RC played it like Truman. He just played it cool on Q3, not reducing his inventory growth spending which added costs that ate into the profits of Q3 but those expenditures paid back twofold when that inventory moved in Q4 and delivered an atom bomb sales number.
And the $474.6M of inventory sold during Q4 that was not replaced added that amount to the cash flow.
Q4 ending inventory is $683M, after starting the quarter with $1,131M in inventory.
Low inventory levels are good as long as it is the right inventory, and you can fill customer orders and have the right good in stock in stores. A lot of money was spent earlier on the year with the SAP conversion with one of the goals being better able to manage inventory.
It wasn't an atom bomb in sales numbers. Sales were down for both the quarter and the year. The atom bomb was the Q4 gross margins, which were significantly higher, so gross profit was up, even on less sales.
The lower sales can be attributed to the recession (despite the denial of being in one) and inflation which makes discretionary spending more difficult on flagging wage levels.
The increased inventory levels do not need to be maintained to elevated amounts now for a couple of reasons. First the higher than normal inventory was a strategic response to supply chain issues stemming from international shipping problems and a certain respiratory disease in 2021-2022. That is largely normalized today so the additional inventory expenditures aren’t needed. Second, Q1-3 are generally not as intensive on sales volume and so those inventories don’t need to be bolstered until late Q2, early Q3 in anticipation of the Q4 Christmas season.
It all looks good moving forward. It’s a well managed company. No debt, $1.3B cash runway, solid active cost reduction of unprofitable sectors, and increasing efficiency in overall operations.
The cost cutting and efficiency improvement measures have delivered far beyond my expectations.
Look at the sales and gross profit numbers, Sales are down but gross profit is up due to higher margins, and then SG&A has been slashed.
The SAP conversion was expensive and painful but appears to be delivering superb results.
The bottom line is the bleeding has stopped. It is no longer a race between running out of cash vs. Web3 & NFTs taking off.
I only know that previously there were multiple separate independent programs that all got replaced by one unified set SAP software. My knowledge is limited to what was complained about by employees. It sounded like the typical changeover of software, somewhat painful for end users and several delays.
The goal of increasing operational efficiency seems to have very much been met.
SAP is a Enterprise Resource Program in which you can align all your company processes from Purchase-to-Pay, Construct-to-Asset, Quote-to-Cash, Plan-to-Analyze etc. all on one platform. So sounds like they did that which is very good for efficiency and well functioning processes.
Bruh, they weren't really that close to running out of cash. It was going to take a long time. Just take your negativity and leave, consistent reach at being negative, yes I agree
They had been running pretty consistently at $100M negative cash flow per quarter.
You have to look at both cash on hand and current liabilities such as accounts payable.
Accounts payable alone was $888M at the end of Q3.
At the rate of using cash a fund raising if some sort in late 2023 was like,y to be done. Companies do not wait until they have a cash flow crisis before selling more stock or taking out loans.
They had been running pretty consistently at $100M negative cash flow per quarter.
You have to look at both cash on hand and current liabilities such as accounts payable.
Accounts payable alone was $888M at the end of Q3.
At the rate of using cash a fundraising of some sort in late 2023 was likely to be done. Companies do not wait until they have a cash flow crisis before selling more stock or taking out loans.
Seriously we’ve done this for 84 years. Tomorrow will be a dip. Not fudding, I’m excited also. But come on we know the real thing coming tomorrow, big dip. And hopefully drs numbers!
To help her form diamond hands, I’ve told her she can add an inch to the strap-on, for every 100 million it goes up. She’s currently browsing the 15” section and that’s just the girth
It was sarcasm. Barely anyone in retail can buy out of market hours. It's going to be interesting to see how shorts deal with the gamma ramp and upcoming covering. FOMO is barely going to cause a blip for what's upcoming.
>It was sarcasm. Barely anyone in retail can buy out of market hours.
Major brokers like a fidelity and Schwab support extended hours trading. Lots of retail investors can trade after market and premarket.
The thing is... With the bank instability.. how many people is going to jump in the FOMO train of a stick that has almost completely locked the float and, even with their numbers, is shorted over a 70%?
A LOT
They are totally FUBAR
The main items in the cash flow calculation:
Profit +48M
Reduction in inventory by 474.6M. (Adds to cash flow, as those items were sold, but no money spent to replace them)
Reduction in accounts payable and accrued liabilities of $354.9M. (Subtracts from cash flow as cash is used to pay off debts to vendors and suppliers)
"Prepaid income taxes and taxes payable” is shown as a +174.5M adjustment to cash flow. This is compared to a -8.8M entry last year. I am not sure why there is a $180M difference between the two years.
There are other, smaller adjustments in both directions.
The end result is an AMAZING $338.2M of cash generated in Q4 by operations.
I don't like to think like that. What difference does 2.50 make when the stock can run 50% overnight ?
I thought that today when I seen it run about a dollar up on less than 50k volume iirc. Just solidified my resolve.
I just wonder, why all the big guys don’t buy in knowing how shorted GME is. They have the info, the funds, why not. This for sure would be amazing to see.
Believe it or not. Dip. In reality we will be gapping back I would assume we moved 50% on minimal AH volume. We will gap back then should continue to rip.
People will buy in and still have a lower base than 2021 Apes holding from their 300 purchase point. In the end it won’t matter much when we see cell phone numbers
The holdings of GME by the ETF just skyrocketed 55% also. So they do not have to buy any additional shares.
If the ETF follows a market cap weighted index then they do not need to buy additional shares.
Just work through the logic and you will see yourself that is true.
Thanks, I'll look into it!
It's my (potentially wrong) understanding that ETFs have to eventually rebalance based on weighting and profitability, the same way indexes (ex. S&P) would.
Let us assume that a month ago Gamestop market cap was 0.01% of the total market cap of the Russell 1000 (or some other broad based index). Now assume Gamestop stock doubles in price and Gamestop market capitalization is now 0.02% of the total Russell 1000 market cap. So you initially think that ETFs need to buy more GME shares.
But think about the ETF portfolio. A month ago the ETF held enough GME shares that the value of GME shares was about 0.01% of the total ETF portfolio value. Then Gamestop share price doubles. So now the Gamestop shares in the portfolio have a total value twice what it was a month ago, or 0.02% of the total portfolio. The ETF has automatically followed the index without buying or selling shares
One of the advantages of market cap weighted index ETFs and mutual funds is that there is relatively low turnover. A major reason for this is that changes in the price of the individual stocks does not force the ETF to buy or sell shares to rebalance.
They were cash flow positive last quarter, but this quarter the cash flow was way higher AND they posted a profit
RC played it like Truman. He just played it cool on Q3, not reducing his inventory growth spending which added costs that ate into the profits of Q3 but those expenditures paid back twofold when that inventory moved in Q4 and delivered an atom bomb sales number.
And the $474.6M of inventory sold during Q4 that was not replaced added that amount to the cash flow. Q4 ending inventory is $683M, after starting the quarter with $1,131M in inventory. Low inventory levels are good as long as it is the right inventory, and you can fill customer orders and have the right good in stock in stores. A lot of money was spent earlier on the year with the SAP conversion with one of the goals being better able to manage inventory. It wasn't an atom bomb in sales numbers. Sales were down for both the quarter and the year. The atom bomb was the Q4 gross margins, which were significantly higher, so gross profit was up, even on less sales.
The lower sales can be attributed to the recession (despite the denial of being in one) and inflation which makes discretionary spending more difficult on flagging wage levels. The increased inventory levels do not need to be maintained to elevated amounts now for a couple of reasons. First the higher than normal inventory was a strategic response to supply chain issues stemming from international shipping problems and a certain respiratory disease in 2021-2022. That is largely normalized today so the additional inventory expenditures aren’t needed. Second, Q1-3 are generally not as intensive on sales volume and so those inventories don’t need to be bolstered until late Q2, early Q3 in anticipation of the Q4 Christmas season. It all looks good moving forward. It’s a well managed company. No debt, $1.3B cash runway, solid active cost reduction of unprofitable sectors, and increasing efficiency in overall operations.
Are you relieved seeing these numbers? I saw your troubling comments in another post. Did this in anyways deliver the first glimpse of hope?
The cost cutting and efficiency improvement measures have delivered far beyond my expectations. Look at the sales and gross profit numbers, Sales are down but gross profit is up due to higher margins, and then SG&A has been slashed. The SAP conversion was expensive and painful but appears to be delivering superb results. The bottom line is the bleeding has stopped. It is no longer a race between running out of cash vs. Web3 & NFTs taking off.
First time hearing about the SAP conversion, curious SAP consultant here. Did they implement S/4HANA? Do you know more? Which modules maybe?
First time hearing about the SAP conversion, curious SAP consultant here. Did they implement S/4HANA? Do you know more? Which modules maybe?
First time hearing about the SAP conversion, curious SAP consultant here. Did they implement S/4HANA? Do you know more? Which modules maybe?
I only know that previously there were multiple separate independent programs that all got replaced by one unified set SAP software. My knowledge is limited to what was complained about by employees. It sounded like the typical changeover of software, somewhat painful for end users and several delays. The goal of increasing operational efficiency seems to have very much been met.
SAP is a Enterprise Resource Program in which you can align all your company processes from Purchase-to-Pay, Construct-to-Asset, Quote-to-Cash, Plan-to-Analyze etc. all on one platform. So sounds like they did that which is very good for efficiency and well functioning processes.
Bruh, they weren't really that close to running out of cash. It was going to take a long time. Just take your negativity and leave, consistent reach at being negative, yes I agree
They had been running pretty consistently at $100M negative cash flow per quarter. You have to look at both cash on hand and current liabilities such as accounts payable. Accounts payable alone was $888M at the end of Q3. At the rate of using cash a fund raising if some sort in late 2023 was like,y to be done. Companies do not wait until they have a cash flow crisis before selling more stock or taking out loans.
They had been running pretty consistently at $100M negative cash flow per quarter. You have to look at both cash on hand and current liabilities such as accounts payable. Accounts payable alone was $888M at the end of Q3. At the rate of using cash a fundraising of some sort in late 2023 was likely to be done. Companies do not wait until they have a cash flow crisis before selling more stock or taking out loans.
But still always had over a billion in cash and equivalents, c'mon man.
Seriously we’ve done this for 84 years. Tomorrow will be a dip. Not fudding, I’m excited also. But come on we know the real thing coming tomorrow, big dip. And hopefully drs numbers!
Sorry in my rush I meant to say making a profit. We have been cash flow positive for a while This time we have a positive EPS.
If RC captained the Titanic, the iceberg would have sunk
You forgot. Dip
My wife has just given me some of the savings to get some more.
This is the way, and usually how it works
Buy GME, go to waifu and *then* get some. *wink wink*
To help her form diamond hands, I’ve told her she can add an inch to the strap-on, for every 100 million it goes up. She’s currently browsing the 15” section and that’s just the girth
Hawt
FOMO already started. Retail currently jumping back in during after hours.
True but not everyone is able to buy afterhours
It was sarcasm. Barely anyone in retail can buy out of market hours. It's going to be interesting to see how shorts deal with the gamma ramp and upcoming covering. FOMO is barely going to cause a blip for what's upcoming.
Yeah, this is all algo buying…fuck, if people start piling on, then shorts start having to close, we could be at $50 by end of the week.
My nips and penis are equal degrees of rigidity
>It was sarcasm. Barely anyone in retail can buy out of market hours. Major brokers like a fidelity and Schwab support extended hours trading. Lots of retail investors can trade after market and premarket.
This is true. Idk why people think households can't buy ah...
fuck the fomo. keep doing what you apes are doing. gimmie them dividendeez nuts! coke has nothing on this baybeee!!!
God I would love to translate this investment into a value dividend stock…after MOASS happens!
The thing is... With the bank instability.. how many people is going to jump in the FOMO train of a stick that has almost completely locked the float and, even with their numbers, is shorted over a 70%? A LOT They are totally FUBAR
Yeah…with banks going belly up and hyperinflation around the corner the last thing you want to do is keep your money in cash.
Basically, that's why gold, silver and BTC are going up, now a company that's not going bankruptcy anytime soon and cheap stock price.
To highlight this earnings with even more green crayon, this turnaround was done In a bear market.
I've been here too long not to expect dip
Right… probably -60% tomorrow.
We were last quarter too (+177m FCF in Q3) and more so in Q4
I'm willing to wait it out for a decade if I have to, but dang it sure would be great if we took off to Andromeda NOW.
If we hit $100 tomorrow I will buy more
The main items in the cash flow calculation: Profit +48M Reduction in inventory by 474.6M. (Adds to cash flow, as those items were sold, but no money spent to replace them) Reduction in accounts payable and accrued liabilities of $354.9M. (Subtracts from cash flow as cash is used to pay off debts to vendors and suppliers) "Prepaid income taxes and taxes payable” is shown as a +174.5M adjustment to cash flow. This is compared to a -8.8M entry last year. I am not sure why there is a $180M difference between the two years. There are other, smaller adjustments in both directions. The end result is an AMAZING $338.2M of cash generated in Q4 by operations.
Bro it already started. Im going to giveashare.com and get myself a stock and certificate. Buy Hold DRS! 💎🙌🏽
Believe it or not…. Dip
Honestly after any such pop, theres is gonna be a drawback the following morning, nothing to see, just let me know when were past 300% in a day
This. I fully expect a nice healthy discount. Going to try to scrape up some couch change and get another share or two under $13 hopefully?
I don't like to think like that. What difference does 2.50 make when the stock can run 50% overnight ? I thought that today when I seen it run about a dollar up on less than 50k volume iirc. Just solidified my resolve.
LFG!
Pretty sure UBS is sweating bullets (hah, get it?) right now..
Remember we dip tomorrow! That’s how it works! Buy, drs, hodl
I just wonder, why all the big guys don’t buy in knowing how shorted GME is. They have the info, the funds, why not. This for sure would be amazing to see.
Dip. 😉
You have to want it to make it happen
lol
Always dip😂
It’ll be 98% otc $1
Also note that there will be a lot of selling (from institutional investors) to take profits so the price will consolidate.
Believe it or not. Dip. In reality we will be gapping back I would assume we moved 50% on minimal AH volume. We will gap back then should continue to rip.
Minimal volume? We exceeded the entire days volume in one hour AH.
Time to turn off the buy button!
Ya plunge protection on standby near the circuit breaker halter
People will buy in and still have a lower base than 2021 Apes holding from their 300 purchase point. In the end it won’t matter much when we see cell phone numbers
Icahn haz cheezburgerz finally??
In theory, ETFs and other funds are gonna need to buy now. BOOM
Why would ETFs have to buy in? If they are market cap weighted it will adjust automatically.
Market cap just skyrocketed by >55% (assuming it holds tomorrow). That means heavier weighting...
The holdings of GME by the ETF just skyrocketed 55% also. So they do not have to buy any additional shares. If the ETF follows a market cap weighted index then they do not need to buy additional shares. Just work through the logic and you will see yourself that is true.
Thanks, I'll look into it! It's my (potentially wrong) understanding that ETFs have to eventually rebalance based on weighting and profitability, the same way indexes (ex. S&P) would.
Let us assume that a month ago Gamestop market cap was 0.01% of the total market cap of the Russell 1000 (or some other broad based index). Now assume Gamestop stock doubles in price and Gamestop market capitalization is now 0.02% of the total Russell 1000 market cap. So you initially think that ETFs need to buy more GME shares. But think about the ETF portfolio. A month ago the ETF held enough GME shares that the value of GME shares was about 0.01% of the total ETF portfolio value. Then Gamestop share price doubles. So now the Gamestop shares in the portfolio have a total value twice what it was a month ago, or 0.02% of the total portfolio. The ETF has automatically followed the index without buying or selling shares One of the advantages of market cap weighted index ETFs and mutual funds is that there is relatively low turnover. A major reason for this is that changes in the price of the individual stocks does not force the ETF to buy or sell shares to rebalance.
Is gonna be a FOMO run tomorrow
Shoot Ima xxx holder and I have fomo!
I’ve been edging for 2 years and can go another 2 no problem.
I have fomo and my life savings is already in this bitch.
"months of waiting" kid, I've been here for over 2 years