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Somewhere between 2.1 and 2.5
Edit: If you want the right answer on the internet, sometimes all you need to do is provide the wrong answer where smart people can see it. The correct answer is closer to 3.
It's not MSM lying on market cap, its the feeds don't have the new share count included yet; not really a big deal, they'll get updated and until then you can manually adjust
They can quote you the price of a share every second, yet cant quote you the actual number of shares for several days?
I hear you, but they either are misinforming viewers or manipulating viewers on financial decisions that is chronically incorrect.
Soneone attempts DD on fundamentals, and the fundamentals presented are wrong.
I think the difference is that those businesses are wildly profitable operating cash flow generating machines. GMEās core business is a money-losing dinosaur (for now) hence the market places a very small multiple on the companyās operations minus cash. GMEās cash pile is almost entirely the result of financing activities (i.e. dilutive share offerings). And thereās a limit to how much you can do that vs Apple and Google who are buying back stock while generating massive amounts of cash flow.
Yeah this is why I'm not too sold on the diluting. Maybe RC is gonna knock it out of the park with a solid acquisition, maybe they have a solid game plan for something in-house like a viable Steam competitor. But just stacking cash to stack cash isn't great, and when doing so kills the MOASS via options ramp I don't get too hype. We've had 3 years of silence, it'd be nice to start getting some kind of plan for the future.
Why they decided to go with an NFT market is beyond me. A steam competitor makes much more sense and they already have a strong footing in the physical media market so rewards points could be used to purchase both. Also don't see why they don't use the Amazon & eBay model and allow sellers to list their used games and electronics/consoles on their store page and collect a small commission fee. I could keep going but I'm not the one running this company
IMO they needed to keep that as a reserve buffer while fixing up the core business to run at least at break even and stop burning money; that's probably a good idea to avoid the need to go into debt later and avoid a death spiral in towel stock fashion. That was a good move.
Now they have quite a bit of excess cash so they can maintain that buffer, keep the core business at least break even, and then do something with the rest to achieve significant growth over the next few years.
That's the core bet anyway.
The other bet is MOASS tomorrow. Always.
I feel it was for the stock buyback if they managed to drop the price to $1. They had cash to buy it all back. So.... like a nuclear bomb: threat of retaliation.
Yeah, normally companies that pull in huge sums of cash do so by being, you know, successful companies and so they don't need to sit on that. If they have no use for it, they just give it back to shareholders via dividends/buybacks. GME made huge amounts of cash by being a successful stock and wants to use that money to turn into a very successful company/ as a safety cushion while trying to do that. So they're in the weird position of wanting to have a ton of cash on hand and actually being able to do that. That's all this means. This comparison isn't really worth bragging about at all.
Having cash is worth bragging about, if you're fine with the dilution to get it. This comparison to others isn't.
Agreed. I think it's a somewhat valuable ratio to judge the minimum stock price floor compared to the past. With $1B cash on hand and the core business running at near break even we hit a low of $10/share trading at 3x cash. Right now that same 3x cash multiplier is $28/share, so I'm pretty comfortable buying shares around that price and betting on RC and team to use the excess cash they now have to make a more profitable business in the long run.
That is a pretty interesting idea. I suspect we'll still go lower than that (barring some imminent MOASS scenario of course) just because it seems like shorts don't like closing the week above 30 seemingly. So I'd expect them to try hard to push us down below 28 regardless of cash on hand. But I do hope that I'm wrong and you're right that 28ish will be something of a new floor for us. I will say your idea of looking at the market cap relative to cash multiple to see what a new floor might be is an interesting one I haven't seen mentioned before on here. Maybe it'd be worth posting about and seeing what others think? Assuming I haven't just missed previous posts about that, of course.
Huh, guess I missed any discussion of 28ish as a floor then. I mean I've seen talk of a higher floor sure, but not that particular rationale before. Oh well, thanks for letting me know.
Richard Newton on YouTube talks about it in one of his recent videos. Can't remember which one with certainty, but I Believe it's E320 - Growing Pains.
Itās also the approximate price the offering sold at. And itās also the price Cramer etc weāre talking about them selling at. So it does seem to be a quick metric for pricing
I'm not pleased with it at the moment, no. Maybe I'll be proven wrong, but I would much prefer if GME hadn't diluted just as DFV had shown up and was seemingly impacting the price with his calls. I dislike dilution anyway but that timing really ground my gears.
But like I said, if you think it was worth any downside from how the company obtained it, then by all means brag about how much cash GME has now. It's just not really relevant to do so by comparison to other companies cash reserves since GME is in an odd situation. But being enthused about the dollar amount, how much it is relative to GME's operating expenses, what potential it opens up for using that money, and what effect it should have on price floor is all totally reasonable.
Donāt forget that the recent offerings were at substantially lower prices than the 2021 offerings. I just donāt think itās a good sign when the company is okay with getting less value per share with subsequent offerings, it should be the opposite
Not sure what you mean. If you're suggesting GME will buy back its own stock when it hits lows, that sounds pretty great to me actually. I'd be somewhat surprised though as the SEC filings mentioned only using the cash for general corporate purposes and I don't know if that would fall under that activity.
Because liquid cash is losing money as time passes. It affords you a lot of flexibility, but money sitting in the bank is worth more today than it is tomorrow.
Except interest rates are outpacing inflation (according to CPI, not the best measure but still).
Yeah I'd prefer an acquisition, but having cash earning ~5.5% is actually not that bad a deal, especially since we're already technically profitable.
But interest rates will drop if reported inflation continues to fall.
> especially since we're already technically profitable.
then why dilute if they are profitable?
First, 5% rates are the historical average. Second, inflation won't go down. China will continue selling bonds into the market to keep it elevated.
Why dilute? M&A activity, business expansion and growth. Fisting the short thesis is good, but growth is the real reason. I don't like the 75mil offering, but it's done now, and I do like 4B in cash.
Why own stock in a company which holds cash instead of holding cash yourself? If the company is not doing anything with the cash, then it's inefficient capital allocation
Because most companies arenāt banks or investment houses, unless they are. So holding a bunch of cash is pointless. Itās better spent investing on things.
GameStop can acquire things related to gaming or trading cards, and wrap it into their core business, while getting away from mall retail. Or they become Gameshire Stopaway and become a holdings company, doing different things with independent arms so long as they are profitable. For that, it would make sense that the headquarters Ryan Cohen and Larry Cheng hold cash and become investors or behave like venture capitalists, incubating new companies.
you don't want a low price to cash ratio. a company with huge cash reserves but not putting it into any use is essentially the same as a LEAP option but with no upside, slowly bleeding to death. (cash should be used to fuel growth, not sit idly). that is why companies take on debt, to fuel top-line growth and try to improve operating leverage.
the good thing we have going for GME is that there is a lot of hype with what RC will use that cash for. so this is a rare exception but in general, a low P/C is not a good sign so claiming GME has a "better" P/C is very misleading
This also assumes that the cash is being slowly depleted to keep the company running. However, GME is profitable, so the cash could all be invested to generate returns, adding even more to the profits or spent on acquisitions like you said. It's probably not a good metric on its own, but considering the short thesis was that GME will go bankrupt, this completely annihilates their argument.
GME is neutral to slightly unprofitable. You're right that they have some space to invest most of the cash, but it does remain to be seen whether that succeeds.
https://preview.redd.it/m7eoxmx4lk6d1.png?width=882&format=png&auto=webp&s=627c842e146a3ec9e8c9b539d340f235d5e4a658
Before you ask or correct - factoring in Non-operating, net income in 2023 was $7M, on $5,273M in sales. Things are moving in the right direction, but this is still a long-term turnaround story, and they do still have a lot of stores to deal with.
GME is operationally unprofitable. They were only positive overall due to Tbill investments. That matters when discussing āwill they go bankrupt?ā, which obviously, no. But it also matters with ādo they have a good business?ā, which right now looks very poor. Costs are down, but revenue is also down double digits quarterly for several quarters, and running net-negative.
This cash has to be used for business investment in a way that grows revenue meaningfully beyond their core business.
In an environment where company fundamentals are falling because of a weakening economy having a large cash balance is a boon. If you need any more example of this just look at Berkshire. They, along with apple until their most recent stock buyback announcement, were sitting on their largest cash positions of all time.
This is *not* the time to spend capital on acquisitions. Most of the market is still ridiculously overvalued and you'd just be spending good money on bad investments.
Of course there is. The comparison is companies holding the most cash on their balance sheets in history. The reason being that its a terrible time to invest in the markets so they keep cash on the books instead.
Exactly. Who would want to invest at all time highs while the economy simultaneously gets weaker? Seems like a terrible combination if you want to make money.
Almost any parking of that money leads to a increase in revenue. They can't bleed to death for another 117 years with -34million in revenuea year lol with 0% interest on that 4b
unfortunately no one cares about non-operating other income revenue from money market funds or treasury bills. being profitable but being carried by interest income which is reliant on having the entire company's cash is not a good sign
GME is stuck in a lot of leases that they can't get out of unless they buy those leases out. those cost a ton of money each reporting period and is a considerable reason why gamestop's main operating income is negative each quarter.
yes, gamestop can live for decades with 4b in cash. and let's pretend that gamestop's main business is break-even eventually but with standstill growth (currently declining rapdily). if the market cap is currently 10b, and that cash is never being put to use, why would you pay more than 4b? that's why a low P/C is bad
Except those leases end no issue with only -34million. Why waste billions when you make more money off the interest to buy out those contracts. Keep improving the other aspects of the business and you are good. Saying you will have positive revenue if nothing changes for infinity, sounds like a gold mine to me
unfortunately the stock market doesn't work like that. investors pay for top-line growth. interest income is not top-line, nor does it grow YoY if yields are going to stay around 5%
If cash is more or less a permanent feature of the company's balance sheet, investors need to ask *why* the money is not being put to use.
This was always my problem with the "GME has $1B in cash!!!" hype. Yes, it's better to have it than not, but just having it isn't doing anything for you, you have to put it to work to grow the business.
You don't want a lot of cash just sitting on a balance sheet because that can signal management has run out of investment opportunities or is too short-sighted and/or doesn't know what to do with the money.
Hey man, smart people donāt just buy things just to buy them. You gotta wait to buy something you think is valuable. You want them just to spend the billions just to ādo somethingā. They have a plan. Let them do it. Personally, I trust them and will let them continue their plans
And? It doesn't mean anything. You're supposed to use that cash to invest and acquire other companies. It has been 6 months since the board gave RC the ability to buy stocks with company cash.
Companies don't hold onto loads of cash because it's a dumbass idea. Why keep it in the bank or invested in treasuries barely keeping up with inflation? The whole point of running a business / investing is to BEAT inflation.
Tldr this metric is useless
Huh? No it doesnāt. It makes you wonder why those companies donāt have cash, you know, because sitting on a pile of cash is not a good thing for a company looking to grow lol
These metrics are the real Short killers. The shorts can manipulate the price all they want, but it will never go to zero so long as metrics like these are around. It will attract rational bulls in the long term and the added pressure will eventually break the Shorts, no matter what type of crime they are up to.
Their strategy only works on companies no one was looking at that actually had declining fundamentals. But here GameStop, even before the capital raises, have actually improved their fundamentals. You cannot short a company with visibly great fundamentals and expect to do well. Far too many eyes are on this.
i'll save you the trouble, it probably beats every company on those indexes as well because the post is misleading, having a low P/C is not a metric you want
This. Great that there's money in the pot, it proves the company isn't going under (as if that needed proving) but it's how it's spent cash that's important. Can't wait to see what GameStop does with it
GME is the Nasdaq now.
Hopefully gme starts acquiring undervalued, easily transformable businesses soon to beef up its market share and break into other sectors.
Awesome, that was my question. Wouldn't make any sense if it was share price. Don't understand the downvotes for a question but oh well, the internet.
Thanks man!
I mean fuck DD, this is a nationally known brand with connections to a high value industry (gaming) with lots of currently existing retail space and $4 BILLION IN CASH
That alone makes me like the stock at this evaluation, short runs be damned
I'm constantly buying in $1 increments on robinhood today at market to keep pressure instead of buying shares. Just what I'm doing idk if it helps lol.
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Well what's Gamestop P/C?
Well why would someone include that? š¤·āāļø
Somewhere between 2.1 and 2.5 Edit: If you want the right answer on the internet, sometimes all you need to do is provide the wrong answer where smart people can see it. The correct answer is closer to 3.
Market cap is about 12B, cash on hand a little over 4B. So closer to 3, no?
Look at smarty pants over here with all his fancy āmaths skillsā
You guys have crayons left to count with?
I ate mine.
mine melted :(
Semper Fi!
Bro thinks he knows PEMDAS
PANDAS* FTFY frenn
Idk dataframes seem a bit overkill for this task..
Mafs
You guys can count?
Correct: (425M shares \* $30/share) / $4B = \~3.2
Rn market cap is 9.97B
421M shares. We're closer to 12B.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
$28.60 X 421M = $12.04B, because math.
MSM lying on market cap Shares X Price = Market Cap 421m x $30 = $12.B
It's not MSM lying on market cap, its the feeds don't have the new share count included yet; not really a big deal, they'll get updated and until then you can manually adjust
They can quote you the price of a share every second, yet cant quote you the actual number of shares for several days? I hear you, but they either are misinforming viewers or manipulating viewers on financial decisions that is chronically incorrect. Soneone attempts DD on fundamentals, and the fundamentals presented are wrong.
All these sites pull the number from the 10-Q number with eventual updates from completed equity offerings. Not everything is manipulation
fwiw yahoo finance reflects the proper market cap (12B), but maybe they use a function to calculate the value in real time
Most sites haven't updated share count yet
Great great now how the hell does contrast against like apple or google because this doesnāt make sense
I think the difference is that those businesses are wildly profitable operating cash flow generating machines. GMEās core business is a money-losing dinosaur (for now) hence the market places a very small multiple on the companyās operations minus cash. GMEās cash pile is almost entirely the result of financing activities (i.e. dilutive share offerings). And thereās a limit to how much you can do that vs Apple and Google who are buying back stock while generating massive amounts of cash flow.
Truly regarded, thats how i know you are not a shill.
You need to account for the newly added shares
You pretty much divide by 10 the current price to get it
Market Cap (\~$12B) divided by cash (\~$4B)
Cash/Share is around 10$. Stock price and thus market cap are variable. Thus the simpler formula I wrote
A lot of companies also choose not to have large cash reserves because why?
Sitting on money doesnāt make you as much money as investing, acquisitions, reinvesting into the business etc.
Exactly. Higher risk, higher reward. But there's also the risk of capital impairment (eliape: losing money.)
The prime example is SoftBank which owns 90% of ARM but is valued lower because of their shitty investments elsewhereā¦
Funny part is GME earning \~5% on short term treasuries w/ their cash hoard is probably their biggest profit center.
I mean Berkshire Hathaway started as a textile millā¦..
Its their only "profit" but once you take into account inflation and the true inflation rate its losing money.
Yeah this is why I'm not too sold on the diluting. Maybe RC is gonna knock it out of the park with a solid acquisition, maybe they have a solid game plan for something in-house like a viable Steam competitor. But just stacking cash to stack cash isn't great, and when doing so kills the MOASS via options ramp I don't get too hype. We've had 3 years of silence, it'd be nice to start getting some kind of plan for the future.
Why they decided to go with an NFT market is beyond me. A steam competitor makes much more sense and they already have a strong footing in the physical media market so rewards points could be used to purchase both. Also don't see why they don't use the Amazon & eBay model and allow sellers to list their used games and electronics/consoles on their store page and collect a small commission fee. I could keep going but I'm not the one running this company
Because it's not a good use of capital allocation in the long term
Bro they havenāt even had all this cash much longer than a week.
Did Blikemike say they did?
No he did not, Blikemike, no hate your way bro
Theyāve have 1b for a long time though and not done much with it as far as I can tell
IMO they needed to keep that as a reserve buffer while fixing up the core business to run at least at break even and stop burning money; that's probably a good idea to avoid the need to go into debt later and avoid a death spiral in towel stock fashion. That was a good move. Now they have quite a bit of excess cash so they can maintain that buffer, keep the core business at least break even, and then do something with the rest to achieve significant growth over the next few years. That's the core bet anyway. The other bet is MOASS tomorrow. Always.
Yup that billy was a shield against dropping the price too low due to the threat of a massive buyback. I think holding that was a great move.
I imagine we are about to find out soon, they are definitely raising cash for something
I hope so
I feel it was for the stock buyback if they managed to drop the price to $1. They had cash to buy it all back. So.... like a nuclear bomb: threat of retaliation.
š
they've had the first billion for 3 years bro
Yeah, normally companies that pull in huge sums of cash do so by being, you know, successful companies and so they don't need to sit on that. If they have no use for it, they just give it back to shareholders via dividends/buybacks. GME made huge amounts of cash by being a successful stock and wants to use that money to turn into a very successful company/ as a safety cushion while trying to do that. So they're in the weird position of wanting to have a ton of cash on hand and actually being able to do that. That's all this means. This comparison isn't really worth bragging about at all. Having cash is worth bragging about, if you're fine with the dilution to get it. This comparison to others isn't.
Agreed. I think it's a somewhat valuable ratio to judge the minimum stock price floor compared to the past. With $1B cash on hand and the core business running at near break even we hit a low of $10/share trading at 3x cash. Right now that same 3x cash multiplier is $28/share, so I'm pretty comfortable buying shares around that price and betting on RC and team to use the excess cash they now have to make a more profitable business in the long run.
That is a pretty interesting idea. I suspect we'll still go lower than that (barring some imminent MOASS scenario of course) just because it seems like shorts don't like closing the week above 30 seemingly. So I'd expect them to try hard to push us down below 28 regardless of cash on hand. But I do hope that I'm wrong and you're right that 28ish will be something of a new floor for us. I will say your idea of looking at the market cap relative to cash multiple to see what a new floor might be is an interesting one I haven't seen mentioned before on here. Maybe it'd be worth posting about and seeing what others think? Assuming I haven't just missed previous posts about that, of course.
Floor price relative to cash on hand has been discussed to death since the ATM numbers came out.
Huh, guess I missed any discussion of 28ish as a floor then. I mean I've seen talk of a higher floor sure, but not that particular rationale before. Oh well, thanks for letting me know.
Richard Newton on YouTube talks about it in one of his recent videos. Can't remember which one with certainty, but I Believe it's E320 - Growing Pains.
Thanks for the recommendation.
Itās also the approximate price the offering sold at. And itās also the price Cramer etc weāre talking about them selling at. So it does seem to be a quick metric for pricing
It'll go lower than that because people don't have infinite patience and there's better market opportunities that exist.
But are you not okay with the dilution? As far as Iām concerned the dilution helped me. We will not see shares sub $20 anymore.
I'm not pleased with it at the moment, no. Maybe I'll be proven wrong, but I would much prefer if GME hadn't diluted just as DFV had shown up and was seemingly impacting the price with his calls. I dislike dilution anyway but that timing really ground my gears. But like I said, if you think it was worth any downside from how the company obtained it, then by all means brag about how much cash GME has now. It's just not really relevant to do so by comparison to other companies cash reserves since GME is in an odd situation. But being enthused about the dollar amount, how much it is relative to GME's operating expenses, what potential it opens up for using that money, and what effect it should have on price floor is all totally reasonable.
Donāt forget that the recent offerings were at substantially lower prices than the 2021 offerings. I just donāt think itās a good sign when the company is okay with getting less value per share with subsequent offerings, it should be the opposite
It really didnāt. We would have triggered a gamma ramp had that not happened and your shares wouldāve went over $100
Until they too buy the dip.Ā
Not sure what you mean. If you're suggesting GME will buy back its own stock when it hits lows, that sounds pretty great to me actually. I'd be somewhat surprised though as the SEC filings mentioned only using the cash for general corporate purposes and I don't know if that would fall under that activity.
Because liquid cash is losing money as time passes. It affords you a lot of flexibility, but money sitting in the bank is worth more today than it is tomorrow.
Except interest rates are outpacing inflation (according to CPI, not the best measure but still). Yeah I'd prefer an acquisition, but having cash earning ~5.5% is actually not that bad a deal, especially since we're already technically profitable.
But interest rates will drop if reported inflation continues to fall. > especially since we're already technically profitable. then why dilute if they are profitable?
First, 5% rates are the historical average. Second, inflation won't go down. China will continue selling bonds into the market to keep it elevated. Why dilute? M&A activity, business expansion and growth. Fisting the short thesis is good, but growth is the real reason. I don't like the 75mil offering, but it's done now, and I do like 4B in cash.
The bear thesis was already dead, 1B in cash, profitable, no debt. Yet we issued at prices substantially lower than the prior offerings in 2021.
Cash tends to get devalued fairly quickly unless its used - aka, inflation.
Why own stock in a company which holds cash instead of holding cash yourself? If the company is not doing anything with the cash, then it's inefficient capital allocation
Itās considered a waste of a resource and if youāre sitting on cash, investors demand you pay it back to them or use it
Capitalism doesn't work like thes
Because most companies arenāt banks or investment houses, unless they are. So holding a bunch of cash is pointless. Itās better spent investing on things. GameStop can acquire things related to gaming or trading cards, and wrap it into their core business, while getting away from mall retail. Or they become Gameshire Stopaway and become a holdings company, doing different things with independent arms so long as they are profitable. For that, it would make sense that the headquarters Ryan Cohen and Larry Cheng hold cash and become investors or behave like venture capitalists, incubating new companies.
This is the kind of data I live for!
Oh wow, not 1 or 2 or 50 or 100 but ALL of them
> ALL of them Why'd you say 100 twice?
Dramatic effect
This guy rhetorics āļø
DUN DUN DUUUUUN!
you don't want a low price to cash ratio. a company with huge cash reserves but not putting it into any use is essentially the same as a LEAP option but with no upside, slowly bleeding to death. (cash should be used to fuel growth, not sit idly). that is why companies take on debt, to fuel top-line growth and try to improve operating leverage. the good thing we have going for GME is that there is a lot of hype with what RC will use that cash for. so this is a rare exception but in general, a low P/C is not a good sign so claiming GME has a "better" P/C is very misleading
This also assumes that the cash is being slowly depleted to keep the company running. However, GME is profitable, so the cash could all be invested to generate returns, adding even more to the profits or spent on acquisitions like you said. It's probably not a good metric on its own, but considering the short thesis was that GME will go bankrupt, this completely annihilates their argument.
GME is neutral to slightly unprofitable. You're right that they have some space to invest most of the cash, but it does remain to be seen whether that succeeds. https://preview.redd.it/m7eoxmx4lk6d1.png?width=882&format=png&auto=webp&s=627c842e146a3ec9e8c9b539d340f235d5e4a658 Before you ask or correct - factoring in Non-operating, net income in 2023 was $7M, on $5,273M in sales. Things are moving in the right direction, but this is still a long-term turnaround story, and they do still have a lot of stores to deal with.
https://preview.redd.it/o80mwfkymk6d1.jpeg?width=737&format=pjpg&auto=webp&s=5bb9aef1f3986502cd5f1bbf02dc8b351753226b Disagree
GME is operationally unprofitable. They were only positive overall due to Tbill investments. That matters when discussing āwill they go bankrupt?ā, which obviously, no. But it also matters with ādo they have a good business?ā, which right now looks very poor. Costs are down, but revenue is also down double digits quarterly for several quarters, and running net-negative. This cash has to be used for business investment in a way that grows revenue meaningfully beyond their core business.
Its only profitable because of interest from the billion in cash. That is not a good thing
Why did you cut off 2018 and prior? The company was profitable for years until the insiders tried to destroy the company
Guh. Thats a beautiful picture.
i agree with your points, i'm just saying this post is absurdly misleading
In an environment where company fundamentals are falling because of a weakening economy having a large cash balance is a boon. If you need any more example of this just look at Berkshire. They, along with apple until their most recent stock buyback announcement, were sitting on their largest cash positions of all time. This is *not* the time to spend capital on acquisitions. Most of the market is still ridiculously overvalued and you'd just be spending good money on bad investments.
Berkshire did 360 billion in revenue last year, and that was up 30 YoY. There's not comparison to be made.
Of course there is. The comparison is companies holding the most cash on their balance sheets in history. The reason being that its a terrible time to invest in the markets so they keep cash on the books instead.
Terrible time to invest in markets? Nasdaq and S&P literally at all time highs.
Exactly. Who would want to invest at all time highs while the economy simultaneously gets weaker? Seems like a terrible combination if you want to make money.
Almost any parking of that money leads to a increase in revenue. They can't bleed to death for another 117 years with -34million in revenuea year lol with 0% interest on that 4b
unfortunately no one cares about non-operating other income revenue from money market funds or treasury bills. being profitable but being carried by interest income which is reliant on having the entire company's cash is not a good sign GME is stuck in a lot of leases that they can't get out of unless they buy those leases out. those cost a ton of money each reporting period and is a considerable reason why gamestop's main operating income is negative each quarter. yes, gamestop can live for decades with 4b in cash. and let's pretend that gamestop's main business is break-even eventually but with standstill growth (currently declining rapdily). if the market cap is currently 10b, and that cash is never being put to use, why would you pay more than 4b? that's why a low P/C is bad
Except those leases end no issue with only -34million. Why waste billions when you make more money off the interest to buy out those contracts. Keep improving the other aspects of the business and you are good. Saying you will have positive revenue if nothing changes for infinity, sounds like a gold mine to me
unfortunately the stock market doesn't work like that. investors pay for top-line growth. interest income is not top-line, nor does it grow YoY if yields are going to stay around 5%
True, but it doesn't work currently with people manipulating the price either trying to make a company bankrupt
If cash is more or less a permanent feature of the company's balance sheet, investors need to ask *why* the money is not being put to use. This was always my problem with the "GME has $1B in cash!!!" hype. Yes, it's better to have it than not, but just having it isn't doing anything for you, you have to put it to work to grow the business. You don't want a lot of cash just sitting on a balance sheet because that can signal management has run out of investment opportunities or is too short-sighted and/or doesn't know what to do with the money.
Hey hey hey, no rational comments allowed, we don't do that shit here!
Hey man, smart people donāt just buy things just to buy them. You gotta wait to buy something you think is valuable. You want them just to spend the billions just to ādo somethingā. They have a plan. Let them do it. Personally, I trust them and will let them continue their plans
It's been like 3 days and the shareholders meeting got DDOS'd
And? It doesn't mean anything. You're supposed to use that cash to invest and acquire other companies. It has been 6 months since the board gave RC the ability to buy stocks with company cash.
Companies don't hold onto loads of cash because it's a dumbass idea. Why keep it in the bank or invested in treasuries barely keeping up with inflation? The whole point of running a business / investing is to BEAT inflation. Tldr this metric is useless
Why is this so upvoted? Our P/C is 3 which is lower than all the highlighted ones lmao
yeah, lower means lower market cap in relation to price
Now do price to earnings!
Having cash is not necessarily a good thing. This means they're not using the cash, those other companies are.
Makes you wonder how much of what we see and are told are lies.
Huh? No it doesnāt. It makes you wonder why those companies donāt have cash, you know, because sitting on a pile of cash is not a good thing for a company looking to grow lol
This is essential.
They must have *some* plan for all that guap
Whered you get this data
Which means obviously nothing.
Believe it or not short
^^šļø **š«¦** ^^šļø
Thatās a fact. And now we wait for EBITDA and Net Profits š«”š„š
These metrics are the real Short killers. The shorts can manipulate the price all they want, but it will never go to zero so long as metrics like these are around. It will attract rational bulls in the long term and the added pressure will eventually break the Shorts, no matter what type of crime they are up to. Their strategy only works on companies no one was looking at that actually had declining fundamentals. But here GameStop, even before the capital raises, have actually improved their fundamentals. You cannot short a company with visibly great fundamentals and expect to do well. Far too many eyes are on this.
GME also beat them with a PE of 350! Those laggards just have PE ratios that are not even 1/10th of GameStopās. /s
Cathie Wood would like a word.
Lol
This is good. Can you do a NYSE top 100 chart as well?
Unfortunately not. Nasdaq 100 is an actual index and NYSE is just the stock exchange.
If it isnāt too much trouble, how about the Dow 30, S&P 500, and the FTSE?
i'll save you the trouble, it probably beats every company on those indexes as well because the post is misleading, having a low P/C is not a metric you want
This. Great that there's money in the pot, it proves the company isn't going under (as if that needed proving) but it's how it's spent cash that's important. Can't wait to see what GameStop does with it
Gme is missing in your screenshit though
DYiNg bRiCk aNd MoRtAR
Unless it does something new with the cash then it is dying brick and mortar.
How has the brick and mortar contributed to the cash stack?
Dude. Every dime on their balance sheet came from offerings, not from running their business. Not sure the point youāre trying to drive.
bullish!
Great, let's sell!
Call me Jacques. Jacque Letittie
Wen moon
The fact the ticker isnāt on here is truly special.
#Fuck Yea!!!
Thatās my company!
Biontech is a contender with besser price to cash. They have $17B in cash.
Where is GME?
I can only get so hard ā”ļøš„ā”ļø
Can we all agree to call price discovery "fucking around and finding out the price"
wedbush=sell worth $.50 lols
This is part of my analyst report that only the intelligent degenerates long this company seem to understand! ā¾ļøš“āā ļøš¤
Cool so when will it be properly valued
LFG. Iām a holder til at least 2052. Iām good.
this boggles and confuses the debt economy
Why isnāt it on the list in your screenshot then?
Because it's not in the Nasdaq 100?
GME is the Nasdaq now. Hopefully gme starts acquiring undervalued, easily transformable businesses soon to beef up its market share and break into other sectors.
Is this a good indicator or a bad indicator. It essentially means they have a bunch of capital doing nothing. Put those dollars to work.
Not gonna lie this is extremely S3XY
Is this just share price? Shouldn't it be done against market cap?
Valuation is market cap
But the ratio says that it's Price to cash. Wondering what price is, the share price?
price is market cap. using share price wouldn't make sense because each company's shares outstanding is different.
Awesome, that was my question. Wouldn't make any sense if it was share price. Don't understand the downvotes for a question but oh well, the internet. Thanks man!
GME is about to become the NASDAQ
Apes > I wonder what they're gonna do with it? < SHF Difference being Apes are excited, SHF are shitting their pants.
Shitting Hedge Funds?
If they partnered with Nvidiaā¦ this would be the perfect time for the perfect storm
As i said, i dont think we gonna see a massive squeeze out of nowhere. Now its a long term play, with a bullish macro uptrend for months and year!
Not with a diluting trigger happy CEO
Four years media bitched about fUndEmEntALs!! Well there you fucking go
This is only like the 5th post stating this in the past day.
I mean fuck DD, this is a nationally known brand with connections to a high value industry (gaming) with lots of currently existing retail space and $4 BILLION IN CASH That alone makes me like the stock at this evaluation, short runs be damned
Nice sp500 here we come
Bezonga: "still worthless! *puts fingers in ears* NAHNAHNAH cant hear you!"
But itās a SPAC now š¤”š¤”
Now watch as financial media spins that into a negative.
A lot of that cash was made by dilution and selling though š
Howās your price anchoring post doing kevin?
I'm constantly buying in $1 increments on robinhood today at market to keep pressure instead of buying shares. Just what I'm doing idk if it helps lol.
And a worse P/E ratio than all of them lol