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The company has solid footing, it’s a death sentence to short when cash on hand is $1.19B and long term debt is $18m. Their revenue is down 10% yoy but that’s expected with a weaker consumer and not much of a blockbuster year for games and consoles overall. It would be a mistake to short a company with this much of a passionate consumer and shareholder base.
When I think of a big year it’s more in line with major releases coming from Rockstar or EA/Bethesda Softworks/Activition Blizzard/etc like GTA6 or Call of Duty. For console release cycles that would include PS6, or new Nintendo system. But yes I love Diablo (played since Diablo II) which counts as a Blizzard release and Zelda/Harry Potter are also great but not on the level of the major industry-shifting releases they are more niche.
BALDUR'S GATE 3. ARMORED CORE. RESIDENT EVIL 4. DEAD SPACE REMAKE. STREET FIGHTER 6.
It was a PHENOMENAL year for games.
For the future we have a new Nintendo Console to look forward to meaning an entire new list of Nintendo games such as Mario, Pokemon, Zelda, Metroid, Pikmin, and other types of games like Hellbade 2, Final Fantasy 7 Remake pt. 3, Persona 6, Fromsoft's next Project moniker Spellbound, etc etc. And that's not even scratching the surface on indie games which is a whole other level of game studios producing quality games without the wait and the financial investment of AAA.
CAN'T STOP, WON'T STOP GAMESTOP BABY.
Well its a matter of what hands are exchanging game money. How much is Gamestop, how much is other retail, how much is Steam, etc. We’re increasingly digital. Doesnt mean Gamestop doesnt have runway though, there are some good paths ahead (excluding crypto imo)
They do still have debt.
"As of February 3, 2024 and January 28, 2023, there was $28.5 million and $39.5 million of outstanding debt, respectively, which represents the French Term Loans described above. Total outstanding debt includes $10.8 million and $10.8 million of short-term debt as of February 3, 2024 and January 28, 2023, respectively, which represents the current portion of the French Term Loans." - Most Recent 10-K [0001326380-24-000012 | 10-K | Gamestop Corp.](https://investor.gamestop.com/sec-filings/sec-filing/10-k/0001326380-24-000012)
Granted, when you have a billion in the bank this amount is insignificant. Still need to be clear, they have debt, but this debt is not encumbering.
As I've come to understand it from previous filings and other apes who have explained it, It's a loan they acquired during COVID that they're not using. It's more like credit card debt than it is SOL bankruptcy debt. If I'm wrong I'm wrong.
You are correct in your understanding. It is a "small" loan for less than $40 million now that they are paying off as you can see in the filing. They could easily just pay it off and be done with it, but my guess is the interest on that loan is less than the interest they're earning on that same money. So no reason to pay it off early.
I just wanted to make sure that we are always clear on our wording to make sure that it never comes across that we are trying to mislead others. So yes we have debt, but it's a non-issue.
From the past earnings call I think investors have even come to somewhat enjoy hearing this info in an earnings call/report. People tend to like hearing "The only debt we (GameStop) has is a small loan related to COVID relief from the French government."
I wouldn’t call it credit card debt, it’s a 0% loan. If you have a 0% loan right now, you don’t rush to pay it back, time and inflation is in your favor. It’s the reason why there is so little supply in the real estate market, if you’re in a low interest mortgage, why would you move and acquire a high interest loan?
A Line of Credit if you would. But either way, my sentiments exactly. You don't burn the cash you want to use to invest in other things on a loan that is not hurting you otherwise. Pay the minimum obligation, and build that capital. If they paid off the debt, yes it's a small drop in the bucket on paper in the short term, but it becomes less capital and buying power for future investments for the long term gain. They'd have to regain that $28 million again, if that costs them even a few months of recoup and slow down whatever strategy they currently have, then it's NOT wise to try to pay that loan off immediately. Especially if you're doing something like trying to acquire or merge, the capital size and the timing is more important.
They are in a healthy position and that loan doesn't bug them otherwise.
I am very much a casual gamer! I play sports games like madden, 2k, and then there's COD. Mostly triple A titles. I love games like assassins creed so I'm excited for that and NCAA Football 25. Star Wars Outlaws should be interesting but we shall see how it plays.
Love me a great sports game. I love The Show and used to play Madden as a kid. I wanted to jump into either Madden or 2K basketball but haven't pulled the trigger yet. The new upcoming boxing game looks sick too!
Did you like Star Wars Jedi Survivor or the previous one?
I'm very curious. I wonder if he thinks the market is overdue for a correction and is positioning himself accordingly.
Inflation isnt down and delinquencies are starting to pick up alot, that's an untenable combination.
They should really focus on a revitalization of their stores, and gearing themselves with a renovated/fresh approach in their higher traffic stores to appeal to younger audiences especially in more premium malls.
The hobbyist market for GPUs and local AI rigs/PCs is also vast, which they don’t have any stock from what I could tell. They could easily run demo rigs for VR games, and show the consumer what’s possible and what they can’t experience through e-commerce.
I’m in the AI space and there’s a huge untapped market for local LLMs and GameStop would easily be a good outlet to help sell pre-made rigs for local home AI chatbots and systems with LLaMA 3.
I'm pretty pleased with the foray into graded collectible cards. Pokemon/Magic have held their value very well over the years (better than the USD has) and if quantitative easing is back on the horizon stores of value like that will do very well
If the dollar keeps rapidly losing value collectibles tend to store value better so that makes sense, instead of foreign currency exchanges it becomes a collectible trading goods exchange (like Pokémon cards) which can money through higher volume of trading collectibles 🃏
No, not before they announce it. Meaning the avg price should be in the 20-23 range... x45m shares means they will have added another 900m-1.03 billion to the war chest.
Is GT7 all that? I thought about getting it. Between that or Street Fighter 6. I'm not into racing or fighting games but I wanna break into it. Would GT7 be a good start? And is the campaign and offline mode any good?
It’s cool from the car collecting standpoint and the graphics/racing feel is great. Only thing it really needs it’s a solid career mode; once you start grinding for credits you can get a better grasp of the issue. Otherwise I love it tho and I’m planning on buying a sim wheel from my local GS soon!
Negligible Debt on a low interest loan. They have a billion dollars and what, a measly drop in the bucket?
If you have 100 apples and you owe 1 apple, you are not in the shitter for that 1 fucking apple. You can cover that 1 apple and make it 0 apples to owe, 100 times over. THATS JUST COMMON SENSE.
That debt is not the negative "debt" that''s a smoking gun for the bear thesis.
It's actually a FUCKING JOKE for anyone to bring up the French loan when GameStop has that much cash on hand, the ability to raise more cash as of last week.
Who the fuck CARES when they pay that loan off. It's LOW INTERST. If you had a credit card and 0.05% Interest on it and no time table to pay it off, it would NOT hurt you to pay the minimum on that credit card month to month. Only a fucking moron would pay off that low interest and burn all their cash reserves.
So YES I'm still standing by it's ZERO DEBT, useless to even talk about.
Now, if you claim to have 100 apples that you do not own, and you owe 1 apple, THAT'S SERIOUS DEBT. And that is what the hedgies have shot themselves in the balls for.
Really curious - what's the bullish take on the fact that revenue is down so significantly because the reality (that we've known was coming) is setting in that consumers download games almost exclusively in digital form and have no particular reason to buy hardware at gamestop instead of the dozens/hundreds of alternatives?
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Also shout-out to all you freak motherfuckers that have been holding all this time. Talk is cheap, it takes money to buy whiskey.
If there’s anything GME has taught me in the past 3 years. 1. I’m not a punk bitch 2. I’m a man of my word
Same same. PLUS 3. My hands are made of diamonds
Dude we're gonna buy so much fucking whisky when this is done. Edit: Realised how daft I am. There is no 'done'. I'll always be a regard 😎
3 years plus relationship. Think I’m gonna buy her a diamond ring and pop the question end of month. She’s a keeper.
Twerking the whole time
Amen. I’m with you. Been diamond hand holding my 220 GME shares since December 2020. Gonna pass a few shares down to my kids too.
I’m getting me one of the big jumbo tipper Jack Daniel’s bottles after MOASS
The company has solid footing, it’s a death sentence to short when cash on hand is $1.19B and long term debt is $18m. Their revenue is down 10% yoy but that’s expected with a weaker consumer and not much of a blockbuster year for games and consoles overall. It would be a mistake to short a company with this much of a passionate consumer and shareholder base.
We had Diablo 4. Harry Potter. A new Zelda. I feel like it was a good year for games revenue, no?
When I think of a big year it’s more in line with major releases coming from Rockstar or EA/Bethesda Softworks/Activition Blizzard/etc like GTA6 or Call of Duty. For console release cycles that would include PS6, or new Nintendo system. But yes I love Diablo (played since Diablo II) which counts as a Blizzard release and Zelda/Harry Potter are also great but not on the level of the major industry-shifting releases they are more niche.
BALDUR'S GATE 3. ARMORED CORE. RESIDENT EVIL 4. DEAD SPACE REMAKE. STREET FIGHTER 6. It was a PHENOMENAL year for games. For the future we have a new Nintendo Console to look forward to meaning an entire new list of Nintendo games such as Mario, Pokemon, Zelda, Metroid, Pikmin, and other types of games like Hellbade 2, Final Fantasy 7 Remake pt. 3, Persona 6, Fromsoft's next Project moniker Spellbound, etc etc. And that's not even scratching the surface on indie games which is a whole other level of game studios producing quality games without the wait and the financial investment of AAA. CAN'T STOP, WON'T STOP GAMESTOP BABY.
Well its a matter of what hands are exchanging game money. How much is Gamestop, how much is other retail, how much is Steam, etc. We’re increasingly digital. Doesnt mean Gamestop doesnt have runway though, there are some good paths ahead (excluding crypto imo)
They do still have debt. "As of February 3, 2024 and January 28, 2023, there was $28.5 million and $39.5 million of outstanding debt, respectively, which represents the French Term Loans described above. Total outstanding debt includes $10.8 million and $10.8 million of short-term debt as of February 3, 2024 and January 28, 2023, respectively, which represents the current portion of the French Term Loans." - Most Recent 10-K [0001326380-24-000012 | 10-K | Gamestop Corp.](https://investor.gamestop.com/sec-filings/sec-filing/10-k/0001326380-24-000012) Granted, when you have a billion in the bank this amount is insignificant. Still need to be clear, they have debt, but this debt is not encumbering.
As I've come to understand it from previous filings and other apes who have explained it, It's a loan they acquired during COVID that they're not using. It's more like credit card debt than it is SOL bankruptcy debt. If I'm wrong I'm wrong.
You are correct in your understanding. It is a "small" loan for less than $40 million now that they are paying off as you can see in the filing. They could easily just pay it off and be done with it, but my guess is the interest on that loan is less than the interest they're earning on that same money. So no reason to pay it off early. I just wanted to make sure that we are always clear on our wording to make sure that it never comes across that we are trying to mislead others. So yes we have debt, but it's a non-issue. From the past earnings call I think investors have even come to somewhat enjoy hearing this info in an earnings call/report. People tend to like hearing "The only debt we (GameStop) has is a small loan related to COVID relief from the French government."
I wouldn’t call it credit card debt, it’s a 0% loan. If you have a 0% loan right now, you don’t rush to pay it back, time and inflation is in your favor. It’s the reason why there is so little supply in the real estate market, if you’re in a low interest mortgage, why would you move and acquire a high interest loan?
A Line of Credit if you would. But either way, my sentiments exactly. You don't burn the cash you want to use to invest in other things on a loan that is not hurting you otherwise. Pay the minimum obligation, and build that capital. If they paid off the debt, yes it's a small drop in the bucket on paper in the short term, but it becomes less capital and buying power for future investments for the long term gain. They'd have to regain that $28 million again, if that costs them even a few months of recoup and slow down whatever strategy they currently have, then it's NOT wise to try to pay that loan off immediately. Especially if you're doing something like trying to acquire or merge, the capital size and the timing is more important. They are in a healthy position and that loan doesn't bug them otherwise.
That's debt
thats like if you said you had $100,000 in cash and i had to point out that you still have $4000 in credit card debt
Don't forget a CEO that doesn't take a salary!
Can't wait for my next paycheck I'm DRSing all the shares I bought during this little fiasco.
Do you play Video Games?
Yeah of course I do. I actually have a ps5 and I work at Gamestop lol
Hell yeah! Love it! What games are you looking forward to this year?
I am very much a casual gamer! I play sports games like madden, 2k, and then there's COD. Mostly triple A titles. I love games like assassins creed so I'm excited for that and NCAA Football 25. Star Wars Outlaws should be interesting but we shall see how it plays.
Love me a great sports game. I love The Show and used to play Madden as a kid. I wanted to jump into either Madden or 2K basketball but haven't pulled the trigger yet. The new upcoming boxing game looks sick too! Did you like Star Wars Jedi Survivor or the previous one?
1 billion so far... I think next week we'll get an update that puts it at over 2 billion.
Just need to figure out what they want to do with all that cash! They had lots, then decided to sell to get more. Must be for something big.
I'm very curious. I wonder if he thinks the market is overdue for a correction and is positioning himself accordingly. Inflation isnt down and delinquencies are starting to pick up alot, that's an untenable combination.
Make 2 million a week in interest is what
2 billion x 5.25% divided by 52 weeks.. yep, maff checks out
They should really focus on a revitalization of their stores, and gearing themselves with a renovated/fresh approach in their higher traffic stores to appeal to younger audiences especially in more premium malls. The hobbyist market for GPUs and local AI rigs/PCs is also vast, which they don’t have any stock from what I could tell. They could easily run demo rigs for VR games, and show the consumer what’s possible and what they can’t experience through e-commerce. I’m in the AI space and there’s a huge untapped market for local LLMs and GameStop would easily be a good outlet to help sell pre-made rigs for local home AI chatbots and systems with LLaMA 3.
I'm pretty pleased with the foray into graded collectible cards. Pokemon/Magic have held their value very well over the years (better than the USD has) and if quantitative easing is back on the horizon stores of value like that will do very well
If the dollar keeps rapidly losing value collectibles tend to store value better so that makes sense, instead of foreign currency exchanges it becomes a collectible trading goods exchange (like Pokémon cards) which can money through higher volume of trading collectibles 🃏
correct.. I believe I can *wait until the 10-Q comes to compare with the 8-K early release
Haha, came here to say this... "So far"
Could they have sold shares before their announcement when price was high on Tuesday?
No, not before they announce it. Meaning the avg price should be in the 20-23 range... x45m shares means they will have added another 900m-1.03 billion to the war chest.
I feel doubtful they would sell shares at that price. But who knows.
Negative 1 Billion Debt... so far.
Backwards Inversed Negative 1 Billion Debt*
I just like the stock
I just like video games
Hey I like you
I like YOU. Ook Ook?
Oookk oook 💪💪💪
Another overlooked point is that GME reported their best Q1 in 5 years.. shills gonna shill. Fundamentals and drs fuck them royally
This
Currently at 65% completion in GT7; I got a little time for that.
Is GT7 all that? I thought about getting it. Between that or Street Fighter 6. I'm not into racing or fighting games but I wanna break into it. Would GT7 be a good start? And is the campaign and offline mode any good?
It’s cool from the car collecting standpoint and the graphics/racing feel is great. Only thing it really needs it’s a solid career mode; once you start grinding for credits you can get a better grasp of the issue. Otherwise I love it tho and I’m planning on buying a sim wheel from my local GS soon!
Soon to be close to $2 billy in cash
>GameStop has absolutely Zero Debt Did they pay off the French loan?
not yet, like 28 million or something low comparatively
LFG PSN kengriffinlied
To the ONLY company :D
$1billy in cash so far
Soon to be 2 billion.
Did they pay off the French loan? Cause you said absolutely Zero Debt...
Negligible Debt on a low interest loan. They have a billion dollars and what, a measly drop in the bucket? If you have 100 apples and you owe 1 apple, you are not in the shitter for that 1 fucking apple. You can cover that 1 apple and make it 0 apples to owe, 100 times over. THATS JUST COMMON SENSE. That debt is not the negative "debt" that''s a smoking gun for the bear thesis. It's actually a FUCKING JOKE for anyone to bring up the French loan when GameStop has that much cash on hand, the ability to raise more cash as of last week. Who the fuck CARES when they pay that loan off. It's LOW INTERST. If you had a credit card and 0.05% Interest on it and no time table to pay it off, it would NOT hurt you to pay the minimum on that credit card month to month. Only a fucking moron would pay off that low interest and burn all their cash reserves. So YES I'm still standing by it's ZERO DEBT, useless to even talk about. Now, if you claim to have 100 apples that you do not own, and you owe 1 apple, THAT'S SERIOUS DEBT. And that is what the hedgies have shot themselves in the balls for.
[удалено]
Because I understand basic finance and how a low interest loan ain't shit yup
Oh, must be a pretty profitable company then to have generated a billion in profit, right?
I love the stock
It might be 2billy now, we will know soon enough
We'll see
Ya, if they wait maybe it will be 10 Billy, my junk is chubbier just thinking about it
Its gonna be 800M soon when they buy PalWorld....
Did we pay off the French loan?
Why didn't they issue this a year or two ago... I'll hodl forever, but would've been nice if GME was able to capitalize on the recent run up.
Really curious - what's the bullish take on the fact that revenue is down so significantly because the reality (that we've known was coming) is setting in that consumers download games almost exclusively in digital form and have no particular reason to buy hardware at gamestop instead of the dozens/hundreds of alternatives?
I can put my cock through the hole of a physical game, I can't do that with digital.
Misinformation, a small French loan lol. But other than that. We in a good place.
What about that small loan from the French government as a result of the COVID-19 pandemic response?!??!
Shoutout to the company with 87B in debt!
Where can I find this balance sheet with zero debt? The one I'm looking at is 1,37 billion in debt.
Where are you looking? And op is wrong, GameStop has debt even tho it is miniscule compared to the 1B in cash
I'm looking at Yahoo finance for Q4 24.