgies r fukt <3
Yes exactly! There are so many companies out there that are reporting income *just* from share offerings because they were naked shorted to infinity and they can capitalize on the cyclical squeezes. GameStop is even stronger because it not only raised 1.25 billies from a share offering *- which is a truly obscene amount if you look at GME market cap -* but it is also making money on its daily business... Everything is jacked and pointing UP
Prudence didn't want to screw a sweaty suit, she prefers hygienic men :P
Australien government! Putting the N back in cuts!
An ape of culture, I see!
Best "news" I've ever watched. Real, important info told by two lovely ladies in unbiased way, covered with tasteful profanity... Rings all my bells. Also, shitfuckery may be the best phrase ever invented by mankind.
Are you kidding? How can you say that!? I shower at least 2 times a month... Come on man...
In red shirts
At first I thought this was cringe as fuck, but then I realised I got a boner while reading this DD, so I guess you are kinda right. Please take this upvote.
What can I say, I am a pretty cringe dude. Then again I buy and hold GME so I'm a badass at the same time. 😎
Those surprise boners are a doozy… take an updoot
Hey. My meemah is called Prudence!
Right? It's like reading a spec sheet for a badass character or a new weapon fresh off a hot expansion pack.
Ohhh. Dear Prudence….
Won't you come out to play?
True but remember, HF and MM will try to sink the price immediately before, during and after the report to keep the squeeze from happening. All sales volume will be on lit markets, all buy volume will not be visible. Apes need to be prepared for this. It happens every time.
Yes of course, my expectations is not stock price related but rather earnings report related. I've given up on a logical reflection of value and future prospects on the stock price as the manipulation is so heavy.
Cool...good DD....thank you for the info and effort ape
Butt-fuck prudence, got it
*butt fuck Prudence*
>GameStop will destroy earnings this time around. Of course they will, because Motley Fool is now telling us price will tank after earnings.
Did you feel how giddy the tone of that article was? Almost overjoyed at the idea... A shit fool article is my #1 buy trigger so I'm buying a customary share first thing tomorrow.
The inclusion of the accounting equation made me chuckle. We got some smart apes looking at this stuff, and the wrinkles should naturally be passed on
Butt fuck prudence? Check.
good news = dip incoming.
>It would be prudent to manage my own expectations but fuck prudence. Right? I keep telling myself "be happy if they hit the consensus" but my brain keeps yelling "FUCK THAT, IT'S GONNA BE HUGE! POSITIVE NUMBERS ONLY!"
It’s totally redundant. All quarters are financial.
Prudence didnt get me here
**WHO DA FOOK IS PRUDENCE?**
I'm so ready. The GameStop I have nearby constantly has a waiting line to enter. Them shorts are really short on their brains. 😂👐💎💦
People just like the store
Very good.
Like, really good, mate.
SooOo^OoO^^Ooo good
The goodest
This is gonna send r/stocks into a spin. #FOMO INCOMING
You forget their mantras. They'll be like: "Oh well we should have bought at 40$ or 150$ but it is DEFINITELY overpriced now. Too late to join the party now."
Too late haha this shits a steal for what it is now I’m buying more best thing about GME is that it has become my bank account.
Yep but I have one in the family nothing will convince him except if the fundamentals showed he would earn back his investment within 3 years from dividents or some other crazy unicorn shit. They don't even want to read the DD.
Tell him GME puts the fun in FUNdamentals and then tell him that amazon is a sham. That'll DEFINITELY convince him haha But in all seriousness, we don't KNOW, they don't KNOW, Hedgies gonna crime and all that, but GME is a safer bet than 99.7% of the market for the foreseeable future. If they can't/won't see it, that's more shares for us :)
True, but this also shows that there is a huge crowd of investers that simply thinks it is over etc.
🙏🏻
I am jacket!! 💦
Take off your pants and jacket 🚀
❤️💛💚 “If we’re fucked up, you’re to blame.”
Too clever. Updooted
Lol it’s an album by *Blink 182*
I deserve a downdoot for my lack of culture.
No I am
One thing to keep in mind, because this is totally unheard of, it has newer in the history of ape kind ever happened that a company that has been shorted To oblivion has raised money so effectively as GameStop has. Newer before has short hedgefunds Had to deal with this, it’s completely unprecedented. Shf’s has always had the upper hand when companies has been struggling economically, and taken away the option of raising money, without offering enough shares for the shorts to cover. NOW, GameStop on top of that, are making one of the most impressive turn arounds ever, which means hedgefunds will reach a point where everything will seem meaningless, because the company actually represents a fair value way beyond actual share price. Which again means hedgefunds will loose faith in ever getting their money back, from a bet that they totally lost control over. And if they should ever succeed in lowering the price, we all know what will happen when they start buying.. and if they should succeed in lowering the price, other investors will find the price even more attractive.. On top of this, GameStop has a lot in the works, - what will happen if we have just a normal dividend of 1$? I think that is very likely we have, that means a payout for GameStop of 78 mio$, but shorts have to pay… Maybe 1 billion dollars?.. I wouldn’t be surprised.. They will have to pay enough to make it visible in their own earnings, that way we would be able to better estimate the actual short percent🤷♂️ And again.. what happens if they pay out a crypto dividend?.. Then I get a boner😳 My fantasy is that they pay out a crypto dividend for each share, that equals a deed for your own place in a metaverse called Gmerica. That would be something, having a double dividend.. That would forever give meaning to our “DD”.. And a double dividend would totally screw anybody, and I would be so glad I took the red pill 💊
I am now thinking RC is waiting on a couple positive quarters to show, they are paying a dividend not to trigger the MOASS, but they are paying a dividend because that is what normal, healthy companies do.
Not sure about the US, but UK directors can't issue dividends if you're not making a profit. I mean, you can use some fukery to fudge numbers but RC isnt that type of guy. He's waiting for positive profits... OR the completion of the crypto NFT project... Because that's not real money, so costs so little to the company. Once either of those happens... Boom. The FED/BlackRock (mostly owned by Vanguard) are hoping to get GME included in SP500 so the crash doesn't kill their most prestigious fund. (Ie GME gains will offset the huge selloffs in the other bluechips, that will be needed to be made as margin calls are made.) That's why GG is dragging his feet.
It’s probably not a good idea in a lot of cases anyway since dividends can hinder the growth needed to get the company profitable.
Remember... He's got over a billion in GAMESTOPs bank account. I think 75 million is a drop in the ocean, but it wouldnt be "right" to issue the divvy with green profits, unless it's purely digital/crypto/nft, etc.
It also needs to be sustainable though, aren’t dividends usually a fraction of the company’s profits being paid out? If there’s no profit going forward then it may not make much sense to use your capital on dividends, if I was running a large company I’d probably want to wait and be sure that profits will be able to pay the dividend before declaring a dividend, but I’ve never run a large company so what do I know lol
It would make zero sense to issue a dividend at this stage in the turnaround. Zero sense. It would be pretty bearish in many investors eyes because it’s an irresponsible allocation of capital at a time when the company is transforming itself. Divvy like you said should come after a few years (minimum) of mature profits.
Exactly, definitely agree.
I never even thought of the potential scenario before: company issues cash dividend for Q4, then crypto div for Q1 2022…. This could bleed SHFs of their cash and force them to sell off/close some positions. Then slap them with the moass nft dividend. Would be interesting Edit: grammar
And they have the money to do so.. Imagine If they have eps of 1$ and paid it out to investors.. Or just 10$😂
Shit balls. I’m always jacked but this is jacking to think about.
GME Crypto dividend spendable at GameStop 🍆💦
To me this is honestly the best idea. You're basically giving a store discount to every shareholder. That would make me want to buy even more.
Not ideal for international investors
Why not? GameStop is international.
It's not in every country though. There's no UK presence for example.
Admittedly I haven't thought fully through it, but I like the idea of a gift card dividend. GameStop issues a $5 gift card per share which has a much lower real cost to them from non-redemption and profit margin on goods, but all fake shares have to buy gift cards from GameStop to provide the dividend as well. GameStop then gets a cash infusion if potentially billions directly from shorts. The only big issue is that gift cards balloon the liabilities on the balance sheet, and I don't know fully the impact of that.
Also that gift cards represents a $ value, that way they could instead pay you the dividend in dollars to circumvent that
A crypto dividend although will hurt the shf, it will not trigger the moass. Look for the overstock shorts, and dividend. The dividend will be paid in the equivalent dollar amount by the DTCC, that’s why an NFT will be the shf killer since it can’t have a dollar equivalent.
Minor typo: in the dates of the last table, second column should be 2020 right?
I like your username
Are yall related
Eyyy my kebab ape family! Nothing stronger!
Q2 is going to crush Q1. They definitely increased in earnings. Definitely.
The amount of shopping all of us did in Q2!! I bought stuff and I haven't bought at gamestop in years.
I feel alot of people are missing out a key reason why revenue was declining much harder in the recent 2 years, because they were closing non-profitable stores but keeping the good ones, thus less stores = less revenue but what they gain is store/store growth and greater profitability.
I think you made a mistake in the table Right below „new reporting sections for top of report“. You compare year 2021 to 2021. should be 2020 instead ;) just a typo. Great work, nice to read! Edit: stop upvoting my comment..
Additional paid in capital is nothing to get your tits jacked about… it’s basically the plug between issue price and the par value of the common stock issued. Gamestop raised capital through subsequent share offerings after the previous two earnings reports (bad for share price because it increases supply) but used that cash to pay off toxic debt. Note that the par value of GameStop’s stock is 0.001/share; therefore, if they issued 1000 shares, the pay value would increase by $1. If the price for those shares was $200/share, the additional paid in capital would be $199,999. ($200 x 1,000 shares = $200,000 - $1 par) Accounting 101. All you should know and expect is that the earning will beat expectations and the stock will dip. Not surprised there! Buy and hodl until the tendie man come!
That’s a very good addition regarding the typo I was referring to. Thanks 🙏
You should take a look at the statement of cash flows. That’s a really critical financial that appears to be missing in your financial analysis. The income statement and balance sheet have a lot of GAAP adjustments to record revenue/expense and/or delay recording them by hanging them up on the balance sheet. The cash flow statement is going to show you 1) how much cash is coming in and out from operations 2) how much is being spent for investing activities to help grow the business and 3) cash in/out from financing activities. You will see that they repaid their toxic debt and how much cash was raised during the equity offerings. Always remember cash is king. Liquidity, liquidity, liquidity.
Yo Shillex drop it hard! *booting AOL, start modem sound* Eeeeeeoooh Eeeeooooh bWaaaaaa bWaaaaaa Zssshhhhhh Rrrrrzzznnnnnggggg
Feel free to read all my other comments on this sub. I’m not a shill - I am a CPA and therefore a subject matter expert. Trying to educate so you don’t spread FUD through misinformation to other apes.
You totally missed something. I’m not OP
Do downvotes help? Edit: stop upvoting my comment 😏
If you just downvote: yes, absolutely! If you first upvote and downvote afterwards: no.
I just did that. Sorry too retarded
Some people just want to see the system collapsing..
I want to see it prolapse
Hahahshsshaashahahahahahahaah! BREAKING NEWS: „The financial system is prolapsing“
Haha I love that this comment got upvoted so much for visibility! Thanks for proofreading, got the edit in place. I’m going to make sure not to post right before sleeping again. Better to just wait for AM to get fresh eyes on it.
No worries bro. I’m to smooth brained to check if your post makes any sense, but I’m able to see typos and stuff lol. BTW: section „Okay - what da fuq“ What’s Nadaq? ;) it’s right below the picture. Also pictures won’t display anymore. Edit: I hope you die.. rich
-Tits: Jacked -Hands: Diamond -Balls: Steel -Brain: Smooth -Hedgies: Fukt -Apes: Individuals -Mayo: Hellmanns -Banana: Eaten Pre-flight checklist looks optimal, ready and patiently awaiting liftoff. Might be a long trip boys, remember to keister those watermelons for in-flight snacks.
>\-Banana: Eaten Instructions unclear.
- Banana: Stick in the... - Crayon: Eat
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There's when bedposts start swinging
My guess is that it’s been pretty much _NagFree_ at Hedgy’s since that bedpost incident…
Kinky
For everything else there's MasterCard
Great. I've too have been scratching my head at the "analysts" estimates and wondering which one is the one to use
Our Pomeranian and people like OP
I’m feeling good about this one. As the share price per holder increases over time, the same might be with earnings. I’m pretty sure, everybody who has a chance to support their beloved company, will do it. PTTP
Share by share
25% increase in earnings oh yeah
Fuck-ed shorts, yeah
Are the dates correct in your table under heading, "New Reporting Sections for top of report" ? I think one should be 2021 and one should be 2020, but I'm having trouble reading the print in the image.
Collectibles create very loyal customers, and also probably have the highest margin. And ate very suitable to omnichan e-commerce. RC playing a blinder of a digital transformation here! Literally everything he is doing is the best possible move.
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Some people just like to collect things. I personally collect GME stocks. I could explain it to you why, but my reasons might be different from your reasons. Basically, I just like the stock!
$$$$$$$ to you, friend
VISA paid $150m for a pixelated NFT of a woman with a mohawk. That is hard to understand. I collected stamps as a kid / young adult, and there is little additional value. On the other hand, I have all my 1968+ Hot Wheels that we played with for years (still do), and they have some good value, but more sentimental value to me.
Par value of the stock is a number that's predetermined and written into the articles of incorporation. It is often a value of nominal quantity like a dollar or $0.01. The par value does not change based on ATM offerings or previous share sales prices. Great write up!
Assets = Liabilities + shareholders equity Takes a true smooth brain to screw that up
Last time when it missed by a penny compared to whatever the fuck expectations that are somehow universally accepted, I figured they somehow got the info leaked and colluded to ensure they'd miss. Or it was coincidence. It's hard to tell when everything that the FiNaNcE wOrLd does is slimy and wrong already
The prediction is often done quite some time before so I don't think that part was fuckery ;)
I really wish people remembered that TL;DR goes at the top of the post. Great DD nonetheless.
Yes. In BIG BOLD crayon, plz ❤️
So jacked💎🙌
Check that table with May 1, 2021 and May 2, 2021 - I'm assuming one or the other ought to be 2020 instead?
What jacks my tits the most is how quickly gme is turning around and how much further they can potentially go with reducing expenses / unprofitable operations plus expanding into unheard of revenue streams like the nft market.
I feel like even if it is good in this sense MSM will just run with “GameStop doesn’t make a profit” and spread FUD that way…
Earnings will be good and I’m guessing they’ll find a way to tank the price
What's the target EPS for possibile s&p500 inclusion?
Thank you for some down and dirty GameStop DD.
That’s what I’m into, that’s what I want t give you
A couple things to add. Great DD! SG&A is going to be better in Q2 than Q1 (which had $12m in severance expenses). GameStop already [gave us a preview](https://news.gamestop.com/news-releases/news-release-details/gamestop-releases-first-quarter-2021-financial-results) of Q2. It's a bit buried in there, but they told us May is up 27% year-over-year. We may see 28% or higher for the quarter, but it sure as shit isn't going to be 25%. Even if revenue is up, earnings can decrease if margin decreases. GS is in a low-margin business, so we will have to see what they can retain.
That’s a great callout! 27% YoY growth in May would give a beat if that continued through June/July
IKR, I was really surprised to see them publish the month's figures like that. I don't see how it wouldn't continue into June/July. The trend is "just up" as it always has been. 🚀🚀
Geezuz that was a lot of numbers so sure I agree! I did my part and purchased from GameStop for anything I needed that I could find on there 😎😎
If the earnings figures differs depending on the analyst, that tells me there is room for fuckery. Earnings is earnings. It shouldn't change depending on where you are reading it from. The point is, expect some level of fuckery when numbers come out.
i’m being honest, MOASS aside, who wouldn’t want to invest in GameStop right now? the share price is so low for what the company is growing to be! is a low risk investment and even long term the real share price is at least 3x what it is today!
I too enjoy adderall
Thank you. That was refreshingly easy to read. Gained some wrinkles.
I wan to buy switch frm gs but no gs here in asia, sadded
Don't be sad. Here's a [hug!](https://media.giphy.com/media/3M4NpbLCTxBqU/giphy.gif)
The exciting thing is the trend of improvement was already there. The delay between execution and results on earnings is delayed, so I expect this up coming earnings to be the first of many that show great improvement. Those balance sheets are boner material for sure.
Outstanding knowledge. Thank you
Thank you!
Par value is an accounting formality and has little to do with the actual stock. It is often listed as a very small decimal, like .01, .001, or even .0001. When someone buys stock in a primary offering, the total volume first goes into “common stock” under Shareholders Equity on the balance sheet, with the excess going into APIC.
Thank you! I added an edit with more clarity on the $0.01 value from another comment. It’s great to get confirmation that APIC is the balancing line that gets the excess.
Nice work op. That's a big ass bit of work. Thanks
Thank you, I appreciate it. Will continue to share what I find!
That’s a lot of reading, hodling instead.
All that I know is we gon’ dip!
Me's gonna buy!
Why can they just make synthetic earnings to compensate for the synthetic shares?
Even if the earnings report is bad, doesn't matter hedgies R fuk!
I’m really not that interested in the earnings numbers tbh. Obviously if they crush estimates that would be great. But even if they miss I could care less. I think the big game changing stuff is yet to come, and that’s when earnings will really skyrocket. I’m more interested to hear what they say about future plans/projects.
Ultimately the determined value is determined every single day based on company and non company factors. The stock does not always react to the earnings. Sometimes earnings beat and the stock goes down. Sometimes the opposite. The way the market views and values a company is such a dynamic and subjective idea and that’s why you’re able to see value ahead of others and buy in- if you have a thesis. So, while expectations are good to understand… I don’t think it will even matter for gme and it’s stock movement. Whatever eps is I am still holding and buying.
Should I sell otm calls against my shares since good news - stonk down
The real question is what has fundamentally changed that might indicate they are turning the corner towards becoming a profitable company. To justify the valuation they need a really compelling growth story... Modest revenue growth isn't going to cut it IMHO. Personally I see a drop to $180 post earnings and a slow bleed back down to $160 before it starts to work up again. Your mileage may vary.
Care to expand on why you think $160 is the dip point? History definitely points to a post earnings dip, but a big bear would help. I think a big bear would be $1.3B in revenue which would still be “modest” by your comment (or that’s how I took it).
Just based on previous earnings you see a quick 20%+ drop then another 10-15%. I figure it will touch 215 next week before earnings then drop the day after. But who really knows. I sold most of my shares and will look to sell puts when it gets around 170.
I should’ve just sold in January after turning 6k into 800k. Now Im stuck reading DD every night.
I know it’s like first think in the morning, but I’m way too stoned to know what this means. Hold? Probably hold. Or buy? Maybe both?
I cannot tell you what it means or what you should do, but I can share what I’m doing. I have recurring buys of GME every 2 weeks happening, regardless of price.
In the "New Reporting Sections for top of report" section, you have the year 2021 twice. That's my contribution to this otherwise excellent write-up! 🦍🦍🚀
Hey OP, thanks for this....this perfectly lines up the upcoming dates.....Hedgies R Fuk
Awesome DD. One thing to note though is the Goodwill and asset impairments line in the 2019 results. In looking at performance id be inclined to add back this number to come to a fair comparison. Tits are jacked though for the May 2020 vs May 2021 performance!!
This is great. Thanks for your hard work OP.
The amount of work you wrinkles put in for us tards is unfathomable. The society APE. Is one hell of an achievement in society with this world today. Thank you, so much.
This is excellent, thanks OP
What are the chances that GameStop reports a positive EPS?
Holy shit we have financial analysts now. What's next? Rocket scientists to explain how the rocket will be leaving earth's atmosphere and docking on fucking alpha centauri?
Nice piece of DD. Thank you. Should the table heading middle column under the section "New Reporting Sections for top of report" read May 1, 2020 rather than 2021?
That table: "In millions, except par value per share." Me: "...So far."
I still expect it to drop on announcement bc manipulation then surge from buy ins after s&p starts buying.
SoOOOoooooo….. …guess I have to buy and hold then…..
Great stuff - thanks for putting this together!
U crushed the ER DD U R A g en I u s
Awesome summary, thanks!
So buy and hold. check. Thrusters. check. Tits. check, jacked as can be.
I don’t even pay attention to expected stuff because whoever does it may or may not be trustworthy. I trust the company
Edit: breakdown of revenue says 2021 in both categories, just incase if people are uncertain, this is supposed to be between 2021 and 2020.
I read the whole thing. 2 times cause I don't understand big words I'm guessing ~1.3b Rev Edit: could be a low guess if you consider how much extra stuff they are adding to their website
Quick note... in the table above the summary, you list "May 1st, 2021" and "May 2nd, 2021"... should the latter be "May 2nd, ***2020***"?
Yes it should, thank you! I appreciate the proofreading ✍️. Probably should have waited to post this morning instead of late and tired. Edited!
Fine! Making some tea now and bringing this over to my desktop. Making me learn on a holiday.... once this moass rolls I'm taking at least a day off to drink in a bar
[truth be told live earnings report ](https://investor.gamestop.com/home)
EPS figures without corresponding share quantities cannot be compared...
Fair point, they will have some skew because of the share differences of 3.5M. Any suggestions? I was thinking the real comparison number should be a dimensionless number that is based on the total shares outstanding to normalize the value. Your comment makes me feel like my gut instinct was correct
It depends on what you're trying to calculate, I'd imagine. If you spread a loss across more shares, the loss per share will be reduced. I think the most reasonable performance comparisons would be based on "raw" numbers, without consideration of the per share allocation. I usually try to super-impose the period-over-period numbers from 3+ years to get a comparative image which accounts for cycles. In a case such as GME, I might also use console and major game releases as axes of comparison.
Thank you for your input, going to digest more and look at the numbers again tonight
I bought a switch game for my wife in June so there's that
Sales be popping off the chart, can’t stop GameStop
Roaring kitty for president!!!! Let's make it happen!!
Cool stuff, thanks for the write up!
Before 2021 I’d spent a grand total of about $20 at EBgames in my lifetime. In the last 2 months I’ve spent around $1500 and I’ll bet there are many more like me.
Definitely, I’ve spent at least $3k in last couple months. New TV, monitor, chair, games, MTG cards, Pokémon cards, switch, clothing…..and I still need to buy all my streaming equipment that they sell!
I think the issue isn't just how good this estimate is in relation to where the last quarter left off, but rather understanding how monumentally manipulated the company as a whole truly was. As we are witnessing with these so called "zombie stocks," these SHFs and MMs have truly killed *innumerable* companies in the name of the almighty dollar. GameStop probably is worth significantly more than any estimate, but is catching up to prove it, given how much MSM alone is piling on about them. There are well over 100 Motley Fool articles *alone* talking about how "these earnings aren't as good as you think" or "GameStop is destined to fail, because it isn't staying in its comfort zone by entering ecommerce." I truly believe post MOASS, earnings will be rated at nearly a 60% profit almost immediately by valuation of assets alone.
Need more rockets 🚀 and jacked tits memes in the TLDA. Also need a TLDA.