$GameStop (GME.US)$ gme posted profit of 14.8mln this qtr as...
$GameStop (GME.US)$ gme posted profit of 14.8mln this qtr as compared to loss of 2.8mln last year same qtr. why the share price is down with such a good PNL😂
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Ken Griffin Charity : Profit = Revenue – costs and expenses
When revenue is down -31% from the previous year and GameStop nets a profit, it means that operational costs have been significantly cut. For example, GameStop shutting down a 33 year old gaming magazine: Game Informer Magazine Shuts Down - CNET and announcing significant layoffs: GameStop Layoffs 2024: What to Know About the Latest GME Job Cuts
But sure, who needs balance sheets?
TheOracleOfHindSight Ken Griffin Charity : Thx K G C2 Well put. Facts don’t lie. The report was awful. They’re basically restructuring the entire company again they’re about to offer millions upon millions more shares of stock in order to try and get some corporate revenue to do new and different things while laying off tons of their staff and closing more stores.
Ken Griffin Charity TheOracleOfHindSight : Pretty much. Here are the simple facts:
1) GameStop has announced no business transformation plan
2) GameStop has $4b cash on hand
3) GameStop announced a 20m share offering
Why would a company sitting on a $4b war chest need to raise more money? The answer is simple: it has no faith in its ability to turn its business around in a declining industry and needs the cash in order to survive.
GameStop is to the gaming industry what the steam engine is to the energy industry. No one has any interest shopping at GameStop, and the declining revenue proves that.
安安稳稳过日子 : Management cutting down on loss making operations and focus on those that is profitable. This is bullish.
TheOracleOfHindSight : Right and the only reason that they’re issuing 20 million new shares of stock is they want to do it now while the stocks above $10 a share to try to get that value out of it. And that might be all that yet too by the time this thing shakes out it certainly about all they deserve. I know deserve $24 a year. That’s for sure. And the Worchester sitting on is completely and 100% simply the money they got from issuing 300 million plus shares of stock earlier. Had they not done that I’d be sitting on a empty bucket right now. And while that’s all fine and good that additional amount of shares of stock that’s floating out there and on the street is the one thing that is going to keep the stock from ever squeezing again. The meme guys no offense to them wonderful guys I think and a lot of heart for real a lot of heart. They just don’t have enough money to hang onto enough shares. There’s always gonna be enough for these guys to pour themselves back to stability with those 380, million shares out on the street now it’s gonna be 400 million shares on top of what was there And these are all new shares since Roy and Kitty did what he did. God bless that maniac, but it’s not happening with this stock ever again or if it does it’ll be a miracle.