Did You See What GameStop Just Accomplished?
I must say, and as I wrote the other week (see here), the winners of the GameStop resurgence was GameStop itself. They now have $4 BILLION in cash on their balance sheet. That's right – a strong community can do wonders for a brand, its backing, and the company itself. Between Roaring Kitty, Ryan Cohen, and everyone on Reddit, they just created a viable business with an entirely new fundamental outlook.
Let me explain:
- They eliminated all of their debt, thus zero debt!
- They now have about $4 billion in cash.
- Market cap is nearing $10 billion.
- They do about $3.2 billion per year in revenue.
- They have 3x PS ratio, but many startups for for 5x or even 10x. But keep in mind that a majority of that is in cash. If we back out the cash from the market cap, the PS ratio is more like 1.5.
If you think they are on the verge of rebuilding and recreating their story, they have the revenue and balance sheet to do it.
Well worth watching…
By the way, I still can’t believe some 25%+ of the float is still short and public about it in available data.
I currently do not have a position, but as someone who appreciates fundamentals, a sound business, it surely has me watching it more closely than I have in prior years. The road will be long and difficult, and they have to execute flawlessly, but if they can, the vision is to become a gaming giant that'll be a value add to the gaming world.
Let me explain:
- They eliminated all of their debt, thus zero debt!
- They now have about $4 billion in cash.
- Market cap is nearing $10 billion.
- They do about $3.2 billion per year in revenue.
- They have 3x PS ratio, but many startups for for 5x or even 10x. But keep in mind that a majority of that is in cash. If we back out the cash from the market cap, the PS ratio is more like 1.5.
If you think they are on the verge of rebuilding and recreating their story, they have the revenue and balance sheet to do it.
Well worth watching…
By the way, I still can’t believe some 25%+ of the float is still short and public about it in available data.
I currently do not have a position, but as someone who appreciates fundamentals, a sound business, it surely has me watching it more closely than I have in prior years. The road will be long and difficult, and they have to execute flawlessly, but if they can, the vision is to become a gaming giant that'll be a value add to the gaming world.
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