Game long

9 дек. 2022 г.

GME is good value based on its book value relative to its share price (6.06x), compared to the US Specialty Retail industry average (8.76x)

GME's cash and short-term investments (1.04B) can cover GME's cash burn for the next year (405.90M), even accounting for increasing cash burn (88.51%

GME's short-term assets (2.58B) exceed its short-term liabilities (1.59B)

GME's short-term assets (2.58B) exceed its long-term liabilities (488.80M)

GME's cash and short-term investments (1.04B) can cover GME's cash burn (405.90M) for at least 1 year

GME's revenues are forecast to grow faster (6.23% per year) than the US Specialty Retail industry average (4.67%)

GME's revenue growth is accelerating - its growth over the last year (1.29%) is above its 5-year compound annual rate (-6.03%)
That's an increase of almost 8%

GME has gotten more efficient at generating Return on Capital (-30.27%) compared to 3 years ago (-39.13%)

Over 80% of GME trades are buys (long)
However the price remains low.
There are concerns about price manipulation.

Logic, in a normal.market if 80% buy and 20 % sell the price would climb, not decline.

The downward trading seems to be done of exchange, in dark pools.
investopedia.com/terms/d/dark-pool.asp

GME is transforming to a tech company that will enable gamers to own assets that they buy or earn in games.
They also created a market place for those items which has grown to be the second biggest marketplace within months.

as we experience the shift towards Web3, DeFi apps including NFT, Marketplaces are headed for more growth and with that experts have predicted that NFTs will continue to gain value.
Nft is one of the ways players will have ownership of their assets.

Global videogame revenue is expected to surge 20% to $179.7 billion in 2020, according to IDC data, making the videogame industry a bigger moneymaker than the global movie and North American sports industries combined.

And all those players will be able to buy and sell their in game assets.

Opensea is the biggest marketplace ATM. The GME marketplace is faster, 200% cheaper, already has many integrations and partnerships with Nintendo and Sony among others.

Its a long play, the development of nft and the marketplace take time.
With the current turmoil in crypto and the recession we should be patient.
But if GME manages to end on top, and they have been working hard and with results to show for it, the valuation would be in the 30 to 40 billion range.

At anything below 30 its a bargain.