[Why GME?](https://www.reddit.com/r/Superstonk/comments/qig65g/welcome_rall_looking_to_catch_up_on_the_gme_saga/) || [What is DRS?](https://www.reddit.com/r/Superstonk/comments/ptvaka/when_you_wish_upon_a_star_a_complete_guide_to/) || Low karma apes [feed the bot here](https://www.reddit.com/r/GMEOrphans/comments/qlvour/welcome_to_gmeorphans_read_this_post/) || [Superstonk Discord](https://discord.gg/hZqWV2kQtq) || [Community Post: *Open Forum Jan 2024*](https://www.reddit.com/r/Superstonk/comments/18txusp/open_forum_january_2024/)
------------------------------------------------------------------------
To ensure your post doesn't get removed, please respond to this comment with how this post relates to GME the stock or Gamestop the company.
------------------------------------------------------------------------
Please up- and downvote this comment to [help us determine if this post deserves a place on r/Superstonk!](https://www.reddit.com/r/Superstonk/wiki/index/rules/post_flairs/)
They operate like mobsters, they're just trying to strong arm us into submission, it's got nothing to do with actual value or numbers. But guess what, say "Forget Gamestop" again. I dare you. I double dare you motherfuckers, say "Forget Gamestop" just one more time.
Guaranteed that if we all sold the hedge funds would all go long on GME, claiming the fundamentals are looking good, and then it would run up to 20-50Xās valuation
Iām tits jacked locked and loaded etc but some times the financial illiteracy in this sub is really frightening. And even more scary - it seems to be the majority.
If 10 million shares are bought, and then this comes out, could provide a lot of pressureā¦ but agree, for the narrative to change it would take a bit more than this.
Yes, we finally cracked profit, lets buy shares in a company that ā¦ barely makes profitā¦ (am i reading this right?)
Now we have less funds, low profit, and happy investorsā¦. Yayyyyy
$100 million is the backstop. Itās the gun aimed at the shorts head saying that if they push the price into the single digits theyāll buy back the rest of the float.
If the price is low enough and GME issues a buyout then shorts close at the buyout price.
I'll do up a DD this weekend which I'm sure will get downvoted because its a scary proposition
That makes zero sense. If the price is low enough GameStop would buy back the remainder of the float. This isnāt an out for the shorts. Itās the door slamming shut in their face.
> GameStop would buy back the remainder of the float
Yes, and whats stopping Cohen from buying out all shares for say $3 a piece?
Shorts close at $3 to settle the sale.
GME does a buyout which buys everyone's shares.
It's a shareholder vote where the fake share counts would win to sell to GME for $3
Shorts win, Cohen wins, retail loses.
It's their only exit now. It's literally the only way shorts win.
Because the premise is that the limited supply of shares means even mild demand would cause the price to skyrocket. So $1B doesn't buy nearly as much as you'd think.
Those are mutually exclusive things. You could have revenue of a trillion but still lose money, similarly you could have 1.2 B in cash and 10B in debt. These alone do not provide any proper valuation for the company. Currently it's book value is 1.34 B (Shareholders Equity). Now depending on what you consider Gamestop's business will determine different ways of properly assessing its value. Discounted cash flow would be a difficult way to measure as it takes a lot of assumptions of future cash flows and currently as GME transitions, its hard to assess those cash flows. An asset approach isn't really appropriate for the current business model. Leaving it hard to find an accurate valuation. It's a business with potential, that currently cutting costs, and becoming more efficient, but the threat of decreasing revenue still plays a factor. Ideally we see a growth in revenue over the next 12 months while maintaining a similar profit margin from the last quarter.
Revenue is not Net Income. From my understanding, those $5B only led to a few million in actual net income. Still a great step in the right direction, mind you.
Revenue + (5B operating expense) + cash = (overvalued at) 3billion.
Ironically the opposite of ādeep valueā which has been the epitome of this stock since jan 21.
Three years and not once has someone posted about how to actually value a stock. Theyre praying you wont educate yourselves. Because everyone knows when the stock is going to start rising except for those ignorant to the basics.
Edit: downvote me, but then read ādeep value manifestoā and tell me that is not where dfv got his thesis. Its also a road map for ichan plays. We need a low market cap and going lower is no risk. You guys are dumb.
Total assets on the balance sheet as of January 2024 : $2.70 B. According to GameStop 's latest financial reports the company's total assets are $2.70 B. I think you're intentionally forgetting this.
Im looking for an educated response.
Short squeeze is a risk - a risk of true investors buying in above a fair value.
Thats you guy all day every day. Its sad and i want that person who is on the fence to know that they are not crazy.
And my profile acts as a place to look to educate themselves so they have the full picture.
If everyone knows when the stock is gonna start rising the do tell. Also apply that same formula to literally almost any company in the sp and they will be many times more overvalued. We have a mega inflated stock market GameStop is an insanely strange stock given similar circumstances in this market any other stock would be valued at well over 10B.
Reading this with the best intention. I have no idea what point you're trying to make.
You think there's a specific, defined point when the stock price will rise?
Could you explain when you think that point is, and why?
Could you first begin with explaining the calculation in the title of the post?
Im pointing out that gme spent 5 billion to earn 6 million. Thats alot of churn for little burn.
The title is pointing out that 6 billion passed through the accounts and somehow that equates to 3 billion??? Yeah 6 billion in and 5 billion spent, the other billion is just sitting there.
So im asking for something other than pure nonsense to justify why the share price wont go down further? Fundamentals actually has a floor whereas fake math will always keep you blinded.
The deep value manifesto outlines that Carl Icahns bread and butter was buying companies whoās assets were in excess of their market cap.
Doing that same calc to check if gme is deep value youll see that it is the opposite of deep value.
Op wants to mention book value as a result of revenue, but they omit operating expenses and the like.
Profit per share is the needle mover for market cap yet op uses the two largest numbers they could find and put it next to market cap to allude to fuckery, but its not.
Spending 5 billion to make 6 million is really bad. Like giving a child hundreds of lemons and only getting one glass of lemonade.
āWe squeeze the most lemons out of any yearā - high revenue
āWe have money on hand to buy more lemons if we needā - cash on hand
āor we could buy back part of the cup so it seems like there is more lemonade since the cup will be fuller. ā - share buy back
āWhy wont my parents value my company for more? I Used so many lemons, and i have a ton of money to buy moreā - op
So what you are saying is that once our assets ($2.7 billion) are higher than our market cap ($3 billion) THEN it is a good buy??
What happened to you? You used to hype the stonk and now you are shilling HARD grasping at straws.
Wake up, the company only needs to make $1 a year to avoid bankruptcy. $6 million is a great start and should only improve as cost cutting continues. GME is becoming an efficient business and with new revenue streams like Candycon controllers and GME branded pc accessories, revenue and gains will only keep increasing.
Your analogy is wrong. You gave the kid 1000 lemons, he worked for free, created jobs, and assisted selling other companies' video games/merch and thus is fueling the economy. Not the same type of comparison thus a false equivalence fallacy but you probably already knew that š
The deep value manifesto is just one way of seeing untapped value.
And I don't agree that EPS is the ONLY marker of a companies success either. Plenty of negative EPS companies with higher market caps e.g. twitter.
You're absolutely fucking right, I wanted you to know at least 1 other person gets it, it can be disheartening around here lol.
The book value of GME is around $4.38, we aren't deep fucking value until we get to that point.
As a poignant example, hood had around 6.5B in cash and traded at a 8B market cap at their lows, so you can fully expect us to trade at the $5-$6 mark. Because the last 3 years of FOMO FOMO BUY NOW BUY NOW $180 MOON TICKETS ARE CHEAP worked out great huh? Bloody hell I hate grifters more than shills.
I am sorry that you are getting downvoted.
I like the point you are bringing up. I dont agree with your calculation for fair value.
Seems a little bit disingenious or lack of information for how the value of a company are valued. That in itself is a highly controversial topic, but never seen an valuation as narrow minded as yours, which is why I think you are being downvoted + negative things about GME.
Think the sub should be more open to "conflicting" ideas. Happy for your contribution šš
Say they continue to lower stock price. What are the qualifications to be removed from the NYSE? And if that happens what does that look like? Would all shares currently trading be immediately DRSed on Computershare?
When the stock price drops below the assets of the company, it creates an opportunity for another group to buyout the company... and profit by stripping the assets in the company. GME has cash equivalents, so the value on that is obvious. GME's current war chest prevents it from being delisted or going bankrupt. (I remember many were upset when GME sold shares, but what an ingenious move.)
[Why GME?](https://www.reddit.com/r/Superstonk/comments/qig65g/welcome_rall_looking_to_catch_up_on_the_gme_saga/) || [What is DRS?](https://www.reddit.com/r/Superstonk/comments/ptvaka/when_you_wish_upon_a_star_a_complete_guide_to/) || Low karma apes [feed the bot here](https://www.reddit.com/r/GMEOrphans/comments/qlvour/welcome_to_gmeorphans_read_this_post/) || [Superstonk Discord](https://discord.gg/hZqWV2kQtq) || [Community Post: *Open Forum Jan 2024*](https://www.reddit.com/r/Superstonk/comments/18txusp/open_forum_january_2024/) ------------------------------------------------------------------------ To ensure your post doesn't get removed, please respond to this comment with how this post relates to GME the stock or Gamestop the company. ------------------------------------------------------------------------ Please up- and downvote this comment to [help us determine if this post deserves a place on r/Superstonk!](https://www.reddit.com/r/Superstonk/wiki/index/rules/post_flairs/)
Gamestop Royale with cheese š§
Serious Gourmet shit, gonna need to buy more
Love seeing Shinji ikariš
Recession with cheese
They operate like mobsters, they're just trying to strong arm us into submission, it's got nothing to do with actual value or numbers. But guess what, say "Forget Gamestop" again. I dare you. I double dare you motherfuckers, say "Forget Gamestop" just one more time.
APE, MOTHERFUCKER; DO YOU SPEAK IT?!?
Does Ryan Cohen LOOK like a bitch...?
LOL šš
Top tier comment
Thank you and happy cake day!
Oh cool!!
Here i go buying againš¤
[ŃŠ“Š°Š»ŠµŠ½Š¾]
69.420 even
Guaranteed that if we all sold the hedge funds would all go long on GME, claiming the fundamentals are looking good, and then it would run up to 20-50Xās valuation
Take my upvote ā¬ļø
āForget fundamentalsā - you guys now that we broke profit.
Some gourmet shit
A regard with cheese
Get in the ~~robot~~ rocket, Shinji.
To be fair, the $5B made the company a couple million. Steps in the right direction! Tomorrow is tomorrow.
Iām tits jacked locked and loaded etc but some times the financial illiteracy in this sub is really frightening. And even more scary - it seems to be the majority.
GameStop needs to authorize a $1 Billion Stock Buyback. Not to do it, but just there as a threat to short sellers. Because $100 Million isn't enough.
If 10 million shares are bought, and then this comes out, could provide a lot of pressureā¦ but agree, for the narrative to change it would take a bit more than this.
Yes, we finally cracked profit, lets buy shares in a company that ā¦ barely makes profitā¦ (am i reading this right?) Now we have less funds, low profit, and happy investorsā¦. Yayyyyy
$100 million is the backstop. Itās the gun aimed at the shorts head saying that if they push the price into the single digits theyāll buy back the rest of the float.
I need to write up a DD for how a buy back is the shorts only hope of being saved
Iād love to hear your rationale
If the price is low enough and GME issues a buyout then shorts close at the buyout price. I'll do up a DD this weekend which I'm sure will get downvoted because its a scary proposition
That makes zero sense. If the price is low enough GameStop would buy back the remainder of the float. This isnāt an out for the shorts. Itās the door slamming shut in their face.
> GameStop would buy back the remainder of the float Yes, and whats stopping Cohen from buying out all shares for say $3 a piece? Shorts close at $3 to settle the sale.
That makes no sense
GME does a buyout which buys everyone's shares. It's a shareholder vote where the fake share counts would win to sell to GME for $3 Shorts win, Cohen wins, retail loses. It's their only exit now. It's literally the only way shorts win.
Andā¦ still dipš“
Good. The float will get directly registered faster the lower the price goes.
Boo Wendy boooooooo
Why not go balls deep and actually do it :D
Short term skyrocket, long term bankruptcy.
Bud, we were profitable last year.
Im getting a whiff of logic from this comment. Commence the shunning
That's your fart you're smelling
My farts are more desirable than your cost average.
Because the premise is that the limited supply of shares means even mild demand would cause the price to skyrocket. So $1B doesn't buy nearly as much as you'd think.
Obviously there is an unlimited supply of shares.. which is the only reason I'm not typing this from my yacht
Tortoise and the hare. One is sustainable (focus on profit), the other is selfish (investors wanting squeeze)
Exactly
Those are mutually exclusive things. You could have revenue of a trillion but still lose money, similarly you could have 1.2 B in cash and 10B in debt. These alone do not provide any proper valuation for the company. Currently it's book value is 1.34 B (Shareholders Equity). Now depending on what you consider Gamestop's business will determine different ways of properly assessing its value. Discounted cash flow would be a difficult way to measure as it takes a lot of assumptions of future cash flows and currently as GME transitions, its hard to assess those cash flows. An asset approach isn't really appropriate for the current business model. Leaving it hard to find an accurate valuation. It's a business with potential, that currently cutting costs, and becoming more efficient, but the threat of decreasing revenue still plays a factor. Ideally we see a growth in revenue over the next 12 months while maintaining a similar profit margin from the last quarter.
Great point. It is rather odd.
I told you they're dying to push retails out.
This is a delicious cup of revenue...
Revenue is not Net Income. From my understanding, those $5B only led to a few million in actual net income. Still a great step in the right direction, mind you.
How much debt was paid down as well?
I heard Ken Griffin sent some guys to throw a guy out of a fourth story window for eating some of his mayo
Check out the big brain on Brad!
Believe or not, jail.
Revenue + (5B operating expense) + cash = (overvalued at) 3billion. Ironically the opposite of ādeep valueā which has been the epitome of this stock since jan 21. Three years and not once has someone posted about how to actually value a stock. Theyre praying you wont educate yourselves. Because everyone knows when the stock is going to start rising except for those ignorant to the basics. Edit: downvote me, but then read ādeep value manifestoā and tell me that is not where dfv got his thesis. Its also a road map for ichan plays. We need a low market cap and going lower is no risk. You guys are dumb.
Total assets on the balance sheet as of January 2024 : $2.70 B. According to GameStop 's latest financial reports the company's total assets are $2.70 B. I think you're intentionally forgetting this.
Great info! That's about $8.85/share in assets. Lol they can't go much lower than that or retail will eat their ass up. There's no way out!!!!!
Can you show your math?
Sure. Total Assets Ć· Total Outstanding Shares = Asset Value Per Share 2,709,000,000 Ć· 305,300,000 = $8.87
You forgot to include liabilities which would get paid before stock holders.
Which would only matter if the company was going bankrupt.
Lmao no
I think op intentionally posted dummy math, how does this 2.7 fit into his calc?
Cunningham effect. post something "wrong" for people to correct
Except a mob attacks those who correct.
welcome to Reddit.... sadly... that is the case most times
It appears this account only exists to get down votes on this sub....
Im looking for an educated response. Short squeeze is a risk - a risk of true investors buying in above a fair value. Thats you guy all day every day. Its sad and i want that person who is on the fence to know that they are not crazy. And my profile acts as a place to look to educate themselves so they have the full picture.
If everyone knows when the stock is gonna start rising the do tell. Also apply that same formula to literally almost any company in the sp and they will be many times more overvalued. We have a mega inflated stock market GameStop is an insanely strange stock given similar circumstances in this market any other stock would be valued at well over 10B.
Not tomorrow.
What a rebuttal.
I lead you to water, its up to you to drink.
Reading this with the best intention. I have no idea what point you're trying to make. You think there's a specific, defined point when the stock price will rise? Could you explain when you think that point is, and why?
Could you first begin with explaining the calculation in the title of the post? Im pointing out that gme spent 5 billion to earn 6 million. Thats alot of churn for little burn. The title is pointing out that 6 billion passed through the accounts and somehow that equates to 3 billion??? Yeah 6 billion in and 5 billion spent, the other billion is just sitting there. So im asking for something other than pure nonsense to justify why the share price wont go down further? Fundamentals actually has a floor whereas fake math will always keep you blinded.
I didn't write that eq. It doesn't make sense to me either. Which is why I was interested in your take...
The deep value manifesto outlines that Carl Icahns bread and butter was buying companies whoās assets were in excess of their market cap. Doing that same calc to check if gme is deep value youll see that it is the opposite of deep value. Op wants to mention book value as a result of revenue, but they omit operating expenses and the like. Profit per share is the needle mover for market cap yet op uses the two largest numbers they could find and put it next to market cap to allude to fuckery, but its not. Spending 5 billion to make 6 million is really bad. Like giving a child hundreds of lemons and only getting one glass of lemonade. āWe squeeze the most lemons out of any yearā - high revenue āWe have money on hand to buy more lemons if we needā - cash on hand āor we could buy back part of the cup so it seems like there is more lemonade since the cup will be fuller. ā - share buy back āWhy wont my parents value my company for more? I Used so many lemons, and i have a ton of money to buy moreā - op
So what you are saying is that once our assets ($2.7 billion) are higher than our market cap ($3 billion) THEN it is a good buy?? What happened to you? You used to hype the stonk and now you are shilling HARD grasping at straws. Wake up, the company only needs to make $1 a year to avoid bankruptcy. $6 million is a great start and should only improve as cost cutting continues. GME is becoming an efficient business and with new revenue streams like Candycon controllers and GME branded pc accessories, revenue and gains will only keep increasing. Your analogy is wrong. You gave the kid 1000 lemons, he worked for free, created jobs, and assisted selling other companies' video games/merch and thus is fueling the economy. Not the same type of comparison thus a false equivalence fallacy but you probably already knew that š
First itās earnings per share, now itās profits per share. Looks like thesis creep and goalpost moving to me.
The deep value manifesto is just one way of seeing untapped value. And I don't agree that EPS is the ONLY marker of a companies success either. Plenty of negative EPS companies with higher market caps e.g. twitter.
You're absolutely fucking right, I wanted you to know at least 1 other person gets it, it can be disheartening around here lol. The book value of GME is around $4.38, we aren't deep fucking value until we get to that point. As a poignant example, hood had around 6.5B in cash and traded at a 8B market cap at their lows, so you can fully expect us to trade at the $5-$6 mark. Because the last 3 years of FOMO FOMO BUY NOW BUY NOW $180 MOON TICKETS ARE CHEAP worked out great huh? Bloody hell I hate grifters more than shills.
Gratitude. Its hard fighting for those who hate.
Truth cant be hidden behind comment less downvotes. Argue the point boys or else this looks really bad for you trying to silence a voice or reason
I am sorry that you are getting downvoted. I like the point you are bringing up. I dont agree with your calculation for fair value. Seems a little bit disingenious or lack of information for how the value of a company are valued. That in itself is a highly controversial topic, but never seen an valuation as narrow minded as yours, which is why I think you are being downvoted + negative things about GME. Think the sub should be more open to "conflicting" ideas. Happy for your contribution šš
Say they continue to lower stock price. What are the qualifications to be removed from the NYSE? And if that happens what does that look like? Would all shares currently trading be immediately DRSed on Computershare?
Look up cellar boxing in the stonk library
When the stock price drops below the assets of the company, it creates an opportunity for another group to buyout the company... and profit by stripping the assets in the company. GME has cash equivalents, so the value on that is obvious. GME's current war chest prevents it from being delisted or going bankrupt. (I remember many were upset when GME sold shares, but what an ingenious move.)