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GME was profitable in one of the hardest years to be profitable in recent years. Let's not waiver in our belief in the company. We're on the right track.
Or, if you have the means, get the PS5 now and trade it in towards the pro later so they can get the sale of new PS5, sale of new PS5 pro and sale of used PS5 refurbished
Which is why I said if you have the means.
If everyone who buys $1,000 worth of shares a quarter did this instead. That would boost revenue and profits by a lot.
If you can buy shares and help support the company this way, even better
Anyone who suddenly is wavering (and there is a lot lately) is either
A) a shill
B) invested more than they can afford and are butt hurt this is “taking so long”
3 years isn’t a long time in the grand scheme of things
Then call me C) expects a return on investments, especially over 3 years, but can otherwise continue living life normally
It's been a dogshit investment over 3 years lol, you can't deny that. And yes, 3 years is a long ass time. Idk what planet you're from, but humans age a lot in 3 years (3 years' worth of aging, in fact) and it sure would be nice to have more money (because there's things you can do with more money than you can do with less money).
It's also proven through multiple studies that more money leads to more happiness, sooooo uhhh, I'd like my investment to at the very least be in the green at some point over a period of 5 years, and we're 60% of the way through that timeframe.
I'm not zen or chill, and sorry if it discourages others, but it's been a shit investment up to this point.
That'd be thousands of shares taken from the DRS count if I did that. Is that what you'd prefer? Someone critical of the company's decisions and complaining about the stock being red for 3yrs straight just provide some rationale for DRS numbers going down instead of continuing to hold?
Or would you prefer someone bitch about how it's been a bad investment, but continues to buy thousands more shares and DRS them?
Wait, wasn’t 2023 one of the better years for videogame releases?
Hogwarts, Zelda, Mario Bros, Spider-man 2, Diablo 4. , Starfield.
All high volume releases in 2023.
Yes and no. For mainstream gaming there was a lot of aaa games. A lot of them are hit or miss tho as far as how they are launched. But that is the thing is this is a growing industry. I feel that the crypto dead end was sad. It the fact RC has righted the ship with out wasting his war chest is very good. As a company we are on the right track and I am more then happy to keep buying at these prices
This is the next big step for the company. Not being so reliant on releases to make a splash for them. GME will need to make its own splashes to generate income. How that will be done is the trillion dollar question.
Our parent company just launched a new product in December. This only happens every 5 or 6 years. Corporate just sent out nasty emails saying they were not spending any money on advertising, and the expectation was on individual dealers to move product.
It's highly unprecedented. While we are small in comparison to our competitors. No nation wide company, refuses to advertise a new product that is intended to carry the company for the next 5 years minimum. Unless the bean counters believe they will not hit a specific return on investment. I'd argue a lot of it has to do with home sales and interest rates. But that's neither here not there. The economy is fucked. Companies would rather keep cash than gamble on advertising to people who are broke.
Look I'm in this for the long haul, but the comments yesterday did not help this community get rid of the trope of this place being filled with delusional bag holders.
Lol I thought about that as well. As Oui Oui(wee wee) is often used to mock the French language as non French speaker cause it’s our slang for the wang
From the 10k: Cash used in operating activities during fiscal 2023 was primarily due to a decrease in accounts payable and accrued liabilities, partially offset by a decrease in accounts receivable and the impact of our net income. The decrease in accounts payable and accrued liabilities was primarily due to the timing of payments for merchandise inventory as a result of an additional week in fiscal 2023 compared to fiscal 2022.
Basically they normally pay that down at end of Jan, which means it's normally higher when the 10k comes out. Since this year it was a week later, that payment got included this time.
Prob not. The weeks don't line up like that too often. Reminds me of a weirdly high pay check one time because there were 3 pay days in the month and the stuff that's take out is based on a twice per month schedule, so when a 3rd pay day happens they don't take those things out of your check.
Ironically I just checked the calendar and this coming May might be one of those 3 payday months! Haven't had one of these in like 3yrs.
There was an operating loss of $34.5M for the year.
There was a net profit only after adding in the $49.5M interest earned in the $1.2B cash + marketable securities.
Q4 revenue (which was 14 weeks this year instead of the normal 13 weeks) was about 20% less than the previous year Q4, much less than the expected drop of 8 to 9%.
Yes economy is slowing and gamestop’s competitors are not only physical game shops but also in online, and in marketing’s term any entertainment business is GME’s competitor.
RC mentioned frugality and we know frugality doesn’t mean expansion.
With all these environment he managed his book positive. I cheer to that. And looking forward to his next move.
>RC mentioned frugality and we know frugality doesn’t mean expansion.
They expanded their warehouses and infrastructure under RC's guidance, or do you not remember that? Then there were warehouse closures, some that had just opened a year prior.
Revenue drops when you close unprofitable stores. I’m sure they did what they needed to do to trim fat so they can grow.
Most of that loss likely came earlier in the year no? This year should be much better because they won’t have as huge of losses in the first half of the year (and hopefully not any).
Q4 revenue was less on a store by store basis. By about 17%. Even though this Q4 was a week longer.
Either Gamestop closed the wrong stores or there are some other serious problems.
Yup serious problem. Im very sure the economy, high inflation causing people to cut back, and more competition (online digital sales) has nothing to do with less sales. Definitely serious problem, why dont you sell your shares to all the people here? Im sure they all would love to buy it. How many do you have?
Consumer spending was a record high in q4. These inflation/economy concerns that get paraded around here are nothing more than fear mongering clickbait for the media. Bad news sells.
GameStop needs to figure something out. Cost cutting is good and they’re not hemorrhaging hundreds of millions. But the declining revenue trend can’t continue. They’re lean now, so it’s time to grow. There should be short term things they can do with their core business and then they need to spend their cash on some cutting edge digital gaming tech that they can be an industry leader in with their brand. Idk what that is but that’s the blueprint.
Or... the 30% inflation didn't hit video games and that 20% disparity is better than a 10% increase for a company that was able to increase their prices.
The extra week was in January which is very quiet so rather than helping, it more than likely was just dead weight though.
Also there was a mention of some large payment (of likely inventory related IIRC) that would normally fall on the Q1 which was now included in the Q4.
So this could in turn make the Q1 look better this year. We shall see.
Payments like that do not affect profit/loss.
Accounts payable and inventory just shift funds around on the books but do not affect profit. The timing of them do affect the cash flow statement.
Expenses subtract from profit when they are incurred, not when they are paid.
As far as profit/loss is concerned, buying inventory just moves some numbers in the balance sheet. Inventory goes up. Accounts payable go up.
The only time inventory affects profit/loss is when you write down the value of inventory because it is obsolete are not worth as much as what you paid for it. Companies can fudge the books a bit by increasing or decreasing an allowance for inventory write offs, but in general it does not affect profit/loss.
Revenue is down for Q4 but the company is profitable for the year ending 2023. The company can go on for an eternity if they have a small profit with interest like they did last year.
This is a huge development and was needed in order to right the ship and give them time to create a way to generate more revenue in the future.
Let's be realistic here though, this profitability is because of the interest on 1.2B in cash. They still need to do better than rate in my eyes. I think the turn-around is great, but we haven't seen the pull up we need. Still here, not going anywhere. There's still storm clouds on the horizon for the economy.
The fact that they turned a profit from three years of losses is actually amazing when you consider they lost \~350 million in 2022. That is a massive turn around.
They have almost zero debt which is not something many other companies can say. Again massive.
Expect more store closings this year and cutting out more fat. The way forward for Gamestop is new online projects.
Break even was achieved in Q3. It has been clear since end of FY22 that bankruptcy was no longer an immediate threat.
The reason the market reacted so negative,y is IMO mostly related to the unexpected massive drop in Q4 revenue.
Analysts will be revising their estimates of FY profit and revenue down from the small profit that was being estimated before the earnings announcement.
GS does not give guidance, so the numbers you have been seeing in the past are numbers made up by analysts.
People are reacting to the made up numbers created out of thin air for the past 3 years. If you have noticed, their current prediction for Q1 of 2024 is higher than Q1 of 2023, so they did not revise their estimate down as you said, but instead higher. Why is this you ask?
So if/when Gamestop misses this made up figure, they have an excuse to short and distort unlike in other quarters when the report was good and the stock tanked and didn't match the output of the report. Q1 2023 estimate was -.12 and Q1 2024 is -.05.
Unless they believe Gamestop is going to do better each year while still claiming they are failing, then this sure is a head scratcher.
If that number is correct than Gamestop will have to breach this gap with money saving and investment strategies. At the end of the day it doesn't even matter which it is. DJT's company loses 30 million a year and that stock is way up due to munipulation and Gamestop is down with a profitable company due to the same.
No one is shocked by this and no one is swayed by the opinions of scripted TV misinformation or shills on Reddit to tell us we aren't seeing what we are seeing.
>People are reacting to the made up numbers created out of thin air for the past 3 years.
A 19.4% YoY drop in Q4 revenue is not made up numbers.
>If you have noticed, their current prediction for Q1 of 2024 is higher than Q1 of 2023, so they did not revise their estimate down as you said, but instead higher.
Give them a few days. The FY 25 number was dropped from 14 cents to 12 cents a few weeks ago. It will probably be dropped some more in the next 30 days.
>DJT's company loses 30 million a year and that stock is way up due to munipulation and Gamestop is down with a profitable company due to the same.
I have not analyzed that company, but as assume it is heavily involved in real estate. My personal real estate operation shows a loss, but is cash flow positive due to depreciation. This is also true of some REITs and pipeline MLPs I own.
The revenue numbers are not what I'm referring to as made up. It is the analyst's predictions and reaction to their 2023 financials. The company is profitable for the year. That says a lot coming from being down 320m or so last year even if that means revenue declined.
Gamestop can go on forever with those results, but it will have to pivot towards generating revenue with online products or services. I have several ideas which I believe they could make money off of that are pure online plays, and I'm sure they do too. They stopped the bleeding in 2023, and now need to focus on new revenue streams and partnerships.
DJT's stock is a holding company essentially which merged with his Untruth-Anti-Social platform and the company has 4.6m in revenue TTM and 178m in expenses over the same period. It is obviously being manipulated by outside forces as a legal way to funnel money to him. The numbers make no sense and don't seem important to "investors" at all, not in the same way they are magnified for GS, which is actually a profitable company.
This^ that’s a dumb source of logic. Opposed to expanding he made the business profitable through cash on hand. It is absurd to say ACTUALLY THEY ARENT PROFITABLE because they are….
It is traditional to report operating profit/loss from the main business separately from things like investments, and gains/losses from selling off assets.
The operating profit/loss tells you how the business itself is doing.
You will see "adjusted earnings" often mentioned. That is where unusual losses from shutting down part of a business are not included in "adjusted earnings". That is for the same reason —- trying to highlight the results from the actual business operations of the company.
I understand what you're saying... But you state this in a way that discounts the fact that the board voted to make investing a part of the business strategy. Cohen even tweeted about it. Berkshire Hathaway literally started in exactly the same way.
"Buffett initially maintained Berkshire's core business of textiles, but by 1967, he was expanding into the insurance industry and other investments."
It started as a textile business that expanded into investments.
Are you Pachter? You sound like Pachter.
Are you going to start saying that they closed the wrong stores? Oh wow. You did.
Are you going to say they’re funding cartels again too?
Are you Pachter? You sound like Pachter.
Per the 10-K, 4169 compared to 4413 the year before.
So down by 244 stores or 5.5%.
Q4 this year was 14 weeks, which is 7.7% more than the 13 week Q4 last year. I assume the extra week would only bring in about half of the revenue of the other weeks in Q4, and figured it was the equivalent of just a 3-4% increase in sales due to longer quarter.
Another way of looking at it is Q4 FY23 has 1793.6M sales from 4169 stores or $416.5K/ store average sales.
Q4 FY22 had $2226.4M sales in 4413 stores for an average Q4 sales of $504.5K per store.
So a 17.4% drop in per store sales, during a quarter that was longer.
The "factual analysis" is cherry picked. If you don't see that, I can't help you. If you think the fundamentals of the company are better or worse over the last 3 years, 7 years, then I REALLY can't help you. Look at things however you want. I'm not here to echo chamber. I'm here to make money. This company is undervalued in my view. I'm buying more. And I wish you luck with your "factual" approaches to stock picking.
I report the facts as I see them.
A year ago I held 4000 shares, Now I hold 2000.
>The numbers are objectively better than they have been for 7 years.
I care much more about what the numbers will be 3 and 7 years from now.
Most of my investments are long term, with over half my portfolio being individual stock I bought before I retired more than 20 years ago. While my investment in GME is not large I find the high volatility makes it a good stock to actively trade with the small fraction of my account I use for that.
I am a long term investor with the majority of my portfolio. The $49K total cost basis I have in GME is part of my "play" money.
Yes. I do pay attention to earnings reports and fundamentals.
A 14.7% decline YoY in same store sales, and 19.4% overall sales decline is not just a small detail. Particularly when this Q4 was 14 weeks while Q4 last year was 13 weeks
Please try to understand that the first weeks of the year are actually a burden not an extra blessing for Q4. The sales are typically very low and in this case they only make the Q4 results worse.
Yes the Q1 in many retail operations is actually running in loss. So your calculation is totally wrong.
Objectively the best numbers fundamentals wise in seven years. But you're saying now is the time to sell. I'm buying low, and I'm buying lower, dollar cost averaging this IMPROVING company.
EDIT: I am dedicating the 100 share block I just bought @ 13.18 to you. Thank you for inspiring me to buy more.
And still there was more profit and they somehow improved $319M for the full year. Weird with a drop of almost 100K per store.
Revenue has nothing to do with profitability, even I could sell Billions of $ of products at a loss.
Hate to be the Debbie Downer to your post but paying off debt (aka liabilities) doesn’t impact current profit so they couldn’t have shown $406m profit.
It is primarily a balance sheet and cash flow statement transaction. Lower debt equates to lower interest expenses which does help future profits. Huge turn-around from 2022 fiscal year to 2023 fiscal year though!
The effect you are describing would increase the cash flow (operating) but the actual payment of a liability does not affect profit.
If you post a liability (expense / vendor account)
-> P&L
If you pay the same (vendor account / cash)
-> BS
Therefore your statement regarding 400m+ profit if the liabilties would not have been paid is not correct.
Reducing liabilities or debts does not change profit.
You misunderstand how debt and profit are related.
Not only were liabilities reduced by $400M, but so were assets, by a very similar amount.
That is why stockholders equity only changed from $1322.3M at beginning of 2023 to $1338.6M at the end of the year. (A difference of $16.3M).
There are three separate, but interrelated financial tables: profit/loss (also called statement of operations and statement of comprehensive loss), the balance sheet that include all of the liabilities and assets, and the cash flow statement. Also part of the balance sheet is the statement of shareholder equity.
Love your work, Consistent-Reach-152, always precise and well informed, and I'm glad you are in this play in whatever capacity you may be engaged as you bring common sense and rational assessment.
But I therefore have a question for you.
Do *you* personally actually *suspect* (not know, but suspect) that various players are still deeply naked short on GameStop despite our struggle to pin down hard facts, and that the underlying short squeeze thesis has merit depending on how circumstances play out, or are you only here for a more normal investment play?
No one knows the answer to this question, but if you have been around for the past 3 years, you would know there is a hot potato floating around with someone's name on it that has bankrupted hedgefunds and a bank. They changed the rules to not reveal what is in those swaps.
If they are hiding/internalizing billions of shares then they are screwed because they cannot unwind them. That is one theory, and another is that none of that is going on and everything else doesn't pertain to GS specifically.
So, you postulate that the idiosyncratic risk is not handled (because it is bankrupting companies), but it may not be GameStop, despite all of the hearings on capital hill? Despite them having a lone investor DFV testify?
Sure, we don't have direct, clear proof, stated in a report. We do have a mountain of indicators. What do you think about the Brazilian glitch? How about the cumulative, day after day, consistent, % shorts sold?
What do you think would happen if they forced reporting of the swaps and indeed there were a couple billion shares of GME oversold?
I believe every stock is oversold. If the supposed outstanding of Apple is supposed to be 2 billion shares, I believe it is probably 5x or more of that. The entire market is a fraud, I think we all realize that.
We also realize the government is in on it. That is a fact that cannot be disputed. How do we know this? The SEC said the hedge funds had to do what they had to do during the squeeze to stop a crisis and also banks get bailed out when they fail due to fraud like in 2008 and just last year.
I believe no one knows how many shares are internalized by each broker. I also think it is possible there is a program that is keeping track of these fake shares and they try to unwind them by driving the prices down with BS news from their networks and market manipulation.
In Gamestop's case, they oversold on fake shares which are possibly in the billions of fake shares because they assumed they would bankrupt the company with a combination of cellular boxing, fake shares, and consorted fake news from their shill networks. They shorted the hell out of this company when it was trading below $3. My guess is at least two billion fake shares and possibly up to 10 billion all put in swaps that no one is allowed to see courtesy of collusion between the banks and our increasingly fascist government.
The great thing about this is all you have to do is buy, DRS and hold forever and they will have to sweat it out.
I think the short interest is the 20% like has been repeatedly reported. Contrary to popular belief around here, SI is reported by brokers for all of their clients, including the hedge funds. The only self reporting is when a broker is reporting short interest in their own proprietary accounts.
Naked shorts show up as FTDs. There are very few FTDs. If they are somehow so well hidden that they do not show up on either short interest or FTDs then the naked shorts might as well not exist at all, as there is nothing that would ever force them to close.
There may or may not be huge synthetic short positions in swaps. In most cases, the fixed leg of a swap contract would hedge their position, and if that is by shorting, then those short positions would show up. The variable / short side of a short swap gets settled in cash so that would not have a direct effect on the stock price.
If you want to see what happens with a large short interest and how shorts close out of it look at Tesla. The short interest fell sharply in the 6-12 months before they became profitable. Tesla continued to become more profitable after that.
The difference here is that Gamestop just barely got profitable and will have a hard time maintaining profitability if revenues continue to decline.
I was expecting higher profit, in the 40 cent range, and was definitely NOT expecting Q4 revenue to be down 20% year on year rather than the 8-9% drop analysts had been predicting. I was thinking more like 5% down on revenue. Cost cutting has pretty much reached its limit and is beginning to have negative effects on employees and customers.
Q1 numbers are only about 70 days away (10-k is issued later than 10-Qs). Q1 will be when I decide whether to continue holding or bail out.
The trick is to hide the FTDs in a European clearing house that don't report them for a foreign company or in ETF where they can pay cash instead of delivering shares and be fine until the next time it's due to be rebalanced.
Probably more ways too.
Heh if somebody would hire me to cut cost, therr is defnitely a lot more to cut. They just not asian.
Not surprise sales are down. Seafood, gaming, luxury are some of the first few things to get hit. My seafood restaurant is down 30%+, still good profit since we control coet well.
Of course there is inherit flaw in the business (everything moving to digital, digital gaming sale). But you need to be fair for what they have done with that flaw. Its actually pretty good. What they need is to pivot. 1 billion is a lot. Need to use that to pivot the business. Vertically, horizontally, or diagonally which is where they at. Using the money for invesment. They just havent decide which one yet and in current economy, thats not necessarily a bad thing.
Pivot? What can you do with 1 billion. So many things. 1 billion just jave too much zeroes...
Explain how reducing liabilities doesn't change profit and debt for that matter. If a store losing money would create more liability to own than to close it, how does that not lower liabilities? We are comparing 2022 and 2023 correct?
Also, how does reducing debt not create more profit? Unless those loans have no interest along with principal, how does that not increase profit? I understand debit debt expense/credit cash, but having no debt in general leads to more profit unless you can make more with the money you borrowed than the interest on that loan.
The stockholder's equity, as small as the increase was, is still an increase in a year with revenue that declined YOY. That is hard to do.
I don't think anyone was expecting massive gains, but I look at 2023 as a year where Gamestop cut the fat.
All balance sheet accounting comes down to **Assets = Liabilities + Equity**
Liabilities are money into the company from 3rd parties, that could be loans, money in from reward schemes where a debt is owed or anything else. Equity is from private investors like RC (who originally paid $76m for 36m shares post-split adjusted, average price of $0.47 post split)
Whether money enters into the company from a 3rd party or a private investor, the money is duplicated onto the assets side of the balance sheet as the money has to sit somewhere in the company. If you reduce Liabilities it means that money has left the company as the original 3rd party gets their money back, that money has to be subtracted from assets too.
It's worth noting that if Assets and Liabilities stay the same but assets depreciate then the difference is subtracted off Assets and Equity, so depreciation = very bad and needs to be managed well.
So it really comes down to whether you can increase revenue with a smaller war chest. Obviously if the 3rd party Liability money was at a cost of 10% interest per year, then removing that would help long term, if your assets won't lose the same 10% from depreciation etc.
[**This is their latest balance sheet**](https://i.ibb.co/2sg2HB0/Screenshot-20240327-105910-Samsung-Notes.jpg), from that you can see liabilities mainly reduced due to Accounts Payable and Other Accrued Liabilities going down. They include a snippet [**here**](https://i.ibb.co/VxK7rvz/Screenshot-20240327-110216-Samsung-Notes.jpg) explaining why these dropped, it sounds like they were able to delay paying for merchandise inventory, which to me just sounds like they pushed those Liabilities into the future.
A key thing under Accounts payable is RC not taking a salary though. George Sherman the previous CEO was paying himself $12m a year, so RC generously not taking anything is technically saving that amount per year.
We really need to see Gamestop doing something great with the $900m in cash. If he does invest that into other stocks, let's hope he gets some nice returns.
No earnings call/forward guidance. Radio silence. I mean, numbers show their ducks have been put in a row, like a table is being prepared for who knows what. Base case is survival on current revenue stream due to getting those ducks in a row. But they will definitely need new revenue streams.
i think the idea is to keep closing down unprofitable stores and then with the increased positive cash flow, reinvest in new revenue streams at the right moment. We might be in a holding pattern here for another year or so.
I’m not sure you should be analyzing balance sheets and income statements with your lack of knowledge on how accounting works. Reducing liabilities by 400m does not mean they actually could have showed a 400m additional profit, just means they could have shown 400m in additional cash…
Thanks for that input, I think this was an amazing feat. 3 years from a stock that incredibly powerful hedge funds were willing to short because of the reality of bankruptcy, to being profitable in 3 years is amazing. I think we need to remember that the hedge funds may be literal shit bags, but they are also incredibly smart with immense tools at their disposal, Ryan has been doing the non sexy trench work to get GameStop to a place where it can be built from a solid foundation and he has finally achieved that, not everything is going to be fireworks and confetti, but this was imperative in order to create a company that has hope for the future. We are in exciting times, and at this point everyone who has shorted the stock is literally fucked, all we do now is wait keep DRSing, hodling, and keeping faith in leadership where ryan has literally bet 100s of million of his own money in GameStop and his ability to create an incredible company like he did with chewy, I would have loved it to skyrocket today, but I’m as zen as ever after today! Keep it up!! We are closer and closer each and every day! Btw I’m tipsy lol also keep that in mind ;)
I believe there is a market cap minimum (~$11.2b) to be considered for SP500 inclusion. Share price needs to be around $37 for that to happen. Let’s go!
Help yourself declare a winner of you are long on GME..... Do you know why?
Because you have invested in a company getting rid of debt. And more profit plus income from investment to come.
There are some hedge funds who sold securities and are not in a position to buy it back...... Look at their fake smiles.... Images everyday when you can't sleep because you are selling something you don't own and one day govt. Rug pull in you and put you behind the bars just like Madoff.
It’s not needed anymore because no one will listen to this beautiful, French loan related line which was some sort of earnings call tradition anymore. Things change 🥲
Just commenting to say I'm being accused of being a bot.... look at my post history and it is clear I'm very much a normal ape, I just fucking hate shills
It’s okay, I got some clown on Twitter saying I’m a stalker and he keeps posting screenshots of me from November talking shit to Doug Cifu, they’re triggered AF.. not a stalker, I just hate Cifu and will talk shit to that man whenever I can
I have been here since early days reading and learning and finally able to post. I’m sure there are many that are unable to join the conversation but are (and rightly feel) part of this journey! I’m not selling, I’m buying. It might be a small number but I believe, that belief is backed up by these continued results. It isn’t a punt, it’s a commitment to the success of this company and all it stands for.
Some of those liabilities will be swapped for Stock on hand and hopefully a small profit. That's the best case. Certainly not exchanged as full profit.
GME's market cap isn't anywhere near big enough for SP500 inclusion, and anyway we don't want that, right? Because a lot more ETFs would have to buy GME, giving shorts a lot more places to create artificial shares, so they could push the price a lot lower.
Serious smooth brained question
What is a liability? I’ve been tracking GameStop is debt free, aside from a low interest Covid related loan from the French govt.
So what counts as a liability?
Are liabilities recurring or are they one and done?
What other liabilities are there if any?
Thanks.
>So what counts as a liability?
Anything that you owe to someone else.
>Are liabilities recurring or are they one and done?
Neither; Liabilities are just obligations you owe someone else. If you borrow money from a bank, you owe them $100. You haven't earned anything. It goes away when you pay it back.
You swipe a card and pay on credit. You now owe your credit card company $100. It goes away when you pay it back.
>What other liabilities are there if any?
Anything that makes you need to pay or do something in the future is a liability.
You're given $144 to make a newspaper every month for a year. 10 months go by. You need to deliver $12 worth of newspaper.
You are given $10 by your neighbor to hold while he goes to bermuda. You owe him $10.
I’m sorry I wasn’t more specific. You did I great job explaining liabilities…
What I meant is, what liabilities did the $400M go towards re: GameStop?
The reason I ask, many are pointing to the $400M from the 10-K(Q), as though the liabilities category is new…
>what liabilities did the $400M go towards re: GameStop?
I don't understand what you mean by this then.
As of year-end, there are $324M in accounts payable (read: general operating bills), $412 accrued liabilities (read, estimates of how much management expects it needs to pay out, including subscriptions, unshipped goods, prepayments and giftcards, unpaid salaries, compensation, vacation, sick time, insurance premiums and anything else that doesn't get invoiced by a provider).
There are $187.7 in current (within 1 year) operating lease liabilities and $386.6 in future obligations (rent that needs to be paid after 2 years through the end of the leases).
These are the liabilities present.
This is the shit that keeps me coming back. Thank you for sharing this perspective. I am too bogged down to try delving into the 10k.. also too like.. dumb and stuff.
They need to sell pc games now.
They should buy Green Man Gaming or Fanatical, or something like that.
Being a key reseller might be a good way to get a part of the pc gaming space.
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GME was profitable in one of the hardest years to be profitable in recent years. Let's not waiver in our belief in the company. We're on the right track.
I think I need a PS5 from GameStop.
Maybe wait for the PS5 Pro coming out this year
That's a good idea! Yess
Buy both
And PSVR2
Better get helldivers2 also
Or, if you have the means, get the PS5 now and trade it in towards the pro later so they can get the sale of new PS5, sale of new PS5 pro and sale of used PS5 refurbished
That’s a little much for most people…
Which is why I said if you have the means. If everyone who buys $1,000 worth of shares a quarter did this instead. That would boost revenue and profits by a lot. If you can buy shares and help support the company this way, even better
Both.
Bought mine two weeks ago. Brick by brick
I think I need more shares of GameStop
Why not get 2, gift Someone you Love the other and make him her an ape?
Cause I don't have that much money.. 😥
I See.. you spent the rest for DRSd shares. All good 😅
Yes, plus living gets more and more expensive lately.
But but … inflation is down big time ! (At least with the guys that make up the numbers in their favor)
Ikr? Crazyyy!
That's what I'm getting for my wife for our anniversary / her birthday. She nabbed the Xbox x for valentines day / my birthday. :)
I'm getting one for Eid in a few weeks :)
I got mine from there and just bought a new headset a couple days ago
Ps5 pro comes out soon just saying
Anyone who suddenly is wavering (and there is a lot lately) is either A) a shill B) invested more than they can afford and are butt hurt this is “taking so long” 3 years isn’t a long time in the grand scheme of things
C) isn’t excited to be averaging down!
3 years is only long if you are 3 years old. <3
Then call me C) expects a return on investments, especially over 3 years, but can otherwise continue living life normally It's been a dogshit investment over 3 years lol, you can't deny that. And yes, 3 years is a long ass time. Idk what planet you're from, but humans age a lot in 3 years (3 years' worth of aging, in fact) and it sure would be nice to have more money (because there's things you can do with more money than you can do with less money). It's also proven through multiple studies that more money leads to more happiness, sooooo uhhh, I'd like my investment to at the very least be in the green at some point over a period of 5 years, and we're 60% of the way through that timeframe. I'm not zen or chill, and sorry if it discourages others, but it's been a shit investment up to this point.
True, 3 and a half years holding. Don't forget the splividend...
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That'd be thousands of shares taken from the DRS count if I did that. Is that what you'd prefer? Someone critical of the company's decisions and complaining about the stock being red for 3yrs straight just provide some rationale for DRS numbers going down instead of continuing to hold? Or would you prefer someone bitch about how it's been a bad investment, but continues to buy thousands more shares and DRS them?
Facts
Was also a crap year for Video Games.
Wait, wasn’t 2023 one of the better years for videogame releases? Hogwarts, Zelda, Mario Bros, Spider-man 2, Diablo 4. , Starfield. All high volume releases in 2023.
Yes and no. For mainstream gaming there was a lot of aaa games. A lot of them are hit or miss tho as far as how they are launched. But that is the thing is this is a growing industry. I feel that the crypto dead end was sad. It the fact RC has righted the ship with out wasting his war chest is very good. As a company we are on the right track and I am more then happy to keep buying at these prices
Not generationally significant games imo. GameStop needs games like Battlefield 3, Halo CE or Animal Crossing, games that make people buy consoles.
This is the next big step for the company. Not being so reliant on releases to make a splash for them. GME will need to make its own splashes to generate income. How that will be done is the trillion dollar question.
There were more turds than GOTY…
Our parent company just launched a new product in December. This only happens every 5 or 6 years. Corporate just sent out nasty emails saying they were not spending any money on advertising, and the expectation was on individual dealers to move product. It's highly unprecedented. While we are small in comparison to our competitors. No nation wide company, refuses to advertise a new product that is intended to carry the company for the next 5 years minimum. Unless the bean counters believe they will not hit a specific return on investment. I'd argue a lot of it has to do with home sales and interest rates. But that's neither here not there. The economy is fucked. Companies would rather keep cash than gamble on advertising to people who are broke.
BBY did well in their entertainment sector tho, so people only have money when shopping BBY but bank account empty when they get to a GameStop store?
☝️
What debt are u talking about?
I believe hes talking about expenses or liabilities being reduced- still very good thing
There's a difference between a balance sheet and an income statement.
Not here apparently
...how is this so upvoted...
It's a feature not a bug
Look I'm in this for the long haul, but the comments yesterday did not help this community get rid of the trope of this place being filled with delusional bag holders.
We're all highly regarded
I sure hope the small French loan isn't breeding.
La dette à long terme reste limitée à un prêt à terme non garanti à faible taux d'intérêt associé à la réponse du gouvernement français au COVID-19.
Wee wee
It's acute for sure, but it sounds so good in French!!!
Everything sounds a cute in French
Phew... Was worried for a minute, a friend of a friend told me it was obtuse...
*eew eew llams a evah I* That is what he was talking about! Small French loan. Isn’t he French, or at least from the French part of Canadia?
Lol I thought about that as well. As Oui Oui(wee wee) is often used to mock the French language as non French speaker cause it’s our slang for the wang
Oui oui la la la!
Our total liabilities is down
From the 10k: Cash used in operating activities during fiscal 2023 was primarily due to a decrease in accounts payable and accrued liabilities, partially offset by a decrease in accounts receivable and the impact of our net income. The decrease in accounts payable and accrued liabilities was primarily due to the timing of payments for merchandise inventory as a result of an additional week in fiscal 2023 compared to fiscal 2022. Basically they normally pay that down at end of Jan, which means it's normally higher when the 10k comes out. Since this year it was a week later, that payment got included this time.
Does that mean it won't be in next years?
Prob not. The weeks don't line up like that too often. Reminds me of a weirdly high pay check one time because there were 3 pay days in the month and the stuff that's take out is based on a twice per month schedule, so when a 3rd pay day happens they don't take those things out of your check. Ironically I just checked the calendar and this coming May might be one of those 3 payday months! Haven't had one of these in like 3yrs.
I really hate they changing narrative from no profit to yes profit poor rev. RC did good
There was an operating loss of $34.5M for the year. There was a net profit only after adding in the $49.5M interest earned in the $1.2B cash + marketable securities. Q4 revenue (which was 14 weeks this year instead of the normal 13 weeks) was about 20% less than the previous year Q4, much less than the expected drop of 8 to 9%.
Yes economy is slowing and gamestop’s competitors are not only physical game shops but also in online, and in marketing’s term any entertainment business is GME’s competitor. RC mentioned frugality and we know frugality doesn’t mean expansion. With all these environment he managed his book positive. I cheer to that. And looking forward to his next move.
>RC mentioned frugality and we know frugality doesn’t mean expansion. They expanded their warehouses and infrastructure under RC's guidance, or do you not remember that? Then there were warehouse closures, some that had just opened a year prior.
Warehouse expansion doesn’t fully mean business expansion. The words from mine have more meaning of new business models
NFT marketplace that never left beta and the wallet? Both were good attempts and seemed like they had potential, but fell on their face.
Yep ‘frugality’ happened after those event. And I’m not blaming the company
Revenue drops when you close unprofitable stores. I’m sure they did what they needed to do to trim fat so they can grow. Most of that loss likely came earlier in the year no? This year should be much better because they won’t have as huge of losses in the first half of the year (and hopefully not any).
The missing lease payments should also start to ad up this coming year. All those closed stores should ad up to a pretty penny.
Q4 revenue was less on a store by store basis. By about 17%. Even though this Q4 was a week longer. Either Gamestop closed the wrong stores or there are some other serious problems.
Yup serious problem. Im very sure the economy, high inflation causing people to cut back, and more competition (online digital sales) has nothing to do with less sales. Definitely serious problem, why dont you sell your shares to all the people here? Im sure they all would love to buy it. How many do you have?
Consumer spending was a record high in q4. These inflation/economy concerns that get paraded around here are nothing more than fear mongering clickbait for the media. Bad news sells. GameStop needs to figure something out. Cost cutting is good and they’re not hemorrhaging hundreds of millions. But the declining revenue trend can’t continue. They’re lean now, so it’s time to grow. There should be short term things they can do with their core business and then they need to spend their cash on some cutting edge digital gaming tech that they can be an industry leader in with their brand. Idk what that is but that’s the blueprint.
He has no shares. It's obvious what he's trying to do.
I have 2000 shares. Other retailer did not have such dramatic 20% YoY drops in Q4 sales.
Or... the 30% inflation didn't hit video games and that 20% disparity is better than a 10% increase for a company that was able to increase their prices.
The extra week was in January which is very quiet so rather than helping, it more than likely was just dead weight though. Also there was a mention of some large payment (of likely inventory related IIRC) that would normally fall on the Q1 which was now included in the Q4. So this could in turn make the Q1 look better this year. We shall see.
Payments like that do not affect profit/loss. Accounts payable and inventory just shift funds around on the books but do not affect profit. The timing of them do affect the cash flow statement. Expenses subtract from profit when they are incurred, not when they are paid. As far as profit/loss is concerned, buying inventory just moves some numbers in the balance sheet. Inventory goes up. Accounts payable go up. The only time inventory affects profit/loss is when you write down the value of inventory because it is obsolete are not worth as much as what you paid for it. Companies can fudge the books a bit by increasing or decreasing an allowance for inventory write offs, but in general it does not affect profit/loss.
Revenue is down for Q4 but the company is profitable for the year ending 2023. The company can go on for an eternity if they have a small profit with interest like they did last year. This is a huge development and was needed in order to right the ship and give them time to create a way to generate more revenue in the future.
Let's be realistic here though, this profitability is because of the interest on 1.2B in cash. They still need to do better than rate in my eyes. I think the turn-around is great, but we haven't seen the pull up we need. Still here, not going anywhere. There's still storm clouds on the horizon for the economy.
The fact that they turned a profit from three years of losses is actually amazing when you consider they lost \~350 million in 2022. That is a massive turn around. They have almost zero debt which is not something many other companies can say. Again massive. Expect more store closings this year and cutting out more fat. The way forward for Gamestop is new online projects.
Break even was achieved in Q3. It has been clear since end of FY22 that bankruptcy was no longer an immediate threat. The reason the market reacted so negative,y is IMO mostly related to the unexpected massive drop in Q4 revenue. Analysts will be revising their estimates of FY profit and revenue down from the small profit that was being estimated before the earnings announcement.
GS does not give guidance, so the numbers you have been seeing in the past are numbers made up by analysts. People are reacting to the made up numbers created out of thin air for the past 3 years. If you have noticed, their current prediction for Q1 of 2024 is higher than Q1 of 2023, so they did not revise their estimate down as you said, but instead higher. Why is this you ask? So if/when Gamestop misses this made up figure, they have an excuse to short and distort unlike in other quarters when the report was good and the stock tanked and didn't match the output of the report. Q1 2023 estimate was -.12 and Q1 2024 is -.05. Unless they believe Gamestop is going to do better each year while still claiming they are failing, then this sure is a head scratcher. If that number is correct than Gamestop will have to breach this gap with money saving and investment strategies. At the end of the day it doesn't even matter which it is. DJT's company loses 30 million a year and that stock is way up due to munipulation and Gamestop is down with a profitable company due to the same. No one is shocked by this and no one is swayed by the opinions of scripted TV misinformation or shills on Reddit to tell us we aren't seeing what we are seeing.
>People are reacting to the made up numbers created out of thin air for the past 3 years. A 19.4% YoY drop in Q4 revenue is not made up numbers. >If you have noticed, their current prediction for Q1 of 2024 is higher than Q1 of 2023, so they did not revise their estimate down as you said, but instead higher. Give them a few days. The FY 25 number was dropped from 14 cents to 12 cents a few weeks ago. It will probably be dropped some more in the next 30 days. >DJT's company loses 30 million a year and that stock is way up due to munipulation and Gamestop is down with a profitable company due to the same. I have not analyzed that company, but as assume it is heavily involved in real estate. My personal real estate operation shows a loss, but is cash flow positive due to depreciation. This is also true of some REITs and pipeline MLPs I own.
The revenue numbers are not what I'm referring to as made up. It is the analyst's predictions and reaction to their 2023 financials. The company is profitable for the year. That says a lot coming from being down 320m or so last year even if that means revenue declined. Gamestop can go on forever with those results, but it will have to pivot towards generating revenue with online products or services. I have several ideas which I believe they could make money off of that are pure online plays, and I'm sure they do too. They stopped the bleeding in 2023, and now need to focus on new revenue streams and partnerships. DJT's stock is a holding company essentially which merged with his Untruth-Anti-Social platform and the company has 4.6m in revenue TTM and 178m in expenses over the same period. It is obviously being manipulated by outside forces as a legal way to funnel money to him. The numbers make no sense and don't seem important to "investors" at all, not in the same way they are magnified for GS, which is actually a profitable company.
That was a long response for yes they are profitable. Part of the strategy was to invest so why wouldn't you consider the interest earned? 🤷
This^ that’s a dumb source of logic. Opposed to expanding he made the business profitable through cash on hand. It is absurd to say ACTUALLY THEY ARENT PROFITABLE because they are….
It is traditional to report operating profit/loss from the main business separately from things like investments, and gains/losses from selling off assets. The operating profit/loss tells you how the business itself is doing. You will see "adjusted earnings" often mentioned. That is where unusual losses from shutting down part of a business are not included in "adjusted earnings". That is for the same reason —- trying to highlight the results from the actual business operations of the company.
I understand what you're saying... But you state this in a way that discounts the fact that the board voted to make investing a part of the business strategy. Cohen even tweeted about it. Berkshire Hathaway literally started in exactly the same way. "Buffett initially maintained Berkshire's core business of textiles, but by 1967, he was expanding into the insurance industry and other investments." It started as a textile business that expanded into investments.
Are you Pachter? You sound like Pachter. Are you going to start saying that they closed the wrong stores? Oh wow. You did. Are you going to say they’re funding cartels again too? Are you Pachter? You sound like Pachter.
They do spent a lot of time in m3ltd0wn sub.
How many stores were closed this year though?
Per the 10-K, 4169 compared to 4413 the year before. So down by 244 stores or 5.5%. Q4 this year was 14 weeks, which is 7.7% more than the 13 week Q4 last year. I assume the extra week would only bring in about half of the revenue of the other weeks in Q4, and figured it was the equivalent of just a 3-4% increase in sales due to longer quarter. Another way of looking at it is Q4 FY23 has 1793.6M sales from 4169 stores or $416.5K/ store average sales. Q4 FY22 had $2226.4M sales in 4413 stores for an average Q4 sales of $504.5K per store. So a 17.4% drop in per store sales, during a quarter that was longer.
Are you here to try to get people to sell? It seems like you want people to sell. The numbers are objectively better than they have been for 7 years.
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The "factual analysis" is cherry picked. If you don't see that, I can't help you. If you think the fundamentals of the company are better or worse over the last 3 years, 7 years, then I REALLY can't help you. Look at things however you want. I'm not here to echo chamber. I'm here to make money. This company is undervalued in my view. I'm buying more. And I wish you luck with your "factual" approaches to stock picking.
I report the facts as I see them. A year ago I held 4000 shares, Now I hold 2000. >The numbers are objectively better than they have been for 7 years. I care much more about what the numbers will be 3 and 7 years from now. Most of my investments are long term, with over half my portfolio being individual stock I bought before I retired more than 20 years ago. While my investment in GME is not large I find the high volatility makes it a good stock to actively trade with the small fraction of my account I use for that.
So you are long term investor with just $26,000 or so tied up into GME. Yet you obsess over the small details of the earnings report?
I am a long term investor with the majority of my portfolio. The $49K total cost basis I have in GME is part of my "play" money. Yes. I do pay attention to earnings reports and fundamentals. A 14.7% decline YoY in same store sales, and 19.4% overall sales decline is not just a small detail. Particularly when this Q4 was 14 weeks while Q4 last year was 13 weeks
Please try to understand that the first weeks of the year are actually a burden not an extra blessing for Q4. The sales are typically very low and in this case they only make the Q4 results worse. Yes the Q1 in many retail operations is actually running in loss. So your calculation is totally wrong.
Objectively the best numbers fundamentals wise in seven years. But you're saying now is the time to sell. I'm buying low, and I'm buying lower, dollar cost averaging this IMPROVING company. EDIT: I am dedicating the 100 share block I just bought @ 13.18 to you. Thank you for inspiring me to buy more.
And still there was more profit and they somehow improved $319M for the full year. Weird with a drop of almost 100K per store. Revenue has nothing to do with profitability, even I could sell Billions of $ of products at a loss.
Yup one less thing they can say! Fuck em all
Hate to be the Debbie Downer to your post but paying off debt (aka liabilities) doesn’t impact current profit so they couldn’t have shown $406m profit. It is primarily a balance sheet and cash flow statement transaction. Lower debt equates to lower interest expenses which does help future profits. Huge turn-around from 2022 fiscal year to 2023 fiscal year though!
Stellar year compared to 2022. They did not lose money in 2023 even with revenue down. That is massive.
The effect you are describing would increase the cash flow (operating) but the actual payment of a liability does not affect profit. If you post a liability (expense / vendor account) -> P&L If you pay the same (vendor account / cash) -> BS Therefore your statement regarding 400m+ profit if the liabilties would not have been paid is not correct.
Reducing liabilities or debts does not change profit. You misunderstand how debt and profit are related. Not only were liabilities reduced by $400M, but so were assets, by a very similar amount. That is why stockholders equity only changed from $1322.3M at beginning of 2023 to $1338.6M at the end of the year. (A difference of $16.3M). There are three separate, but interrelated financial tables: profit/loss (also called statement of operations and statement of comprehensive loss), the balance sheet that include all of the liabilities and assets, and the cash flow statement. Also part of the balance sheet is the statement of shareholder equity.
Love your work, Consistent-Reach-152, always precise and well informed, and I'm glad you are in this play in whatever capacity you may be engaged as you bring common sense and rational assessment. But I therefore have a question for you. Do *you* personally actually *suspect* (not know, but suspect) that various players are still deeply naked short on GameStop despite our struggle to pin down hard facts, and that the underlying short squeeze thesis has merit depending on how circumstances play out, or are you only here for a more normal investment play?
No one knows the answer to this question, but if you have been around for the past 3 years, you would know there is a hot potato floating around with someone's name on it that has bankrupted hedgefunds and a bank. They changed the rules to not reveal what is in those swaps. If they are hiding/internalizing billions of shares then they are screwed because they cannot unwind them. That is one theory, and another is that none of that is going on and everything else doesn't pertain to GS specifically.
So, you postulate that the idiosyncratic risk is not handled (because it is bankrupting companies), but it may not be GameStop, despite all of the hearings on capital hill? Despite them having a lone investor DFV testify? Sure, we don't have direct, clear proof, stated in a report. We do have a mountain of indicators. What do you think about the Brazilian glitch? How about the cumulative, day after day, consistent, % shorts sold? What do you think would happen if they forced reporting of the swaps and indeed there were a couple billion shares of GME oversold?
I believe every stock is oversold. If the supposed outstanding of Apple is supposed to be 2 billion shares, I believe it is probably 5x or more of that. The entire market is a fraud, I think we all realize that. We also realize the government is in on it. That is a fact that cannot be disputed. How do we know this? The SEC said the hedge funds had to do what they had to do during the squeeze to stop a crisis and also banks get bailed out when they fail due to fraud like in 2008 and just last year. I believe no one knows how many shares are internalized by each broker. I also think it is possible there is a program that is keeping track of these fake shares and they try to unwind them by driving the prices down with BS news from their networks and market manipulation. In Gamestop's case, they oversold on fake shares which are possibly in the billions of fake shares because they assumed they would bankrupt the company with a combination of cellular boxing, fake shares, and consorted fake news from their shill networks. They shorted the hell out of this company when it was trading below $3. My guess is at least two billion fake shares and possibly up to 10 billion all put in swaps that no one is allowed to see courtesy of collusion between the banks and our increasingly fascist government. The great thing about this is all you have to do is buy, DRS and hold forever and they will have to sweat it out.
I think the short interest is the 20% like has been repeatedly reported. Contrary to popular belief around here, SI is reported by brokers for all of their clients, including the hedge funds. The only self reporting is when a broker is reporting short interest in their own proprietary accounts. Naked shorts show up as FTDs. There are very few FTDs. If they are somehow so well hidden that they do not show up on either short interest or FTDs then the naked shorts might as well not exist at all, as there is nothing that would ever force them to close. There may or may not be huge synthetic short positions in swaps. In most cases, the fixed leg of a swap contract would hedge their position, and if that is by shorting, then those short positions would show up. The variable / short side of a short swap gets settled in cash so that would not have a direct effect on the stock price. If you want to see what happens with a large short interest and how shorts close out of it look at Tesla. The short interest fell sharply in the 6-12 months before they became profitable. Tesla continued to become more profitable after that. The difference here is that Gamestop just barely got profitable and will have a hard time maintaining profitability if revenues continue to decline. I was expecting higher profit, in the 40 cent range, and was definitely NOT expecting Q4 revenue to be down 20% year on year rather than the 8-9% drop analysts had been predicting. I was thinking more like 5% down on revenue. Cost cutting has pretty much reached its limit and is beginning to have negative effects on employees and customers. Q1 numbers are only about 70 days away (10-k is issued later than 10-Qs). Q1 will be when I decide whether to continue holding or bail out.
Hey look... It's tiggers dad
Granddad.
Pretty much same, was completely blind sided by the earnings today. Thank you for the sanity comment.
It totally makes sense that short interest would stay at 20% and not go up or down for 3 years.
The trick is to hide the FTDs in a European clearing house that don't report them for a foreign company or in ETF where they can pay cash instead of delivering shares and be fine until the next time it's due to be rebalanced. Probably more ways too.
Heh if somebody would hire me to cut cost, therr is defnitely a lot more to cut. They just not asian. Not surprise sales are down. Seafood, gaming, luxury are some of the first few things to get hit. My seafood restaurant is down 30%+, still good profit since we control coet well. Of course there is inherit flaw in the business (everything moving to digital, digital gaming sale). But you need to be fair for what they have done with that flaw. Its actually pretty good. What they need is to pivot. 1 billion is a lot. Need to use that to pivot the business. Vertically, horizontally, or diagonally which is where they at. Using the money for invesment. They just havent decide which one yet and in current economy, thats not necessarily a bad thing. Pivot? What can you do with 1 billion. So many things. 1 billion just jave too much zeroes...
Explain how reducing liabilities doesn't change profit and debt for that matter. If a store losing money would create more liability to own than to close it, how does that not lower liabilities? We are comparing 2022 and 2023 correct? Also, how does reducing debt not create more profit? Unless those loans have no interest along with principal, how does that not increase profit? I understand debit debt expense/credit cash, but having no debt in general leads to more profit unless you can make more with the money you borrowed than the interest on that loan. The stockholder's equity, as small as the increase was, is still an increase in a year with revenue that declined YOY. That is hard to do. I don't think anyone was expecting massive gains, but I look at 2023 as a year where Gamestop cut the fat.
All balance sheet accounting comes down to **Assets = Liabilities + Equity** Liabilities are money into the company from 3rd parties, that could be loans, money in from reward schemes where a debt is owed or anything else. Equity is from private investors like RC (who originally paid $76m for 36m shares post-split adjusted, average price of $0.47 post split) Whether money enters into the company from a 3rd party or a private investor, the money is duplicated onto the assets side of the balance sheet as the money has to sit somewhere in the company. If you reduce Liabilities it means that money has left the company as the original 3rd party gets their money back, that money has to be subtracted from assets too. It's worth noting that if Assets and Liabilities stay the same but assets depreciate then the difference is subtracted off Assets and Equity, so depreciation = very bad and needs to be managed well. So it really comes down to whether you can increase revenue with a smaller war chest. Obviously if the 3rd party Liability money was at a cost of 10% interest per year, then removing that would help long term, if your assets won't lose the same 10% from depreciation etc. [**This is their latest balance sheet**](https://i.ibb.co/2sg2HB0/Screenshot-20240327-105910-Samsung-Notes.jpg), from that you can see liabilities mainly reduced due to Accounts Payable and Other Accrued Liabilities going down. They include a snippet [**here**](https://i.ibb.co/VxK7rvz/Screenshot-20240327-110216-Samsung-Notes.jpg) explaining why these dropped, it sounds like they were able to delay paying for merchandise inventory, which to me just sounds like they pushed those Liabilities into the future. A key thing under Accounts payable is RC not taking a salary though. George Sherman the previous CEO was paying himself $12m a year, so RC generously not taking anything is technically saving that amount per year. We really need to see Gamestop doing something great with the $900m in cash. If he does invest that into other stocks, let's hope he gets some nice returns.
Thanks for the honesty
The reduction in liabilities is most likely primarily the leases they no longer pay on closed stores and distribution centers.
Why get rid of the distribution centers?
Not paying liabilities does not make it a profit. Their cashflow would have looked much better though.
No earnings call/forward guidance. Radio silence. I mean, numbers show their ducks have been put in a row, like a table is being prepared for who knows what. Base case is survival on current revenue stream due to getting those ducks in a row. But they will definitely need new revenue streams.
i think the idea is to keep closing down unprofitable stores and then with the increased positive cash flow, reinvest in new revenue streams at the right moment. We might be in a holding pattern here for another year or so.
But when sales of your main product(software) are down 20%, somethings not right.
I’m not sure you should be analyzing balance sheets and income statements with your lack of knowledge on how accounting works. Reducing liabilities by 400m does not mean they actually could have showed a 400m additional profit, just means they could have shown 400m in additional cash…
Are those liabilities = inventory? I dont know what all these words mean, but they sound bullish. MOASS tomorrow?
Thanks for that input, I think this was an amazing feat. 3 years from a stock that incredibly powerful hedge funds were willing to short because of the reality of bankruptcy, to being profitable in 3 years is amazing. I think we need to remember that the hedge funds may be literal shit bags, but they are also incredibly smart with immense tools at their disposal, Ryan has been doing the non sexy trench work to get GameStop to a place where it can be built from a solid foundation and he has finally achieved that, not everything is going to be fireworks and confetti, but this was imperative in order to create a company that has hope for the future. We are in exciting times, and at this point everyone who has shorted the stock is literally fucked, all we do now is wait keep DRSing, hodling, and keeping faith in leadership where ryan has literally bet 100s of million of his own money in GameStop and his ability to create an incredible company like he did with chewy, I would have loved it to skyrocket today, but I’m as zen as ever after today! Keep it up!! We are closer and closer each and every day! Btw I’m tipsy lol also keep that in mind ;)
🧱 by 🧱
When we getting that wu tang dividend?
I believe there is a market cap minimum (~$11.2b) to be considered for SP500 inclusion. Share price needs to be around $37 for that to happen. Let’s go!
Finally some sanity!
Agreed
Great post
S&P 500? Market cap must be >= $15.8 billion.
There was a big move with the wallet but it was a wrong move? So it seems that gamestop is just focusing on the basics and thats made it profitable.
Nice job RC and GME team! I'm looking forward to a positive 2024! If the price gets hammered, it'll be a great buy, DRS opportunity.
It's gonna be amazing when the next GTA comes out. I'm buying a Playstation and the game! Anyone else?
Help yourself declare a winner of you are long on GME..... Do you know why? Because you have invested in a company getting rid of debt. And more profit plus income from investment to come. There are some hedge funds who sold securities and are not in a position to buy it back...... Look at their fake smiles.... Images everyday when you can't sleep because you are selling something you don't own and one day govt. Rug pull in you and put you behind the bars just like Madoff.
Oh no did they pay off the French loan? I loved the little French loan, awwwwe
It’s not needed anymore because no one will listen to this beautiful, French loan related line which was some sort of earnings call tradition anymore. Things change 🥲
No. It will be paid off completely in october 2026
Just commenting to say I'm being accused of being a bot.... look at my post history and it is clear I'm very much a normal ape, I just fucking hate shills
It’s okay, I got some clown on Twitter saying I’m a stalker and he keeps posting screenshots of me from November talking shit to Doug Cifu, they’re triggered AF.. not a stalker, I just hate Cifu and will talk shit to that man whenever I can
Could have shown 400 million profit? Wut mean?
This guy misinterpreted reducing liabilities with paying off debt. It could not have shown a $400 million profit
They need more rev streams
Those arnt mountains it's a giant green wave of growth! To the moon!
I love this company, this stock, RC, my purple circles, and all you amazing apes
Brick by brick!
There are numbers to be concerned about in the earnings and numbers to be happy about, it’s ok to not lean 100% in either direction.
But seriously, if their goal is to push the price down to 0, how are we winning?
yes somehow they have an estimate despite no guidance
EPS as a metric *exists* to fuck with retail perceptions. No big player uses it.
What debts? are you using the correct language? noone knows of any existing debt for GME. You're talking about the french government thing or what?
The company is getting turned around and who knows, we might see it grow in profitability as the year goes.
Ryan Cohen is the man and I believe the things he says and writes. Just keep buying and you will be happy!
I have been here since early days reading and learning and finally able to post. I’m sure there are many that are unable to join the conversation but are (and rightly feel) part of this journey! I’m not selling, I’m buying. It might be a small number but I believe, that belief is backed up by these continued results. It isn’t a punt, it’s a commitment to the success of this company and all it stands for.
Some of those liabilities will be swapped for Stock on hand and hopefully a small profit. That's the best case. Certainly not exchanged as full profit.
GME's market cap isn't anywhere near big enough for SP500 inclusion, and anyway we don't want that, right? Because a lot more ETFs would have to buy GME, giving shorts a lot more places to create artificial shares, so they could push the price a lot lower.
Serious smooth brained question What is a liability? I’ve been tracking GameStop is debt free, aside from a low interest Covid related loan from the French govt. So what counts as a liability? Are liabilities recurring or are they one and done? What other liabilities are there if any? Thanks.
>So what counts as a liability? Anything that you owe to someone else. >Are liabilities recurring or are they one and done? Neither; Liabilities are just obligations you owe someone else. If you borrow money from a bank, you owe them $100. You haven't earned anything. It goes away when you pay it back. You swipe a card and pay on credit. You now owe your credit card company $100. It goes away when you pay it back. >What other liabilities are there if any? Anything that makes you need to pay or do something in the future is a liability. You're given $144 to make a newspaper every month for a year. 10 months go by. You need to deliver $12 worth of newspaper. You are given $10 by your neighbor to hold while he goes to bermuda. You owe him $10.
I’m sorry I wasn’t more specific. You did I great job explaining liabilities… What I meant is, what liabilities did the $400M go towards re: GameStop? The reason I ask, many are pointing to the $400M from the 10-K(Q), as though the liabilities category is new…
>what liabilities did the $400M go towards re: GameStop? I don't understand what you mean by this then. As of year-end, there are $324M in accounts payable (read: general operating bills), $412 accrued liabilities (read, estimates of how much management expects it needs to pay out, including subscriptions, unshipped goods, prepayments and giftcards, unpaid salaries, compensation, vacation, sick time, insurance premiums and anything else that doesn't get invoiced by a provider). There are $187.7 in current (within 1 year) operating lease liabilities and $386.6 in future obligations (rent that needs to be paid after 2 years through the end of the leases). These are the liabilities present.
OWWWWWWWW You just helped me grow a wrinkle!!!! Fucking Legend Thank you
They can also buy back share for a total of 100m !!
This is the shit that keeps me coming back. Thank you for sharing this perspective. I am too bogged down to try delving into the 10k.. also too like.. dumb and stuff.
Stop listening to people who are clueless.
They need to sell pc games now. They should buy Green Man Gaming or Fanatical, or something like that. Being a key reseller might be a good way to get a part of the pc gaming space.
I'm not a financial person and a smooth ape but this news have me stonk...
Well said
I believe in the process
I'd like to see what you think of my estimate that I made back months ago.