Home / news / “Seeking Alpha” said : GameStop: The Downward Spiral Continues – GameStop Corp. (NYSE:GME)

“Seeking Alpha” said : GameStop: The Downward Spiral Continues – GameStop Corp. (NYSE:GME)

referring to

Comparable store sales declined 16.3% overall, with a 20.8% decrease in the U.S. and 4.6% drop-off internationally.
It is less profitable for sales to be growing by adding stores, as compared to comparable store sales growth, because it is expensive to ship the goods to more locations.
It is worth mentioning that GME’s Technology Brands segment, which is not included in comparable store sales, increased 43.9% to $256 million last quarter.
Final RemarksWith management removing quarterly guidance, on top of comparable store sales declining, I am staying away.
Further, I believe these estimates are overly sanguine since I think its comparable store sales will decline much more precipitously than management is projecting.

Stop Screaming ‘Fire’ And Read The GameStop Bull Case – GameStop Corp. (NYSE:GME)

Stop Screaming 'Fire' And Read The GameStop Bull Case - GameStop Corp. (NYSE:GME)

And when gamers collect, they really collect,Much like many other retail names, GameStop’s cash flow stream is declining but still remains relatively intact.
Most people don’t think the dividend yield, which now sits at about 7%, is still sustainable.
They just need to keep the cash flow stream intact and survive.
While the business is definitely regressing, the company is still cash flow positive, still profitable, still quite unlevered and has a solid plan for the future.
GME Cash from Operations (TTM) data by YChartsOur next article is going to be a discounted cash flow model showing why we believe in the company’s cash flow stream.

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collected by :Molly Tony

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